Charles Anderson's Hedge Fund Fox Point Capital: Portfolio Update (13F Filing) ~ market folly

Wednesday, March 3, 2010

Charles Anderson's Hedge Fund Fox Point Capital: Portfolio Update (13F Filing)

(This post is part of our series on tracking hedge fund portfolios. If you're unfamiliar with tracking investments they disclose via SEC filings, check out our series preface on hedge fund 13F filings.)

Next up is Charles Anderson's hedge fund Fox Point Capital. Prior to founding Fox Point, Anderson worked at John Griffin's Blue Ridge and before that at Julian Robertson's Tiger Management. As such, he joins the ranks of other prominent 'Tiger Cub' hedge funds and Anderson received help and funding from Robertson to launch. Anderson received his degree from the University of North Carolina at Chapel Hill (rough basketball season for them this year, ouch!) and his MBA from Stanford. The strategy is simple: go long good companies at fair valuations and short poor businesses trading at higher multiples. This is the first time we've detailed Fox Point's portfolio and we look forward to seeing what they've been up to. The positions listed below were Fox Point's long equity, note, and options holdings as of December 31st, 2009 as filed with the SEC. All holdings are common stock unless otherwise denoted.

Brand New Positions
Ebay (EBAY)
Wellpoint (WLP)
H&R Block (HRB)
Intercontinental Exchange (ICE)
Virgin Media (VMED)
Amazon (AMZN)
Deckers (DECK)
Cigna (CI)
Monsanto (MON)
Warnaco (WRC)
Mastercard (MA)
JPMorgan Chase (JPM)
Black & Decker (BDK)
iShares Russell 2000 (IWM) Puts
Lender Processing (LPS)
Snap-On (SNA)
J Crew (JCG)
Healthnet (HNT)

Increased Positions
IAC Interactive (IACI): Increased position by 120%
Verisign (VRSN): Increased by 60%
Mattel (MTL): Increased by 60%
Apple (AAPL): Increased by 40%
Allergan (AGN): Increased by 20%
ROVI (ROVI): Increased by 14%

Reduced Positions
Altria Group (MO): Reduced position by 40%
iShares China ETF (FXI) Puts: Reduced by 38.5%

Removed Positions (Sold out completely):
Cisco (CSCO)
Pfizer (PFE)
Heinz (HNZ)
Vistaprint (VPRT)
Amgen (AMGN)
Pepsico (PEP)
Sara Lee (SLE)
AT&T (T)
Itau Unibanco (ITUB)
Skyworks (SWKS)
Apollo Group (APOL)
Medassets (MDAS) (PCLN)
Credicorp (BAP)
Starent Networks (STAR)
Dollar Tree (DLTR)
Mckesson (MCK)

Top 15 Holdings by percentage of assets reported on 13F filing

  1. iShares FTSE/Xinhua China 25 Index ETF (FXI) Puts 13.77%
  2. Rovi (ROVI): 7.40%
  3. Ebay (EBAY): 7.29%
  4. DirecTV (DTV): 6.79%
  5. Apple (AAPL): 6.01%
  6. Wellpoint (WLP): 5.94%
  7. H&R Block (HRB): 5.53%
  8. Verisign (VRSN): 4.74%
  9. IAC Interactive (IACI): 3.67%
  10. Intercontinental Exchange (ICE): 3.29%
  11. Virgin Media (VMED): 3.29%
  12. Mattel (MAT): 3.26%
  13. Allergan (AGN): 3.08%
  14. Amazon (AMZN): 2.74%
  15. Altria Group (MO): 2.40%

One of the main things you'll notice about hedge fund Fox Point's portfolio is how different it is from typical Tiger Cub portfolios. Rather than finding popular 'groupthink' type hedge fund favorite stocks, they seem to take a slightly different path. Fox Point's top position is either a bearish bet on or hedge against China as they own puts on the popular Chinese index exchange traded fund. While it's still their largest disclosed position, they did reduce their holdings by 38% last quarter. Rovi (ROVI) is interesting because this is the first time we've seen this name pop-up in a hedgie's portfolio.

They unloaded shares of hedge fund favorites Cisco, Pfizer, and Pepsico. Additionally, they completely exited their position, one we've previously seen Tiger Cubs fond of but recently saw Stephen Mandel's Lone Pine sell out of as well. Lastly, the debate regarding for-profit education plays wages on. Fox Point exited their Apollo Group stake and David Stemerman's Conatus Capital recently exited as well. On the other hand, Chase Coleman's Tiger Global recently started a large APOL stake. So, choose your side on this one. Overall, Anderson's hedge fund was doing the majority of their maneuvering via brand new stakes and completely selling out of old positions.

Data used for this article comes from Alphaclone, our source for backtesting strategies and sorting through all the hedge fund portfolio maneuvers with ease. Assets reported on the 13F filing were $613 million this quarter compared to $697 million last quarter. Remember that these filings are not representative of the hedge fund's entire base of AUM.

We'll be tracking 40+ prominent funds in our fourth quarter 2009 hedge fund portfolio tracking series. We've already covered Seth Klarman's Baupost Group, Mohnish Pabrai's Investment Fund, Carl Icahn's hedge fund Icahn Partners, David Einhorn's Greenlight Capital, Stephen Mandel's Lone Pine Capital, John Griffin's Blue Ridge Capital, David Tepper's Appaloosa Management, Warren Buffett's portfolio, John Paulson's hedge fund Paulson & Co, Lee Ainslie's Maverick Capital, Dan Loeb's Third Point, Eddie Lampert's RBS Partners, David Ott's Viking Global, and Chris Shumway's hedge fund Shumway Capital Partners, Chase Coleman's Tiger Global, Philip Falcone's Harbinger Capital Partners, Roberto Mignone's Bridger Management, Thomas Steyer's Farallon Capital, John Burbank's Passport Capital, Brett Barakett's Tremblant Capital, George Soros' hedge fund Soros Fund Management, and Philippe Laffont's Coatue Management. Check back daily for our new updates.

blog comments powered by Disqus