What We're Reading ~ 10/12/16

The Signal and the Noise: Why So Many Predictions Fail - But Some Don't [Nate Silver]

Shiller's powerful market indicator is sending a false signal [WSJ]

The consequences of risk taking [A Wealth of Common Sense]

A look at DaVita Healthcare Partners (DVA) [Rational Walk]

The AI revolution: why you need to learn about deep learning [Fortune]

What does Sam Zell know that Wall St doesn't? [Horizon Kinetics]

Profile of UK fund manager Neil Woodford [Bloomberg]

Interview with T-Mobile's CEO John Legere [Business Insider]

Liberty Media: better than Berkshire [Barrons]

The auto industry's real challenge [Strategy Business]

Mars cashes out Warren Buffett to take control of Wrigley [NYTimes]

Decoding Amazon's fashion ambitions [Business of Fashion]

How eBay's CEO plans to take on Amazon [Bloomberg]

Knowing when to break your own rules [A Wealth of Common Sense]

Why the cost of living is poised to plummet over the next 20 years [Singularity Hub]

What We're Reading ~ 7/27/16

Find ideas that are good and different [Medium]

The values of value investing [IMAUSA]

The promise of Regrexit [George Soros]

How borrowed shares swing company votes [WSJ]

The downside of past performance [A Wealth of Common Sense]

On Amazon, eBay, and eCommerce arbitraging [Entrepreneur]

The best paid CEOs run some of the worst performing companies [WSJ]

An in-depth look at food chain Chili's [GQ]

India's audacious plan to bring digital banking to 1.2 billion people [Bloomberg]

India's Flipkart has an Amazon problem [Bloomberg]

The new class war [Economist]

China: a transition well underway [ValueWalk]

How one investor approaches valuation [Medium]

Why you should understand what's happening with Italian banks [SNBCHF]

Why ultralow rates are here to stay [WSJ]

Warren Buffett deputy Ted Weschler makes his mark [Institutional Investor]

FCC sets stage for next generation of wireless: 5G [LATimes]

Watching Brazil's rich: a full-time job [NYTimes]

Per Johansson's Sohn London Presentation: Long eBay, Short ACS

We're posting up notes from the Sohn London Investment Conference 2015.  Next up is Per Johansson of Bodenholm Capital who pitched a long of EBAY and a short of ACS.


Per Johansson's Sohn London Conference Presentation 2015

Long Ebay (NAS: EBAY): Per Johansson is particularly interested in the investment opportunities created by spinoffs. The spinoff of Paypal from Ebay is creating an opportunity to invest in a smaller Ebay. The Paypal spinoff is the first step to unlocking Ebay’s value.

Ebay has a strong balance sheet. It is a high margin business but growth has temporarily slowed for three main reasons.  - May 2014, Google changed the search algorithm - A security breach led to customers having to change their passwords - The strength of the Dollar has been a headwind.

Johansson believes growth is picking up again. Auctions are only 15% of the business. Ebay owns some good brands that some market participants are not aware of. For example, it owns Mobile.de which he referred to as the” Autotrader of Germany.” In time the market will recognise the importance of Ebay’s brands.


Short ACS Actividades de Construccion y Servicios (BME: ACS): ACS is a Spain based global construction company. Johansson said that ACS has accounting irregularities and overstates its earnings. The company has not created any cash flow in the last five years. There are hidden liabilities on the balance sheet. ACS’s end markets are deteriorating. There are cost over-runs on big projects in California.


Be sure to check out the rest of the Sohn London Conference presentations.

Eminence Capital's Ricky Sandler on Wall Street Week: KORS, EBAY/PYPL, ZNGA, RGC & More

Ricky Sandler, founder of hedge fund Eminence Capital, was recently interviewed on Anthony Scaramucci's rebooted show Wall Street Week.

Eminence manages $6.5 billion now and has been running for 17 years.  Sandler focuses on "quality value," looking for quality businesses but trading at discount prices.  He likes the intersection of growth and value, focusing on a "growth at a reasonable price" approach.

He likes Michael Kors (KORS) and notes it was a momentum stock that experienced a deceleration and he thinks it's a terrific brand that has opportunity for international expansion, trading at under at 10x PE.

Sandler also touched on eBay (EBAY), which recently split off its payments arm PayPal (PYPL).  The standalone EBAY is now purely an online marketplace.  Sandler says PYPL trades about for 20x earnings when you back out the cash, and it has 20% growth "for as far as the eye can see."

