(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 filings.)
Next up is Dan Loeb's hedge fund Third Point LLC. Loeb started his hedge fund with $3.3 million in 1995 and today manages billions with a focus on event-driven and value oriented investments. In the time elapsed since the 13F filing, keep in mind that Third Point has been selling Nabi Biopharma (NABI) and Loeb recently gave commentary on event-driven opportunities in Third Point's investor letter. Since inception, they've seen greater than 15% annual returns. For 2009, Third Point's Offshore fund was up 38.6% and their Ultra fund up 44.2% as noted in our list of hedge fund performance numbers.
Before we proceed, keep in mind that Loeb owns other asset classes that aren't required in these disclosures such as company debt, mortgage backed securities, etc. We recently detailed Loeb's exposure to these assets in our portfolio update on Third Point. To learn how to invest like this hedge fund manager, check out Dan Loeb's recommended reading.
The positions listed below were Third Point's long equity, note, and options holdings as of March 31st, 2010 as filed with the SEC. All holdings are common stock unless otherwise denoted:
Brand New Positions
Liberty Interactive (LINTA)
OSI Pharmaceutical (OSIP)
Airgas (AIRG)
Walgreen (WAG)
Coca Cola Enterprise (CCE)
Aspen Technology (AZPN)
Pall (PLL)
Alcon (ACL)
Toyota Motor (TM)
Phillips Van Heusen (PVH)
RF Micro (RFMD)
Lear (LEA)
Brocade Communications (BRCD)
Madison Square Garden (MSG) ~ resulting from the spin-off of Cablevision shares they previously owned
Macys (M)
Alkermes (ALKS)
Washington Post (WPO)
Vivus (VVUS)
Kraft (KFT)
Abraxas Petro (ABP)
Increased Positions
Xerox (XRX): Increased position size by 75%
Advanced Micro Devices (AMD): Increased by 50%
CIT Group (CIT): Increased by 34.3%
Popular (BPOP): Increased by 25%
Wellpoint (WLP): Increased by 18.2%
Reduced Positions
Phoenix Companies (PNX): Reduced position size by 76.3%
Dana Corp (DAN): Reduced by 68.8%
Nabi Biophamaceuticals (NABI): Reduced by 14.2% ~ Third Point has since sold more
Positions They Sold Out of Completely
Citigroup (C)
Cablevision (CVC)
Energy Partners (EPL)
Coinstar (CSTR)
Yahoo (YHOO)
Liberty Entertainment (LSTAV)
Hewlett Packard (HPQ)
Pepsi Bottling Group (PBG) ~ inactive due to merger
Pepsiamericas (PAS) ~ same
Capitalsource (CSE)
Greenlight Capital Re (GLRE)
American Water Works (AWK)
Pain Therapeutics (PTIE)
Life Partners (LPHI)
Barclays (BCS)
TCW Strategic (TSI)
Top 15 Holdings (by percentage of assets reported on 13F filing)
1. PHH Corp (PHH): 7.6%
2. Transdigm (TDG): 6.8%
3. CIT Group (CIT): 6.5%
4. Wellpoint (WLP): 6%
5. Health Net (HNT): 5.3%
6. Liberty Interactive (LINTA): 5.2%
7. OSI Pharmaceutical (OSIP): 5.1%
8. Xerox (XRX): 4.9%
9. Airgas (ARG): 4.2%
10. Walgreen (WAG): 4.0%
11. Coca Cola Enterprises (CCE): 4%
12. Mead Johnson Nutrition (MJN): 3.7%
13. Aspen Technology (AZPN): 3.7%
14. Pall (PLL): 2.9%
15. Popular (BPOP): 2.6%
Before we analyze some of their moves we need to immediately point out that the 'top positions' above are merely their top equity positions and not Third Point's 'top positions' at the hedge fund overall. According to our Third Point portfolio breakdown, Loeb's largest positions are actually via multiple securities (debt, equity, etc) in Chrysler, Delphi, CIT Group, Dana Holding, and PHH. So, just keep in mind that some of his debt positions are actually the largest positions in Third Point's portfolio.
One of the main things that caught our eye was Loeb's sale of Capitalsource (CSE). Third Point had previously held a position and now joins a slew of other hedgies that sold out of CSE in the first quarter. Interestingly enough, Seth Klarman's Baupost Group still holds their CSE equity stake though. We also highlight Loeb's exit from Citigroup (C) because in the fourth quarter of 2009 it was their second largest US equity position.
In the first quarter, Loeb's hedge fund started sizable new stakes in Liberty Interactive and OSI Pharm, positions that were Third Point's sixth and seventh largest US equity holdings. In fact, the vast majority of Third Point's top equity holdings are new positions they started in Q1 including Airgas, Walgreen, Coca Cola Enterprise, Aspen Technology, and Pall.
Third Point's exit of PepsiAmericas and Pepsi Bottling Group is a result of a merger transaction with PepsiCo that closed. This is the perfect example of an event-driven play that Loeb typically seeks. We see that Third Point maintains a sizable position in Mead Johnson Nutrition (MJN) as well. We previously outlined Loeb's rationale behind MJN in a post: why hedge funds like Mead Johnson Nutrition. We're also starting to see numerous hedge funds that show new or increased positions in Xerox (XRX) as of the first quarter. Loeb's firm was one of them and so that might be something to keep an eye on as well.
