Dissecting Hayman Capital's Q4 2012 Holdings

by: Profit Fan

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In addition to being known for his sovereign debt bets Kyle Bass, fund manager of Hayman Capital, has many positions in common stocks and other holdings. With that said, provided below is a peak into Hayman Capital's portfolio as of 12/31/12:

Sell Outs:

This most recent quarter found Hayman Capital selling completely out of two of its longest held companies Electronic Arts (NASDAQ:EA) and Six Flags Entertainment (NYSE:SIX). Having repurchased EA in a period ending 6/30/12, one can assume Hayman made some money as the price of this stock traded close to $11 per share when purchased and approximately $15 per share when sold. EA accounted for 12% of the Hayman Capital portfolio in September.

Six Flags, which appears to have been a play on the rebounding real estate market, did nicely for Hayman as it was trading near its 2 year high when sold. When held, Six Flags represented 42% of a much smaller portfolio reported in September.

Partial Sells:

Hayman's only partial sell was in its holding of tech company API Technologies (NASDAQ:ATNY). Hayman has held API since 9/30/11 making it also one of its longest held investments. As of 12/31/12, API accounted for 3% of Hayman's portfolio. API is rather small for Hayman which may be worth a look for more tech savvy investors. With a current market cap of $141 million, API Technologies Corp trades for $2.58 per share which is down from its yearly highs of $4.10.

New Positions (From Largest to Smallest):

Huntsman Corp (NYSE:HUN): This stock has gone up from July 2012 lows of $12 per share to its current price of $18.98. Huntsman is a $4.5 billion company that, per Yahoo, is a manufacturer and seller of organic and inorganic chemical products. In 2012 it had $11 billion in sales and a net income of $363 million. Currently, it trades at a P/E of 12.6 and has a dividend yield of 2.7%.

Nationstar (NYSE:NSM), with a $3.4 billion market cap, services and originates residential mortgage loans. It currently has a 24.1 P/E and pays no dividend. As of 12/31/12, Nationstar represented 12% of Hayman Capital's portfolio.

Newcastle (NCT) is a real estate investment and finance company that represented, on 12/31/12, 12% of Hayman's portfolio. It is a $1.93 billion company that currently sells at a very low P/E of 3.81. With a trailing EPS of $2.94, shares are trading at $11.19. Based on EPS and its P/E alone, this stock appears to be worth a closer look.

Tempur Pedic (NYSE:TPX) is also a new investment for Hayman that represents 12% of December's portfolio value. It has a $2.55 billion market cap and trades currently for $42.62 per share with a P/E of 25.07.

Vivus Inc. (NASDAQ:VVUS), per Yahoo Finance, is a "biopharmaceutical company that is developing therapies to address obesity, sleep apnea, diabetes, and male sexual health." It is a $1.15 billion company that has a price target of $18.04 per share. It currently trades at $11.42 per share.

Dynegy Inc (NYSE:DYN) is a new position that Hayman has traded off and on since 3/31/12. It currently represents 6% of Hayman's portfolio, trades at $20 per share, and has a market cap of $2 billion.

Dex One Corp (DEXO) and Supermedia Inc. (NYSEARCA:SPMD) were more popular purchases for Hayman due to their upcoming merger which is expected to close in the next couple of weeks. Both trading at market caps less that 25% of their free cash flows, these two advertising companies have, in my opinion, the most upside potential of any of the stocks in Hayman's portfolio.

Realogy Holdings Corp (NYSE:RLGY), currently trading at a market cap of $6.8 billion, continues Hayman's interest in real estate. It represents only 2% of the current portfolio and has a $47.25 price target on it which is only a small step away from its current share price of 46.75.


As of December 2012, Hayman's position in Hyatt Hotels Corp (NYSE:H) increased by 8%, in shares, but only represented 8% of the portfolio value, down from its previous 16%. Hyatt currently trades at $41.63 per share and continues Hayman's fore in real estate purchases.

No Change

Hayman's position in Sealy Corp (ZZ) had no change in December 2012, from its September 2012 position. It currently represents 12% of Hayman's portfolio value. With only a market cap of $227.03 million, this company trades for $2.19 per share and pays no dividend.


Kyle Bass is a hard act to follow but, the success of his sovereign debt bets can't be denied and there is much to learn from his current portfolio. From Hayman's current positions, I believe Supermedia, Dex One and Newcastle deserve more closer looks. A great article on Supermedia and Dex One, produced by another Seeking Alpha Contributor, can be found here.

Disclosure: I am long SPMD, DEXO. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.