Taconic Capital Buys Dell, Hess; Sells Hewlett-Packard, Kraft Foods

Updated on

Taconic Capital Advisors, a multi-strategy event-driven hedge fund co-founded by Kenneth Brody and Frank Brosens, recently submitted its 13f filing with the Securities and Exchange Commission (SEC) for the first quarter of 2013.  The filing showed that its assets under management (AUM) increased from more than $1.68 billion in the previous quarter to more than $2.65 billion.

Taconic Capital Buys Dell, Hess; Sells Hewlett-Packard, Kraft Foods

During the first quarter, Taconic Capital Advisors purchased 26 new stocks, increased its position in 14 stocks, reduced stakes in 10 companies, and sold out its entire stockholdings in 16 companies. Its top 10 stockholdings account 66.91% of its portfolio.

Major New Positions

Taconic Capital Advisors’ major new acquisitions during the March quarter include Dell Inc. (NASDAQ:DELL), which accounts for 10.42 percent or 19,280,300 shares worth over $276.28 million; and Virgin Media Inc. (NASDAQ:VMED) (LON:VMED) 4.89 percent or 2,650,000 shares worth approximately $129.77 million.  Hess Corporation (NYSE:HES) represents a 2.43 percent stake or 900,000 shares with more than $64.44 million market value; Noble Corporation (NYSE:NE) 2.15 percent stake or 1,500,000 shares worth more than $57.22 million; and Penn National Gaming, Inc (NASDAQ:PENN) 2.15 percent stake or 1,050,000 shares worth over $57.15 million.

The hedge fund also purchased 1,500,000 shares of MetroPCS Communications Inc (NYSE:PCS) worth more than $16.34 million. After the completion of the merger of MetroPCS with T-Mobile USA, a newly formed public company was established known as T-Mobile U.S. Inc and started trading at the New York Stock Exchange under the ticker symbol TMUS on May 1. The shareholders of MetroPCS received 26 percent stake in the combined company plus a cash payment of $4.06 per share. T-Mobile US Inc (NYSE:TMUS) traded around $18.76 per share after hours on Friday.

In addition, Taconic Capital Advisors also bought 2 million shares of Allied Nevada Gold Corp (NYSEMKT:ANV), 1,075,000 shares of Dean Foods Co (NYSE:DF), 785, 982 shares of Progenics Pharmaceuticals Inc (NASDAQ:PGNX), 600,000 shares of Radian Group Inc (NYSE:RDN), and 950,000 shares of Microsoft Corporation (NASDAQ:MSFT).

Increased Stockholdings

During the quarter, the hedge fund increased its stockholdings in American International Group (NYSE:AIG) by 500,000 shares bringing its total position to 1.2 million shares worth more than $46.58 million. Taconic Advisors also boosted its stake in BP Plc (NYSE:BP) by 2.6 million shares making its total stake in the energy company by 12 million shares worth over $508 million. The hedge fund also bought additional 2.4 million shares of WPX Energy Inc (NYSE:WPX), 650,000 shares of Monster Beverage Inc (NASDAQ:MNST), 650,000 shares of Assure Guaranty Ltd (NYSE:AGO), and 550,000 shares of Delta Airlines Inc (NYSE:DAL).

Reduced Stockholdings

Taconic Capital Advisors reduced its stake in the following companies: Hospira Inc (NYSE:HSP) by 1 million shares, Owens-Illionois Inc (NYSE:OI) by 600,000 shares, CIT Group Inc (NYSE:CIT) by 675,000 shares, Stanley Black & Decker, Inc (NYSE:SWK) by 225,000 shares, Kearny Financial Corp (NASDAQ:KRNY), and Ingram Micro Inc (NYSE:IM by 200,000 shares among others.

Sold Out Positions

The hedge fund sold out its entire stake 16 companies including ADT Corp (NYSE:ADT), Hewlett-Packard Company (NYSE:HPQ), Kraft Foods Group Inc (NASDAQ:KRFT), Valero Energy Corporation (NYSE:VLO), Target Corporation (NYSE:TGT), and Mondelez International Inc (NASDAQ:MDLZ), etc.

Leave a Comment