The Eminence founder also talked about gaming plays Zynga (ZNGA), Activision (ATVI), Take Two Interactive (TTW), and Ubisoft (UBI.PA).

Eminence is also short Regal Cinemas (RGC).

We've highlighted some other portfolio activity from Eminence here.

Embedded below is the video of Ricky Sandler's Wall Street Week interview:



For more, be sure to check out Mario Gabelli's interview on Wall Street Week from last week too.

What We're Reading ~ 7/22/15

The Emotionally Intelligent Investor [Ravee Mehta]

The smartest man is wild about innovation [Byron Wien]

Decisions under uncertainty [Farnam Street]

What's the biggest risk right now? [A Wealth of Common Sense]

A breakdown of John Malone's empire [Jnvestor]

Video on aluminum and aerospace industry outlook [YouTube]

The supply of equities may soon stop shrinking [Economist]

For eBay, a new chapter begins [Fortune]

A look at Vitec Software Group [Frenzel & Herzing]

Deep analysis on Deere & Co [HVST]

Montier goes to highest cash level since 2008 [FINalternatives]

Are GMOs safe? Yes. The case against them is full of lies [Slate]

Jet.com launches new e-commerce model [USAToday]

Bidding wars return to home market [WSJ]

Capitalist soul rises in Ho Chi Minh City [NYTimes]

On Google's return of Omid Kordestani [Recode]

What We're Reading ~ Analytical Links 12/10/14

The Focused Few: Taking a Multidisciplinary Approach to Focus Investing [Richard Rockwood]

On paying up for quality stocks [Clear Eyes Investing]

A look at Interactive Brokers (IBKR) [Punch Card Blog]

On the behavior of individual investors [UC Berkeley]

Old but still good: a checklist for investors [Jason Zweig]

Latest interview with Mohnish Pabrai [Barrons]

William Blair's top stock picks for 2015 [StreetInsider]

On Tracy Britt Cool, the education of Warren Buffett's protege [Fortune]

Peak Google [Stratechery]

Why activist investors are getting even more active [Fortune]

Fallen arches: can McDonald's get its mojo back? [Fortune]

The world reshaped: end of the population pyramid [Economist]

A global explosion in ultra high net worth individuals [Reformed Broker]

Cash is for losers [BusinessWeek]

Are a lot of millennials not investing at all? [GetRichSlowly]

How do people get new ideas? [Farnam Street]

Advertisers pay billions for bogus web traffic [Nasdaq]

Larry Robbins' 4 Long Ideas at Invest For Kids Chicago

We're posting up notes from Invest For Kids Chicago 2014.  Next up is Larry Robbins of Glenview Capital who pitched Tenet Healthcare (THC), eBay (EBAY), Teradyne (TER), and Cadence (CDNS).


Larry Robbins' Invest For Kids Chicago Presentation

•    More constructive than average on the long side. Portfolio trading at ~13x PE.
•    Excess cash at corporates remain high. Akin to Michael Jordan sitting on the bench looking to put up points.
•    Avg HY company can borrow at 6.4% pre-tax. Never been as cheaper or deeper.
•    Shareholder engagement at all time high. Notes Jeff Ubben at MSFT. Ideas: Tenet, EBay, Teradyne, Cadence


•    Tenet Healthcare (THC) – hospital stocks traded down 10% recently. Strong core growth, operating leverage, Vanguard health M&A, reforms provide multi-year growth tailwind, hidden undervalued conifer asset, forward year capital deployment opportunity, industry consolidation all adds up.
•    Unemployment is down and insurance is up which helps. M&A synergies are ramping and achievable for the Vangaurd transaction.
•    Only 7MM Americans have signed up for exchanges, half already had insurance. Vast majority in front.
•    Most hospitals are not for profit. Not just charter, but also income statement.
•    11 hospitals for every person in the house of rep. They are not going to bankrupt the hospital operators (big employers).
•    #1 self-pay/uninsured has gone down. #2 amount of Medicare coverage has increased around 11%. Some cases mid twenties. More people can pay their builds = more profits and revenues for hospitals.
•    Why is the health care bill insulated?? Repeal would take 60 votes from senate and a signature from the President. Want to go after the medical device tax, individual mandate (doesn’t affect hospitals). They are going after the parts not the whole.
•    Public approval for ACA growing.
•    Stocks traded down, provided entry point.
•    Tenet has a 90% + return on repurchases.
•    As they digest vanguard, instead of de-levering, should take advantage of the credit markets to maintain 5x leverage. Could buyback all of the company all else equal (won’t happen, since the share price wouldn’t stay still).
•    Companies who consistently repurchased shares have created value, not a short-term play.
•    Hidden gem is a RCM. Generates $200MM in EBITDA, RCM companies garner higher multiples. Conifer has higher growth than comps on both revenue and EBITDA. Peers trade at 16x EBITDA, versus Tenet at 8x for the whole.
•    If you took every publicly operated hospital operator and combined them, that would be only a 13% market share, so further consolidation is possible, especially considering synergies.
•    Thinks the monetization of Conifer and consolidation are possible catalysts.


