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Assessing Elliott Management holdings in third quarter

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Dec. 17 2014, Updated 9:21 p.m. ET

Elliott’s 3Q 13F highlights

Paul Singer’s Elliott Management, a New York hedge fund, disclosed new positions in a 13F filed last month. In this series, we’ll discuss some of the notable positions the $25 billion-plus activist fund traded in the third quarter of 2014 (or 3Q14) that ended in September.

The total value of Elliott Management’s US long portfolio increased to $8.79 billion in 3Q14 from $7.15 billion in 2Q14. The fund’s top holdings during the quarter are outlined below. On top position Hess Corp (HES), the fund noted, “Despite trading down modestly, Hess outperformed its peers during the quarter.” Although the company is “priced at a discount to both intrinsic and its peers,” the fund expects “this gap to continue to close as additional restructuring steps are taken.”

An investor letter reviewed by news agencies noted that Elliott Associates had a robust third quarter, and was up 2.9%. The letter said the fund considers retail, energy, technology, and real estate sectors to be attractive.

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Elliott’s notable positions in 3Q

The fund’s new holdings in the quarter include Family Dollar Stores (FDO), Time Warner Cable (TWC), and VMware, Inc. (VMW). It raised its positions in EMC Corporation (EMC), Interpublic Group of Companies (IPG), 21st Century Fox (FOX), and Brazilian telecom company Oi (OIBR).

Notable exits were Mallinckrodt Plc (MNK) and Allergan, Inc. (AGN), while a stake in Juniper Networks (JNPR) was lowered.

Benefits from Riverbed Technology sale

Elliott also recently benefited from one of its activist positions in network equipment maker Riverbed Technology (RVBD). Riverbed agreed to be acquired by Thoma Bravo LLC and Teachers’ Private Capital, the investing arm of the Ontario Teachers’ Pension Plan for $21 per share in a deal valued at $3.6 billion. In an effort to initiate a bidding war for the company, Elliott had offered to buy Riverbed earlier this year.

The next part of this series will highlight the fund’s position in Family Dollar Stores (FDO).

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