Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Here's How the Guy Who Called Enron Has Been Investing

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

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 Kynikos Associates, founded in 1985  by investing giant Jim Chanos, which sported a reportable stock portfolio of $118 million  as of March 31, 2012. Chanos is known for being an early spotter of trouble at Enron , betting against it and profiting while others got crushed.

The company's reportable stock portfolio totaled $293 million  in value as of Sept. 30, 2012.

Interesting developments
So what does Kynikos Associates' latest quarterly 13F filing tell us? Here are a few interesting details:

The biggest new holdings are Starbucks (Nasdaq: SBUX  ) and Occidental Petroleum (NYSE: OXY  ) . Occidental's revenue and earnings have been growing briskly  in recent years, but it might be challenged by a gradual decrease in demand for oil, in part due to more energy-efficient vehicles and its not being as diversified as some peers. In the meantime, though, it has been quite successful in the oil-rich Permian Basin. It recently yielded close to 3%, too, and has been hiking its payout significantly  in recent years.

Among holdings in which Kynikos increased its stake was VMWare (NYSE: VMW  ) , which is majority owned by storage giant EMC (NYSE: EMC  ) . The two recently announced plans to combine their cloud-computing application and "big data" offerings. VMWare, unlike some rivals, is focusing more on "private" cloud services, which are of interest to corporations, for example. Some analysts are bullish on the company's prospects, such as in the area of software-defined networking ("SDN"), though EMC might be the better bargain right now.

Kynikos reduced its stake in companies such as Chicago Bridge & Iron (NYSE: CBI  ) and Deere (NYSE: DE  ) . The former provides services to the energy and natural resources sectors, working on projects related to water, hydrocarbon, and nuclear industries. The company is buying Shaw Group (NYSE: SHAW  ) , which has some worried about additional debt while others are unhappy about Shaw's nuclear energy operations. A plus, though, is Shaw's big backlog.

Forestry and agricultural equipment giant Deere (NYSE: DE  ) has been growing its revenue and earnings at an accelerating  pace over the past few years. Its heavy exposure to global economies, especially fast-growing emerging markets, is promising. The company's strategy is to profit from macro trends such as growing global population and income as well as global infrastructure work. Its 2% dividend is also a draw, especially since it has been upped  by an annual average of about 14% over the past five years. Some think its rival Caterpillar (NYSE: CAT  ) is the better buy right now, though.

Finally, Kynikos closed out its position in just one company, Whole Foods Market (Nasdaq: WFM  ) . Opinions are divided on the company, known for its social responsibility, among other things. Bulls like that, as well as its growth rates, growth potential, pricing power, and healthy balance sheet. Bears worry that it might be growing too aggressively, and that after rising about 40% over the past year, it's not a bargain right now.

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. 13-F forms can be great places to find intriguing candidates for our portfolios.


Read/Post Comments (0) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2163070, ~/Articles/ArticleHandler.aspx, 10/23/2016 2:44:36 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 day ago Sponsored by:
DOW 18,145.71 -16.64 -0.09%
S&P 500 2,141.16 -0.18 -0.01%
NASD 5,257.40 15.57 0.30%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/21/2016 4:01 PM
CAT $86.33 Down -0.30 -0.35%
Caterpillar CAPS Rating: ***
CBI $27.62 Down -0.14 -0.50%
Chicago Bridge and… CAPS Rating: ****
DE $86.43 Up +0.32 +0.37%
John Deere CAPS Rating: ***
EMC $0.00 Down +0.00 +0.00%
EMC CAPS Rating: ****
OXY $74.61 Up +0.51 +0.69%
Occidental Petrole… CAPS Rating: ****
SBUX $53.63 Up +0.04 +0.07%
Starbucks CAPS Rating: ****
SHAW.DL $0.00 Down +0.00 +0.00%
The Shaw Group, In… CAPS Rating: ***