•    eBay (EBAY) is the next idea.
•    2/3 of Ebay is the market place and 1/3 is Paypal. Third business is hoarding cash ($15b).
•    Doing the spin-off after shareholder pressure.
•    Growing revenue at 14%, EPS at a higher clip at 15x earnings give or take.
•    Like Ebay as it grows twice as fast as everything else. Higher margins.
•    Back out Paypal at 16x FY16E earnings, creating marketplace at ~12x.
•    People are scared of Paypal competition. It is like being scared of the 12th edition of the Halloween movie.
•    Opportunity to buy two great businesses at a cheap price. Once they separate businesses, marketplace will lever up to 2x net debt. Allow for them to buy ~22% of the PF company.
•    Thinks they can handle higher leverage of 3x – 4x.
•    Event-driven guys left eBay due to other problems (Shire/Fannie/Ebola). Allowed for Glenview to do time arbitrage.
•    Doing everything ppl want them to do. Just have to wait for the actual event to happen. Time arbitrage.
•    Ebay is like a divorce. One is focused on a lifetime of shopping, the other focused on a lifetime of payments.
•    Might be attractive to other players. May want to do a SA/JV or acquisition.
•    Acquirers could pay 22x earnings or more and be hugely accretive.


•    Teradyne (TER) – semiconductor test equipment, lots of cash.
•    High market share (although shrinking), their share has grown at 47% share. They love oligopolies due to smart pricing.
•    Need to fix the lazy balance sheet.
•    Victim of their own success. Buy rates troughed and are now peaking up. 18% is the wireless test business, does have cyclical components.
•    Has $1.2B of cash, don’t need  that much cash,


•    Cadence Design (CDNS) is the next name. Same opportunity as above. Revenue growth is accelerating. Months away from launching a new hardware emulation platform.
•    Overcapitalized balance sheet.

For more from this hedge fund manager, Robbins recently shared other investment ideas at Capitalize For Kids Sohn Canada as well as the Robin Hood Investors' Conference.


Be sure to check out the rest of the hedge fund presentations from Invest For Kids Chicago here.

Third Point's Q3 Letter: Long Amgen, eBay & Alibaba, Exited Sony

Dan Loeb's hedge fund firm Third Point is out with its third quarter letter.  In it, the firm reveals that they've added to their stake in Amgen (AMGN), established a sizable new position in eBay (EBAY), and have a significant direct investment in the newly public Alibaba (BABA). 

Additionally, they've exited their long of Sony.  They also reduced or exited positions in AIG, Hertz, Softbank, LNG.

Then, with the recent market volatility, they lifted some hedges and added back to positions that they had previously sold at higher levels.  Third Point writes, "Although consensus has shifted to lower growth, slower inflation, modest rates, and continued monetary expansion, we think the markets will resume an overall upward trajectory in the US through year-end."

Embedded below is Third Point's Q3 letter where they specifically talk about AMGN, EBAY, BABA and SNE:



You can download a .pdf copy here.

What We're Reading ~ Analytical Links 10/1/14

Do valuation shorts work? [CFA] 

Importance of ROIC: the math of compounding [Base Hit Investing]

The great American deleveraging continues [Yahoo]

The end of monetary policy [Forbes]

'Stock Market Wizards' take losses [Dasan]

Profile of Mohnish Pabrai [Forbes]

On China's economy: a test of will [Economist]

eBay does about-face in spinoff of PayPal [Dealbook]

On Apple Pay's eCommerce disruption [Starpoint]

Bullish piece on Bank of America [Barrons]

US poised to become world's leading liquid petroleum producer [FT]

Mystery man who moves Japanese markets [Bloomberg]

An investor's guide to better writing [imausa]

Jeff Ubben & Barry Rosenstein on Activist Investing at Milken Institute

At the Milken Institute Global Conference, prominent hedge fund managers gathered on a panel about activist investors and the search for alpha.  The panel consisted of:

- Jeff Ubben, ValueAct Capital
- Barry Rosenstein, JANA Partners
- Clifton Robbins, Blue Harbour Group
- Chris Teets, Red Mountain Capital

In it, the fund managers talked about the different styles of activist investing.

