Pennant Capital's Q2 2018 vs. Q3 2018: A Deep Dive into 13F Holdings

Pennant Capital Management, LLC is a hedge fund based in New York City, focused on long-term investments in public markets. As part of their regulatory requirements, the firm files 13F reports with the Securities and Exchange Commission (SEC) every quarter, revealing their holdings and positions. These reports provide a glimpse into the firm's investment strategy and offer insights into the market. In this post, we will take a closer look at Pennant Capital's Q2 2018 vs. Q3 2018 13F holdings.

NRG Energy Inc

Pennant Capital liquidated its entire position in NRG Energy Inc in Q3 2018, after holding 700,000 shares valued at $21,490,000 in Q2 2018. NRG is a large American energy company involved in the production, sale, and distribution of electricity. The firm's share price has been on the decline since mid-2017, leading some investors to lose confidence in the company's future prospects.

Transdigm Group Inc

Pennant Capital also liquidated its position in Transdigm Group Inc, a manufacturer of aircraft components. The firm held 56,270 shares worth $19,421,000 in Q2 2018, and none in Q3 2018. The reason behind this decision is unclear, but Transdigm's share price has been volatile in recent years, which could be a factor.

Antero Resources Corp

Antero Resources Corp is an independent oil and gas company focused on the Appalachian Basin. Pennant Capital held 850,000 shares of the firm valued at $18,148,000 in Q2 2018 but did not report any holdings in Q3 2018. The reason for this sudden liquidation is unknown, but the company's stock has struggled of late due to declining natural gas prices.

Cision Ltd

Cision Ltd is a cloud-based PR and marketing software company. Pennant Capital held 1,200,000 shares of the firm worth $17,940,000 in Q2 2018. However, the firm sold all of its shares in Q3 2018. Cision's share price has been on a downward trend since its IPO in June 2017, leading some investors to become increasingly bearish on the stock.

Alphabet Inc

Alphabet Inc, the parent company of Google, is a holding of Pennant Capital. The firm held 5,000 shares valued at $5,646,000 in Q2 2018, which it sold in Q3 2018. Alphabet's share price has been on the rise since its earnings release in Q2 2018, leading to speculation that the firm's fundamentals are strong.

In Conclusion

Pennant Capital Management, LLC's Q2 2018 vs. Q3 2018 13F filings indicate that the firm went through a significant amount of portfolio restructuring. The firm sold positions in several companies and liquidated entire holdings, while making few meaningful investments in new positions. These moves suggest that the firm has pessimistic views towards the future prospects of some of the companies they sold and that they may be repositioning their investments in other areas. However, it's worth noting that these are merely snapshots in time and not indicative of the overall investment philosophy of the hedge fund.