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Elliot Management Disclosed Stake in Alcoa: Investor Takeaways Elliott Management
On November 23, 2015, hedge fund Elliott Management disclosed its 6.4% stake in Alcoa (AA) in its regulatory filing with the US (SPY) Securities and Exchange Commission (or SEC). According to Elliott Management’s regulatory filings, it started buying its stake in Alcoa in the middle of September 2015.
Enter Icahn
Apparently, Elliott Management is not the only company finding value in the beleaguered commodity space. In August, activist investor Carl Icahn disclosed his 8.5% stake in Freeport-McMoRan (FCX). On the face of it, there is little in common between Alcoa and Freeport. Although Freeport is mainly involved in copper and energy production, Alcoa has been gradually moving away from being a pure-play commodity company.
More than half of Alcoa’s revenues now come from the value-added component space and aluminum sheet products. Alcoa’s acquisition of Firth Rixson, RTI Metals, and TITAL have enhanced its presence in the fast-growing aerospace component market. Precision Castparts (PCP) and Woodward Inc. (WWD) are the other leading suppliers to the aerospace sector.
Common factors
Freeport-McMoRan and Alcoa have two things in common. Firstly, both stocks have tanked this year, as can be seen in the graph above. Secondly, both Freeport and Alcoa are in the middle of a major corporate restructuring. Freeport had already announced the IPO (initial public offering) of its energy business before Carl Icahn disclosed his stake. Alcoa also announced that the company would be split into two companies by the middle of 2016.
However, Elliott Management started buying its stake in Alcoa before it announced the split. Alcoa has been laying the groundwork for the split for quite some time now. You can read more about this aspect of Alcoa’s business in Will Alcoa Splitting into 2 Companies Create Shareholder Value?
In the next part, we’ll discuss why Elliott Management finds value in Alcoa.
Continue to Next Part Browse this series on Market Realist:
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Freeport McMoRan Copper and Gold Inc.
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PRODUCTEUR |
CODE : FCX |
ISIN : US35671D8570 |
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ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
Freeport McMoran est une société de production minière d'or et de cuivre basée aux Etats-Unis D'Amerique. Freeport McMoran est productrice d'or, de cuivre, d'argent, de cobalt et de molybdène au Chili, au Perou, en Indonesie et en Republique Democratique Du Congo, en développement de projets de cuivre au Perou, et détient divers projets d'exploration au Chili. Ses principaux projets en production sont CANDELARIA, EL ABRA, CHINO - MILL, HENDERSON, MIAMI - ROM LEACH, MORENCI - MILL, OJOS DEL SALADO, MORENCI et MORENCI - ROM LEACH au Chili, GRASBERG, SIERRITA et BAGDAD en Indonesie, TENKE FUNGURUME et TYRONE en Republique Democratique Du Congo et CERRO VERDE au Perou, son principal projet en développement est SAFFORD au Perou et ses principaux projets en exploration sont BAGDAD - ROM LEACH et CHINO - ROM LEACH au Perou et CERRO VERDE - MILL, CERRO VERDE - CRUSHED LEACH, CERRO VERDE - ROM LEACH, EL ABRA - ROM LEACH et CLIMAX au Chili. Freeport McMoran est cotée aux Etats-Unis D'Amerique et en Allemagne. Sa capitalisation boursière aujourd'hui est 71,8 milliards US$ (67,5 milliards €). La valeur de son action a atteint son plus bas niveau récent le 06 mars 2020 à 10,00 US$, et son plus haut niveau récent le 19 avril 2024 à 49,61 US$. Freeport McMoran possède 1 448 000 000 actions en circulation. |