Tracking Leon Cooperman's Omega Advisors Portfolio - Q2 2021 Update
Summary
- Leon Cooperman’s 13F portfolio value increased from $1.60B to $1.78B this quarter.
- Omega Advisors added Lithia Motors and increased WillScot Mobile Mini & Finance of America. They also reduced Ferro Corp and dropped Magnolia Oil & Gas during the quarter.
- Alphabet, Mr. Cooper Group, and Athene Holding are the largest three individual stock positions.
JayLazarin/iStock Unreleased via Getty Images
This article is part of a series that provides an ongoing analysis of the changes made to Leon Cooperman’s 13F stock portfolio on a quarterly basis. It is based on his regulatory 13F Form filed on 08/16/2021. The 13F portfolio value increased ~11% from ~$1.60B to ~$1.78B this quarter. Recent 13F reports have shown a total of around 60 individual stock positions in the portfolio although many of which are minutely small. The largest five stakes are Alphabet, Mr. Cooper Group, Athene Holding, Fiserv, and Cigna. They add up to ~35% of the entire portfolio. Please visit our Tracking Leon Cooperman’s Omega Advisors Portfolio series to get an idea of their investment philosophy and moves during Q1 2021.
Note: Leon Cooperman disclosed in July that he was up ~30% this year. This is partly thanks to outperformance of certain big contrarian energy picks (mentioned Canadian stocks Tourmaline Oil & Paramount Resources), FAANGs, and value names (Fiserv, Cigna, Citigroup, Chinese internet stocks, etc.). In a CNBC interview last month, he said that the cyclical forces that determine market outlook is positively positioned. Lithia Motors (LAD) and Fiserv (FISV) were mentioned as very undervalued.
New Stakes:
Lithia Motors (LAD): LAD is a 2.65% of the portfolio position established this quarter at prices between ~$313 and ~$403 and the stock currently trades at ~$312.
Bausch Health (BHC) and Vanguard S&P 500 ETF (VOO): These are very small (less than ~1.15% of the portfolio each) new stakes purchased this quarter.
Stake Disposals:
International Flavors & Fragrances (IFF): IFF was a 1.18% of the portfolio stake purchased last quarter at prices between ~$105 and ~$141. It was sold this quarter at prices between ~$135 and ~$149. The stock currently trades at ~$136.
Magnolia Oil & Gas (MGY): The small 1.30% of the portfolio stake in MGY was established in Q3 2018 at prices between ~$11 and ~$14.50. Next year saw a ~40% stake increase at prices between ~$10 and ~$13.75. The position was eliminated over the last three quarters at prices between ~$4 and ~$16. It is now at $18.96.
Stake Increases:
Ashland Global (ASH): ASH is a long-term stake that was first purchased in H2 2014 at prices between ~$48 and ~$59. Q2 & Q3 2015 saw a stake doubling at prices between ~$50 and ~$63. The position has wavered. Recent activity follows. H2 2018 saw a ~37% selling at prices between ~$67 and ~$86. Since then, the activity has been minor. The stock is now at $90.68. There was a ~9% stake increase this quarter.
Vertiv Holdings (VRT): VRT is a 2.39% of the portfolio position built in H2 2020 at prices between ~$17 and ~$20. The stock currently trades at $23.13. Last two quarters have seen a ~20% stake increase.
Arbor Realty Trust (ABR): ABR is a ~2% of the portfolio position built in Q1 2019 at prices between ~$10.50 and ~$13. There was a ~8% trimming last quarter while this quarter saw a similar increase. The stock is now at $18.96.
WillScot Mobile Mini (WSC): The 2.35% of the portfolio stake in WSC was built over the last three quarters at prices between ~$17 and ~$30 and the stock is now at $31.84.
Finance Of America (FOA), NRG Energy (NRG), and Pioneer Natural Resources (PXD): These three positions were built over the last two quarters. The 1.89% stake in FOA was purchased at prices between ~$7.30 and ~$11.60 and it is now well below that range at $5.05. NRG is a 1.54% of the portfolio position established at prices between ~$32 and ~$44 and the stock currently trades at $40.90. The 1.28% PNQ stake was built at prices between ~$114 and ~$170 and it is now at ~$182.
Alibaba Group Holding (BABA): The 1.27% BABA position was established over the last two quarters at prices between ~$206 and ~$271 and it is now well below that range at ~$143.
Aspen Group (OTCPK:ASPU), Sierra Metals (SMTS), and SunOpta Inc. (STKL): These small (less than ~1.25% of the portfolio each) stakes were increased this quarter.
Note: They have a ~10% ownership stake in Aspen Group.
Stake Decreases:
Trinity Industries (TRN): TRN is now a ~3% of the portfolio stake. It was first built in Q3 2017 at prices between ~$27 and ~$32. Q2 2018 saw a one-third stake increase at prices between ~$31.50 and ~$36. That was followed with a ~45% stake increase during Q2 & Q3 2019 at prices between ~$16 and ~$24. There was a ~30% reduction last quarter at prices between ~$26 and ~$33. The stock is now at $28.15. This quarter also saw a ~6% trimming.
Navient Corp (NAVI): The ~2% NAVI stake was built during the four quarters through Q1 2020 at prices between ~$6 and ~$15. The stock currently trades at $18.68. There was a ~45% selling this quarter at prices between ~$14 and ~$20.
New Senior Investment Group: The 1.60% New Senior Investment Group stake was built in Q1 2019 at prices between ~$4.25 and ~$5.75. Last two quarters saw a one-third selling. The business got acquired by Ventas (VTR) in an all-stock deal (0.1561 shares of Ventas for each share held) that closed last month.
