An investment by Warren Buffett’s Berkshire Hathaway boosted shares in upmarket furniture retailer RH, representing one of the most notable purchases by investment managers in the third quarter.
Berkshire Hathaway acquired 1.2m shares in RH, previously known as Restoration Hardware. The investment, valued at $206m, amounts to a 6.5 per cent stake in the company. Shares, which have risen 46.2 per cent in 2019 at closing bell on Thursday tacked on a further 7 per cent in after-hours trading.
The filing came among the periodic deluge of 13F filings on Thursday, as investment managers revealed their purchases and sales for the third quarter. The 13Fs are often watched by the broader market for an indication of where the “smart money” is heading.
Berkshire’s 13F filing is closely tracked by investors seeking insights into the investment philosophies of Mr Buffett and his portfolio managers.
The conglomerate scooped up 7.5m shares in Occidental Petroleum worth $332m, after Mr Buffett agreed to back the company’s $55bn acquisition of rival Anadarko this year. It also cut back its holdings in Apple and Wells Fargo.
Berkshire itself has attracted an investment from activist investor Bill Ackman, whose hedge fund Pershing Square Capital Management acquired a stake in the conglomerate earlier this year. Pershing bought about half a million shares in the third quarter, taking its stake to 4m, or 0.3 per cent of Berkshire’s class B stock.
One stock that attracted interest from big name investors was Boeing. David Tepper’s Appaloosa Management shelled out $11.4m for an initial stake of 30,000 shares in the aircraft maker. Soros Fund Management was another buyer of the Seattle-based company, taking an initial stake of 5,500 shares, worth just over $2m.
Boeing shares are up almost 14 per cent so far in 2019 with a market capitalisation of $207bn. The company is in the midst of convincing regulators of the safety of its Boeing 737 Max jet, which was grounded in March following the model’s second fatal crash within the space of six months.