Billionaire Israel Englander Sold 40% of Millennium’s Stake in AT&T and Is Piling Into This Troubled Artificial Intelligence (AI) Stock Instead
Investors rarely lose important data on Wall Street. Earnings season provides an onslaught of operating results for many of America’s most important companies, while economic data is released almost daily Monday through Friday. But every so often, one of these important data dumps can slip through the cracks.
For example, August 14 is the deadline for institutional investors with at least $100 million in assets under management to submit their applications. Form 13F With the SEC – and there’s a chance you missed this opportunity. A 13F provides an under-the-hood look at the stocks that Wall Street’s top-tier money managers bought and sold in the last quarter (in this case, August 14 filings detailing trading activity for the quarter ending in June).
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Although Berkshire Hathaway‘s Warren Buffett is a favorite among investorsThere are other billionaire money managers making waves. One such billionaire who is widely tracked is Israel Englander of Millennium Management, who as of the end of June was overseeing an investment portfolio worth about $216 billion spread across thousands of securities, including call and put options.
Although running A very An activist hedge fund, there are a few deals that stand out for Englander, including the disposal of ultra-high-yielding dividend stocks, as well as piling into a troubled artificial intelligence company.
Of the thousands of positions Englander and his team have cut, perhaps the most surprising is the selling activity we’ve seen during the first six months of 2024 at the telecom giant. AT&T (NYSE: T). Even though the company’s shares rose 49% on a total return basis (including its juicy 5% return) over the next year, Englander sent nearly 40% of his fund’s stake in AT&T (8,979,263 shares) to the block. Shredding this year.
Taking profits is one of the reasons the brightest investing minds of the millennium hit the sell button. It’s not unusual for AT&T to offer a total return of nearly 50% on a 12-month basis. While the forward price-to-earnings ratio of 10 is still well below the benchmark Standard & Poor’s 500It is currently trading at 24% beloved to the average forward P/E multiple over the trailing five-year period.
It’s also possible that Englander and his advisors are concerned about AT&T’s increased legal expenses. In July 2023, an investigative report was released from Wall Street Journal It was suggested that AT&T and other legacy carriers may incur financial liabilities associated with their use of lead-coated cable. Although AT&T has refuted these findings, there may be some degree of backlog or uncertainty that still exists.
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