Highfields Capital Management's positions in the fourth quarter (Part 4 of 8)
Highfields Capital Management and Applied Materials
Jonathon Jacobson’s Highfields Capital Management’s top new purchases are Air Products & Chemicals, Inc. (APD), Broadcom Corporation (BRCM), Applied Materials, Inc. (AMAT), Royal Dutch Shell (RDS.A), and JPMorgan Chase (JPM). Highfields sold out positions in CBS (CBS) and Hess (HES).
Highfields Capital started a 1.75% new position in chip-making equipment giant Applied Materials, Inc. (AMAT) in the fourth quarter. Applied provides manufacturing equipment, services, and software to the global semiconductor, flat panel display, solar photovoltaic (PV), and related industries.
The company expects wafer fab equipment investment levels to be stronger in 2014, up 10% to 20% driven by higher spending in foundry and memory. It also expects robust spending by NAND customers, as mobility supports bit growth demand in the 40% to 50% range, and 3D technology is introduced. Applied Materials said on its earnings call that it is uniquely positioned to apply its differentiated capabilities in precision materials engineering to enable major customer inflections and cost-effective device scaling. This provides the company with a great platform to build momentum for profitable growth. For the second quarter of fiscal 2014, Applied expects net sales to be up 3% to 10% from the previous quarter.
Browse this series on Market Realist:
- Part 1 - Must know: Highfields Capital’s positions in the fourth quarter
- Part 2 - Why Highfields initiated a position in Air Products & Chemicals
- Part 3 - Must know: Why did Highfields Capital open a position in Broadcom?
- Investment & Company Information
- Applied Materials
- Highfields Capital Management
- Broadcom Corporation