David Einhorn must be pissed because Loeb sold out off Greenlight Capital Re, the reinsurance company Einhorn is chairman of. We're just kidding about the being pissed off part, but Third Point had previously owned GLRE for quite some time (although a very small position). On a serious note though, it seems as though Loeb and Einhorn agree on shares of CIT Group. As we saw earlier, Einhorn added to his CIT position. That about wraps up all the talking points from the first quarter so if you want more from Dan Loeb, make sure to check out his recommended reading list.
Assets reported on the 13F filing were $1.4 billion this quarter. Data from the SEC is aggregated and sorted automatically by Alphaclone, our source for hedge fund tracking, replicating, and performance backtesting (Market Folly readers can receive a special free 30 day trial). Remember that these filings are not representative of the hedge fund's entire base of AUM.
This post is part of our daily hedge fund portfolio tracking series. We've already detailed activity from numerous managers so click the links below to be taken to the respective portfolio updates: Seth Klarman's Baupost Group, Warren Buffett's Berkshire Hathaway, Stephen Mandel's Lone Pine Capital, and Bill Ackman's Pershing Square, David Einhorn's Greenlight Capital, Eddie Lampert's RBS Partners, David Tepper's Appaloosa Management, Mohnish Pabrai's Investment Fund, John Griffin's Blue Ridge Capital, Lee Ainslie's Maverick Capital, Bruce Berkowitz's Fairholme Capital Management, and Andreas Halvorsen's Viking Global. Be sure to check back daily for new hedge fund updates.
Monday, May 24, 2010
Dan Loeb's Hedge Fund Third Point Starts Multiple New Positions, Exits Citigroup: 13F Filing Q1 2010
Andreas Halvorsen's Viking Global Doubles Down on Google, CME Group, News Corp: 13F Filing Q1 2010
(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 filings.)
Next up is Andreas Halvorsen's hedge fund Viking Global. Viking employs bottom-up fundamental stockpicking, like most all other 'Tiger Cub' hedge funds. Halvorsen attended Williams College and received his MBA from Stanford and he has previously worked at Morgan Stanley and Julian Robertson's legendary hedge fund Tiger Management. In Alpha's 2008 hedge fund rankings, Viking was ranked #70 in the world. We recently got some insight as to Viking's rationale behind some of their positions in their first quarter letter.
The positions listed below were their long equity, note, and options holdings as of March 31st, 2010 as filed with the SEC. All holdings are common stock unless otherwise denoted:
Brand New Positions
Bank of America (BAC)
Baker Hughes (BHI)
Colgate Palmolive (CL)
Comcast (CMCSA)
PNC Financial (PNC)
Agrium (AGU)
Mednax (MD)
Frontline (FRO)
Psychiatric Solutions (PSYS)
United Technologies (UTX)
Lennar (LEN.B)
Family Dollar Stores (FDO)
NVR (NVR)
McKesson (MCK)
Intermune (ITMN)
Owens Corning (OC)
Increased Positions
Metlife (MET.B): Increased position by 926%
Universal Health (UHS): Increased by 658%
Sherwin Williams (SHW): Increased by 277%
Ingersoll Rand (IR): Increased by 160%
Smithfield Foods (SFD): Increased by 148.5%
Rockwell Collins (COL): Increased by 132.6%
Devon Energy (DVN): Increased by 130.8%
News Corp (NWSA): Increased by 124%
CME Group (CME): Increased by 120%
Google (GOOG): Increased by 106%
Tyco International (TYC): Increased by 99.5%
Pfizer (PFE): Increased by 70.5%
Hess (HES): Increased by 68.4%
Pall (PLL): Increased by 50.9%
Davita (DVA): Increased by 49.7%
Oracle (ORCL): Increased by 47.6%
Health Management (HMA): Increased by 34%
Halliburton): Increased by 31.6%
Visa (V): Increased by 21.4%
Invesco (IVZ): Increased by 16.2%
Reduced Positions
Capital One (COF): Reduced position size by 97.6%
Lincare (LNCR): Reduced by 54.4%
Beckman Coulter (BEC): Reduced by 85.2%
CVS Caremark (CVS): Reduced by 46.1%
Illumina (ILMN): Reduced by 44.8%
Autodesk (ADSK): Reduced by 38.9%
Disney (DIS): Reduced by 27.8%
Wellpoint (WLP): Reduced by 27.7%
Qwest Communication (Q): Reduced by 27%
JPMorgan Chase (JPM): Reduced by 27%
Virgin Media (VMED): Reduced by 26.4%
Biovail (BVF): Reduced by 25%
Cigna (CI): Reduced by 24.8%
Danaher (DHR): Reduced by 22.5%
Goodrich (GR): Reduced by 17.4%
Positions They Sold Out of Completely
Bank of America preferred (BAC-S)
Mastercard (MA)
CSX (CSX)
Aetna (AET)
AON (AON)
DirecTV (DTV)
NRG Energy (NRG)
Franklin Resources (BEN)
Citigroup (C)
Wells Fargo (WFC)
Qualcomm (QCOM)
Manulife Financial (MFC)
Host Hotel & Resort (HST)
Owen Illinois (OI)
Brocade Communications (BRCD)
Allegheny Energy (AYE)
Manitowoc (MTW)
Atlas Energy (ATLS)
Apollo Group (APOL)
Pharmaceutical Products (PPDI)
Top 15 Holdings (by percentage of assets reported on 13F filing)
