The third-quarter selloff at Omega Advisors also affected Allergan plc (NYSE:AGN). The hedge fund’s holding in the drug maker decreased by 130,090 shares during the period to 541,122 shares valued at $124.63 million. Amid plans by US President Donald Trump to address the issue of rising drug prices, the company revealed its business strategy in the near future, which includes seven Phase 3 drug development programs, the search for a new use for Botox, and acquisitions that could reach up to several billion dollars. Year to date, the drug maker’s stock suffered a sharp 38% fall and is recently at record lows not reached since early 2014. Among hedge funds tracked by Insider Monkey, 115 held shares in Allergan plc (NYSE:AGN) at the end of the third quarter, down by 16 compared to the preceding quarter.
Omega Advisors also divested Walgreens Boots Alliance Inc (NASDAQ:WBA) stocks during the third quarter, resulting in an 11% decrease in shares held to 1.09 million shares worth $87.58 million at the end of the period. Speaking of divestments, the pharmacy is said to be closing in on a deal to sell some branches as a concession to complete its merger with Rite Aid Corporation (NYSE:RAD). Potential buyers for the almost 1,000 stores up for sale include retailer Kroger Co (NYSE:KR). Amid numerous fluctuations, the pharmacy’s stock price increased year-to-date by only 3%. 60 hedge funds tracked by Insider Monkey held positions in Walgreens at the end of the third quarter, down from 67 in the preceding quarter.
Alphabet Inc. (NASDAQ: GOOGL) was not the only tech giant affected by Omega Advisors’ shrinking positions. The hedge fund also divested about 31% of its holdings in Microsoft Corporation (NASDAQ:MSFT), shrinking its position in the software giant to 1.05 million shares worth $60.51 million at the end of the third quarter. The Windows maker recently closed its $26 billion acquisition of professional networking website LinkedIn, the largest deal in company history. Following the transaction, analysts from Deutsche Bank and Oppenheimer raised their price targets on the company to $75 from $79 and to $70 from $65, respectively, while keeping their “Buy” and “Outperform” ratings.
Meanwhile, the company touted its advances in its foray into hardware, claiming that sales for its Surface computers surged partly due to consumer disappointment over the Apple Inc. (NASDAQ:AAPL) MacBook Pro. The tech giant recorded a 14% year-to-date increase in stock value. Nonetheless, among hedge funds tracked by Insider Monkey, 126 had shares in Microsoft Corporation (NASDAQ:MSFT) at the end of the third quarter, with a cumulative value of $18.14 billion, or 4.70% of the company’s outstanding stock.
Omega Advisors’ sell-off continued with Dow Chemical Co (NYSE:DOW), as the hedge fund’s holding shrank by almost 22% to 1.56 million shares, with valuation at $80.74 million. The chemical company recently expressed optimism over the planned completion of its merger with E I Du Pont De Nemours And Co (NYSE:DD) in the first quarter of 2017. The statement follows delays in Europe on the regulatory approval process for the mega-deal, which aims to form a $130-billion-market-cap company to be called DowDuPont. The chemical company’s stock rose 12% year to date. Among hedge funds tracked by Insider Monkey, 47 retained holdings in Dow Chemical Co (NYSE:DOW), which amounted to a total of $2.69 billion, or 4.50% of the outstanding stock, as of the end of September.
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