In volatile times like these, it is often best to see what the top hedge funds' latest moves are.

Since most hedge funds get paid based on their returns for the year, managers who do not want to underperform are turning to shareholder activism as a way to increase shareholder value and ultimately boost their returns.

Here at Stockpickr.com, we track many of the latest activist situations for those interested in piggybacking these activist funds.

Wexford Capital is opposing the proposed acquisition of Bronco Drilling (BRNC) by Allis-Chalmers (ALY).

Wexford Capital believes the deal “is not in the best interest of Bronco shareholders.” Bronco Drilling provides contract land drilling and workover services to oil and natural gas exploration and production companies in the U.S. Bronco Drilling has operating margins of 18% and profit margins of 12%.

Wexford Capital also has positions in Fannie Mae (FNM), Walter Industries (WLT) and Apple (AAPL).

Jana Partners is a $5 billion activist fund based in San Francisco. Run by Barry Rosenstein, it has a value-oriented and research-intensive approach to special situation public securities. It has core long and short positions in companies in which it constantly reviews strategic alternatives. It also invests in underfollowed orphan equities and other event-driven strategies. Jana Partners’ latest move was selling Cnet! to CBS (CBS) for a hefty 45% premium.

Another recent move from Jana Partners is to convert its filing status in Convergys (CVG) to activist investor from passive.

Jana Partners says it already has had "constructive dialogues" with executives of the human-resources systems provider on ways to improve shareholder value. It also is determined "to reserve its right to take steps to bring about changes to increase shareholder value, which may include changes in the board composition, strategy and future plans of the company, as well as the pursuit of other plans or proposals."

Convergys operates through three segments: customer management, information management, and human resources management. It has a forward P/E of 10.02 and operating margins of 8.19%.

Jana Partners’ top positions include KBR (KBR), Copart (CPRT) and Hess (HES).

SAC Capital also raised its stake in Invitrogen (IVGN), to 6.17 million shares (6.9%) from 4.93 million (5.2%). Invitrogen makes various life science tools.

For more activist ideas, please check out the Latest Activist Situations portfolio, which tracks the latest activist situations recorded by the StreetInsider.com 13D Tracker.

Also, here are the latest activist filings from Barron’s.


A note from James Altucher:

Every weekend I send an email to Jim Cramer and several hedge fund managers about the most interesting portfolios posted on Stockpickr that week. Usually those portfolios not only list stocks according to a theme but also offer significant analysis as to why the stocks are cheap.

Here are some examples:

Stocks related to drilling the Marcellus Shale

MLPS with yields above 7%

Microcaps trading for less than tangible book

Stocks that do well after Hurricanes

Here's the challenge: Build a portfolio at Stockpickr.com with great analysis, and send me the link. Each great portfolio (with analysis) will get posted on TheStreet.com with your byline (as a "Stockpickr Guest Columnist") and will be included in my email I send to Jim and the other
hedge fund managers on my list.


Posted on Aug. 11, 2008