1. Visa (V): 9.8%
2. Invesco (IVZ): 7.7%
3. Express Scripts (ESRX): 4.5%
4. Tyco (TYC): 4.4%
5. Bank of America (BAC): 4.3%
6. Metlife (MET.B): 4%
7. News Corp (NWSA): 3.2%
8. JPMorgan Chase (JPM): 2.9%
9. Goodrich (GR): 2.8%
10. Hewlett Packard (HPQ): 2.7%
11. Google (GOOG): 2.7%
12. Wellpoint (WLP): 2.4%
13. CME Group (CME): 2.4%
14. ACE (ACE): 2.4%
15. Sherwin Williams (SHW): 2.3%
Many of Viking's portfolio moves were previously telegraphed in their first quarter letter. In it, we saw that they dumped Mastercard (MA) and clearly now favor Visa (V) in the payment processing space. They maintain their very large position in Invesco as well. Their letter also revealed that they are quite bullish on shares of Express Scripts (ESRX) in the pharmacy benefit management space. At the end of the first quarter it was their third largest US equity long. We also see that they chopped their CVS Caremark (CVS) position nearly in half, a competitor to ESRX in the PBM space. As we detailed last week, Lee Ainslie's Maverick Capital is bullish on CVS.
We take note of Viking's position in CME Group because a few other hedgies were adding shares in the first quarter. We just learned that John Griffin's Blue Ridge Capital also has a sizable stake. Halvorsen's hedge fund also nearly doubled down on their Tyco (TYC) position and brought it up to their fourth largest holding. And while we're on the subject of positions they added to, take a look at Metlife B shares (MET.B) as Viking really added to their stake there. Lastly, we highlight they doubled down on their position in Google (GOOG) as well. We're starting to see lots of hedgies accumulating this technology & internet giant, so that might be worth looking into further considering GOOG is trading below levels where these hedge funds added to their position. Blue Ridge Capital has assembled a large GOOG stake as well.
In terms of positions they sold completely out of, we wanted to highlight Apollo Group (APOL) for a few reasons. Firstly, Viking had this as a 'core' position for a few quarters and so we note their exit. Secondly, we mention this because we're starting to see a divergence of opinion amongst Tiger Cub hedge funds regarding for-profit education stocks. David Stemerman's Conatus Capital had sold out of APOL and other educational plays back in the fourth quarter for a myriad of reasons.
Assets reported on the 13F filing were $9 billion this quarter. Data from the SEC is aggregated and sorted automatically by Alphaclone, our source for hedge fund tracking, replicating, and performance backtesting (Market Folly readers can receive a special free 30 day trial). Remember that these filings are not representative of the hedge fund's entire base of AUM.
This post is part of our daily hedge fund portfolio tracking series. We've already detailed activity from numerous managers so click the links below to be taken to the respective portfolio updates: Seth Klarman's Baupost Group, Warren Buffett's Berkshire Hathaway, Stephen Mandel's Lone Pine Capital, and Bill Ackman's Pershing Square, David Einhorn's Greenlight Capital, Eddie Lampert's RBS Partners, David Tepper's Appaloosa Management, Mohnish Pabrai's Investment Fund, John Griffin's Blue Ridge Capital, Lee Ainslie's Maverick Capital, and Bruce Berkowitz's Fairholme Capital Management. Be sure to check back daily for new hedge fund updates.
Notes From Seth Klarman's CFA Conference Speech
Many thanks go out to Distressed Debt Investing for flagging these two excellent set of notes that came out of Seth Klarman's speech last week at the CFA Conference in Boston. And of course, thank you as well to those individuals who compiled them. Last week we briefly summed up Klarman's worries of inflation & the markets, but the documents below are much more in-depth and well worth your time. Make sure to also check out Seth Klarman's recommended reading list.
Embedded below is the first set of notes from Cameron Wright:
You can download a .pdf copy here.
And embedded below are the second set of notes regarding Klarman's speech:
You can download a .pdf copy of this document as well.
For more on this investing legend, be sure to also check out our recent post on Klarman's latest portfolio changes as well as Klarman's lessons from the financial crisis. And make sure to also check out some in-depth notes from other recent investing events that serve as great resources. You can view:
- Notes from the Value Investing Congress
- Notes from Berkshire Hathaway's annual meeting
Friday, May 21, 2010
Bruce Berkowitz's Fairholme Buys Bank of America, Sells Pfizer: 13F Filing Q1 2010
(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 filings.)
