Pennant Capital Management Buys Cognizant and Vivus; Sells Amgen

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Pennant Capital Management LLC, an investment advisory firm established and managed by Alan Fournier, recently filed its 13F with Securities and Exchange Commission (SEC). Based on its filing, the hedge fund has 19 stocks under management, with approximately a $4.794 billion market value.

Pennant Capital Management Buys Cognizant and Vivus; Sells Amgen

The firm purchased 2 new stocks, reduced its holdings in 7 stocks, and sold out one stock during the quarter that ended September 30, 2012.

Last month, Pennant Capital Management reported that its Winward hedge fund generated a return of 12.59 percent this year, compared with the 5.42 percent of the S&P 500. According to the firm, since its inception in 2001, the Fund grew by 158.28 percent.

In his letter to investors, Allan Fournier wrote that the performance of the hedge fund during the third quarter was good, given the volatility of the market. According to him, Pennant Capital’s investment strategy will be flexible since the market is still uncertain.

Based on its 13F Filing, Pennant Capital Management’s top holdings as of September 30 include TransDigm Group Incorporated (NYSE:TDG) 6.73 percent, DaVita HealthCare Partners Inc (NYSE:DVA) 6.08 percent, NVR, Inc. (NYSE:NVR) 4.71 percent, Terex Corporation (NYSE:TEX) 4.64 percent, and Fidelity National Information Services (NYSE:FIS) 4.6 percent.

Major New Holdings:

During the quarter, Pennant Capital Management purchased two new stocks. The company purchased 1,050,000 shares of Cognizant Technology Solutions Corp (NASDAQ:CTSH) for $73,384,499, and 170,000 shares of VIVUS, Inc. (NASDAQ:VVUS) for $3,027,700. The stocks represent 1.53 percent and 0.06 percent in the hedge fund’s portfolio.


Pennant Capital Management reduced its stakes in the following companies:

  • Coca-Cola Enterprises Inc (NYSE:CCE)- 4,638,069 shares worth $145,032,420
  • Quest Diagnostics Inc (NYSE:DGX)- 375,000 shares worth $23,786,250
  • Family Dollar Stores, Inc. (NYSE:FDO)- 2,230,597 shares worth $147,888,588
  • Old Republic International Corporation (NYSE:ORI)- 4,483,068 shares  worth $41,692,533
  • PHH Corporation (NYSE:PHH)- 5,110,629 shares worth $104,001,302
  • TransDigm Group Incorporated (NYSE:TDG)- 2,275,082 shares worth $322,765,872
  • Valero Energy Corporation (NYSE:VLO)- 879,328 shares worth $27,857,111

Sold Out

The hedge fund sold all of its 130,000 shares in Amgen, Inc. (NASDAQ:AMGN) in the third quarter.

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