Okumus Fund Management, a New York-based hedge fund managed by Ahmet Okumus, recently filed its 13F with the U.S Securities and Exchange Commission. The fund revealed its holdings for the second quarter of 2014. The estimated value of the fund’s equity portfolio for the second quarter totaled $324.5 million, up from $229.2 million for the first quarter. Okumus Fund Management’s top three holdings for the quarter are represented by Lifelock Inc (NYSE:LOCK), eBay Inc (NASDAQ:EBAY) and AVG Technologies NV (NYSE:AVG). We will talk about these three holdings in this article.
Lifelock Inc (NYSE:LOCK) is a new position, where Okumus Fund Management revealed ownership of 9.24 million shares, with a reported value of around $129 million. Lifelock Inc (NYSE:LOCK) provides proactive identity theft protection services for consumers and fraud and risk solutions for enterprises. In July, the company reported that it completed identity theft training for more than 10,000 law enforcement agents in all 50 states. It has a market cap of $1.39 billion.
At the end of second quarter, Bain Capital’s Brookside Capital disclosed holding 2.52 million shares of Lifelock Inc (NYSE:LOCK). Another hedge fund, Citadel Investment Group, led by Ken Griffin, reported owning 841,438 shares of the company.
eBay Inc (NASDAQ:EBAY), also a new position, is occupying the second spot. Okumus Fund disclosed owning 2.30 million shares, worth $115.3 million, of the global commerce platform and payments company. Recently, eBay Inc. conducted a $3.5 billion underwritten public offering of its senior unsecured notes. The offering consisted of $450 million of floating rate notes due 2017, $400 million of floating rate notes due 2019, $1.15 billion of 2.200% notes due 2019, $750 million of 2.875% notes due 2021 and $750 million of 3.450% notes due 2024, according to a press release.
In addition, eBay Inc (NASDAQ:EBAY) reported a 13% increase in its second-quarter 2014 revenue to $4.4 billion, compared to $3.88 million in the same period last year. The company’s GAAP net income amounted to $676 million, or $0.53 per diluted share, in the second quarter, compared to $640 million, or $0.49 per diluted share, in the same quarter of 2013.
Other largest shareholders of eBay Inc (NASDAQ:EBAY) include Icahn Capital LP of Carl Icahn, which owns 30.80 million shares, and Donald Yacktman’s Yacktman Asset Management, which holds 8.23 million shares of the company.
Third most valuable holding in Okumus Fund Management’s portfolio is AVG Technologies NV (NYSE:AVG), in which Okumus Fund reduced its holding to 3.12 million shares, worth $62.7 million, from 7.15 million shares. AVG Technologies NV (NYSE:AVG) is an online security company, which reported GAAP net income of $17.9 million, or $0.34 per diluted ordinary share, for the first quarter of 2014, compared to net income of $24.4 million, or $0.45 per diluted ordinary share, in the same quarter of 2013, according to a press release.
Other hedge funds holding stakes in AVG Technologies NV (NYSE:AVG) include Mckinley Capital Management, run by Robert B. Gillam, which holds 1.11 million shares and D. E. Shaw, managed by David E. Shaw, which owns 437,404 shares of the company.
Okumus Fund Management is a staunch value investor and primarily focuses on opportunities in the mid and large-cap equity space. With more than $500 million, it is estimated that the hedge fund maintains a portfolio that is 90% long and 15% short.
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