Next up in our series is Bruce Berkowitz's Fairholme Capital Management. While not a hedge fund, we track Berkowitz because despite managing over $10 billion, he runs quite a concentrated portfolio. Not to mention, he was named fund manager of the decade by Morningstar. In activity that was reported after this most recent 13F filing, we see that Berkowitz has actually boosted his AIG holdings. Additionally, he recently revealed a brand new stake in Goldman Sachs (GS) at the Value Investing Congress (see detailed notes from the event here). Also, you'll remember that Fairholme has a large debt position in General Growth Properties (GGP) as they've been an integral part of the winning bid (along with Bill Ackman's Pershing Square and Brookfield) that will help to restructure the company. Lastly, note that Berkowitz typically discloses his positions for his Fairholme Fund (mutual fund: FAIRX) on an individual basis, but we are examining the holdings of his entire firm, Fairholme Capital Management. With that in mind, let's take a look at the rest of Fairholme's portfolio.
The positions listed below were their long equity, note, and options holdings as of March 31st, 2010 as filed with the SEC. All holdings are common stock unless otherwise denoted:
Brand New Positions
Bank of America (BAC)
American International Group (AIG)
Increased Positions
Berkshire Hathaway (BRK.B): Increased position by 1,458% ~ mainly due to Berkshire's 50/1 stock split
Regions Financial (RF): Increased by 74.8%
Comcast (CMCSK): Increased by 46.1%
Citigroup (C): Increased by 5.94%
Reduced Positions
Daily Journal (DJCO): Reduced position by 26.6%
Spirit AeroSystems (SPR): Reduced by 15.9%
CIT Group (CIT): Reduced by 14.5%
Americredit (ACF): Reduced by 13.2%
Positions They Sold Out of Completely
Pfizer (PFE)
WellPoint (WLP)
Burlington Northern Santa Fe (BNI) ~ bought out by Warren Buffett's Berkshire Hathaway
United Rentals (URI)
White Mountains Insurance (WTM)
Penn West Energy (PWE)
Forest Laboratories (FRX)
Coca Cola (KO)
Bristol Myers Squibb (BMY)
Marshall & Ilsley
Top 15 Holdings (by percentage of assets reported on 13F filing)
1. Sears Holdings (SHLD): 14.91%
2. Citigroup (C): 8.61%
3. St. Joe (JOE): 8.1%
4. Humana (HUM): 6.9%
5. Americredit (ACF): 6.81%
6. Bank of America (BAC): 6.56%
7. Regions Financial (RF): 5.57%
8. Hertz Global (HTZ): 5.24%
9. Spirit AeroSystems (SPR): 5.04%
10. American International Group (AIG): 4.8%
11. Leucadia (LUK): 4.71%
12. CIT Group (CIT): 4.46%
13. Berkshire Hathaway (BRK.A): 4.21%
14. Comcast (CMCSK): 3.56%
15. Berkshire Hathaway (BRK.B): 2.86%
Overall, it appears as though Berkowitz is sticking with his 'recovery' play on financials. He added new stakes in Bank of America and AIG (the latter of which we already knew about) and increased holdings in Regions Financial. Additionally, as we mentioned at the very beginning of this article, Berkowitz has just started a new stake in Goldman Sachs and he has been since adding to his AIG position as well.
In the past we detailed how Berkowitz liked health plays but it appears he is now less fond of some of them. After previously holding a massive stake in Pfizer (PFE), he has now completely sold out. This is the exact opposite of what we've seen David Einhorn do, as he's been building a Pfizer stake. Sticking with the Berkowitz/Einhorn dichotomy, we see that Berkowitz was selling some shares of CIT Group while Einhorn was buying. That said, they both own sizable positions.
We also highlight Berkowitz's sale of WellPoint (WLP) as Warren Buffett's Berkshire Hathaway also completely sold out of this position. While these two notable investors have sold out, we've seen various other hedge funds still owning this name. And speaking of Warren Buffett, you'll note that Fairholme Fund drastically increased their position in the B shares of Berkshire Hathaway (BRK.B).
Lastly, we want to bring to your attention that Fairholme also recently filed an amended 13D on shares of TAL International (TAL) due to activity on May 17th. Per the filing, Fairholme now shows a 6.2% ownership stake in the company with 1,890,453 shares. This is a decrease in their position as they've been selling shares throughout the month of May. Those interested in the specifics of the sales can view the SEC filing here. So, keep in mind that the data posted up in the 13F analysis article above is already stale.
Assets reported on Fairholme Fund's 13F filing were $10.7 billion this quarter. Data from the SEC is aggregated and sorted automatically by Alphaclone, our source for hedge fund tracking, replicating, and performance backtesting (Market Folly readers can receive a special free 30 day trial). Remember that these filings are not representative of the hedge fund's entire base of AUM.
This post is part of our daily hedge fund portfolio tracking series. We've already detailed activity from numerous managers so click the links below to be taken to the respective portfolio updates: Seth Klarman's Baupost Group, Warren Buffett's Berkshire Hathaway, Stephen Mandel's Lone Pine Capital, and Bill Ackman's Pershing Square, David Einhorn's Greenlight Capital, Eddie Lampert's RBS Partners, David Tepper's Appaloosa Management, Mohnish Pabrai's Investment Fund, John Griffin's Blue Ridge Capital, and Lee Ainslie's Maverick Capital. Be sure to check back daily for new hedge fund updates.
