Smart Investors Bet on BlackBerry!

blackberry-OS
Respect the Bullets

Bloomberg just announced that BlackBerry has recently added another very smart, highly visible, institutional investor to it’s quiver. Bloomberg has reported here that the Ontario Teacher’s Pension Plan (OTPP) has recently purchased about 7.8 million shares of “BB” stock, amounting to a 1.6% stake in the company.

Although this stake in BlackBerry only amounts to about .6% of OTPP’s estimated $140 Billion in assets, this is still excellent news for any BlackBerry fan and just adds to the overall picture that big institutions are seeing value in BlackBerry and believe they are a good bet going forward.

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Many of BlackBerry’s top investors are well known and highly regarded names in the investment community. Names like Prem Watsa and Fairfax Financial Holdings, Canso Investment Counsel, Brookfield Asset Management, Mackenzie Financial Cundill Investment Management, and now OTPP.  I imagine OTPP is similar to CalPERS in the U.S. The California Public Employee Retirement System (CalPERS) is a behemoth whom everyone in the institutional investment community watches carefully. Recently, they divested their fund of their allocation to hedge funds and this sent a ripple through the boardrooms of many endowments and non-profits as they considered why. Ultimately CalPERS did this not because they didn’t believe in the asset class, but because at over $250 Billion in assets, they are really too big to implement it properly.

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The future’s so bright. I gotta wear shades.

The point to all this is, smart investors look to other smart investors to see what they are doing. Many individuals will invest in Warren Buffet companies and investments merely because they believe in Buffet and believe it’s smart to mimic his decisions. Institutional investors like Buffet, Watsa, and the others listed above have access to vast resources and expertise to evaluate their investments, so if these folks are investing in BlackBerry, they must see value in the company for the long term as most of them are value players looking for stocks that have sound fundamentals and room to grow.

Party

All in all, this is fantastic news for BlackBerry fans. Let’s all enjoy these victories as they happen. They indicate that many smart people believe BlackBerry will eventually be a really strong and profitable company and ultimately mean we will all be able to use our favorite phones for years to come!!!

james pisano

RIM/BB fan since 2009. Wouldn't consider entrusting my career, life or privacy to another platform. Foremost, I am a student of life. Some likes: longboarding, nature, Baltimore Orioles, technology, driving, music, reading and Taoism. Politically independent.

  • BB Racer !!

    Teachers Pension Plan are one of the worlds top investors and are BlackBerry Top 5 Shareholders !

    Oh Geez !!
    BlackBerry Short Investors have to deal with a master short investor as in Prem Watsa and an intelligent long-term investors like Teachers Pension Plan !
    I think I’m seeing some ” Brown Shorts ” out there !

    Notable Holders of BLACKBERRY (BBRY)

    Ticker     |   Expand Research on BBRY   |   * Does Not Fully Represent

    All Holders
    Fund Title Shares % Owned Source

    PRIMECAP COM 56,617,257 10.75% 13F

    FAIRFAX FINANCIAL HOLDINGS LTD/ CAN COM 46,654,700 8.86% 13F

    TORONTO DOMINION BANK COM 12,989,388 2.47% 13F

    Fidelity Investments COM 9,606,730 1.82% 13F

    Ontario Teachers Pension Plan COM 8,230,039 1.56% 13F

  • Blackjack

    Not that it’s not an excellent choice, but why are schools risking public money on the stock market?

    • BB Racer !!

      -The Teachers Pension fund is fully funded .
      -Teachers pension Fund were the global leaders before the 2008 financial crises to adjust their pension hurdle rate of return from 8% to 6%. t The rest followed and some Pension Plans went into bankruptcy !
      -BlackJack your correct, the market is very risky, but with bond yields so low, pension plans had to increase their stock market exposure .
      – But they used prudent leverage, private equities , global infrastructures and very prudent strategic asset allocation strategies, high yield debt etc… .

      Plus …….they have top global analysts and asset managers ……the question I ask is why does the phone ring for advice from Teachers , OMERS , CPP , HOOP , AMICO from other pension plans over the past 30 years ?

      My guess is they are Top 5 Global risk asset managers …..I wish CPP buys 10% of BlackBerry !

  • shanerredflag

    This really is a very positive sign. We need large institutional investors, it’s the next step to rebuilding real shareholder value. Thanks James…great read.

  • Blackjack

    Respect the bullets.
    Ha ha I like that. Missed it on the first read.

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