Westchester Capital Management, LLC recently filed their 13F report for the third quarter of 2022, which ended on 2022-09-30.
The 13F report details which stocks were in a guru’s equity portfolio at the end of the quarter, though investors should note that these filings are limited in scope, containing only a snapshot of long positions in U.S.-listed stocks and American depository receipts as of the quarter’s end. They are not required to include international holdings, short positions or other types of investments. Still, even this limited filing can provide valuable information.
Westchester Capital Management is an investment management company based out of Valhalla, New York. The company was founded in 1980 and would launch a variety of new funds as it grew, including a domestic hedge fund in 1987, the first mutual fund dedicated to merger arbitrage in 1989, and an offshore hedge fund in 1996. The company has most recently launched its MLIS Westchester Capital Merger Arbitrage UCITS Fund in 2011 and an alternatives fund in 2014. The company has a team of 15 employees with approximately half of them being investment professionals. Westchester Capital Management utilizes external research, using fundamental and quantitative analysis to make its investment decisions in the public equity and fixed income markets of the U.S. The company focuses on “consistently high risk-adjusted absolute returns with low market correlation” and has evaluated over 10,000 potential transactions and invested in over 4,000 reorganizations. Westchester Capital Management invests most heavily in the consumer discretionary sector, which alone makes up over a quarter of its total allocated assets, and also invests in the finance, materials, information technology, energy, industrials, and health care sectors, among others to a lesser degree, in order of decreasing allocation. The company currently has over $5.7 billion in total assets under management spread across 5 accounts, all of which are discretionary. Both of its total number of held accounts and total assets under management have been increasing in recent years with its total assets under management growing from $4 billion three years ago to its current amount today. Westchester Capital Management mainly caters to investment companies, which alone makes up over three quarters of its client base, and also provides services to pooled investment vehicles. The company currently offers its Merger Arbitrage Fund to both investors and institutional clients and WCIM Alternatives: Event Driven Fund.
As of the latest 13F report, the guru’s equity portfolio contained 431 stocks valued at a total of $3.58Bil. The top holdings were COHR(4.85%), ACC(3.95%), and FHN(3.31%).
According to GuruFocus data, these were Westchester Capital Management, LLC’s top five trades of the quarter.
GSK PLC
During the quarter, Westchester Capital Management, LLC bought 214,864 shares of NYSE:GSK for a total holding of 1,074,320. The trade had a 0.26% impact on the equity portfolio. During the quarter, the stock traded for an average price of $36.57.
On 11/16/2022, GSK PLC traded for a price of $32.84 per share and a market cap of $66.69Bil. The stock has returned -19.81% over the past year.
GuruFocus gives the company a financial strength rating of 5 out of 10 and a profitability rating of 8 out of 10.
In terms of valuation, GSK PLC has a price-earnings ratio of 4.16, a price-book ratio of 6.12, a price-earnings-to-growth (PEG) ratio of 0.88, a EV-to-Ebitda ratio of 6.29 and a price-sales ratio of 1.37.
The price-to-GF Value ratio is 1.00, earning the stock a GF Value rank of 7.
Concord Acquisition Corp II
The guru established a new position worth 804,413 shares in NYSE:CNDA, giving the stock a 0.22% weight in the equity portfolio. Shares traded for an average price of $9.69 during the quarter.
On 11/16/2022, Concord Acquisition Corp II traded for a price of $9.805 per share and a market cap of $343.30Mil. The stock has returned 0.05% over the past year.
GuruFocus gives the company a financial strength rating of 9 out of 10 and a profitability rating of 1 out of 10.
In terms of valuation, Concord Acquisition Corp II has a price-earnings ratio of 29.71, a price-book ratio of 1.27 and a EV-to-Ebitda ratio of -388.84.
Concord Acquisition Corp II Class A
The guru sold out of their 804,413-share investment in NYSE:CNDA. Previously, the stock had a 0.22% weight in the equity portfolio. Shares traded for an average price of $9.7 during the quarter.
On 11/16/2022, Concord Acquisition Corp II Class A traded for a price of $9.7 per share and a market cap of $339.62Mil. The stock has returned 0.15% over the past year.
There is insufficient data to calculate the stock’s financial strength and profitability ratings.
In terms of valuation, Concord Acquisition Corp II Class A has a price-earnings ratio of 24.18.
Haleon PLC
The guru sold out of their 1,074,320-share investment in NYSE:HLN. Previously, the stock had a 0.19% weight in the equity portfolio. Shares traded for an average price of $6.47 during the quarter.
On 11/16/2022, Haleon PLC traded for a price of $6.795 per share and a market cap of $31.33Bil. The stock has returned 0.00% over the past year.
GuruFocus gives the company a financial strength rating of 8 out of 10 and a profitability rating of 5 out of 10.
In terms of valuation, Haleon PLC has a price-earnings ratio of 16.88, a price-book ratio of 0.99, a EV-to-Ebitda ratio of 16.02 and a price-sales ratio of 2.76.
Enhabit Inc
The guru sold out of their 83,950-share investment in NYSE:EHAB. Previously, the stock had a 0.04% weight in the equity portfolio. Shares traded for an average price of $16.21 during the quarter.
On 11/16/2022, Enhabit Inc traded for a price of $12.42 per share and a market cap of $618.99Mil. The stock has returned 0.00% over the past year.
GuruFocus gives the company a financial strength rating of 5 out of 10 and a profitability rating of 4 out of 10.
In terms of valuation, Enhabit Inc has a price-earnings ratio of 4.27, a price-book ratio of 0.74, a EV-to-Ebitda ratio of 11.61 and a price-sales ratio of 0.77.
Please note, the numbers and facts quoted are as of the writing of this article and may not factor in the latest trading data or company announcements.
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