5 Stocks Hedge Funds Love
Mike is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.
The big names in investing aren’t afraid to double dip. In fact; many share the same investments, if not the same country clubs. For several lucky companies, big name investors are happy to jump on board and bring a few friends with them, all in the pursuit of happiness… and of course, a few bucks on the side. Though not all investments fair well, at least managers performed as well as the guy in the next tower.
WellPoint Inc. (NYSE: WLP) is one loss that has been shared as a team and the likes of George Soros, Joel Greenblatt and Ray Dalio showed their support. The love child of WellPoint Health Networks and Anthem Inc., WellPoint Inc. formed in 2004 and is one of the largest health care companies to work under the Blue Cross and Blue Shield Association. But largest is not always the best. WellPoint completed their acquisition of CareMore Health Group in June 2011, which certainly saw their situation improve, but not enough to finish the year with a bang. CareMore Health Group is down 23.61% for the year. We can assume Soros, Greenblatt and Dalio are holding their breath for a striking return.
While value drops in healthcare, things are certainly looking rosy for Illinois based company Fortune Brands Home & Security (NYSE: FBHS). Producers of home fixtures and hardware, Fortune Brands Home & Security has had an excellent year and supporters are no doubt singing their praises. Lucky (or savvy) investors Richard Pzena, John Keeley and Bill Ackman have watched Fortune Brands Home & Security grow at a steady and increasing pace over the past year. The past year leaves Fortune Brands Home & Security stock up a mammoth 84.49%. Not too bad for home wares, not too bad at all!
Another company kicking up a storm is Jarden Corporation (NYSE: JAH) and they certainly have their fingers in a few pies. A large American producer of kitchen electronics, cookware and tools, Jarden also produces lines in arts, crafts and clothing, just to name a few. Their value was definitely appreciated by Joel Greenblatt and Ray Dalio, who were more than happy to show their support by recently purchasing additional shares to their portfolios… and it has certainly paid off. In August, Jarden announced a $500 million stock repurchase program and increased their price range and extension of expiration date in February, seeing their stock value rise. The stock is up 25.76% for the past year.
Investors are no doubt also cheering over wins with New York based multinational insurance company, American International Group (NYSE: AIG), even with a slightly shaky past. American International Group faced a liquidity crisis back in 2008 but they were able to restore their credit rating with a little help from the Federal Reserve Bank. Within the past year, American International Group has also seen itself in court. The company filed a $10 billion mortgage fraud lawsuit against the Bank of America. Yet despite all this, American International Group has still found a way to increase the value of its shares and we are sure it comes as much relief to big name investors like Richard Pzena, John Keeley and Leon Cooperman. American International Group are enjoying a 9.13% increase overall for the past year.
One name we are not surprised to see here is Kraft Foods (NASDAQ: KRFT). Kraft Foods, the multinational confectionary company operated out of Illinois, markets in more than 170 countries worldwide and owns several dozen brands that are over a century old. Formed in 1923, Kraft Foods have a long and dazzling history… or at least, so Joel Greenblatt would argue. Bill Ackman has recently reduced his stock holdings, but with the amount he still owns it is safe to say Ackman is still a big Kraft fan. In January this year, Kraft cut 1,600 jobs but that didn’t make things sour at Kraft. With only slight drops in their value, Kraft are no doubt happy to be up by 10.08% over for the past year. Kraft really knows how to do a biscuit… and a valuable pie, it would seem.
Other than who chooses to invest, these companies don’t have a lot in common, beside the fact that almost all of them are cashing in. Perhaps we could all take a page from whichever book the likes of Greenblatt, Soros, Keeley or Pzena are reading.
mthiessen has no positions in the stocks mentioned above. The Motley Fool owns shares of WellPoint. Motley Fool newsletter services recommend American International Group and WellPoint. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.If you have questions about this post or the Fool’s blog network, click here for information.
