The Big 10: Top Hedge Fund Stock Trades of 2007

Discussion in 'Wall St. News' started by makloda, Jan 3, 2008.


    The Big 10: Top Hedge Fund Trades of 2007

    NEW YORK, Jan 03, 2008 /PRNewswire via COMTEX/ -- Even though 2007 proved a turbulent year for some hedge funds, others were able to expertly play the market to their advantage. Dow Jones Hedge Fund Trades, which is the only publication dedicated to covering the activity and trading strategies of hedge funds, highlighted 10 of the year's very best trades in its second annual set of rankings released this week.

    Among the top hedge fund trades were two deals by Atticus Management, which resulted in a collective profit of nearly $1.2 billion for the firm. All told, the "Big 10" hedge fund trades garnered profits of more than $3 billion for their respective investors.

    Top Trade #1: Freeport McMoran Copper & Gold

    Firm: Atticus Management

    Profit: $800 million

    The New York-based hedge fund hit the mother lode for the second year in the row, scoring paper gains of at least $800 million through its holding in the mining giant.

    Top Trade #2: MBIA Inc., Ambac Financial

    Firm: Pershing Square Capital Management

    Profit: $500+ million

    William Ackman's longtime gamble that bond insurance companies would run into trouble finally paid off this year as mortgage loans to high-risk borrowers started going bad and credit markets stumbled.

    Top Trade #3: Foster Wheeler

    Firm: Tontine Partners

    Profit: $426 million

    Sage investments in engineering and construction companies helped cushion the Greenwich, Conn.-based firm's losses in finance and housing.

    Top Trade #4: Union Pacific, Other U.S. Railroads

    Firm: Atticus Management

    Profit: $387 million

    A counterintuitive bet in a sector that typically slows down as an economic cycle peaks paid off handsomely for Timothy Barakett's shop. On top of paper and actual gains, Atticus made more than $20 million in dividend earnings on its railroad holdings.

    Top Trade #5: First Solar

    Firm: Maverick Capital

    Profit: $350+ million

    After a stormy 2006, Maverick rebounded in 2007 thanks to its investments in solar and alternative energy. First Solar was one of the sector's hottest performers.

    Top Trade #6: Crown Castle International, American Tower

    Firm: Glenview Capital Management

    Profit: $319 million

    Larry Robbins' New York-based hedge fund got all the right signals when it targeted the wireless towers sector. The trades crowned a successful year that saw the firm up 24%.

    Top Trade #7: CF Industries

    Firm: Dawson-Herman Capital Management

    Profit: $160 million

    Ethanol companies suffered this year, but taking a long view of the biofuels sector helped the New York-based firm cultivate a neat return from the fertilizer company.

    Top Trade #8: Onyx Pharmaceuticals

    Firm: Meditor Capital Management

    Profit: $155 million

    Having booked some profits in Onyx at the beginning of the year, the U.K.- based firm held on to the company's shares to benefit from a further jump when its cancer drug beat analysts' estimates.

    Top Trade #9: Chipotle Mexican Grill

    Firm: Tremblant Capital Group

    Profit: $95 million

    When other firms were asking for the check, Brett Barakett went back for seconds in this fast-food chain that promises healthy fare and delivered a healthy profit for the $4 billion-plus firm.

    Top Trade #10: United Therapeutics Corp.

    Firm: Shunway Capital Partners

    Profit: $73 million

    The New York-based firm gradually increased its stake in United Therapeutics during the year, gaining big-time on good news about the company's pulmonary hypertension drug.
  2. Those trades are impressive but they don't hold a candle to the guy who made ~20-billion dollars on the short-side of the subprime meltdown.
  3. ...or those that made it on both sides!