These 2 Hedge Funds Might Be Bruised From Yahoo's Recent Fall
Alibaba Group Holding Ltd's (NYSE: BABA) price fall may have taken a toll on Yahoo! Inc. (NASDAQ: YHOO), which lost about 1.6 percent on Tuesday. Yahoo's overall performance for 2014 has been quite good, nonetheless, returning more than 25 percent year-to-date compared to the Dow Jones' 8.9 percent.
Below is a closer look at a couple of hedge funds that may have taken a hit this week, but are still up year-to-date according to the most recent 13F filings.
The famed hedge fund started 2014 with 10.48 million shares and almost doubled its stake over the first three quarters of the year. The stock traded at relatively low prices, usually below $43 compared to the current $50.30. Based on the latest 13F filing, its current position -- which comprised 19.56 million shares by the end of Q3 -- may have gained about 24 percent since the end of the period.
However, the wage lost about $160 million in market value on Tuesday, making it potentially the most-affected hedge fund.
Starboard Value LP
Starboard Value LP was another big winner with Yahoo. The fund initiated a position with 7.72 million shares over Q3, while the stock price was still below $43. Starboard Value has potentially already seen about a 24 percent return.
According to several Wall Street analyst firms, there’s still plenty of upside for Starboard, D.E. Shaw and other investors to benefit. Bank of America recently upgraded Yahoo from Neutral to Buy, setting a $62 price target, while Bernstein and UBS fixed price targets of $60 and $58, respectively.
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