Every quarter, many money managers have to disclose what they've bought and sold, via "13F" filings. Their latest moves can shine a bright light on smart stock picks.
Today, let's look at Passport Capital, founded by John Burbank in 2000, and known for combining macroeconomic analysis and fundamental research. Burbank, himself, is famous for having called the subprime mortgage crisis and reportedly earned a 220% return on it in 2007 -- though he lost 50% the following year.
The company's reportable stock portfolio totaled $2.9 billion in value as of June 30, 2012.
What does Passport Capital's latest quarterly 13F filing tell us? Here are a few interesting details:
New holdings include Alcatel-Lucent
Unlike other coal concerns, Peabody Energy has been profitable, with rising revenue and earnings. The largest U.S. coal producer, it has even been called “the most powerful name in energy.” The company took on a lot of debt to buy operations in Australia, but that puts it in a strong position to supply growing Asian demand, though coal prices remain low. Still, some think that coal’s glory days are over, given the rise of alternative energies, and the growing profile of natural gas.
Among holdings in which Passport Capital increased its stake was VIVUS
Passport Capital reduced its stake in lots of companies, including Timken
Finally, Passport Capital unloaded several companies, such as Las Vegas Sands
We should never blindly copy any investor's moves, no matter how talented the investor. But it can be useful to keep an eye on what smart folks are doing, and 13-F forms can be great places to find intriguing candidates for our portfolios.