Leon Cooperman established Omega Advisors in 1991, achieving an average annual return of 12.5% by focusing on undervalued stocks. At its peak, the fund managed over $10 billion, but its assets declined following SEC insider trading allegations in 2016 related to trades involving Atlas Pipeline Partners. Cooperman settled the case by paying $4.9 million without admitting any wrongdoing. Throughout the legal battle, the fund's performance remained strong, and he closed it at its highest level. In an interview with Forbes, Cooperman attributed his success to hard work, luck, and intuition. He emphasized his value-oriented investment approach, influenced by investment legends like Warren Buffett, Benjamin Graham, and David Dodd. Cooperman's strategy revolves around acquiring assets that offer more value than the price paid. As of November 20, 2023, Leon Cooperman’s net worth stands at $2.8 billion.
Billionaire investor Leon Cooperman maintains a bearish outlook and is not too keen on the overall stock market as of October 2023. He believes that the market is not fully recognizing the risks tied to a potential fiscal crisis. As the Chair and CEO of the Omega Family Office, Cooperman highlighted that the immense fiscal stimulus has accelerated demand, artificially shaping the economy. With the U.S. national debt exceeding $33 trillion for the first time, Cooperman's long-term pessimism is evident. Instead of investing in the standard stock market measures, he is actively seeking good deals in individual stocks. He said:
“The market has been, as you know, extraordinarily bifurcated. If you take out the Magnificent 7, the overall market has done nothing and maybe it’s down a little bit or flat. I’m not interested in the S&P. I’m interested in individual stocks.”
Cooperman had similar views about the stock market in 2022. During the year, there was a significant increase in US Treasury yields. Despite this rise, Leon Cooperman believed that the yields remained lower than he had expected. He expressed his preference for investing in stocks rather than bonds, even though he foresaw a potential recession in 2023. He said in aninterview with BloombergTelevision and Radio:
“I’d rather be in a common stock than I would be in a bond any day of the week, given the relative price of bonds versus equities. Equities are the best house in the financial asset neighborhood.”
Even so, he believed that equities still had potential to decrease in value. He predicted a recession in 2023, estimating that the S&P 500 index could drop to a level approximately 35% to 40% lower than its peak, which was around 4,800 points.
Cooperman outlined several potential reasons that might steer the US economy towards a recession. These factors included the Federal Reserve's campaign of quantitative tightening, the escalating oil prices, and fluctuations in the US dollar's value. As per a Markets Insiderreport from September 2023, Cooperman noted that these factors have thus far remained relatively controlled, contributing to the strong performance of the markets in the past few quarters. Initially, decreases in oil prices and a weakening dollar were considered beneficial for the economy, boosting investor confidence. However, Cooperman warned against relying on continued market strength, expressing his belief that the price of the S&P is too high, and the equity risk premium is too low.
When Fox Business anchor Liz Claman mentioned Congress and President Joe Biden's apparent lack of focus on addressing the deficit, Leon Cooperman pointed out that both political parties had contributed to creating the deficit and emphasized the urgent need to address it now. He described the situation in the U.S. as a "guns or butter" scenario, referring to the government's choice between investing in national defense or domestic programs. Cooperman expressed concern that this policy dilemma might lead to increased inflation, which he believes could have a negative impact on the stock market. He stated:
“When Donald Trump was president, he was running a trillion dollar deficit and the economy was fully employed. Biden has made it worse because of economic circumstances and what’s going on with two wars.”
Cooperman observed that the upcoming year might bring more challenges for stock market investors. A potential recession could cause stock values to decline, making it harder for investors to profit. Additionally, this situation might increase the unpredictability of the stock market, posing challenges for active investors. However, he sees a silver lining as it could create chances for value investors to purchase shares of reputable companies at reduced prices.
In this article, we discuss the stocks that Leon Cooperman bought and sold in the third quarter of 2023. Some of his recent buys include WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC), Manchester United plc (NYSE:MANU), and Elevance Health, Inc. (NYSE:ELV).
Our Methodology
We reviewed the Q3 2023 portfolio of Leon Cooperman’s Omega Advisors and mentioned his recent buys and sells. We have assessed the hedge fund sentiment toward each stock from Insider Monkey’s database of 910 elite hedge funds tracked as of the end of the second quarter of 2023.
