Here's What This $21 Billion Money Manager Has Been Buying and Selling

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 Thornburg Asset Management, which was founded  in 1982, and is based far from Wall Street in Santa Fe, New Mexico. It manages seven equity funds, nine bond funds, and separate portfolios for select institutions and individuals. Morningstar has praised the company's performance, its managers, and the fact that they eat their own cooking. (It does note that costs could be lower.)

The company's reportable stock portfolio totaled $21.5 billion  in value as of December 31, 2012.

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

The biggest new holdings are BP and Banco Santander. Other new holdings of interest include LinnCo (NASDAQ: LNCO  ) , an oil-and-gas-related company, with a dividend yield topping 7%. It also exists to own units of Linn Energy and convert distributions into dividends. Linn Energy is admired for its successful long-term hedging, and seen by some as a very promising investment.

Among holdings in which Thornburg increased its stake was Chinese search-engine giant Baidu (NASDAQ: BIDU  ) , which has had its stock pressured by China's slowing growth rate, though the company is still growing at a good clip, with revenue and earnings sporting five-year average annual growth rates of more than 60%. And much of China and Asia has yet to get online, representing huge growth potential. Meanwhile, a forward P/E of only about 17  makes it well worth considering.

Thornburg reduced its stake in lots of companies, including mortgage REIT Annaly Capital Management (NYSE: NLY  ) , and telecom concern Level 3 Communications (NYSE: LVLT  ) . Annaly's profitability is threatened by changes in interest rates and, as the company has been making some acquisitions to address some of its risks, it's turning into a different kind of company than the one many of its investors originally liked. It does sport a fat dividend yield above 12%, but some mREITs have reduced their dividends, and more cutting may be ahead. Annaly's has been inching downward  recently.

Level 3 Communications, long burdened with a mountain of debt, shrank by 10% over the past year. The company is expanding its services around the world, for example, boosting its video broadcasting  in Latin America. Many investors are steering clear, though, not liking its falling free cash flow or lack of a dividend. It recently got a nod from the folks at Pivotal, who like its increased bookings and project a return to positive free cash flow in 2013.

Finally, Thornburg's biggest closed positions included Huntington Bancshares and Gap. Other closed positions of interest include semiconductor equipment maker Mellanox Technologies (NASDAQ: MLNX  ) . Mellanox was riding high not so long ago, investing heavily in cloud computing and topping Wall Street estimates. The stock has fallen lately, though, as the company reported an inventory accumulation. Management remains bullish, though.

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

Annaly Capital Management has a history of paying huge dividends to shareholders. But there are some crucial issues investors have to understand about Annaly's business model before buying the stock. In this brand new premium research report on the company, our analyst runs through these absolute must-know topics, as well as the future opportunities and pitfalls of their strategy. Click here now to claim your copy.


Read/Post Comments (0) | Recommend This Article (2)

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.

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: 2229408, ~/Articles/ArticleHandler.aspx, 9/17/2014 7:48:28 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...


Advertisement