The following are some of the latest critical developments in Omega’s pivot to the sector.
Athene Holding Ltd (ATH)
Omega increased its shareholding by 57.8% to 1.74 million shares in the company. Therefore, it’s in the fifth position in the hedge fund holding. In Q1 2021, Athene reported an EPS of $2.94, which was $0.96 higher than the estimated value.
The net investment income increased 128.2% to $1.7 billion. Athene posted earnings per share of $5.44 for Q4 2020.
Vertive Holdings Co (VRT)
Omega increased its stake by 7.69% to stand at 1.40 million shares. Vertive Holdings’ EPS for Q1 2012 was $0.21, which is higher than the $0.09 posted one year back.
The net sales growth stood at 22.4% during the same period; VRT also increased the EPS projections for 2021 to $1.01-$1.06 from the previous guidance of $1.08-$1.14.
In Falcon Minerals Corporation (FLMN)
Omega scaled in by 29.91% to 1.50 million shares. Note that Falcon Minerals paid a quarterly dividend of $0.10 per share for Q1 2021 – a 33% increase from the prior quarter dividend of $0.075.
Falcon reported a net income of $0.5 million and an average production of 4,116 boe/d in the same quarter. For Q4 2020, net income was $0.82 million, and net production was 4,196 boe/d.
In Aspen Group Inc. (ASPU)
Omega raised its position to 65% by increasing its shares to 1.65 million. ASPU’s revenue increased from $12.5 million in Q3 2020 to $16.6 million in Q3 FY2021.
Although Aspen’s EPS was a loss of $0.11 for the three months ended January 31, 2021, it still represents a 9.1% growth from the same quarter in 2020. Additionally, the company said it expected its revenue to grow to 38% in FY 2021. Aspen Group also sees positive enrollment numbers in the higher LTV USU MSN-Family Nurse Practitioner (“FNP”) degree program.
The booking numbers for the Aspen University (“AU”) Doctoral unit were up in the quarter, which boosted the quarter’s total bookings to $32.2 million, a 21% increase year-over-year. The year-to-date (Q1-Q3 FY2021) bookings amounted to $143.4 million, over $30 million higher than the full-year FY2020.
Sierra Metals Inc. (SMTS)
Omega increased its position by 145.89% to 2.79 million shares. For the three months ended March 31, 2021, Sierra processed 774,421 tons of ore, up from 740,698 tons in the same quarter the previous year.
Although the cash cost per ton processed in the quarter increased to $47.54 from $46.73 in the same quarter 2020, the company reported revenues of $69.6 million, compared to $55.6 million in Q1 2020, a 25% increase.
DiaMedica Therapeutics Inc. (DMAC)
Omega upped its position to 50,000 shares, increasing the hedge fund’s holding in the company by 66.67%. Things for DMAC are looking positive; for example, the FDA has accepted the company’s Investigational New Drug (IND) application.
Also, DMAC aims to research DM199 further, a drug candidate for treating Acute Ischemic Stroke. The Phase 2/3 study is pivotal to the success of the drug candidate. From a financial perspective, DMAC is chugging along but with great potential for a positive turnaround.
Energy Transfer LP Unit (ET)
Here is another notable energy stock added to the portfolio. The fund added 287,500 shares and now owns 6.74 million worth $51.74 million.
Devon Energy Corp (DVN)
Omega added the company to its portfolio in Q1 2021, purchasing 3.12 million shares, worth $68.17 million. The stock has a ranking of eight in the portfolio.
Omega divested from unproductive assets
A great investor such as Leon Cooperman has a keen eye for profitable assets and knows when to sell off the assets that are past their prime. Cooperman deployed this strategy in the following transactions:
- In Pioneer PE Holding LLC (Parsley Energy, Inc.) (PE), Omega sold off all his 1.7 million shares after holding since March 2019. Pioneer Holdings operates in the energy sector, which Cooperman deems riskier in the current investment climate.
The company has some things going well for them, such as its recent move to acquire the leasehold interests and related assets of DoublePoint Energy in a transaction valued at approximately $6.4 billion. Nevertheless, Pioneer Holdings reported substantial net losses in Q1 2021 to the tune of $70 million. As such, the company’s prospects are indeterminable.
- Also, Omega Advisors sold its entire stake of 387,429 shares in Brigham Minerals (MNRL) on March 31, 2021. The hedge fund held the shares since September 30, 2020, and managed to turn a profit of approximately $900K.
Although Omega has been divesting its funds in energy stocks, there are few where the fund still maintains its stake, and they are Cigna Corp (CI), Mp Materials Corp (MP), and Ashland Global Holdings Inc (ASH).
In Cigna, the fund maintains its holding of 425,000 shares worth $102.74 million. It ranks 4th in its portfolio. The fund owns 2.43 million shares of Mp Materials, worth over $87.22 million. The stock stands 6th in the fund’s portfolio. Last is Ashland Global, where the fund owns 801,965 shares worth over $71.19 million, and it ranks 7th on its portfolio.
Stock worth mentioning
The pivoting to finance sector assets seems to be Omega’s primary play at the moment because of the number of assets added. One investment that I must mention here is First Eagle Alternative Capital BDC, Inc., (FCRD). Although FCRD’s most recent financials are unencouraging, Omega looks willing to stock more shares.
FCRD’s Q1 2021 revenue came in at -8.9% year-on-year at $7.19 million and missed estimates of $0.43 million. Nevertheless, the FCRD stock is doing well, having gained 27.20% year to date. Also, the stock is up 958.59% between July 1, 2010, when Omega first bought the shares, and May 21, 2021.
Cooperman has been bullish on Fiserv Inc (NASDAQ: FISV), where he has invested 7.65% of his portfolio, holding 1 million shares worth over $122 million. The stock ranks third in Omega’s portfolio. For the first quarter of 2021, the EPS decreased 21% YoY, while adjusted revenue increased 2% YoY to $3.56 billion.
