Here’s What This $41 Billion Hedge Fund Company Has Been Buying: Kraft Foods Group Inc (KRFT), ADT Corp (ADT), Dollar General Corp. (DG)

Molycorp has been struggling in a tough environment and recently worried investors with a surprisingly large share offering and debt issuance. (Some worry about further capital needs, too, and don’t like its negative free cash flow.) Still, for those who can accept considerable risk and volatility, there’s a lot of promise in Molycorp, in part due to its acquisition of Neo Materials Technologies and its potential to become a powerful low-cost producer.

Finally, D. E. Shaw’s biggest closed positions included Dollar General Corp. (NYSE:DG) and enhanced common stock in Citigroup Inc. (NYSE:C). Other closed positions of interest include VirnetX Holding Corporation (NYSEMKT:VHC) , an Internet software company with valuable patents. Some don’t like that it spends a lot of time in court, but such efforts have earned it a $368 million patent-infringement victory against Apple Inc. (NASDAQ:AAPL) that was recently upheld. Bulls like its potential in the growing 4G LTE market, but potential doesn’t keep the lights on and the company has not been generating revenue and earnings from operations.

We should never blindly copy any investor’s moves, no matter how talented the investor. But it can be useful to keep an eye on what smart folks are doing. 13-F forms can be great places to find intriguing candidates for our portfolios.

The article Here’s What This $41 Billion Hedge Fund Company Has Been Buying originally appeared on Fool.com.

Longtime Fool contributor Selena Maranjian, whom you can follow on Twitter, owns shares of Apple, Amazon.com, and Cliffs Natural Resources. The Motley Fool recommends and owns shares of Amazon.com and Apple. It also owns shares of Citigroup.

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