Jason Karp’s Biggest Contributors in Q2 Amid Tourbillon’s Disappointing Performance

Pfizer Inc. (NYSE:PFE)

– Q2 Return: 19.8%

According to Tourbillon’s aforementioned letter to investors, Pfizer Inc. (NYSE:PFE) was a strong contributor to its positive second quarter performance. However, the long/short equity hedge fund sold out its entire stake of 7.00 million shares of Pfizer at some point during the second quarter of 2016. The 7.00 million-share stake was worth $207.48 million on March 31, representing the eighth-most valuable holding in the hedge fund’s portfolio at that time. Several years ago, the U.S. drug maker mentioned the possibility of splitting into two separate entities: one that would focus on patent-protected innovative drugs and the other on established drugs that already lost their patent protection or are close to losing it. However, with all the fuss around the failed Pfizer/Allergan PLC (NYSE:AGN) multi-billion-dollar merger, the possibility of a spin-off has been downplayed. Even so, analysts anticipate a final decision on whether Pfizer will split its Innovative Health (IH) and Essential Health (EH) businesses into two separate companies by the end of 2016. Pfizer shares are up by 7% year-to-date. Ken Fisher’s Fisher Asset Management reported ownership of 31.72 million shares of Pfizer Inc. (NYSE:PFE) during the latest round of 13F filings.

Post Holdings Inc. (NYSE:POST)

– Shares Owned by Tourbillon Capital Partners L.P. (as of June 30): 3.04 Million

– Value of Tourbillon Capital Partners L.P.’s Holding (as of June 30): $251.57 Million

– Q2 Return: 20.2%

Tourbillon Capital trimmed its position in Post Holdings Inc. (NYSE:POST) by 1.37 million shares during the second quarter of 2016, to 3.04 million shares. The consumer packaged goods holding company has seen the value of its stock gain an impressive 33% since the beginning of the year. Several trustworthy news outlets wrote earlier this year that the cereal maker held discussions with ConAgra Foods Inc. (NYSE:CAG) regarding the purchase of the latter company’s frozen foods business, which is set to be spun-off later this year. The spun-off company will be known as Lamb Weston and will comprise ConAgra’s frozen potato, sweet potato, appetizer, and other vegetable products business. The discussions between Post Holdings and ConAgra apparently stalled however, and thus the spin-off is still on track for this fall. Ken Griffin’s Citadel Advisors reported ownership of 1.66 million shares of Post Holdings Inc. (NYSE:POST) as of June 30.

American Homes 4 Rent (NYSE:AMH)

– Shares Owned by Tourbillon Capital Partners L.P. (as of June 30): 9.86 Million

– Value of Tourbillon Capital Partners L.P.’s Holding (as of June 30): $201.93 Million

– Q2 Return: 29.1%

The New York-based hedge fund reduced its exposure to American Homes 4 Rent (NYSE:AMH) by 2.26 million shares during the three months ended June 30, having finished the second quarter with 9.86 million shares valued at $201.93 million. American Homes 4 Rent operates as a real estate investment trust (REIT) focused on acquiring, renovating, leasing and operating single-family homes as rental properties. The REIT owned 48,038 single-family properties in 22 states at the end of June, including 1,582 properties held for sale. American Homes 4 Rent reported core funds from operations, a measure of cash generated by an REIT, of $73.5 million for the second quarter, up from $45.3 million posted a year earlier. The REIT’s total revenue rose by 43.8% year-over-year to $221.0 million. Shares of American Homes 4 Rent have gained 34% since the start of the year. Ken Heebner’s Capital Growth Management acquired a new stake of 2.40 million shares of American Homes 4 Rent (NYSE:AMH) during the June quarter.

Disclosure: None