#3 Endo International plc (NASDAQ:ENDP)
– Shares Owned by Discovery Capital Management (as of September 30): 4.5 Million
– Value of Holding (as of September 30): $313.53 Million
Even though its stock suffered a 13% decline during the July-to-September period, Endo International plc (NASDAQ:ENDP) rose to third-place in Citrone’s equity portfolio after the billionaire bumped the position up by 61%. After rising for the first four months of the year, shares of Endo International plc (NASDAQ:ENDP) have been on a gradual decline since and now trade with year-to-date losses of nearly 15%. This lackluster performance has also weighed on the company’s popularity among hedge funds, as only 61 funds tracked by us reported owning a stake in it at the end of September, compared to 67 at the start of the third quarter. On November 30 , analysts at Guggenheim reiterated their ‘Buy’ rating and $110 price target on the stock. Daniel S. Och‘s OZ Management boosted his Endo International plc position by 15% during the third quarter and remained the company’s largest shareholder among funds we track.
#2 Alibaba Group Holding Ltd (NYSE:BABA)
– Shares Owned by Discovery Capital Management (as of September 30): 6.57 Million
– Value of Holding (as of September 30): $387.35 Million
When shares of Alibaba Group Holding Ltd (NYSE:BABA) slumped by more than 28% during the third quarter and its popularity among hedge funds also dropped significantly, Discovery Capital Management displayed its conviction in the company by purchasing an additional 44,572 shares of it. Alibaba Group Holding Ltd (NYSE:BABA) saw the largest drop in popularity during the third quarter of any stock, with only 60 funds tracked by us reporting being long Alibaba at the end of the quarter, compared to 85 funds that were long at the start of that period. Though shares of Alibaba Group Holding Ltd have recovered notably during the fourth quarter, they still trade down by 19.11% year-to-date. On Monday, Alibaba shares soared by over 2% during the final 15 minutes of trading on the news that the MSCI Emerging Markets index will include U.S-traded Chinese stocks in its indices beginning on December 1. On the same day, analysts at Goldman Sachs reiterated their ‘Buy’ rating on the stock, while upping their price target on it to $102 from $98. D.E. Shaw, founded by billionaire David E. Shaw, increased its stake in the company by 525% to 2.7 million shares during the third quarter.
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#1 Allergan PLC (NYSE:AGN)
– Shares Owned by Discovery Capital Management (as of September 30): 1.98 Million
– Value of Holding (as of September 30): $540 Million
Finally, owing to Discovery Capital Management more than doubling its stake in the company during the third quarter, even the 10.4% decline the stock of Allergan PLC suffered during the period couldn’t stop it from rising to the top of Discovery’s equity portfolio. Notwithstanding the third quarter decline, the rally Allergan PLC’s stock saw during the first seven months of the year coupled with the rally it saw after the rumor of its acquisition by Pfizer started floating around, have helped it to now trade up by 22% year-to-date. Not surprisingly, Allergan PLC has also been one of the most popular stocks among hedge funds this year, with over 20% or 151 hedge funds we cover, reporting a stake in it as of the end of September. On November 30, analysts at Nomura reiterated their ‘Buy’ rating and $350 price target on the stock, which is actually lower than Pfizer’s $363.63 per share offer for Allergan PLC. John A. Levin‘s Levin Capital Strategies was another hedge fund that increased its stake in Allergan PLC during the third quarter; it held 464,077 shares of company as of September 30.
Disclosure: None