7 Stocks Billionaire Leon Cooperman Just Bought and Sold
Stocks Billionaire Leon Cooperman Just Bought and Sold
10. Virgin Orbit Holdings Inc
Percentage of Stake Discarded: 100%
Virgin Orbit Holdings Inc, a part of the Virgin Group, offered launch services designed for small satellites. The company was established in 2017. In Q2 2023, Leon Cooperman held 157,978 shares of the stock worth $5,095. His stake was discarded entirely in Q3 2023 as the company went bankrupt and ceased its operations. The company is not listed on the stock exchange anymore.
Asreported by Reuters, Richard Branson's satellite launch company, Virgin Orbit Holdings Inc, announced on May 23 that it would permanently shut down. This decision came after the company sold assets amounting to $36.4 million, which included a deal to sell most of its headquarters in Long Beach, California, to Rocket Lab USA, Inc. (NASDAQ:RKLB), a small-launch company.
Las Vegas Sands Corp. (NYSE:LVS), Manchester United plc (NYSE:MANU), and Fidelis Insurance Holdings Limited (NYSE:FIHL) were among the stocks Leon Cooperman bought in the third quarter of 2023, while Virgin Orbit Holdings Inc was one of the stocks he discarded entirely.
Chimera Investment Corporation (NYSE:CIM) is a real estate investment trust based in the United States. It invests in different mortgage assets, such as residential mortgage loans, securities linked to residential mortgages, commercial mortgage loan pools secured by agency mortgage-backed securities, as well as other real estate-related securities. Additionally, the company diversifies its investments across different credit ratings, including investment grade, non-investment grade, and non-rated classes. During the second quarter of 2023, Leon Cooperman held 30,834 shares of the stock valued at $625,622. He discarded his stake completely in the third quarter.
On November 2, Chimera Investment Corporation (NYSE:CIM) announced a Q3 non-GAAP EPS of $0.13 and a revenue of $63.40 million, falling short of Wall Street estimates by $0.06 and $14.25 million, respectively.
According to Insider Monkey’s second quarter database, 13 hedge funds were bullish on Chimera Investment Corporation (NYSE:CIM), same as the prior quarter. Ken Griffin’sCitadel Investment Group held the top position in the company, with 2.5 million shares valued at $14.49 million.
Warner Bros. Discovery, Inc. (NASDAQ:WBD) is a global media and entertainment company. It operates through three segments – Studios, Network, and DTC. The Studios section focuses on producing and releasing feature films for initial screenings in theaters. It also creates and licenses TV programs to other networks and streaming platforms. Additionally, this segment handles the distribution of films and TV shows to different platforms, including internal television, streaming services, home entertainment, themed experiences, and interactive gaming. The Network segment covers both domestic and international television markets, offering a range of content. The DTC segment is involved in providing premium pay-TV and streaming services to consumers. In the second quarter of 2023, Cooperman owned 200,000 shares of the stock worth $2.51 million. However, he discarded his stake entirely in the third quarter of 2023.
On November 8, Warner Bros. Discovery, Inc. (NASDAQ:WBD) announced a Q3 GAAP EPS of -$0.17, falling short of Wall Street estimates by $0.08. Its revenue came in at $9.97 billion, beating market consensus by $10 million. Warner Bros. Discovery, Inc. (NASDAQ:WBD) experienced more than 15% drop in its stock value during early trading, following the company’s mixed third quarter results. For the quarter ending September 30, Warner Bros. Discovery, Inc. (NASDAQ:WBD) reported a loss of 17 cents per share with sales amounting to $9.98 billion. The decline in TV revenue was linked to reduced earnings from licensing agreements and the strike involving actors.
According to Insider Monkey’s second quarter database, 67 hedge funds were bullish on Warner Bros. Discovery, Inc. (NASDAQ:WBD), compared to the previous quarter when 63 funds had invested in the stock.
While Las Vegas Sands Corp. (NYSE:LVS), Manchester United plc (NYSE:MANU), and Fidelis Insurance Holdings Limited (NYSE:FIHL) were among his buys, Warner Bros. Discovery, Inc. (NASDAQ:WBD) was one of the stocks Leon Cooperman sold in Q3 2023.
