Shumway Capital Partners (Chris Shumway) 13F Filing Q4 2008 ~ market folly

Tuesday, March 31, 2009

Shumway Capital Partners (Chris Shumway) 13F Filing Q4 2008

This is the 4th Quarter 2008 edition of our ongoing hedge fund portfolio tracking series. Before reading this update, make sure you check out the Hedge Fund 13F filings preface.

Next up is Shumway Capital Partners run by Chris Shumway. Shumway started his own fund after leaving well-known Julian Robertson's Tiger Management. And thus, as a progeny of Robertson, he is a part of what people call the 'Tiger Cubs' (people who have started their own firms after succeeding at Tiger). We've already covered many of the 'Tiger Cub' funds including Stephen Mandel's Lone Pine Capital, Andreas Halvorsen's Viking Global, Lee Ainslie's Maverick Capital, and John Griffin's Blue Ridge Capital.

Taken from our post on 'Tiger Cub' biographies, "Chris Shumway is the Founding Partner of Shumway Capital Partners (“SCP”), an investment management firm founded in 2001. SCP, which manages a multibillion dollar group of private investment funds, uses a private equity-like research model for public market investment on a global basis. Prior to forming SCP, Mr. Shumway was a Senior Managing Director at Tiger Management (1992-1999), an Analyst at Brentwood Associates (1990-1991), and an Analyst at Morgan Stanley & Co. (1988-1990). He received an M.B.A. from Harvard Business School (1993) and a B.S. from the McIntire School of Commerce at the University of Virginia (1988)." As noted in our latest hedge fund performances, Shumway's Ocean Fund was up 2.54% for February and 5.75% for the year as of then. At a 'Tiger Cub' hedge fund manager panel, Shumway suggested that buying stocks that were down largely due to hedge fund liquidations would be a winning strategy longer-term. Lastly, in terms of recent activity, Shumway has filed a 13G on Equinix (EQIX).

The following were their long equity, note, and options holdings as of December 31st, 2008 as filed with the SEC. We have not detailed the changes to every single position in this update, but we have covered all the major moves. All holdings are common stock unless otherwise denoted.

Some New Positions (Brand new positions that they initiated in the last quarter):
Savvis (SVVS) Bonds
SBA Communication (SBAC) Bonds
NII Holdings (NIHD) Bonds
Celanese (CE)
Equinix (EQIX) Bonds
Stryker (SYK)
Thermo Fisher Scientific (TMO)
Union Pacific (UNP)
Equinix (EQIX)
American Tower (AMT)
Biogen Idec (BIIB)
Visa (V)
St Jude (STJ)

Some Increased Positions (A few positions they already owned but added shares to)
News Corp (NWS-A): Increased by 153%

Some Reduced Positions (Some positions they sold some shares of - note not all sales listed)
NII Holdings (NIHD): Reduced position by 97.9%
Cisco Systems (CSCO): Reduced position by 96.7%
SBA Communications (SBAC): Reduced position by 96.5%
Potash (POT): Reduced position by 96.4%
Qualcomm (QCOM): Reduced position by 80%
CVS Caremark (CVS): Reduced position by 78%
Teva Pharma (TEVA): Reduced position by 57%
Mastercard (MA): Reduced position by 27%
Waters (WAT): Reduced position by 11%

Removed Positions (Positions they sold out of completely)
Mercadolibre (MELI)
Chipotle (CMG-B)
Sirius Satellite Notes
Google (GOOG)
Wyeth (WYE)
Focus Media (FMCN)
Medoc Health (MHS)
Annaly Capital Management (NLY)
Zimmer Holdings (ZMH)
Apple (AAPL)

Top 20 Holdings (by % of portfolio)

  1. Qualcomm (QCOM) Calls: 15.6% of portfolio
  2. St Jude Medical (STJ): 11.5% of portfolio
  3. Mastercard (MA): 11.3% of portfolio
  4. Visa (V): 9.6% of portfolio
  5. Biogen Idec (BIIB): 9.6% of portfolio
  6. American Tower (AMT): 7% of portfolio
  7. Waters (WAT): 6.7% of portfolio
  8. Equinix (EQIX): 5% of portfolio
  9. Teva Pharma (TEVA): 3.8% of portfolio
  10. News Corp (NWS-A): 3.37% of portfolio
  11. Union Pacific (UNP): 3.1% of portfolio
  12. CVS Caremark (CVS): 2.5% of portfolio
  13. Qualcomm (QCOM): 2.4% of portfolio
  14. Thermo Fisher Scientific (TMO): 2.3% of portfolio
  15. Stryker (SYK): 1.7% of portfolio
  16. Hansen Natural (HANS): 0.7% of portfolio
  17. NII Holdings (NIHD) Bonds: 0.5% of portfolio
  18. Equinix (EQIX) Bonds: 0.4% of portfolio
  19. Celanese (CE): 0.36% of portfolio
  20. NII Holdings (NIHD) 2nd set of Bonds: 0.34% of portfolio

Shumway joins numerous other prominent hedge funds (and in particular Tiger Cubs) with Visa (V) as a top holding. They also sizably increased their position in News Corp (NWS-A) and brought their new stake in Union Pacific up to a top holding. Assets from the collective long US equity, options, and note holdings were $2.1 billion last quarter and were $1 billion this quarter. This is just one of many funds in our hedge fund portfolio tracking series in which we're tracking 35+ prominent funds.

We've already covered:

Check back daily as we'll cover a new fund each day.

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