Owl Creek Asset Management was founded in 2001 in New York by Jeffrey Altman, its current manager. Altman uses a combination of fundamental value and event driven strategies to invest in publicly traded stocks across the globe. His fund, Owl Creek Overseas Fund, has approximately $3.2 billion in assets under management. In 2012, the fund returned 11.1%, while in 2013 it rose 49% being among the top 10 best performing funds in the world.
An analysis of Owl Creek’s equity portfolio reveals some resemblances between the stock picks of Altman and those of the legendary George Soros. Both Owl Creek and Soros Fund Management are heavily invested in stocks like DISH Network Corp (NASDAQ:DISH) and General Motors Company (NYSE:GM). Let’s see why Soros and Altman like these and several other stocks.
One of Altman’s top holdings is DISH Network Corp (NASDAQ:DISH). During the fourth quarter of 2013, Owl Creek increased its position by 37% to 2.39 million shares valued at $139 million. George Soros is also bullish on this stock, doubling his fund’s position. The pay-television provider has a market cap of $27 billion and is traded at a Price to Earnings (P/E) ratio of 34.41. 2013 fourth quarter brought $3.1 billion revenues and earnings per share (EPS) of $0.46. The company is expected to post $3.58 billion and earnings of $0.44 per share for the current quarter.
Another important position is Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA). Owl Creek has initiated a new position during the last quarter and has acquired 1.18 million shares worth about $47.3 million. Soros Fund has also added a massive 158% to its position during the same period. Teva has a market cap of $47 billion and pays an annual dividend of $1.31, which represents a yield of 2.7%. The stock has been in an uptrend since November 2013 and is currently trading around $50 per share. The company posted revenues of $5.4 billion and EPS of $0.88 for Q4 of 2013.
Next up is General Motors Company (NYSE:GM), another new position initiated by Altman during Q4 of 2013. According to its latest 13F report, Owl Creek holds 1.4 million shares valued at $57.4 million. George Soros more than doubled his position, taking it to 4.9 million shares. Another fund that is heavily invested in GM is Warren Buffett‘s Berkshire Hathaway, which holds 40 million shares. The automotive giant has a market cap of approximately $60 billion and pays an annual dividend of $1.2 or a yield of 3.3%. General Motors announced $40.5 billion in revenues and earnings of $0.67 per share for the last quarter of 2013. Current quarter is expected to bring revenues of $38 billion and EPS of $0.54.
Another new position is Delta Air Lines, Inc. (NYSE:DAL). Altman has bought 1.22 million shares worth approximately $33.5 million. Coincidence or no, but George Soros has also initiated a similar position last quarter – 1.5 million shares. The carrier has a market cap shy of $30 billion and pays an annual dividend of $0.24, which accounts for a yield of 0.7%. The stock is traded at a trailing P/E ratio of 2.82, below the industry average of 4.70. For the three months ending December 31, 2013, Delta posted revenues of $9.7 billion and EPS of $0.65, surpassing market expectations. Analysts expect the company to register lower revenues and earnings during the current quarter: $8.9 billion and $0.29 respectively.
Both Soros and Altman have initiated position in Ford Motor Company (NYSE:F) during the last quarter of 2013. Owl Creek acquired 1.9 million shares, while Soros Fund Management reported ownership of just 191,693 shares. The company has a market cap of $61.9 billion and pays an annual dividend of $0.43, which translates into an yield of 2.8%. The stock is traded at a P/E ratio of 8.83 and has been trending sideways since reaching a recent high of $18.97 per share in January 2011. Ford registered revenues of $37 billion and earnings of $0.57 per share during the fourth quarter of 2013.
There is one stock that both managers have reduced exposure to: The Boeing Company (NYSE:BA). Altman has reduced Owl Creek’s stake by 22% to 597,852 shares, worth approximately $81.6 million, while Soros trimmed his fund’s holding by 20% to just 183,160 shares, valued at $25 million. The company has a market cap of 96 billion and pays an annual dividend of $2.92, which represents a yield of 2.30%. For the three months ending December 31, 2013, Boeing posted revenues of $23.8 billion and earnings per share of $1.88. For the current quarter, the company is expected to announce revenues of $21.2 billion and EPS of $1.57.
Disclosure: none.
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