Longleaf Partners Fund made the following comment about Warner Bros. Discovery, Inc. (NASDAQ:WBD) in its Q2 2023 investorletter:
“Warner Bros. Discovery, Inc. (NASDAQ:WBD) – Media conglomerate Warner Bros Discovery was the top detractor in the quarter but remained a top contributor for the first half. After a strong first quarter, the stock price faltered in the face of near-term uncertainty around the re-launch of streaming service Max. Additionally, the big budget movie The Flash has not been a success. Finally, there was well-publicized drama around CNN management, with CNN CEO Chris Licht leaving the company after only one year, which we believe was a positive resolution. The company remains dramatically undervalued today, and management continues to make positive operational progress to drive free cash flow (FCF) growth. We believe this company has seen the worst so will be less leveraged and more strategically positioned in the quarters and years to come. Its underlying holdings are high quality businesses that will drive FCF per share growth while also being attractive acquisition candidates.”
Madison Square Garden Sports Corp. (NYSE:MSGS) is an American professional sports company. They possess and manage a collection of assets that include the New York Knickerbockers in the NBA and the New York Rangers in the NHL. The company is also involved in esports, owning Knicks Gaming, a team competing in the NBA 2K League, and holding a major stake in Counter Logic Gaming, a prominent esports organization based in North America. Madison Square Garden Sports Corp. (NYSE:MSGS) is a new position in Leon Cooperman’s Q3 2023 portfolio. The billionaire purchased 20,000 shares valued at approximately $3.53 million during the September quarter.
On November 2, Madison Square Garden Sports Corp. (NYSE:MSGS) reported first quarter results for fiscal year 2024. The company announced a GAAP EPS of -$0.79 and a revenue of $43.05 million, exceeding market estimates by $0.59 and $18.08 million, respectively.
According to Insider Monkey’s second quarter database, 43 hedge funds were bullish on Madison Square Garden Sports Corp. (NYSE:MSGS), an increase from 38 funds in the previous quarter. Jim Davidson, Dave Roux, and Glenn Hutchins’Silver Lake Partners is the largest shareholder of the company, with 1.9 million shares worth $357.29 million.
Ariel Small/Mid Cap Value Strategy made the following comment about Madison Square Garden Sports Corp. (NYSE:MSGS) in its Q4 2022 investorletter:
“Additionally, pure-play professional sports content company, Madison Square Garden Sports Corp. (NYSE:MSGS) rebounded following the recent sale of the Phoenix Suns (NBA). This recent share appreciation suggests MSGS’ franchises could realize outsized returns due to the prominence of the New York Knicks (NBA) and the New York Rangers (NHL) in the largest U.S. market, particularly given high demand and the large premiums other sports franchises have traded at.”
6. Fidelis Insurance Holdings Limited (NYSE:FIHL)
Omega Advisors’ Stake Value: $13.39 million
Fidelis Insurance Holdings Limited (NYSE:FIHL) offers insurance and reinsurance products across Bermuda, Ireland, and the United Kingdom. The company operates through three segments – Specialty, Reinsurance, and Bespoke. In the Specialty division, Fidelis Insurance Holdings Limited (NYSE:FIHL) provides specialized risk solutions such as aviation, energy, marine, property direct and facultative, and other unique risk coverages. Their Reinsurance segment focuses on offering solutions for property, retrocession, and overall reinsurance needs. The Bespoke segment tailors customized risk solutions, including credit, political risk, and other personalized risk transfer options, specifically designed to meet clients' needs. Leon Cooperman added Fidelis Insurance Holdings Limited (NYSE:FIHL) to his portfolio in Q3 2023. The position consisted of 911,791 shares worth $13.39 million.
On August 22, Fidelis Insurance Holdings Limited (NYSE:FIHL) reported a Q2 GAAP EPS of $0.76, outperforming estimates by $0.26. However, the company earned net premiums of $429.1 million, falling short of market consensus by $31.3 million.
According to Insider Monkey’s second quarter database, 15 hedge funds were bullish on Fidelis Insurance Holdings Limited (NYSE:FIHL).
Like WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC), Manchester United plc (NYSE:MANU), and Elevance Health, Inc. (NYSE:ELV), Fidelis Insurance Holdings Limited (NYSE:FIHL) is among the stocks Leon Cooperman bought in Q3 2023.
