Founded in 2009 amid fears the financial world was about to crumble, Bronson Point Partners boasts a 58.5% return since then. The fund was founded and is run by Larry Foley and Paul Farrell, former employees of SAC Capital and Pequot respectively. They use fundamental analysis to identify investment opportunities in equity markets and employ a long and short equity strategy. In their latest Investor Letter, Foley and Farrell have announced a 3.4% return for the first 6 months of 2014, underperforming the S&P 500 index. However, it is worth noting that Bronson Point Partners return is based on an average of 43% net invested positions (S&P 500 is assumed to be 100% long). According to its latest 13F filing, the fund’s equity portfolio has an estimated market value of approximately $1.94 billion and is mainly invested in consumer discretionary, financial and energy stocks. Foley and Farrell have made some notable changes to their equity portfolios during the second quarter, therefore the fund’s top 3 positions will be analyzed in this article.
Top dog
Monsanto Company (NYSE:MON) is Larry Foley and Paul Farrell’s new favorite stock. During the second quarter they have built a new position that amasses 925,000 shares, worth in excess of $115 million. Larry Robbins of Glenview Capital is also a big fan of Monsanto Company (NYSE:MON) and has increased his fund’s investment in the company by 15% during the same period of time. Glenview Capital reportedly holds 8.4 million share valued at $1.05 billion. Andreas Halvorsen has boosted his investment in Monsanto Company (NYSE:MON) by 87%, taking it to 5.78 million shares worth in excess of $721 million.
After they have massively increased their exposure to Comcast Corporation (NASDAQ:CMCSA) during the first quarter, Foley and Farrell have started offloading shares during the second quarter, reducing their stake by 14%. In its latest 13F filing, Bronson Point Partners has reported ownership of 1.55 million shares valued at $83.5 million. Paul Ruddock And Steve Heinz, on the other hand, are still optimistic about the prospects of Comcast Corporation (NASDAQ:CMCSA) having upped their stake in the company by 2% during Q2. Their fund, Lansdowne Partners, reportedly holds 27.1 million shares valued at $1.45 billion. Jean-Marie Eveillard, the manager of First Eagle Investment Management, has also boosted his fund’s holding of Comcast Corporation (NASDAQ:CMCSA), taking it to 22.9 million shares worth $1.22 billion.
Foley and Farrell are positive Rockwood Holdings, Inc. (NYSE:ROC) still has room to grow and have further increased their investment in the company. Bronson Point Partners reportedly holds a little over 1 million shares, up 15% during the quarter, worth approximately $76.3 million. Jeffrey Gates is also bullish on Rockwood Holdings, Inc. (NYSE:ROC) and has upped his investment in the company by 22% during the second quarter. His fund, Gates Capital Management, holds 3.06 million shares worth $232 million according to its latest 13F filing. David E. Shaw, on the other hand, is not so optimistic and has chosen to reduce his fund’s exposure to Rockwood Holdings, Inc. (NYSE:ROC). His fund reportedly holds 1.2 million shares, down 18% during the quarter, valued at $91.7 million.
Disclosure: none.
