Elite Hedge Funds Piling Up Shares Of These 3 Companies

Only a handful of people may know this, but there is a mutual fund that invests based on the 13D filings submitted with the U.S Securities and Exchange Commission. The mutual fund has proven to be quite successful over the years, having delivered yearly returns that significantly outperformed the broader market. Therefore, the Insider Monkey team pays close attention to the 13D and 13G filings of elite hedge funds, which might reveal some great trading opportunities pinpointed by reputable and successful hedge fund managers. Hence, the following article will discuss three such filings recently submitted by hedge fund firms tracked by our team.

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In a freshly-filed 13G with the SEC, Peter Kolchinsky’s RA Capital Management disclosed an ownership stake of 2.69 million shares in Strongbridge Biopharma plc (NASDAQ:SBBP), which account for 12.7% of the company’s outstanding shares. The biopharmaceutical company went public on October 16 through its initial public offering of 2.5 million ordinary shares at a price of $10.00. Strongbridge Biopharma plc (NASDAQ:SBBP) primarily focuses on the development, in-licensing, acquisition and potential commercialization of multiple products that target rare diseases such as endogenous Cushing’s syndrome and acromegaly. The company’s lead product candidate, COR-003 (levoketoconazole), is a Phase 3 cortisol synthesis inhibitor for the treatment of endogenous Cushing’s syndrome, which is a rare endocrine disorder characterized by sustained elevated cortisol levels. The company’s management has outlined a franchise-based business model that aims expansion through an in-licensing and acquisition strategy. The shares of Strongbridge Biopharma plc (NASDAQ:SBBP) are currently trading 24% below their IPO price, most probably as a result of the diminishing attractiveness of the biotech sector of late.

Let’s move on to the next page of the article, where we discuss the other two filings submitted with the SEC.

Another 13G filing disclosed that Luxor Capital Group, managed by Christian Leone, currently owns 5.04 million shares of Golar LNG Limited (USA) (NASDAQ:GLNG), representing 5.4% of its common stock. This marks an increase of 4.49 million shares from the position revealed through the investment firm’s 13F filing for the June quarter. Just recently, the midstream liquefied natural gas (LNG) company announced that its Cameroon floating liquefied natural gas project reached a crucial target with the approval of the Gas Convention for the project by all parties involved. This project is anticipated to generate EBITDA in the first full year of operations for Golar LNG Limited (USA) (NASDAQ:GLNG) in the range of $170 million-to-$300 million, based on the utilization of two out of four liquefaction trains. However, the operations are expected to kick off in the second quarter of fiscal 2017, so it will be awhile yet before the company benefits from the aforementioned project. Meanwhile, the shares of Golar LNG are 25% in the red year-to-date. It is also worth pointing out that the number of hedge funds with stakes in the company increased to 44 from 35 during the second quarter, with them amassing 28.10% of the company’s shares. Michael Thompson’s BHR Capital was the largest equity holder of Golar LNG Limited (USA) (NASDAQ:GLNG) within our database at the end of the second quarter, holding 3.21 million shares.

According to a newly-amended 13G filing, Peter S. Park’s Park West Asset Management holds an ownership stake of 1.94 million shares in Outerwall Inc. (NASDAQ:OUTR). This denotes a lift of 991,916 shares from the position revealed in its previous 13G filing on the company, submitted at the beginning of September. The freshly-disclosed stake accounts for 10.1% of the company’s outstanding shares. The shares of the provider of automated retail solutions have declined substantially since the company posted its second quarter financial results at the end of July, and are down by 17% year-to-date. Its DVD rental kiosk operator, Redbox, did not deliver great results in the second quarter, as DVD rentals decreased by 13.1% year-over-year. Many believe that Outerwall Inc. (NASDAQ:OUTR)’s Redbox business will keep weakening, as physical media formats continue to diminish in demand. The third quarter might have not been strong either, considering the weak slate of movies released. Even so, the company will report its financial results for the third quarter on October 29 after the market close, so market participants will get the chance to reassess the true potential of Outerwall’s businesses. In the meantime, 30 hedge funds tracked by our team had positions in the stock at the end of the second quarter, compared with 27 registered in the prior one. These hedge funds stockpiled 26.00% of the company’s outstanding common stock on June 30. According to our extensive database, Joel Greenblatt’s Gotham Asset Management was among the top stockholders of Outerwall Inc. (NASDAQ:OUTR) at the end of the June quarter, with nearly 768,000 shares.

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