Paul Singer Loads Up On More Shares Of Citrix Systems Inc (CTXS) Amid Weakness

Having initiated a position in Citrix Systems, Inc. (NASDAQ:CTXS) at the beginning of June, Paul Singer has continued his buying spree into August, adding 300,000 shares to his previously-disclosed position according to two recent Form 4 filings with the Securities and Exchange Commission. Shares were bought at prices varying between $67.27 and $68.87 apiece and were spread across two of Elliott Management‘s funds. Following this move, Singer and Elliott Management own a total of 5.83 million shares of Citrix Systems, Inc. (NASDAQ:CTXS), a 3.6% stake in the company.

One of the oldest hedge funds around, Elliott Management was founded in 1977 by Paul Singer, who has grown the company into a behemoth with more than $20 billion in assets under management. The firm’s first fund, Elliott Associates, was launched in January 1977, while Elliott International was added in 1994. Both funds have managed to provide investors with superior results and low volatility, beating the S&P 500 index by an average of five percentage points annually. As of the fall of 2014, Singer was wary about the state of the economy and the stock market, stating that “nobody can predict how long governments can get away with fake growth, fake money, fake jobs, fake financial stability, fake inflation numbers and fake income growth.”

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Paul Singer is a big fan of tech stocks, having several of them as his top bets. According to its latest 13F filing, Elliott Management holds 34.2 million shares of Juniper Networks, Inc. (NYSE:JNPR), making it its second-biggest investment. EMC Corporation (NYSE:EMC) is also a favorite of Singer’s, with Elliott holding 33.6 million shares valued at $886 million. During the second quarter, Singer made a play on another IT giant as well, CDK Global Inc(NASDAQ:CDK), increasing his stake by 155% to 6.59 million shares worth $355 million as of June 30.

Elliott Management’s first reported ownership of Citrix Systems, Inc. (NASDAQ:CTXS) at the beginning of June, with Paul Singer claiming that it had the potential of reaching $90 to $100 per share or more by the end of 2016. Straight away, Singer got to work, landing a board seat and getting the company’s long-standing Chief Executive Officer, Mark Templeton, to step down once a suitable replacement is found. The market’s reaction was euphoric, with the stock appreciating by as much as 18.5% before the recent market correction brought the price back to its level at the start of June. As of the time of this writing, Citrix shares are traded at approximately $69 per share.

For the second quarter, Citrix Systems, Inc. (NASDAQ:CTXS) posted revenues of $796 million, up by 2% year-over-year, and earnings per share of $0.72, more than double the figure reported for the same quarter of 2014. Market analysts eye $786 million in revenues and earnings of $0.84 per share for the current quarter and  have set a mean price target of $76.61 on the stock. Among the hedge funds that we track, the biggest stake in Citrix Systems, Inc. (NASDAQ:CTXS) on June 30 was held by Brookside Capital, a subsidiary of Bain Capital. According to its latest 13F filing, the fund holds 3.67 million shares worth an approximate $258 million. Billionaire Ken Griffin is also bullish on this stock, increasing his stake by a massive 1,184% during the second quarter, taking it to 1.34 million shares valued at $94.1 million.

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