UBS OCONNOR LLC recently filed their 13F report for the fourth quarter of 2022, which ended on 2022-12-31.
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.
UBS O’Connor LLC is a private hedge fund sponsor based out of Chicago, Illinois. The company was established in 2000 and has grown from its inception to now have locations in Stamford and New York City. UBS O’Connor is headed by CIO and Managing Director Dawn Nora Fitzpatrick and has grown from its inception to now have 161 employees of which 66 are investment professionals. The company operates as a subsidiary of UBS AG, its parent company. UBS O’Connor conducts its research both internally and externally, utilizing a fundamental and quantitative methodology with both top down and bottom up investment approaches. The company utilizes a variety of global long short, merger and convertible arbitrage, and credit long short strategies to make its investment decisions, allocating its assets across fixed income, public equity, alternative, and real estate markets on a global scale. UBS O’Connor invests most heavily in the consumer discretionary sector, which alone makes up over a fifth of its total asset allocations, and also invests in the information technology, consumer staples, health care, materials, energy, finance, and industrials sectors, among others to a lesser degree, in order of decreasing allocation. The firm’s top 10 holdings together make up over a fifth of its total asset allocations, and the company has a relatively high turnover rate of approximately 81.8%. The company currently holds over $13 billion in total assets under management spread across 23 accounts, all of which are discretionary accounts. Although UBS O’Connor’s total number of managed accounts has been decreasing in recent years, its total amount of managed assets has been increasing, growing significantly from $5.1 billion back in 2010 to well over twice that amount today despite some volatility. The company mainly caters to pooled investment vehicles, which alone makes up over three quarters of its entire client base, and also provides services to investment companies.
As of the latest 13F report, the guru’s equity portfolio contained 745 stocks valued at a total of $3.39Bil. The top holdings were STOR(12.23%), AIMC(1.91%), and EVOP(1.47%).
According to GuruFocus data, these were UBS OCONNOR LLC’s top five trades of the quarter.
STORE Capital Corp
The guru established a new position worth 12,926,079 shares in NYSE:STOR, giving the stock a 12.23% weight in the equity portfolio. Shares traded for an average price of $31.73 during the quarter.
On 02/18/2023, STORE Capital Corp traded for a price of $32.21 per share and a market cap of $9.11Bil. The stock has returned 9.12% over the past year.
GuruFocus gives the company a financial strength rating of 4 out of 10 and a profitability rating of 8 out of 10.
In terms of valuation, STORE Capital Corp has a price-earnings ratio of 27.77, a price-book ratio of 1.70, a price-earnings-to-growth (PEG) ratio of 13.22, a EV-to-Ebitda ratio of 17.60 and a price-sales ratio of 10.10.
The price-to-GF Value ratio is 0.91, earning the stock a GF Value rank of 7.
Biohaven Pharmaceutical Holding Co Ltd
The guru sold out of their 3,784,482-share investment in NYSE:BHVN. Previously, the stock had a 9.109999999999999% weight in the equity portfolio. Shares traded for an average price of $151.8 during the quarter.
On 02/18/2023, Biohaven Pharmaceutical Holding Co Ltd traded for a price of $14.08 per share and a market cap of $1.01Bil. The stock has returned -89.71% over the past year.
GuruFocus gives the company a financial strength rating of 2 out of 10 and a profitability rating of 1 out of 10.
In terms of valuation, Biohaven Pharmaceutical Holding Co Ltd has a EV-to-Ebitda ratio of -15.28 and a price-sales ratio of 1.13.
Change Healthcare Inc
The guru sold out of their 5,748,432-share investment in NAS:CHNG. Previously, the stock had a 2.52% weight in the equity portfolio. Shares traded for an average price of $27.49 during the quarter.
On 02/18/2023, Change Healthcare Inc traded for a price of $27.49 per share and a market cap of $9.03Bil. The stock has returned 30.16% over the past year.
GuruFocus gives the company a financial strength rating of 3 out of 10 and a profitability rating of 3 out of 10.
In terms of valuation, Change Healthcare Inc has a price-book ratio of 2.73, a EV-to-Ebitda ratio of 16.98 and a price-sales ratio of 2.55.
Ping Identity Holding Corp
The guru sold out of their 5,476,033-share investment in NYSE:PING. Previously, the stock had a 2.45% weight in the equity portfolio. Shares traded for an average price of $28.34 during the quarter.
On 02/18/2023, Ping Identity Holding Corp traded for a price of $28.5 per share and a market cap of $2.46Bil. The stock has returned 4.40% over the past year.
GuruFocus gives the company a financial strength rating of 5 out of 10 and a profitability rating of 3 out of 10.
In terms of valuation, Ping Identity Holding Corp has a price-book ratio of 3.49, a EV-to-Ebitda ratio of -44.48 and a price-sales ratio of 7.74.
The price-to-GF Value ratio is 0.96, earning the stock a GF Value rank of 5.
Global Blood Therapeutics Inc
The guru sold out of their 2,238,787-share investment in NAS:GBT. Previously, the stock had a 2.43% weight in the equity portfolio. Shares traded for an average price of $68.48999999999999 during the quarter.
On 02/18/2023, Global Blood Therapeutics Inc traded for a price of $68.48999999999999 per share and a market cap of $4.62Bil. The stock has returned 165.36% over the past year.
GuruFocus gives the company a financial strength rating of 4 out of 10 and a profitability rating of 1 out of 10.
In terms of valuation, Global Blood Therapeutics Inc has a price-book ratio of 38.94, a EV-to-Ebitda ratio of -16.54 and a price-sales ratio of 18.82.
The price-to-GF Value ratio is 0.85, earning the stock a GF Value rank of 6.
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.
When GuruFocus covers insider information, we only track open market or the private purchase and sale of common stock with the transaction code of P or S. Therefore, all the transactions mentioned in this article are only the ones with transaction code of P or S.
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