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Douglas Silverman and Alexander Klabin founded Senator Investment Group in 2008. Before that, both Silverman and Klabin worked at James Dinan’s York Capital Management. Prior to that, Silverman has also worked as an investment banker in the leverage finance department of Merrill Lynch. Klabin is specialized in private investments, value investing, distressed debt and special situations, and Silverman is specialized in event driven investing. Senator Investment Group currently has more than $2.5 billion assets under management.

Below is a list of top 20 positions of Senator Investment Group at the end of the third quarter.

Company Name

Ticker

Value

Activity

ISHARES TRUST Put

TLT

225050

New

SPDR GOLD TRUST Call

GLD

237090

New

CHARTER COMMUNICATIONS INC

CHTR

126811

28%

CROWN CASTLE INTL

CCI

122010

-10%

APPLE INC

AAPL

114396

New

SPDR S & P 500 ETF TRUST Put

SPY

113150

New

COMCAST CORP NEW

CMCSA

94140

New

GOOGLE INC

GOOG

90132

New

MACQUARIE INFRASTRUCTURE

MIC

86955

0%

GENERAL MILLS INC Call

GIS

76980

0%

UNITEDHEALTH GROUP INC

UNH

62262

New

SEALED AIR CORP NEW

SEE

50935

New

ANADARKO PETROLEUM

APC

37830

New

SMITH A O CORP

AOS

35419

-43%

E Q T CORP

EQT

32016

New

LIBERTY MEDIA CORP NEW

LINTA

31076

-84%

EXPEDIA INC

EXPE

28325

New

H S N INC NEW

HSNI

28161

-43%

AVIS BUDGET GROUP INC

CAR

23775

-67%

Senator Investment Group reduced its portfolio value from $2.9 billion at the end of June to $1.8 billion at the end of September. It also had fewer positions. At the end of the second quarter, there were 47 different positions in the portfolio, while there were 35 different positions in the portfolio at the end of the third quarter. The firm sold out many positions over the third quarter, including Merck & Co (NYSE:MRK), Freeport McMoran Copper & Gold calls (NYSE:FCX), Petrohawk Energy Corp (NYSE:HK), and Huntsman Corp (NYSE:HUN).

On the other hand, Senator Investment Group also opened some new positions. For example, the fund bought two new technology positions in the third quarter. It initiated a brand new $114 million position in Apple Inc (NASDAQ:AAPL) and another brand new $90 million position in Google Inc (NASDAQ:GOOG). GOOG returned 24.73% since the end of September, outperforming the 12.17% for SPY in the same period. On the other hand, AAPL did not perform as well as the market in the fourth quarter. It returned 6.24% so far since the end of the third quarter. But we still like AAPL. It has a relatively low P/E ratio of 14.64 and its earnings are expected to grow at more than 20% in the next few years. AAPL is also very popular among hedge funds. There are 125 hedge funds with AAPL positions in their portfolios at the end of September. Besides Senator Investment Group, Rob Citrone’s Discovery Capital Management also had $838 million invested in AAPL.

Senator Investment Group also reported to own 122 million worth of Crown Castle International Corp (NYSE:CCI), $94 million of Comcast Corp (NASDAQ:CMCSA), $62 million worth of United Health Group Inc (NYSE:UNH), and $38 million of Anadarko Petroleum Corp (NYSE:APC). We like Doug Silverman and Alexander Klabin, and their stock picks. Their previous experience and expertise are invaluable to Senator Investment Group. Our research has shown that by focusing on the top stock picks of successful hedge funds like Senator, investors are more likely to outperform the market in the long run.

Source: Top Stock Picks From Hedge Fund Senator Investment Group