David Gallo's Valinor Management Increases Cardtronics Position (CATM)
David Gallo's hedge fund Valinor Management recently filed a 13G with the SEC regarding shares of Cardtronics (CATM). In the disclosure, we see that as of May 10th, they own 2,377,037 shares of CATM, a 5.7% ownership stake in the company. This is an increase in their position. In Valinor's recently filed 13F which details positions as of March 31st, 2010, we see that they owned 1,513,846 shares. This means they've increased their position size by 57% over the past month and a half. We'll be detailing Valinor's portfolio in our hedge fund portfolio tracking series so stay tuned for that.
Prior to founding Valinor, Gallo worked at Roberto Mignone's Bridger Management. He received his MBA from Harvard Business School and the hedge fund is named after lands often inhabited by immortal souls from the books of J.R.R. Tolkien. We've just started tracking Valinor's portfolio in recent quarters and in the past have detailed some of their position adjustments.
Taken from Google Finance, Cardtronics is "a provider of automated consumer financial services through its network of automated teller machines (ATMs) and multi-function financial services kiosks."
Oaktree Capital's Howard Marks Is Cautious: Market Commentary
Needless to say, he was prudent in his warning. He points out that regardless of the situation in Greece, investors had reason to be cautious as, "the recovery of 2009 in the face of significant fundamental uncertainty meant that the markets were reincorporating optimism and thus vulnerable to surprise and disappointment. This in itself should be sufficient to induce caution." The rest of his commentary focuses on how market sentiment is currently reminding him of pre-crisis levels. He wisely proclaims that it's time to be skeptical when optimism is omnipresent. Marks' cautionary stance is shared by investing legend Seth Klarman of Baupost Group who we highlighted recently stated that he is worried about the markets.
Marks' commentary is eleven pages worth of insight and quotable gems. As such, we recommend you read it in its entirety. Embedded below is the full commentary from Oaktree Capital's Howard Marks:
You can download a .pdf here.
Maybe the most valuable insight Marks shares is his reiteration that there are two risks in investing: the risk of missed opportunity and the risk of losing money. He says you can compromise between them, avoid one or the other, but you can't eliminate them both. People buy when they should be selling and sell when they should be buying because of emotion. Words of wisdom indeed.
For past commentary from Marks, be sure to check out his 2009 annual review for some great insight. Additionally, those interested in the topic of inflation would be wise to view Marks' ways to play inflation. Lastly, for more of our coverage of prominent investment managers, head to our collection of recent hedge fund investor letters.
A 13F Filing Disclosing Short Positions?
What We're Reading ~ 5/21/10
Richard Russell says sell anything [Pragmatic Capitalism]
PIMCO's risk filled global outlook [Felix Salmon, Reuters]
How Goldman's recommended trades cost clients billions [Zero Hedge]
Will hedge fund Harbinger make a play for Inmarsat? [The Guardian]
Fear of a double-dip recession could cause one [Robert Shiller, NYTimes]
2010's coming stock market crash [Fortune]
Thursday, May 20, 2010
Hugh Hendry's Eclectica Fund Sees Hyperinflation Via Deflationary Event; Constructs Asian Bear Portfolio
Lee Ainslie's Maverick Capital Bullish on CVS Caremark (CVS) & Technology: 13F Filing Q1 2010
(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 filings.)
Next up is Lee Ainslie's hedge fund Maverick Capital. Lee founded the firm with seed capital from the Wyly Family in Texas after he left Julian Robertson's hedge fund Tiger Management. Maverick focuses on intensive fundamental research on both the long and short sides of the portfolio, but doesn't employ pairs trades. Ainslie likes to focus on risk management and positions typically do not exceed more than 8% of the portfolio. Maverick's analytical team is divided up by sector and place an emphasis on enterprise value to sustainable free cash flow.
The positions listed below were Maverick's long equity, note, and options holdings as of March 31st, 2010 as filed with the SEC. All holdings are common stock unless otherwise denoted:
Brand New Positions
Abercrombie & Fitch (ANF)
Increased Positions
Qualcomm (QCOM): Increased position by 269.7%
Reduced Positions
Berkshire Hathaway (BRK.A): Reduced position by 99.6%
Positions They Sold Out of Completely
Autodesk (ADSK)
Top 15 Holdings (by percentage of assets reported on 13F filing)
CVS Caremark is Maverick's largest stake and here's a brief history with their position: Back in the first quarter of 2009, we actually saw Ainslie sell out of CVS and buy into rival Walgreens. Then in the fourth quarter of 2009, we posted on our Twitter account that Ainslie mentioned he was very keen on shares of CVS at an investment conference as it was one of his highest conviction picks. That much is now evident in his portfolio as CVS sits as Maverick's largest holding as of the first quarter in 2010. CVS was also mentioned on a list of analysts' best stock picks for 2010.