Rosenstein said that, "I'm happy to be friendly as long as the company does what I want them to do."

Robbins contributed, "I think that there's been a palpable change in the last four or five years generally in the attitudes of boards and CEOS in their willingness to listen to large stockholders."

Ubben took issue with activist investing being 'daytrader fodder' and labeled it as 'bad.'  Ubben revealed he had built an eBay stake at $50 and wanted to buy more but Icahn's involvement pushed shares higher.  He says Carl's a great stockpicker, but the activist situation there was a non-event.

Ubben later noted that he thinks activist investing is too short-term these days rather than building a company over the long-term.  Robbins agreed with him.  However, Rosenstein took the other side of the argument.

Embedded below is the full activist investing panel from the Milken Institute Global Conference:



For more on the subject, head to Mason Morfit's lectures on activist investing (he's part of ValueAct with Ubben).

What We're Reading ~ Hedge Fund Links 2/28/14

Best ideas from the Harbor Conference: Kingdon, Locust Wood, Blackstone [Street]

New hedge funds move away from monthly liquidity in 2013 [HedgeWeek]

George Soros considers investing in European banks [HedgeWorld]

Ackman talks Herbalife, P&G, Target, and Air Products [CNBC]

Steve Mandel tops best-earning hedge funds for clients in 2013 [Bloomberg]

Hedge funds wrestle with employee personal account trading conflicts [Forbes]

With ban on ads removed, hedge funds test waters [Dealbook]

Funds look to hire PR heads [CNBC]

Investor pushes to block Red Lobster spinoff [Dealbook]

Carl Icahn's various letters to eBay [Shareholders' Square Table]

Why Sam Zell loves Mexico [UTSanDiego]

The hedge fund report card [II Alpha]

Blackstone buys minority stake in hf Senator [Bloomberg]

Carl Icahn Pushes For eBay To Spinoff PayPal; Buys More Apple

Activist investor Carl Icahn has been busy yet again.  Firstly, he has disclosed a new position in eBay (EBAY) and he's pushing for the company to spin-off its fast growing PayPal segment.

This is not a new idea.  Plenty of analysts, sell-siders, and portfolio managers have voiced this sentiment before.  However, this might be the first time that a prominent activist has gotten involved and actually tried to make it happen.


Icahn's New eBay Stake

Icahn only owns 0.82% of the company and it looks like his activist push might already be dead on arrival.

Yesterday during eBay's earnings presentation, the company had one specific slide that highlighted why eBay and PayPal should remain together (seen here).

Then today, eBay's Chairman Pierre Omidyar (who owns 8% of the company) tweeted that he and the board were "fully aligned" that eBay and PayPal are best together.  Marc Andreessen tweeted the same.

As such, if Icahn wants to truly push for change, he'll perhaps need to drastically ramp up his ownership stake.  But as some investors have pointed out, perhaps his campaign has been more about awareness than activism.

Talking to Bloomberg, Icahn said he wants to get the word out to shareholders and if he can maybe get 51% of the shareholders to vote that they want it to happen, then maybe the board will take notice.  He did, however, acknowledge that it would be "difficult to convince management." He's also nominated two of his employees to eBay's board.

The video of Icahn's interview is embedded below:




Icahn Buys More Apple

The corporate activist also disclosed activity in another position of his.  This time, he took to Twitter to disclose that he had purchased $500 million more shares of Apple.  Icahn now owns over $3 billion worth of AAPL.

Icahn says that, "We feel (Apple's) board is doing great disservice to shareholders by not having markedly increased its buyback.  In-depth letter to follow soon."

