By Sam Forgione and Aaron Pressman
NEW YORK May 15 Barry Rosenstein's JANA
Partners liked grocery chain Supervalu Inc in a big way
in the first quarter, while Philippe Laffont's Coatue Management
lost its stomach for the company's shares.
Regulatory filings revealed that JANA, a hedge fund with
$5.5 billion in assets, picked up some 14 million shares of
Supervalu in the quarter ended March 31. For Laffont's $9.5
billion firm, however, it was a different story, as the hedge
fund dumped all of its roughly 10 million shares.
Leon Cooperman's $9 billion Omega Advisors also jumped into
Supervalu, opening a 6.87 million-share position, a filing
Hedge fund managers and other large investment firms on
Wednesday filed so-called 13-F reports with the U.S. Securities
and Exchange Commission, shedding some light on how they traded
in U.S. stocks in the first quarter.
The filings also showed just how much Apple Inc's
star dimmed in the first quarter.
Chase Coleman's $12 billion Tiger Global Management sold
790,000 Apple shares in the quarter, while Cliff Asness's $80
billion AQR Capital Management sold about 150,000 shares.
But the regulatory filings only tell a small portion of the
story because they offer no explanation for a fund's buying and
selling of U.S. stocks. The filings also don't require money
managers to disclose short positions, or bets a stock will
decline in price.
So there is no way of knowing what motivated Coatue to exit
shares of Supervalu, which doubled in price in the first
quarter, after the grocery chain struck a deal in January to
sell some of is supermarket chains to Cerberus Capital
Management for $3.3 billion. Similarly, it is not clear what
prompted JANA and Omega to jump into the stock, but it could be
the funds see the chain as a turnaround story.
The 13-F filings then are an imperfect look into the stock
trading strategy of large funds. It is also important to note
that in the 45 days since the first quarter ended, some of the
reported stock positions may have changed.
Jeffrey Gundlach, a co-founder of DoubleLine Capital, a $60
billion bond shop that is moving into equity investing, said he
never looks at other manager's 13-F filings.
With that caveat, here is how big money managers traded in
the first quarter, broken down by sectors and actively traded
Appaloosa Management, a $14 billion hedge fund led by David
Tepper, reduced its stake in Apple by 40 percent to 540,000
Coatue Management added 562,546 shares of Apple, lifting its
total stake in the iPhone and iPad manufacturer to 1.2 million
shares. Greenlight Capital, a $9 billion fund led by David
Einhorn, nearly doubled its stake in Apple to 2.4 million
Farallon Capital Management, a $20 billion hedge funded led
by Andrew Spokes, took a new 2.46 million-share stake in
computer manufacturer Dell Inc, which is embroiled in a
contentious corporate buyout. Highfields Capital Management, an
$11 billion fund led by Jonathon Jacobson, bought 23 million
shares of Dell in the quarter.
JANA, which has a reputation for shareholder activism,
opened a new 25.5 million-share stake in online social gaming
company Zynga Inc.
JANA also opened a 21.9 million-share position in online
coupon company Groupon.
Passport Capital, a $3.7 billion fund led by John Burbank,
opened up a 2.2 million-share position in Yahoo Inc.
But Tiger Global sold 14 million shares.
Maverick Capital, a $9 billion fund led by Lee Ainslie,
bought 1.9 million shares of eBay Inc.
Appaloosa reduced its holdings in several financial stocks.
The hedge fund, for instance, cut its stake in American
International Group Inc by 29 percent to 4.3 million
shares. Meanwhile, Seth Klarman's $28 billion Baupost Group
increased its stake in AIG by 70 percent to 11.9 million shares.
Farallon raised its stake in American Express Co by
2.1 million shares.
Third Point, a $12.9 billion hedge fund led by Dan Loeb,
sold all of its 7.75 million shares of Morgan Stanley.
Eton Park Capital Management, a $19.4 billion fund led by
Eric Mindich, reduced its stake in Sprint Nextel Corp to
18.5 million shares from 23.1 million.
OMEGA sold all of its shares of health insurers Humana Inc
and Wellpoint Inc.