This post is part of our daily hedge fund portfolio tracking series. We've already detailed activity from numerous managers so click the links below to be taken to the respective portfolio updates: Seth Klarman's Baupost Group, Warren Buffett's Berkshire Hathaway, Stephen Mandel's Lone Pine Capital, and Bill Ackman's Pershing Square, David Einhorn'sGreenlight Capital, Eddie Lampert's RBS Partners, David Tepper's Appaloosa Management, Mohnish Pabrai's Investment Fund, and John Griffin's Blue Ridge Capital. Be sure to check back daily for new hedge fund updates.
John Griffin's Blue Ridge Capital Bets Big on Google (GOOG): 13F Filing Q1 2010
(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 filings.)
Next up is John Griffin's hedge fund Blue Ridge Capital. Griffin attended the University of Virginia for undergrad and Stanford for his MBA. Prior to founding Blue Ridge, Griffin served as Julian Robertson's right-hand man at legendary hedge fund Tiger Management.
The positions listed below were Blue Ridge's long equity, note, and options holdings as of March 31st, 2010 as filed with the SEC. All holdings are common stock unless otherwise denoted:
Brand New Positions
Apollo Group (APOL)
Increased Positions
Market Vectors Gold Miners (GDX): Increased position by 180.5%
Reduced Positions
Positions They Sold Out of Completely
Berkshire Hathaway (BRK.A)
Top 15 Holdings (by percentage of assets reported on 13F filing)
Assets reported on the 13F filing were $6.1 billion this quarter. Data from the SEC is aggregated and sorted automatically by Alphaclone, our source for hedge fund tracking, replicating, and performance backtesting (Market Folly readers can receive a special free 30 day trial). Remember that these filings are not representative of the hedge fund's entire base of AUM.
This post is part of our daily hedge fund portfolio tracking series. We've already detailed activity from numerous managers so click the links below to be taken to the respective portfolio updates: Seth Klarman's Baupost Group, Warren Buffett's Berkshire Hathaway, Stephen Mandel's Lone Pine Capital, and Bill Ackman's Pershing Square, David Einhorn's Greenlight Capital, Eddie Lampert's RBS Partners, David Tepper's Appaloosa Management, and Mohnish Pabrai's Investment Fund. Be sure to check back daily for new hedge fund updates.
Hedge Fund T2 Partners Still Cautious (Investor Letter)
Wednesday, May 19, 2010
Mohnish Pabrai's Investment Fund: Latest Portfolio (13F Filing Q1 2010)
(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 filings.)
Next up in our series is Mohnish Pabrai and his Pabrai Investment Fund. He is a value investor in the true sense of the word and has followed in the footsteps of Warren Buffett in numerous ways. Firstly, his fund is structured similarly to Buffett's Partnerships where he charges no management fee and then no incentive fee until the fund gains at least 6%. Once Pabrai clears this hurdle, he charges a 25% incentive fee. Typical hedge funds charge a 2% management fee and a 20% performance incentive. Pabrai has in the past won an auction for lunch with Warren Buffett as well.
For 2009, Pabrai's funds performed well after having a poor 2008. Last year, his PIF2 finished up 122.5%, PIF3 up 125%, and PIF4 up 118.8% as noted in our hedge fund performance numbers post. Pabrai recently presented at the Value Investing Congress and you can read in-depth notes from the event here.
The positions listed below were their long equity, note, and options holdings as of March 31st, 2010 as filed with the SEC. All holdings are common stock unless otherwise denoted:
Brand New Positions
International Coal Group (ICO)
Increased Positions
Fairfax Financial Holdings (FFH): Increased position by 0.34%
Terex (TEX): Increased by 0.02%
Reduced Positions
Teck Resources (TCK): Reduced position by 99.5%
Harvest Natural Resources (HNR): Reduced by 14.74%
Potash (POT): Reduced by 2.03%
Pinnacle Airlines (PNCL): Reduced by 0.25%
Air Transport Services Group (ATSG): Reduced by 0.24%
CapitalSource (CSE): Reduced by 0.18%
Berkshire Hathaway (BRK.B): Reduced by 0.02%
Positions They Sold Out of Completely
n/a
Pabrai's Portfolio (by percentage of assets reported on 13F filing)
1. Potash (POT): 11.89%
2. Brookfield Properties (BPO): 10.89%
3. Harvest Natural Resources (HNR): 10.80%
4. Fairfax Financial (FRFHF): 9.28%
5. Berkshire Hathaway (BRK.B): 7.81%
6. Cresud (CRESY): 7.20%
7. Leucadia National (LUK): 5.90%
8. Goldman Sachs (GS): 5.68%
9. Air Transport Group (ATSG): 5.42%
10. Horsehead Holding (ZINC): 4.83%
11. CapitalSource (CSE): 4.72%
12. Pinnacle Airlines (PNCL): 4.48%
13. Terex (TEX): 3.62%
14. Wells Fargo (WFC): 3.50%
15. International Coal Group (ICO): 3.45%
16. Interactive Brokers (IBKR): 0.46%
17. Teck Resources (TCK): 0.07%
As you can see, Pabrai favors many natural resource type plays and has held some of them for quite some time. Potash (POT) is the most notable as it is his largest position. However, he has essentially sold completely out of Teck Resources (TCK), as he only has a tiny part of his position left. Pabrai also started a brand new stake in International Coal Group (ICO). Given that he is a true value investor, you won't see as much turnover in his portfolio to begin with so that wraps up the major moves. For more on Pabrai, head to his recent insight at the Value Investing Congress.
