13F filings made with the Securities and Exchange Commission are just now becoming available to the public, and analysts everywhere are looking to the major players in the investment world to see how they shifted their investments in the third quarter of 2016. Israel Englander, the billionaire leader of Millennium Management, LLC, revealed in a 13F report that his company made a significant purchase of shares of Alcoa, Inc. (AA), the metals manufacturing company, between June and September of this year.
Increase of Position by Almost 1000%
At the beginning of the third quarter in 2016, Millennium Management owned just 300,000 shares of Alcoa stock. In the next three months, however, Englander's hedge fund bought up nearly 3 million new shares, bringing Millennium's total stake to 3.17 million shares, valued at $32.1 million, by the end of Q3. The company, with a market cap of $8.56 billion, has seen recent rises in the price of its stock. Millennium has maintained an investment in Alcoa for several months, although never to the level that it attained by the end of September.
Englander's Position in Callaway Golf
Englander also held a position in Callaway Golf Co (ELY).The golf company's stock increased by nearly 14% in the third quarter, and it seems to be increasing in popularity among the largest hedge funds in the country.
Success for Englander in a Difficult Time?
Englander made headlines in recent months when his $34 billion fund made it into the list of the top 100 hedge funds of 2015 by performance, according to Barron's. As of that time, Millennium posted a compounded annual return for the previous three years of 12.81%. This figure is impressive for hedge fund performance in general, but particularly so considering that hedge funds across the industry have been faced with increasing pressures from a variety of angles. Returns have declined considerably in general, and investors are losing faith in the hedge fund as a mode of investment, instead opting to withdraw their assets and place them elsewhere. Whether Englander and Millennium will be able to maintain this momentum through 2016 and beyond remains to be seen, but in any case all eyes will be on the investment leader to see where and how he allocates his money.
13Fs are required of all money management companies with assets under management totaling $100 million or more. They indicate net positions in certain classes of investment, and thus do not reflect all of a firm's investment portfolio or all of the individual buys and sells for any particular position within the quarter that is covered. Nonetheless, investors around the country analyze 13F filings for clues as to how the major investors operate their firms.
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