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13F Insights From 2Q 2015

Notable takeaways from the nine big funds we like. This includes seven of the largest activist funds, albeit far from the best, they are the media focal points.

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Corvex Management bought more of Yum! Brands (YUM), now its 2nd largest holding. New key positions include Cheniere Energy (LNG) (Icahn target) and Ball Corp. (BLL). Major complete selloffs of MGM (MGM), Applied Materials (AMAT), Crown Castle (CCI)

Glenview Capital bought more of AbbVie (ABBV), now its 3rd largest position. Added slightly to Thermo Fisher (TMO) and Aetna (AET), 2nd and 9th positions, respectively. Major new position is Laboratory Corp. of America (LH). Major complete selloff was Time Warner (TWC), with major position reductions in AIG (AIG) and eBay (EBAY). 

Icahn showed two new positions, both of which we knew about, Cheniere Energy (LNG) and Gannett Co. (GCI). He sold off the rest of his Netflix (NFLX) position.  

JANA Partners major new positions include Johnson Controls (JCI), Precision Castparts (PCP) (Buffett’s recent buyout) Time Warner Cable (TWC) and Williams Companies (WMB) (Corvex target) - JANA’s 10th, 11th, 16th and 25th largest holdings. JANA dumped most of its Starwood (HOT) stake and about half its eBay (EBAY) stake. JANA added nicely to its Pinnacle Foods (possible suitor for JANA’s ConAgra target), Rackspace (RAX) and Time Warner Inc. (TWX) positions. 

Lone Pine Capital had no new adds that jump out. Of note, it dumped its entire Apple (AAPL) stake, as well as its Baidu (BIDU), Michael Kors (KORS) and Canadian Pacific (CP) stakes. Meanwhile, Lone Pine was adding nicely to its Illumina (ILMN) Microsoft (MSFT) and Charter (CHTR) positions - now its 4th, 6th and 7th largest positions, respectively. 

Pershing Square Capital had no real changes other than its dumping of its remaining Allergan (AGN) shares. 

Starboard Value major new position was its 5th largest holding Macy’s (M). Notable stake reductions include Yahoo (YHOO), selling off half its stake. Meanwhile, Starboard added to its Alibaba (BABA) stake nicely. 

Trian Partners announced its new stake in Sysco (SYY), but only its 9th largest position. It sold off all its Allergan (ALLE) stake and reduced its Wendy’s (WEN), Ingersoll-Rand (IR) and Legg Mason (LM) stakes. 

Third Point added a few new major positions, including T-Mobile (TMUS), Baxter (BAX), Sealed Air (SEE) and Devon Energy (DVN) - its 13th, 8th, 14th and 16th largest positions, respectively. Major complete stake reduction was Dollar General (DG), with other reduction in key holdings Ally Financial (ALLY) and Delta Airlines (DAL).