Hayman Capital Closes Huge McDonalds (MCD) Put Position, Turns Its Bearish Gaze on This Health Stock

#2 Shire PLC (ADR) (NASDAQ:SHPG)

– Option Type: Put (Bullish)

– Shares Covered Under The Options Held By Hayman Capital Management (as of September 30): 111,000

– Value of the Holding (as of September 30): $21.32 Million

Moving on, Hayman Capital Management made a large bearish bet on Shire PLC (ADR) (NASDAQ:SHPG) during the third quarter in the form of Put options. This position would have yielded huge returns for the fund last month, when shares of the UK-based drug marker tanked by more than 13%. This decline in the stock also took a toll on the First Trust IPOX-100 Index Fund (ETF) (NYSEARCA:FPX), which counts Shire PLC (ADR) (NASDAQ:SHPG) as one of its major holdings. The First Trust IPOX-100 Index Fund (ETF) (NYSEARCA:FPX) tracks and seeks to replicate the returns of the IPOX-100 U.S. Index. As of November 2, Shire PLC (ADR) (NASDAQ:SHPG) was the fourth-largest holding of the First Trust IPOX-100 Index Fund (ETF) (NYSEARCA:FPX), accounting for 4.77% of the ETF’s assets. On November 14, analysts at Leerink Swann reiterated their ‘Buy’ rating on Shire’s stock while setting a price target of $198 on it, which represents potential upside of over 11%.

#1 NMI Holdings Inc (NASDAQ:NMIH)

– Shares Held By Hayman Capital Management (as of September 30) : 4.91 Million

– Value of the Holding (as of September 30): $37.46 Million

NMI Holdings Inc (NASDAQ:NMIH) continued to remain the top stock pick of Hayman Capital Management at the end of the third quarter, despite the fund reducing its stake in the company by 8% during that period. NMI Holdings Inc (NASDAQ:NMIH)’s stock has been on a solid uptrend since the beginning of July and is currently trading up by 33.68% year-to-date. According to analysts, the stock could see further upside going forward on the back of the numerous tailwinds that the mortgage insurance industry is facing. All five leading analysts on Wall Street who cover the stock currently have a ‘Buy’ rating on it, with an average price target of $9.88, suggesting upside potential of nearly 10%. For its fiscal 2016 third quarter, NMI Holdings reported EPS of $0.12 on $31.8 million of net premium earned, whereas analysts had forecasted it to report EPS of $0.08 on $30.28 million of net premium earned.

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