How This Fund’s Bets on Allergan, Inc. (AGN), Charter Communications, Inc. (CHTR) & Two Other Stocks Pay Off?

Oskie Capital Management is a New York-based hedge fund founded by David M. Markowitz. Oskie Capital’s equity portfolio has a value of $182.42 million as of the end of September, compared to $166.83 million at the end of June. The fund returned 13.80% from its 17 long positions in companies which have a market cap of at least $1 billion, according to our calculations.

In a time when investors are not happy with the $3 trillion hedge fund industry due to losses and sloppy performance, it’s important to pay attention to the right moves of the smart money to beat the market. Our research has proven that hedge funds post positive returns from their long positions in companies having a market capitalization of at least $1 billion. For instance, there were 659 hedge funds in our database that had at least five non-microcap stocks in their 13F portfolio. These hedge funds’ long portfolio managed to deliver an average return of 8.3% during the third quarter, whereas S&P 500 ETFs returned only 3.3%.

With this in mind, let’s take a closer look at four of Oskie Capital’s top bets, including Allergan, Inc. (NYSE:AGN), Charter Communications, Inc. (NASDAQ:CHTR), TransDigm Group Incorporated (NYSE:TDG), and KAR Auction Services Inc (NYSE:KAR).

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Oskie Capital Management sold 43% of its stake in Allergan, Inc. (NYSE:AGN) in the third quarter, ending the period with 44,409 shares valued at about $10.22 million. The investment seems to have disappointed as the stock inched down by 0.3% last quarter. During the second quarter, the number of funds from our database long Allergan slid to 131 from 170. More specifically, Third Point was the largest shareholder of Allergan, Inc. (NYSE:AGN), with a stake worth $1.13 billion reported as of the end of June. Trailing Third Point was Paulson & Co, which amassed a stake valued at $912.4 million. Icahn Capital LP, Elliott Management, and Elliott Management also held valuable positions in the company.

Oskie Capital Management cut its stake in Charter Communications, Inc. (NASDAQ:CHTR) by 17% to 53,143 shares worth $14.35 million during the third quarter, as the stock advanced by 18.1% in the same period. Overall, the number of funds from our database long Charter Communications went up by 36 to 134 during the second quarter. Among these funds,  Warren Buffett’s Berkshire Hathaway had the most valuable position in Charter Communications, Inc. (NASDAQ:CHTR), worth close to $2.14 billion at the end of June. On Berkshire Hathaway’s heels was Lone Pine Capital, managed by Stephen Mandel, which held a $1.10 billion position. Remaining hedge funds and institutional investors that are bullish included Chase Coleman’s Tiger Global Management LLC, Eric W. Mandelblatt’s Soroban Capital Partners and John Armitage’s Egerton Capital Limited.

In TransDigm Group Incorporated (NYSE:TDG), Oskie Capital Management cut its stake by 28% to 28,186 shares valued at $8.15 million during the third quarter. In the same period, the stock advanced by 9.6%. At the end of June, 42 funds followed by our team were bullish on TransDigm, down by three funds over the quarter. More specifically, Lone Pine Capital had the number one position in TransDigm Group Incorporated (NYSE:TDG), which was worth close to $627.7 million at the end of June. Coming in second was Stockbridge Partners, led by Sharlyn C. Heslam, holding a $401.7 million position. Some other hedge funds and institutional investors that were bullish encompassed Robert Joseph Caruso’s Select Equity Group, Dan Loeb’s Third Point and John Griffin’s Blue Ridge Capital.

Oskie Capital Management unloaded 35% of its position in KAR Auction Services Inc (NYSE:KAR) during the third quarter, ending the period with 151,204 shares valued at $6.53 million. Meanwhile, the stock inched up by 4.1% between July and September. Heading into the third quarter, 36 funds tracked by us held shares of KAR Auction Services, while the largest shareholder was D. E. Shaw & Co., which held a $173.5 million position at the end of June. Trailing D E Shaw was OZ Management, which amassed a stake valued at $142.4 millions. Point72 Asset Management, Eminence Capital, and Cardinal Capital also held valuable positions in the company.

Disclosure: none