Assets reported on the 13F filing were $332 million this quarter. Data from the SEC is aggregated and sorted automatically by Alphaclone, our source for hedge fund tracking, replicating, and performance backtesting (Market Folly readers can receive a special free 30 day trial). Remember that these filings are not representative of the hedge fund's entire base of AUM.
This post is part of our daily hedge fund portfolio tracking series. We've already detailed activity from numerous managers so click the links below to be taken to the respective portfolio updates: Seth Klarman's Baupost Group, Warren Buffett's Berkshire Hathaway, Stephen Mandel's Lone Pine Capital, and Bill Ackman's Pershing Square, David Einhorn's Greenlight Capital, Eddie Lampert's RBS Partners, and David Tepper's Appaloosa Management. Be sure to check back daily for new hedge fund updates.
David Tepper's Appaloosa Management Trims Financials & Airlines, Buys Blue-Chip Health Stocks (13F Filing Q1 2010)
(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 filings.)
Next up in our coverage is David Tepper's hedge fund Appaloosa Management. Tepper's hedge fund focuses on companies that other people have thrown in the towel on and he takes concentrated positions in distressed debt and equity. This investment style was epitomized in the heart of the financial crisis when Tepper bought numerous financial stocks. This wager earned him billions and he gained a few spots on the Forbes billionaire list. He is from Pittsburgh and owns the NFL's Pittsburgh Steelers. While Appaloosa won big with their financials bet, they were also one of the top hedge fund losers in 2008. Needless to say, it's been a volatile past few years for Appaloosa. Previously, Tepper was a high yield bond trader for Goldman Sachs.
The positions listed below were their long equity, note, and options holdings as of March 31st, 2010 as filed with the SEC. All holdings are common stock unless otherwise denoted:
Brand New Positions
Pfizer (PFE)
Johnson & Johnson (JNJ)
Merck (MRK)
Valero Energy (VLO)
Yahoo (YHOO)
SuperMedia (SPMD)
Sunoco (SUN)
Tesoro (TSO)
Con-way (CNW)
YRC Worldwide (YRCW)
Continental Airlines (CAL)
Arkansas Best (ABFS)
American Commercial Lines (ACLI)
Increased Positions
Navistar International (NAV): Increased position by 293.6%
Goodyear Tire & Rubber (GT): Increased by 32.6%
Newcastle Investment Group (NCT): Increased by 17.9%
Willis Group Holdings (WSH): Increased by 15.6%
Hartford Financial (HIG): Increased by 5.4%
Reduced Positions
Office Depot (ODP): Reduced position by 81.1%
XL Capital (XL): Reduced by 73.5%
Valassis Communication (VCI): Reduced by 61%
Citigroup (C): Reduced by 54.8%
AMR Corp (AMR): Reduced by 44.04%
Delta Airlines (DAL): Reduced by 37.6%
SunTrust Banks (STI): Reduced by 35.7%
Fifth Third Bancorp (FITB): Reduced by 30.2%
E*Trade Financial (ETFC): Reduced by 28.9%
OfficeMax (OMX): Reduced by 27.6%
UAL Corp (UAUA): Reduced by 26.1%
BB&T (BBT): Reduced by 25.6%
Capital One Financial (COF): Reduced by 25.4%
CNO Financial (CNO): Reduced by 25%
Brunswick (BC): Reduced by 20.3%
Wells Fargo (WFC): Reduced by 18.5%
Microsoft (MSFT): Reduced by 18.5%
US Airways (LCC): Reduced by 13.2%
Gramercy Capital (GKK): Reduced by 11.9%
Strategic Hotels & Resorts (BEE): Reduced by 7.7%
Bank of America (BAC): Reduced by 5.9%
Maguire Properties (MPG): Reduced by 3.65%
Positions They Sold Out of Completely
Rite Aid (RAD)
Hospitality Properties Trust (HPT)
Top 15 Holdings (by percentage of assets reported on 13F filing)
1. Bank of America (BAC): 20.47%
2. Wells Fargo (WFC): 10.54%
3. Citigroup (C): 9.55%
4. Fifth Third Bancorp (FITB): 8.74%
5. Hartford Financial (HIG): 7.07%
6. SunTrust Banks (STI): 5.56%
7. Pfizer (PFE): 4.18%
8. Capital One (COF): 3.50%
9. Johnson & Johnson (JNJ): 3.13%
10. Microsoft (MSFT): 2.70%
11. Merck (MRK): 2.43%
12. Valero (VLO): 2.14%
13. Yahoo (YHOO): 1.96%
14. UAL Corp (UAUA): 1.66%
15. Willis Group Holdings (WSH): 1.64%
Back when we covered Appaloosa's fourth quarter portfolio, we noted they were buying airlines. Well, this time around they were trimming those positions. While Tepper also trimmed positions in numerous financials, they are still some of his largest holdings. The top half of his portfolio looks pretty similar to last quarter, but take note that he sold over half his Citigroup (C) position and almost a third of his Fifth Third Bancorp (FITB) stake. Despite these sales, these positions are still some of his largest. We also highlight that Appaloosa sold 30% of their SunTrust Banks position and we mention this because we just saw Warren Buffett's Berkshire Hathaway exit their STI stake completely.