What We're Reading ~ Analytical Links 10/9/13

Some big investors can't get enough of Europe's toxic assets [Quartz]

On cash flow and destiny [Horowitz]

5 things you need to know about Janet Yellen [WSJ]

For Yellen, a focus on reducing unemployment [NYTimes]

Invest in what Wall Street hates [Marketwatch]

Why does value investing work? [Turnkey Analyst]

On avoiding the next bubble [WSJ]

Verizon mega-bond could pave way for AT&T [Reuters]

A look at eBay's CEO John Donahoe [Barrons]

How Twitter's business model is just like broadcast TV, only worse [Buzzfeed]

A road map to high value healthcare delivery [Healthcare Transformation Institute]

A look at Tower Group [Aleph Blog]

Is Medifast a cry baby or corporate bully? [WhiteCollarFraud]

Nest Labs reinvents the smoke alarm [NYTimes]

What We're Reading ~ Analytical Links 4/24/13

12 rules of goldbuggery [The Big Picture]

On Africa's economic prospects [The Economist]

Nate Silver: confidence kills predictions [IndexUniverse]

Leverage: financial versus operating [MicroFundy]

The endgame is forced liquidation [Hussman Funds]

P/C insurance industry overview and outlook [Insurance Information Institute]

Twitter is becoming the first and quickest source of investment news [Guardian]

Shameless plug: if you don't already, follow @MarketFolly on Twitter

An economic analysis of cable TV pricing [Colorado.edu]

Paying for sports programming [The Sports Economist]

Here comes Amazon's (AMZN) Kindle TV set-top box [BusinessWeek]

eBay (EBAY) fighting online sales tax [Dealbook]

Public speaking: how to shine on the soapbox [Anthony Scaramucci]

A quant finance reading list [Quantstart]

For aspiring investment managers: Kaplan's Series65 exam prep .pdf [Kaplan]

Bitcoin investors hang on for the ride [WSJ]

What We're Reading ~ Analytical Links 4/3/13

A sweet spot for equities: opportunity and dangers [Aswath Damodaran]

How much of stock market's growth is caused by its shrinking? [Dealbreaker]

Rally on fumes [Capital Observer]

Greed + confirmation bias = disaster [Kid Dynamite]

A little perspective on the markets [Market Anthropology]

How to find high quality stocks [Greenbackd]

Use Benjamin Graham's investing checklist to invest like him [Old School Value]

Presentation on student debt [NewYorkFed]

Cummins (CMI): should you chase it? [CFA Institute]

Dell (DELL) outlines the death of the PC [Forbes]

The next big catalysts for Blackberry (BBRY) [Yahoo Finance]

Apple (AAPL): is it different this time? [Fusion Investing]

eBay (EBAY): estimates rising on upbeat analyst day [Barrons]

A.H. Belo (AHC): hidden value or value trap? [Seeking Alpha]

Altisource Residential (RESI): spin-off with growth ahead [Seeking Alpha]

Insider buying of gold stocks surges to multi-year highs [Globe and Mail]

How to make a stock pitch [Business Insider]

Grey Owl Capital on Investing in a Low-Return Environment: Q1 Letter

Jeff Erber and Grey Owl Capital are out with their Q1 letter to investors and in it they highlight how they're approaching investing in a low-return environment.  They're employing a three-pronged attack as follows:


1. Look for undervalued securities:  They've been "high-grading" their portfolio by buying cheaper, high quality US names.  This is a concept long echoed in commentary from Oaktree's Howard Marks as well as GMO's Jeremy Grantham for the past few years as rates have remained low for a prolonged period.

Here's what individual names Grey Owl's been trading in:

New stakes: Pepsico (PEP), Blackrock (BLK), BMC Software (BMC), and Excelon (EXC)
Added to existing stakes: eBay (EBAY)
Exited: Apollo Residential Mortgage (AMTG) and Western Union (WU)
Trimmed: Apollo Group (APOL), Bridge Point Education (BPI), Market Vectors Gold Miners (GDX), Lexmark (LXK), and Transocean (RIG).


2. Invest in short dated high-yield fixed income:  Given that the Fed has in the past signaled potentially raising rates in 2013, this short-dated approach makes sense.  They've purchased the following bonds (with full write-ups on each stake in the below letter):

MGM Resorts 6.75% 9/2012 - purchased in December 2011
CSC 5.5% 3/2013 - purchased in January
Western Alliance Bancorp 10% 9/2015 - purchased in early April


3. Hold plenty of dry powder anticipating better opportunities: This might look counterintuitive at first glance given that holding cash earns you practically nothing, especially in a low yield environment.  However, consider that many hedge fund managers often hold cash as a hedge and as a utility to deploy when better investment opportunities arise. That's exactly what Grey Owl has done as they've deemed the current set of opportunities less desirable and they think better prices to buy at lie ahead.


Embedded below is Grey Owl Capital Managment's Q1 letter & you can download a .pdf here:




For more investor letters we've posted up Dan Loeb's Third Point Q1 letter as well as Passport Capital's letter.

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)
NVR (NVR)
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)
Priceline.com (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 Priceline.com 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.