Analysis Of Recent Noteworthy Institutional 5% Ownership Filings

by: GuruFundPicks

Many leading funds filed forms 13-D and 13-G (and form 4) with the SEC in the last week and a half, since February 16th, indicating that they had amended their ownership in U.S. traded public companies. The following are the most notable filings from that analysis:

Qihoo 360 Technology (NYSE:QIHU): QIHU is a Chinese provider of internet and mobile security products. On February 16th, Grand Cayman-based China-focused hedge fund Keywise Capital Management, with $123 million in 13-F assets at the time of its Q4 filing, filed SEC Form SC 13G/A indicating that it holds 2.29 million shares. This is an increase of 0.52 million shares from the 1.77 million shares it held at the end of Q3.

Just last Wednesday, Qihoo reported a good Q4, with earnings (20c v/s 15c) and revenues ($62 million v/s $57 million) beating analyst estimates, and the company guided Q1 revenues above estimates ($63-$65 million v/s $55 million). Its shares have rallied over 15% following the report, and they trade at a current 37.2 P/E and 6.4 P/B compared to averages of 24.8 and 1.9 for its peers in the internet software group.

Array Biopharma Inc. (NASDAQ:ARRY): ARRY is a development stage biotech company focused on the discovery, development and commercialization of small molecule drugs that regulate target proteins to treat cancer and inflammatory diseases in North America, Europe and the Asia Pacific. On February 17th, Bloomington, MN-based Kopp Investment Advisors, with $238 million in 13-F assets per its latest Q4 filing, and focused on the healthcare and technology sectors, filed SEC Form SC 13D/A indicating that it holds 2.79 million shares, a decrease of 0.70 million shares from the 3.49 million shares it held at the end of Q4.

ARRY shares took a dive recently after a nice 60%-plus rally since the beginning of the year, after the company announced a public offering of the common stock on February 8th. Besides ARRY, Kopp Investment Advisors, focused on healthcare with almost half of its assets deployed in that sector, is also bearish on peer biotech company Biosante Pharmaceuticals (BPAX). Biosante is a developer of products for female sexual health and oncology, in which Kopp dropped its earlier large 5.4 million share position in Q4.

American International Group (NYSE:AIG): AIG is a diversified insurance company that offers group and individual life insurance, annuities and general property and casualty insurance worldwide. On February 17th, mutual fund company Fairholme Capital Management, founded and headed by guru Bruce Berkowitz, and with $6.11 billion in 13-F assets at the end of Q4, filed SEC Form SC 13D indicating that it holds 112.3 million or 6.0% of outstanding shares, an increase of 20.3 million shares from the 92.0 million shares it held at the end of Q4. AIG just reported a strong Q4 on Thursday after the market-close, beating earnings (82c v/s 63c) and expressing measured optimism looking forward. Its shares moved up sharply on Friday, and they currently trade at 10-11 forward P/E and 0.6 P/B compared to averages of 10.0 and 0.7 for its peers in the multi-line insurance group.

Sealed Air Corp. (NYSE:SEE): SEE manufactures packaging and related materials and systems for food, industrial, medical and consumer applications. On Wednesday, Tucson, AZ-based independent investment firm Davis Selected Advisers, with $45.9 billion in 13-F assets at the end of Q4, filed SEC Form SC 13D/A indicating that it holds 14.6 million or 7.6% of outstanding shares, a decrease of 1.2 million shares from the 15.8 million shares it reported holding at the end of Q4.

Even after this sale, Davis is still by far the largest institutional holder of SEE, with the next largest Vanguard holding 9.7 million shares at the end of Q4. This is the second sale we are reporting by a large institutional holder of SEE in the last month, as earlier on January 24th we reported that New York and London-based private equity firm Clayton, Dublier & Rice indicated that it had a completely exited from a 14.0 million share position that it held in mid-October of last year.

SEE trades at 10-11 forward P/E and 1.3 P/B compared to averages of 12.0 and 1.7 for its peers in the paper & plastic containers packaging group, while earnings are projected to rise at a 22.5% annual rate from $1.30 in 2011 to $1.95 in 2013.

Credit: Fundamental data in this article were based on SEC filings, Zacks Investment Research, Thomson Reuters and 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.

Disclaimer: Material presented here is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock you should do your own research and reach your own conclusion. Further, these are our 'opinions' and we may be wrong. We may have positions in securities mentioned in this article. You should take this into consideration before acting on any advice given in this article. If this makes you uncomfortable, then do not listen to our thoughts and opinions. The contents of this article do not take into consideration your individual investment objectives so consult with your own financial adviser before making an investment decision. Investing includes certain risks including loss of principal.