Many leading funds filed forms 13-D and 13-G (and form 4) with the SEC on Thursday and Friday, including Viking Global Investors and Thornburg Investment Management, indicating that they had amended their ownership in U.S. traded public companies. Also, we have included, when applicable, 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 Thursday and Friday (for more info on Forms 13-D and 13-G, and how to interpret that, please refer to the end of this article):
TripAdvisor Inc. (TRIP): TRIP is an online travel research company, aggregating reviews and opinions of members about destinations and accommodations such as hotels, resorts, restaurants, vacation packages and travel guides. On Thursday, Greenwich, CT-based hedge fund manager Viking Global Investors, led by co-founder and CEO Andreas Halvorsen, and with $8.6 billion in 13-F assets per its latest Q3 13-F filing, filed SEC Form SC 13G indicating that it holds 7.2 million or 6.0% of outstanding shares, a new position in its portfolio. TRIP was spun-off from online travel services company Expedia Inc. (EXPE) just about six weeks ago, and it has done extremely well after an initial brief pullback following the spin-off; currently, it trades at 25 forward P/E compared to the average of 26.1 for its peers in the internet content group.
Cincinnati Bell Inc. (CBB): CBB is an integrated telecom services provider to residential and business services in OH, KY and IN, including local exchange, digital wireless, broadband internet, network access, long-distance VoIP services. On Thursday, Charlottesville, VA-based hedge fund manager Peninsula Capital Advisors, with over $1.1 billion in 13-F assets per its latest Q3 13-F filing, filed SEC Form SC 13G/A indicating that it holds no position in the company; with 16.6 million shares, Peninsula was the largest institutional shareholder of CBB at the end of Q3. CBB trades at 13-14 forward P/E compared to the average of 11.0 for its peers in the diversified communications group.
GT Advanced Tech Inc. (GTAT): GTAT provides poly-silicon production technology and multi-crystalline ingot growth systems, and related photovoltaic (PV) manufacturing services for the solar industry worldwide. On Thursday, Chicago-based LSV Asset Management, with over $29 billion in 13-F assets per its latest Q3 13-F filing, filed SEC Form SC 13G indicating that it holds 6.8 million or 5.4% of outstanding shares, a decrease from the 7.0 million shares it held at the end of Q3.
Sandridge Energy Inc. (SD): SD is an OK-based independent oil and natural gas company, with their primary areas of focus being West Texas, the Cotton Valley Trend in East Texas and the Gulf Coast. On Friday, Santa Fe, NM-based Thornburg Investment Management, with over $18 billion in 13-F assets per its latest Q3 13-F filing, filed SEC Form SC 13G/A indicating that it holds 23.2 million or 5.6% of outstanding shares, an increase from the 18.9 million shares it held at the end of Q3. This makes them the largest institutional shareholder of SD, ahead of Mount Kellett Capital Management that had 21.9 million shares at end of Q3. SD recently announced, on Wednesday, its agreement to acquire Dynamic Offshore Resources for $1.28 billion, a move that has not been well received as a number of analysts lowered their targets on the company following and in response to the announcement. The company is currently generating losses, and it trades at 1.4 P/B and 2.1 PSR (price-to-sales ratio) compared to averages of 5.2 and 7.4 for its peers in the U.S. oil & gas exploration & production group.
In addition to SD, Thornburg also filed SC 13G's on several other companies, indicated that it had amended its holdings, including silicon wafer manufacturer MEMC Electronic Materials Inc. (WFR), where it indicated holding 25.2 million or 10.9% of outstanding shares; Invesco Mortgage Capital (IVR), where it indicated holding 6.9 million or 6.0% of outstanding shares; business support system software provider Amdocs Ltd. (DOX), where it indicated holding 5.7 million or 3.3% of outstanding shares; Apollo Investment Corp. (AINV), where it indicated holding 13.6 million or 6.9% of outstanding shares; integrated telecom services provider Level 3 Communications (LVLT), in which it indicated holding 7.9 million or 3.8% of outstanding shares; and KKR Financial Holdings (KFN), in which it indicated holding 15.8 million or 8.9% of outstanding shares.
Form 13-D is commonly referred to as "beneficial ownership report," and is required when a person or a group of persons acquires beneficial ownership of more than 5% of the voting class of a company's equity securities; form 13-G is the abbreviated version of the form that is allowed under certain circumstances.
The information in forms 13-D and 13-G is extremely timely as it is required to be filed within ten days after the purchase, in contrast to 13-F quarterly filings by Institutions that are filed every three months. The information contained in 13-F filings, thereby, can as much as eighteen weeks old by the time it is disseminated to the public. Furthermore, by virtue of their 5% ownership in public companies, the information contained in the 13-D and 13-G filings indicates only high confidence or high conviction moves by institutions and insiders, and hence can be interpreted to be of greater relevance to the investment community than the 13-F quarterly filings. Furthermore, 13-D and 13-G filings often are a precursor to hostile takeover, company breakups and other "change of control" events, and often they will include a letter to management explaining the reason for their taking a large stake in the company.
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.
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