H&R Block Seeing Hedge-Fund Buying

Last quarter, a number of hedge funds and other notable investors initiated positions in H&R Block (HRB), the $8 billion market cap tax-prep company. Among them were the legendary investor and billionaire Julian Robertson (formerly of Tiger Management) as well as Lone Pine Capital, a hedge fund managed by billionaire and Robertson protege Stephen Mandel. Viking Global, which is also managed by a billionaire "Tiger cub," Andreas Halvorsen, increased its holdings of the stock by 10% to over 25 million shares. Viking Global alone owns close to 10% of the company.

H&R Block would seem to be a rarity in the modern U.S. economy: a (mostly) brick-and-mortar, labor-intensive business that is thriving, even in the midst of competition from software, primarily Intuit's (INTU) TurboTax. H&R Block does also provide its own tax software, but according to the company's report, more than 60% of tax returns in the first nine months of its fiscal year were prepared in either company-owned or franchised physical locations, roughly even with the previous year....488 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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