Is It Time to Follow Aristeia Capital Into Yahoo! Inc. (YHOO), Herbalife Ltd. (HLF), More?

Cliffs Natural Resources Inc (NYSE:CLF) was also a new addition to Aristeia Capital’s portfolio in the second quarter, and the investment shows a smart move by the fund, as the stock returned 3.2% in the third quarter. Aristeia Capital’s 13F filing for June showed that the fund bought 4.81 million shares of Cliffs Natural. The investment was valued at $27.27 million on June 30. Cliffs Natural Resources Inc (NYSE:CLF) was in 21 hedge funds’ portfolios at the end of June among those we track. There were just 14 hedge funds in our database with CLF positions at the end of March. The largest stake in Cliffs Natural Resources Inc (NYSE:CLF) was held by Renaissance Technologies, which reported holding $82.3 million worth of stock as of the end of June. It was followed by Arrowstreet Capital with a $70.5 million position. Other investors bullish on the company included Citadel Investment Group and Coatue Management.

Aristeia Capital sold 18% of its position in Herbalife Ltd. (NYSE:HLF) in the June quarter, ending the period with a total of 285,890 shares of the company, having a net worth of about $16.73 million. Herbalife’s stock returned 5.9% in the quarter ended September 30. At the end of the second quarter, 35 funds tracked by Insider Monkey were bullish on Herbalife, a 5% drop from the first quarter of 2016. Carl Icahn’s Icahn Capital has the largest position in Herbalife Ltd. (NYSE:HLF) as of June 30, worth close to $995 million. The second largest stake is held by Indus Capital, managed by David Kowitz and Sheldon Kasowitz, which holds a $275.2 million position of call options. Some other peers that are bullish encompass William Duhamel’s Route One Investment Company, D E Shaw and Jim Simons’ Renaissance Technologies.

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