Hedge funds

BlueMountain Buys News Corp Sells Goldman and Fortress

BlueMountain Buys News Corp Sells Goldman and Fortress

BlueMountain Capital Management LLC has approximately $84,899,938 worth of assets under management (which are filled on the hedge fund’s 13F, total aum is closer to $10 billion), with the top ten stocks in its portfolio commanding a value equivalent to 40%. ValueWalk has more information on BlueMountain’s Q2, which can be found here.  The New York based  hedge fund was founded in 2003 by Andrew Feldstein and Stephen Siderow. During the second quarter of 2012, the firm added 93 new stocks, topped up 44 existing stocks, and cut stakes in 10 counters. Additionally, the company also did some clear out sales in 26 counters.

Top Positions

BlueMountain’s top stock is News Corp. (NASDAQ:NWSA) (NASDAQ:NWS); the newly acquired stock commands 5.88% of the company’s overall portfolio. News Corp has 2.42 billion shares outstanding, with 2.05 billion floated. It is a mid cap stock with a market capitalization of $56.94 billion. Additionally, BlueMountain also acquired a stake in American Capital, Ltd (NASDAQ:ACAS), which was equivalent to 5.38% of the company’s portfolio, consequently, putting it second to of the list in the company’s AUM. The New York based private equity firm has a market capitalization of $3.51 billion.

The third position is occupied by NRG Energy Inc (NYSE:NRG), whereby the company’s holdings in the Oil and Gas NRG represents 4.77% of ;its current portfolio, while Rock-Tenn Co. (NYSE:RKT), and Domtar Corp (USA) (NYSE:UFS) occupy the fourth and fifth positions respectively with 4.74% and 3.86%.

New Positions

Just as they are featured in the company’s top positions, News Corp. and American Capital, Ltd (NASDAQ:ACAS) were BlueMountain’s top new buys, with the former occupying the first position, and the latter, the second, in terms of value of stock acquired.

Other buys include the Technology SPDR (NASDAQ:XLK) at 3.27% of the portfolio, while Range Resources Corp. (NYSE:RRC) occupies 2.49%, and Taro Pharmaceutical Industries Ltd. (NYSE:TARO) is represented by 2.27%, among others.

Cleared Positions

W.R Grace & Co. (NYSE:GRA) brought about the biggest impact in the company’s portfolio in terms of exits, after BlueMountain sold all its stake, or 4.73% of the overall portfolio, in the Columbia based company, which engages in the production and sale of specialty chemicals and materials worldwide.

Another major sale resulted after the company offloaded the entire stake held in Robert Half International Inc. (NYSE:RHI), representing 1.94% impact on the company’s portfolio. RHI is based in California, and  provides staffing and risk consulting services in North America, South America, Europe, Asia, and Australia.

Additionally, the company sold all its shares of The Charles Schwab Corp (NYSE:SCHW), an investment banking and brokerage company based in San Francisco, representing 1.79% of its portfolio.

Other clear out sales include, offloading of shares held at another investment banking company, The Goldman Sachs Group Inc. (NYSE:GS), for 1.36% impact on the portfolio, and Fortress Investment Group LLC (NYSE:FIG), a 0.86% impact.



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