JAT Capital Buys Comcast, Time Warner; Sells Starz, Google, Disney

By Mani
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New York headquartered hedge fund JAT Capital Management, L.P. in its first quarter 13F filing reported Time Warner Inc (NYSE:TWX) as its top holding with over 7.82 percent of its portfolio invested in the entertainment company. Application software company Intuit Inc. (NASDAQ:INTU) and resorts and casinos company Las Vegas Sands Corp. (NYSE:LVS) hold the second and third spots with over 6.35 percent of its portfolio invested in each of the two companies.


John Thaler, founder of JAT Capital, revealed in the first quarter 13F filing that the company added 20 new stocks to its portfolio, bought more shares of 12 stocks, exited 22 stocks, while trimming holdings in 6 stocks.

For 2011, despite the debt turmoil in Europe and high market volatility, JAT Capital returned 13 percent, a remarkable feat considering that the average hedge fund was down 4 percent.

Money managers who oversee more than $100 million in equities must file a Form 13F with the U.S. Securities and Exchange Commission within 45 days of each quarter’s end to list their U.S. traded stocks, options and convertible bonds.

The hedge fund’s top ten holdings constitute 51.79 percent of its overall portfolio. JAT Capital has a market value of $2.023 billion.

JAT Capital’s Major New Positions

Telecom services company Equinix Inc (NASDAQ:EQIX)’s call option was the biggest addition to JAT Capital’s portfolio during the first quarter. The hedge fund purchased 852,600 shares in EQIX’s Call options. According to the 13F filing, Equinix represents 9.12 percent of its portfolio.

The next big addition was in Time Warner Inc (NYSE:TWX) with over 7.82 percent of JAT Capital’s investment held in the entertainment company. The hedge fund purchased over 2,745,730 shares in TWX.

Comcast Corporation (NASDAQ:CMCSA) occupies the third spot among the new positions acquired by JAT Capital. It invested over 4.29 percent of its portfolio in Comcast Corporation (NASDAQ:CMCSA) by acquiring 2,069,544 shares.

JAT Capital also invested in the general entertainment company Royal Caribbean Cruises Ltd. (NYSE:RCL) by investing over 4.3 percent of its portfolio through purchase of 2,457,081 shares

The hedge fund also took a fresh position in Liberty Global Inc. (NASDAQ:LBTYA). It bought 857,340 shares in the CATV systems company. This represented 3.11 percent of JAT Capital’s overall portfolio.

JAT Capital’s Top Positions

Despite being a new entrant, the entertainment company Time Warner Inc (NYSE:TWX) is also the biggest holding of the hedge fund as of March 31. According to the 13F filing, the hedge fund held 2,745,730 shares in TWX representing 7.82 percent of its portfolio at the end of March quarter.

The second largest holding was the application software company Intuit Inc. (NASDAQ:INTU) where the hedge fund held 1,957, 009 shares constituting  6.35 percent of its overall portfolio.

Its third largest holding was in the resorts and casinos major Las Vegas Sands Corp. (NYSE:LVS) where it held 2,280,125 shares constituting 6.35 percent of its portfolio.

Sold out positions

JAT Capital sold out its entire stake in another CATV systems company Starz (NASDAQ:STRZA) by selling 1,639,625 shares that represented 11.40 percent of its portfolio at the beginning of the last quarter.

The hedge fund sold out all its holdings of 2,092,638 shares in the entertainment major The Walt Disney Company (NYSE:DIS) where it held 6.25 of its portfolio at the beginning of the previous quarter.

Another major position closed was in the most popular Internet information provider Google Inc (NASDAQ:GOOG) where JAT Capital sold off its entire 137,372 shares that represented 5.83 percent of its total portfolio at the beginning of the first quarter.

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