Ferro Corp (FOE): FOE was a 3.49% of the portfolio position as of last quarter. It was purchased in Q1 2020 at prices between ~$7.75 and ~$15. The position was almost sold out this quarter at prices between ~$16.50 and ~$21.80. The stock currently trades at $20.36. The business is getting acquired by Prince International Corporation in a $22 per share all-cash deal announced in May.
Barings BDC (BBDC), Facebook (FB), First Eagle Alternative Capital BDC (FCRD), and Ocwen Financial (OCN): These very small (less than ~0.80% of the portfolio each) stakes were decreased this quarter.
Note: They have a ~5% ownership stake in Ocwen Financial and a ~7.5% ownership stake in First Eagle Alternative Capital BDC.
Kept Steady:
Alphabet Inc. (GOOG): GOOG is currently the largest position in the portfolio at 8.23%. It was first purchased in Q2 2015 at prices between ~$525 and ~$545. The stake was sold in H1 2020 at prices between ~$1072 and ~$1521 but was rebuilt next quarter at prices between ~$1445 and ~$1645. The stock is now at ~$2724.
Mr. Cooper Group (COOP) previously WMIH Corp: COOP is currently the second-largest position at 7.89% of the portfolio. The original small stake was doubled in Q4 2018 in the mid-teens price-range following its 12-for-1 reverse stock-split and name change transaction. That original stake was since sold down but a larger stake was built during Q4 2019 & Q1 2020 at prices between ~$6 and ~$14.50. There was a ~15% trimming last quarter at prices between ~$27 and ~$37. The stock currently trades at $41.27.
Note: They have a ~4.5% ownership stake in Mr. Cooper Group.
Athene Holding (ATH): ATH is a large (top three) 6.58% of the portfolio position first purchased in Q3 2020 at prices between ~$30 and ~$37. There was a ~60% stake increase last quarter at prices between ~$41 and ~$52. The stock currently trades well above those ranges at $69.36.
Fiserv Inc. (FISV): FISV is a top-five 6.19% of the portfolio position. The position goes back to a large stake in First Data Corporation purchased in Q4 2015. Fiserv acquired First Data in an all-stock deal (0.303 of Fiserv for each First Data share) that closed in July 2019. At the time, the 2M share stake in Fiserv that resulted from the transaction was the largest position in the portfolio at ~13%. There was a ~50% selling in Q1 2020 at prices between ~$82 and ~$122. The stock currently trades at ~$108.
Cigna Corp (CI): The top five 5.66% CI stake was first purchased during the three quarters through Q1 2019 at prices between ~$161 and ~$223. There was a ~22% reduction in Q3 2020 at prices between ~$162 and ~$191. The stock is now at ~$201.
Devon Energy (DVN): DVN is a large 5.11% of the portfolio stake established last quarter as a result of their acquisition of WPX Energy that closed in January. Cooperman had ~6.19M shares of WPX Energy for which he received these shares (all-stock deal at exchange ratio 1:0.5165). DVN currently trades at $40.08.
MP Materials (MP): The large ~5% MP stake was built in H2 2020 at prices between ~$10 and ~$35.50. The stock currently trades at $30.33.
Note: Fortress Value Acquisition merged with MP Materials in a ~$1B EV SPAC deal that closed in November 2020.
Energy Transfer Equity (ET): ET is a ~4% of the portfolio stake established during Q2 2017 to Q1 2018 at prices between ~$16 and ~$19. 2019 saw a ~125% stake increase at prices between ~$11.50 and ~$15.75. Q4 2020 also saw a ~30% increase at prices between ~$5 and ~$7. The stock currently trades at $9.86.
Microsoft Corp (MSFT): MSFT is a 3.74% of the portfolio position first purchased in Q4 2015 & Q1 2016 at prices between ~$44 and ~$55. The next four quarters saw a ~75% selling at prices between ~$50 and ~$65. The position was rebuilt in Q2 2017 at prices between ~$65 and ~$71. Q4 2018 saw a ~75% reduction at prices between ~$98 and ~$112. Since then, the stake has been steady. The stock currently trades at ~$289.
Chimera Investment Corp (CIM): The bulk of the 2.87% CIM stake was built in Q1 2019 at a cost-basis of ~$19 per share. Q4 2019 saw a ~25% selling at prices between ~$19.50 and ~$21.50. Since then, the activity has been minor. The stock currently trades at $15.04.
Amazon.com Inc. (AMZN): AMZN was first purchased in Q3 2016 at prices between ~$720 and ~$830. There was a ~50% selling in Q2 2017 at prices between ~$885 and ~$1007 while Q4 2019 saw a similar increase at prices between ~$1740 and ~$1870. The stock currently trades at ~$3221 and the stake is at 1.93% of the portfolio. There was a ~13% trimming last quarter.
Citigroup (C): The 1.51% Citigroup stake was built in Q1 2018 at prices between ~$68 and ~$80. Q1 2020 saw a ~50% selling at prices between ~$37.50 and ~$81. The stock currently trades at $72.53. There was a minor ~3% increase last quarter.
General Motors (GM), Motorola Solutions (MSI), Ellington Financial (EFC), Enterprise Products Partners (EPD), Gannett Company (GCI), and Paysafe Limited (PSFE): These small (less than ~1.25% of the portfolio each) stakes were kept steady this quarter.
Below is a spreadsheet that shows the changes to Leon Cooperman's Omega Advisors 13F portfolio holdings as of Q2 2021:
Leon Cooperman - Omega Advisors' Q2 2021 13F Report Q/Q Comparison John Vincent (author)
Source: John Vincent. Data constructed from Leon Cooperman’s 13F filings for Q1 2021 and Q2 2021.
This article was written by
Analyst’s Disclosure: I/we have a beneficial long position in the shares of AMZN, BABA, FOA, PSFE either through stock ownership, options, or other derivatives. 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.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
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