Analysis Of Institutional 5% Ownership Filings From Last Week

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 |  Includes: GEOY, INTU, LNG, XCO
by: GuruFundPicks

Many leading funds-- including SAC Capital Advisors, INVESCO Private Capital and Cerberus Capital Management-- filed forms 13-D and 13-G (and form 4) with the SEC on Wednesday through Friday, December 28th to 30th of last week. This indicates that they amended their ownership in U.S. traded public companies.

The forms are required to be filed within ten days, so the institutions traded these shares sometime after the first week of December. We have also included here SEC Form 4 filings by Institutions that are considered corporate insiders by virtue of their holding more than 10% ownership, and in many cases having representation on the Board of Directors. The following are the most notable filings on Wednesday through Friday of last week (for more info on Forms 13-D and 13-G, and how to interpret that, please refer to the end of this article):

EXCO Resources Inc. (XCO): XCO is an independent oil and natural gas company, engaged in the exploration, exploitation, development and production of onshore North American oil and natural gas properties with a focus on shale resource plays. On Wednesday, Atlanta-based hedge fund INVESCO Private Capital, with over $1 billion in assets under management and headed by Wilbur Ross, filed SEC Form 4 indicating that it purchased 424,100 shares for $4.1 million. This is on top of the 363,063 shares that we reported INVESCO reported buying just last week. Along with an earlier purchase in mid-October, INVESCO has now added 0.8 million shares since their 13-F Q3 filing, in which they indicated holding 27.6 million or 25.1% of the outstanding shares of XCO. INVESCO Private Capital is a subsidiary of investment management company INVESCO (IVZ), with over $650 billion in assets under management.

Besides INVESCO, Los Angeles-based deep value hedge fund Oaktree Capital Management, with over $60 billion in assets under management and founded by Howard Marks and Bruce Karsh, also filed SEC Form 4 in mid-December amending their ownership, adding 2.0 million shares to the 34.8 million shares it held at the time of its 13-F Q3 filing. XCO trades at the lows of the year, down about 50% YTD, and at a discount 12 forward P/E and 1.2 P/B compared to the averages of 20.6 and 5.2 for the U.S. oil & gas exploration & production group.

Intuit Inc. (INTU): INTU provides business and financial management software and services for businesses, accounting professionals and consumers in the U.S., Canada, India, Singapore and the U.K. On Thursday, San Diego-based shareholder activist value-oriented hedge fund manager Relational Investors, with $4.6 billion in equity assets under management per their latest 13-F Q3 filing, filed SEC Form 4. Here they indicate a sale of 0.6 million shares for $30.3 million, ending with 2.2 million or 0.8% of the outstanding shares. This is on top of the 2.8 million shares that Relational sold just last week, so that they have now sold a total of 3.4 million shares since the their 13-F Q3 filing, at which time they held 5.6 million shares. INTU trades at 16 forward P/E and 6.7 P/B compared to the averages of 34.1 and 3.8 for its peers in the computer software group, while earnings are projected to increase at a strong 15.0% growth rate from $2.51 in 2011 to $3.32 in 2013.

GeoEye Inc. (GEOY): GEOY is the world's largest commercial satellite imagery company, delivering high-quality imagery to the U.S. and foreign government defense and intelligence organizations, domestic federal and foreign civil agencies, and commercial customers. On Friday, New York-based hedge fund Cerberus Capital Management filed SEC Form 4 indicating that it purchased 47,179 shares for $1.0 million, increasing its holdings to 2.8 million or 12.6% of outstanding shares. Cerberus has been very actively accumulating a large position in GEOY lately, adding 0.8 million shares to the 2.0 million shares it held at the time of its 13-F Q3 filing. GEOY shares have been extremely weak this year, cut in almost half YTD. They trade at a current 12 P/E on a TTM basis, and at 1.0 P/B, compared to averages of 19.6 and 1.3 respectively for its peers in the satellite communications group.

Cheniere Energy Inc. (LNG): Cheniere operates LNG receiving terminals and natural gas pipelines in the Gulf Coast of the U.S. including the Sabine Pass LNG terminal. On Thursday, Stephen Cohen's Connecticut-based $11.2 billion multi-strategy hedge fund SAC Capital Advisors filed SEC 13G, indicating that it now holds 7.2 million or 5.7% of outstanding shares, an increase of 6.2 million shares from the 1.0 million shares held at the time of their 13-F Q3 filing. In our recent review of insider trades, we reported that Cheniere CEO Charif Souki recently sold 300,000 shares for $2.5 million, buying those shares back in his trust over which he has indirect control.

Cheniere shares have been very active since the company announced a landmark $8 billion deal on October 26th for the purchase of 3.5 million tons per annum ((mtpa)) of liquefied natural gas via its Sabine Pass terminal facility in LA. We wrote about our bullish outlook on the stock that morning of the 26th, just prior to the stock jumping from the $8.30s when the article was published to a high of $12.56 four days later. While the long-term outlook continues to be promising, the stock appears to be taking a breather, down by over 30% from the peak as it waits for the next big deal before it can break out of its current trading range.

Credit: Fundamental data in this article were based on SEC filings, I-Metrix® by Edgar Online®, Zacks Investment Research, Thomson Reuters and Briefing.com. The information and data is believed to be accurate, but no guarantees or representations are made.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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