Perry Capital, the hedge fund managed by Richard Perry, reported that its equity portfolio has a market value of $3.57 billion based on its 13F filing with the Securities and Exchange Commission (SEC) for the first quarter of fiscal 2014.
During the quarter, Perry Capital acquired 13,167,859 shares of Nokia Corporation (ADR) (NYSE:NOK) worth $96, 652,000. The shares of the Finnish Company closed $7.28 per share on Wednesday, down by 1.22%.
The Fitch Ratings recently upgraded the long-term debt rating of the Finnish company to BB, citing that its cash flow is stable and the turnaround of its core wireless network business is impressive. The upgrade came after Nokia completed the sale of its handset business to Microsoft Corporation (NASDAQ:MSFT) for $7.5 billion.
Perry Capital purchased 1,665,000 shares of Citrix Systems, Inc. (NASDAQ:CTXS), a cloud computing company with a market value of $85,683,000. Its stock price closed at $60.19 per share yesterday.
The hedge fund also acquired 881,762 shares of Rock-Tenn Company (NYSE:RKT), an integrated manufacturer of corrugated and consumer packaging. Perry Capital’s stake in Rock-Tenn is worth $93,088,000.
It also purchased 267,000 shares of Vodafone Group Plc (ADR) (NASDAQ:VOD) worth $9,828,000 and 8,734,800 shares of iShares MSCI EAFE Index Fund (ETF) (NYSEARCA:EFA) PUT option with a market value of $586,979,000
Increased stock holdings
Perry Capital increased its stake in Herbalife Ltd. (NYSE:HLF) by 1.8 million shares to 4.8 million shares with a market value of $274,896,000– its fourth largest stock holding accounting 7.69% of its portfolio.
The Federal Trade Commission (FTC) has an ongoing investigation against the multilevel marketing company that sells nutrition and weight loss products on allegations that it is operating a pyramid scheme. The SEC and some State Attorney also launched separate investigations against the company.
Herbalife Ltd. (NYSE:HLF) recently announced its decision to repurchase $266 million worth of its own shares from Bank of America Corp (NYSE:BAC) after cancelling its quarterly dividend. Shares of Herbalife closed $61.24 per share, up slightly yesterday.
Perry Capital also bought additional 8 million shares of NRG Energy Inc (NYSE:NRG) CALL option, bringing its stake in the company to total of 8,310,500 shares worth $264,274,000. The hedge fund also purchased 1,270,000 shares of eBay Inc (NASDAQ:EBAY) CALL option worth $106,447,000.
The hedge fund also boosted its stake in Scorpio Tankers Inc. (NYSE:STNG) by 1,857,688 shares to 3,264,400 shares worth $32,546,000, and increased American International Group Inc (NYSE:AIG) by 500,000 shares to 11,700,000 shares worth $585,117,000. AIG is the second largest stock holding of Perry Capital.
Sold out positions
Perry Capital sold its entire stake in energy companies including Hess Corp. (NYSE:HESS) CALL options, Chesapeake Energy Corporation (NYSE:CHK), Energy XXI (Bermuda) Limited (NASDAQ:EXXI) and NRG Energy Inc (NYSE:NRG).
The hedge fund also sold all of its shares in Time Warner Cable Inc. (NYSE:TWC) and its American Airlines Group Inc (NASDAQ:AAL) PUT options.