Richard Perry's Fourth-Quarter Transactions Had High Impact on Portfolio

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Feb 16, 2015
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Other gurus made more deals in the fourth quarter of 2014, but few matched the impact Richard Perry (Trades, Portfolio)’s stock transactions had on his portfolio.

Perry, co-founder of private investment management firm Perry Capital LLC, invested in two companies in the fourth quarter that are new to his portfolio – CBS Corp (CBS, Financial) and Cheniere Energy Inc (LNG, Financial).

Perry acquired 1,700,000 shares of CBS Corp, parent company of the CBS television network based in New York, for an average price of $53.32 per share. The purchase had a 3.9% impact on his portfolio.

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Gurus Pioneer Investments (Trades, Portfolio), Third Avenue Management (Trades, Portfolio), John Rogers (Trades, Portfolio), Scott Black (Trades, Portfolio), Mario Gabelli (Trades, Portfolio), Martin Whitman (Trades, Portfolio), Lee Ainslie (Trades, Portfolio), Chase Coleman (Trades, Portfolio), Louis Moore Bacon (Trades, Portfolio), Eric Mindich (Trades, Portfolio), Murray Stahl (Trades, Portfolio), George Soros (Trades, Portfolio), Larry Robbins (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio), Steven Cohen (Trades, Portfolio) and Chris Shumway (Trades, Portfolio) own shares of CBS. Gurus David Tepper (Trades, Portfolio), Ray Dalio (Trades, Portfolio), Jim Simons (Trades, Portfolio), Jana Partners (Trades, Portfolio), John Paulson (Trades, Portfolio) and Jeremy Grantham (Trades, Portfolio) sold their stakes in CBS in the second half of 2014.

Perry added to his holdings in five companies – Ally Financial Inc (ALLY, Financial), Nokia Oyj (NOK, Financial), Theravance Inc (THRX, Financial), American International Group Inc (AIG, Financial) and YPF Sociedad Anonima (YPF, Financial).

His purchase of 6,575,985 shares of Ally Financial, a Detroit-based holding company and the second-largest stake in Perry’s portfolio, for an average price of $22.65 per share had a 6.51% impact on his portfolio.

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Gurus Daniel Loeb (Trades, Portfolio), Jim Simons (Trades, Portfolio), NWQ Managers (Trades, Portfolio), Howard Marks (Trades, Portfolio), Third Avenue Management (Trades, Portfolio), Richard Snow (Trades, Portfolio), Jeremy Grantham (Trades, Portfolio), Chuck Royce (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio), Louis Moore Bacon (Trades, Portfolio), George Soros (Trades, Portfolio) and Michael Price (Trades, Portfolio) all own shares of Ally. Guru John Paulson (Trades, Portfolio) divested himself of his stake in Ally in the third quarter.

Perry added 8,558,674 shares to the largest stake in his portfolio, Nokia Oyj, a communications and information technology company based in Finland, for an average price of $7.7 per share. That transaction had a 2.82% impact on his portfolio.

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Gurus Dodge & Cox, Jim Simons (Trades, Portfolio), John Rogers (Trades, Portfolio), David Einhorn (Trades, Portfolio), Francis Chou (Trades, Portfolio) and Lee Ainslie (Trades, Portfolio) own stakes in Nokia. Gurus Ken Fisher (Trades, Portfolio), Julian Robertson (Trades, Portfolio), Jeff Auxier (Trades, Portfolio) and George Soros (Trades, Portfolio) sold their stakes in Nokia in the third and fourth quarters of 2014.

Divestitures and reductions

He sold his stakes in five companies – Herbalife Ltd (HLF, Financial), Shire PLC (SHPG, Financial), Mallinckrodt PLC (MNK, Financial), NMI Holdings Inc (NMIH, Financial) and Theravance Biopharma Inc (TBPH).

Perry sold his 5,575,000 shares of Herbalife, a Los Angeles-based company that develops, markets and sells nutrition, weight management and skin-care products, for an average price of $53.59 per share. That transaction had a -8.8% impact on his portfolio.

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Four gurus – Jeremy Grantham (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio), Carl Icahn (Trades, Portfolio) and George Soros (Trades, Portfolio) – have shares of Herbalife in their portfolios. Jim Simons (Trades, Portfolio) and John Burbank (Trades, Portfolio) sold their stakes in the company.

Perry sold 695,800 shares of Shire, an Irish biopharmaceutical company, for an average price of $212.14 per share. That sale had a -6.5% impact on his portfolio.

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Gurus Pioneer Investments (Trades, Portfolio), Jean-Marie Eveillard (Trades, Portfolio), Ken Fisher (Trades, Portfolio), Daniel Loeb (Trades, Portfolio), Mario Gabelli (Trades, Portfolio), Paul Singer (Trades, Portfolio), Louis Moore Bacon (Trades, Portfolio), John Paulson (Trades, Portfolio), Murray Stahl (Trades, Portfolio), Eric Mindich (Trades, Portfolio) and Chris Shumway (Trades, Portfolio) have shares of Shire in their portfolios. David Tepper (Trades, Portfolio), Jim Simons (Trades, Portfolio) and Jeremy Grantham (Trades, Portfolio) sold their stakes in the company.

Perry also sold his stake in 1,015,678-share stake in Mallinckrodt, an Irish pharmaceutical company, for an average price of $78.32 per share. The sale had a -3.8% impact on his portfolio.

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Gurus RS Investment Management (Trades, Portfolio), Pioneer Investments (Trades, Portfolio), Mario Gabelli (Trades, Portfolio), Jean-Marie Eveillard (Trades, Portfolio), John Hussman (Trades, Portfolio), Jim Simons (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio), Steven Cohen (Trades, Portfolio), John Paulson (Trades, Portfolio) and Paul Tudor Jones (Trades, Portfolio) have shares of Mallinckrodt in their portfolios. Gurus Chuck Royce (Trades, Portfolio), Paul Singer (Trades, Portfolio), Chase Coleman (Trades, Portfolio) and Jana Partners (Trades, Portfolio) divested themselves of their holdings in Mallinckrodt.

He reduced his positions in two companies – Rock-Tenn Company (RKT) and Johnson & Johnson (JNJ).

Perry sold 750,000 shares of Rock-Tenn, a Georgia-based paper and packaging manufacturer, for an average price of $54.38 per share. That transaction had a -1.28% impact on his portfolio.

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Gurus RS Investment Management (Trades, Portfolio), John Keeley (Trades, Portfolio), Howard Marks (Trades, Portfolio), Robert Olstein (Trades, Portfolio), Jim Simons (Trades, Portfolio), Zeke Ashton (Trades, Portfolio), David Dreman (Trades, Portfolio), John Paulson (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio) and Joel Greenblatt (Trades, Portfolio) all have shares of Rock-Tenn in their portfolios. Ray Dalio (Trades, Portfolio), Chuck Royce (Trades, Portfolio), Steven Cohen (Trades, Portfolio) and Louis Moore Bacon (Trades, Portfolio) sold their stakes in the company.

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