Tepper also made a few notable buys in the first quarter of 2010 including Pfizer, Johnson & Johnson, and Merck. Obviously he's playing the blue-chip health theme here that we've seen so many other hedge funds flock to as many of these companies are undervalued. Just yesterday we noted David Einhorn added to his PFE position as well. Lastly, Tepper also started a new stake in SuperMedia (SPMD), a company we recently saw John Paulson start a position in as well.
Assets reported on Appaloosa's 13F filing were $2.6 billion this quarter. Data from the SEC is aggregated and sorted automatically by Alphaclone, our source for aggregating the hedge fund portfolio movements and backtesting the performance (Market Folly readers can receive a special free 30 day trial). Remember that these filings are not representative of the hedge fund's entire base of AUM.
This post is part of our daily hedge fund portfolio tracking series. We've already detailed activity from numerous managers so click the links below to be taken to the respective portfolio updates: Seth Klarman's Baupost Group, Warren Buffett's Berkshire Hathaway, Stephen Mandel's Lone Pine Capital, and Bill Ackman's Pershing Square, David Einhorn's Greenlight Capital, and Eddie Lampert's RBS Partners. Be sure to check back daily for new hedge fund updates.
Eddie Lampert's RBS Partners Portfolio: 13F Filing Q1 2010
(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 filings.)
Next up is RBS Partners, the parent company of Eddie Lampert's hedge fund ESL Investments. Prior to forming ESL, Lampert worked with Robert Rubin at Goldman Sachs' risk arbitrage department. Lampert graduated from Yale where he was a member of the skull and bones secret society, as well as Phi Beta Kappa. He runs highly concentrated portfolios and his focus has long been on the retail sector, most notably through his ownership of Sears Holdings (SHLD). He has graced Forbes' billionaire list but was also one of the top hedge fund losers in 2008. In terms of recent investment activity, we saw that Lampert bought AutoNation (AN) shares and his Sears Holdings purchased Bill Ackman's stake in Sears Canada. Our coverage of RBS also includes Lampert's 2010 annual letter.
The positions listed below were their long equity, note, and options holdings as of March 31st, 2010 as filed with the SEC. All holdings are common stock unless otherwise denoted:
Brand New Positions
n/a
Increased Positions
n/a
Reduced Positions
Wells Fargo (WFC): Reduced position by 62.7%
SLM (SLM): Reduced by 62.1%
Acxiom (ACXM): Reduced by 60.1%
Genworth Financial (GNW): Reduced by 7.7%
Sears Holdings (SHLD): Reduced by 7%
Capital One (COF): Reduced by 4.91%
AutoZone (AZO): Reduced by 4.33%
AutoNation (AN): Reduced by 3.33%
Positions They Sold Out of Completely
Bank of America (BAC)
Eddie Lampert's Entire Portfolio (by percentage of assets reported on 13F filing)
1. Sears Holdings (SHLD): 54.27%
2. AutoZone (AZO): 27.21%
3. AutoNation (AN): 11.36%
4. Capital One (COF): 3.09%
5. CIT Group (CIT): 1.44%
6. Genworth Financial (GNW): 1.21%
7. Citigroup (C): 1.03%
8. Acxiom (ACXM): 0.15%
9. Wells Fargo (WFC): 0.14%
10. SLM (SLM): 0.11%
Lampert obviously runs a highly concentrated portfolio so there's not a lot to cover in terms of changes. We want to quickly point out that while it *appears* as if Lampert was trimming positions in Sears, AutoNation, and AutoZone, that's not the case. As we detailed previously, Lampert was distributing these shares to some of his different investment vehicles as well as to investors in his funds.
Be advised that since this filing he has actually bought AN shares which we detailed in April. In terms of selling, Lampert actually sold over 60% of his stakes in Acxiom, SLM Corp, and Wells Fargo. He also sold entirely out of his small stake in Bank of America (BAC). Other than that, there's not a whole lot to update you on.
Assets reported on RBS Partners' 13F filing were $12.2 billion this quarter. Data from the SEC is aggregated and sorted automatically by Alphaclone, our source for hedge fund tracking, replicating, and performance backtesting (Market Folly readers can receive a special free 30 day trial). Remember that these filings are not representative of the hedge fund's entire base of AUM.
This post is part of our daily hedge fund portfolio tracking series. We've already detailed activity from numerous managers so click the links below to be taken to the respective portfolio updates: Seth Klarman's Baupost Group, Warren Buffett's Berkshire Hathaway, Stephen Mandel's Lone Pine Capital, and Bill Ackman's Pershing Square, David Einhorn's Greenlight Capital. Be sure to check back daily for new hedge fund updates.
