This $73 Billion Hedge Fund Company Has Been Buying Ford, GE, and Pitney Bowes

Do these generous dividend yields interest you?

Mar 7, 2014 at 4:46PM

The latest 13F season has arrived, when many money managers issue required reports on their holdings. It can be worthwhile to pay attention, as you might get an investment idea or two by seeing what some major investors have been buying and selling.

For example, consider D. E. Shaw & Co. Founded by David E. Shaw,  the fund has a reportable stock portfolio totaling $73.3 billion in value as of Dec. 31, 2013. Shaw is known as a math wizard and a quantitative investing pioneer. His firm is extremely selective when hiring, reportedly accepting about one in 500 applicants -- CEO Jeff Bezos once made the cut.

D. E. Shaw's latest 13F report shows that it has boosted its positions in Ford Motor Company (NYSE:F), General Electric Company (NYSE:GE), and Pitney Bowes (NYSE:PBI).

Shaw more than tripled its stake in Ford Motor Company, which was its 103rd-largest holding at the end of the quarter. After enduring many tough years, Ford has been on a roll, averaging more than 50% annual growth over the past five years. It still carries an appealing valuation, recently sporting a forward price-to-earnings ratio of 7.9 -- lower than its five-year average of 8.4. Ford has been enjoying solid sales despite a dip in February as a harsh winter interfered with production and purchases. Still, sales grew by 67% last month in China -- a massive market. Bears are worried, though, about an industrywide sales slowdown and rising inventory levels. Ford stock yields 3.2%.

General Electric has been transforming itself lately, becoming much more of an energy company, with oil and gas now its fourth-largest revenue generator. It's becoming a greener energy company, too, planning to spend some $10 billion on research into cleaner technology. Part of General Electric's transformation involves spinning off its sizable retail finance business, which it's doing via a massive initial public offering. GE's fourth quarter featured revenue up 3% over the year-ago quarter, earnings per share up 20%, and its order backlog growing by 8% to a record $244 billion. Bulls like how General Electric has been thinking outside the box by investing in and partnering with smaller companies on new technologies and sponsoring competitions to develop innovative solutions. CEO Jeff Immelt's purchase of millions of dollars in shares is promising, too. GE stock yields 3.4%.

Pitney Bowes is known for its legendary postage-meter business, but as you might imagine, electronic communications have taken a big bite out of that. Many lost faith in the company, especially after a 50% dividend cut last year. (The stock still sports an attractive yield, though, at 2.8%.) Pitney Bowes stock has nearly doubled over the past year, as the company posted a revenue gain (along with flat earnings that still topped expectations) in its last quarter, and forecast more growth after six years without it. Analysts at Zacks Equity research upgraded the stock to outperform in February, liking Pitney Bowes' prospects in digital commerce, where it has already been seeing growth. Bears worry about the company's debt, though, and whether it will sustain its growth momentum.

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Selena Maranjianwhom you can follow on Twitter, owns  shares of, Ford, and General Electric Company. The Motley Fool recommends and Ford. The Motley Fool owns shares of, Ford, and General Electric Company. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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