Top Stock Picks of Multi-Strategy Fund Beach Point Capital Management

#3 InterXion Holding NV (NYSE:INXN)

Shares Owned by Beach Point Capital Management (as of September 30): 1.09 million shares

Value of Holding (as of September 30): $29.43 million

Beach Point Capital was very bullish on InterXion Holding NV (NYSE:INXN) during the September quarter, increasing its exposure to the European provider of carrier and cloud-neutral colocation data centre services by 564,637 shares. InterXion’s stock has gained almost 10% since the beginning of the year, but several financial services firms reckon that the stock can go even higher. Earlier this month, Citigroup Inc. (NYSE:C) raised its rating on InterXion to ‘Buy’ from ‘Neutral’, maintaining its price target of $36. Similarly, Canaccord Genuity reiterated its ‘Buy’ rating on the stock and raised its price target to $34 from $33, which yields an upside of 13%. These upgrades come after the company reported third-quarter earnings that beat analysts’ expectations. Ricky Sandler’s Eminence Capital was the largest equity holder of InterXion Holding NV (NYSE:INXN) at the end of the second quarter, holding 5.27 million shares.

#2 Time Warner Cable Inc. (NYSE:TWC)

Shares Owned by Beach Point Capital Management (as of September 30): 190,442 shares

Value of Holding (as of September 30): $34.16 million

The multi-strategy investment firm cut its holdings in Time Warner Cable Inc. (NYSE:TWC) by 194,097 shares during the third quarter, remaining with 190,442 shares. Just recently, Charter Communications Inc. (NASDAQ:CHTR) revealed that its acquisition of Time Warner Cable is anticipated to be completed in the first quarter of 2016. The deal that is set to create the leading broadband services and technology company is subject to meticulous regulatory scrutiny and is awaiting clearance from the U.S. Department of Justice and the Federal Communications Commission (FCC). The $78.7 billion cash-and-stock deal had been previously anticipated to close by the end of the year. Paulson & Co, founded by John Paulson, held a 8.12 million-share stake in Time Warner Cable Inc. (NYSE:TWC) at the end of the second quarter.

#1 Sanderson Farms Inc. (NASDAQ:SAFM)

Shares Owned by Beach Point Capital Management (as of September 30): 533,466 shares

Value of Holding (as of September 30): $36.58 million

Sanderson Farms Inc. (NASDAQ:SAFM) represents the largest equity holding of Beach Point Capital as of September 30, representing 9.92% of the value of the firm’s portfolio. The Los Angeles-based investment firm enlarged his position in the integrated poultry processing company by 12,838 shares during the September quarter. At the end of September, Sanderson Farms announced a recall of more than a half million pounds of chicken products produced at its plant in Mississippi. A sample of these products was found to contain metal, but none of the products were shipped to grocery stores, according to a recent statement released by the company. Meanwhile, the shares of Sanderson Farms are 16% in the red year-to-date and are trading at cheap trailing P/E ratio of only 5.68, which compared with a ratio of 23.41 for the S&P 500 Index. Royce & Associates, founded by Chuck Royce, owned a 1.12 million-share stake in Sanderson Farms Inc. (NASDAQ:SAFM) on June 30.

Disclosure: None