Here's What This $4 Billion Winning Hedge Fund Company Has Bought and Sold

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

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 GMT Capital, a private investment company founded by Thomas Claugus in 1990 that manages several hedge funds and other accounts. Its reportable stock portfolio totaled $4.1 billionin value as of March 31, 2013. You don't generally grow that large without doing some things right. The company's Bay Resource Partners hedge fund was named one of the richest 100 in 2011 by Bloomberg. In its first 15 years, it averaged a 20% annual return, almost twice that of the S&P 500.

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

The biggest new holdings are Diana Shipping and Newport. Other new holdings of interest include energy concern Magnum Hunter Resources (NASDAQOTH: MHRCQ  ) . The stock is has significant short interest, with many concerned about its significant debt and a delay in the filing of its year-end report (which is expected to be filed by the end of June). Meanwhile, the company has been shifting attention from low-priced natural gas toward oil and liquids, and is diversifying across several promising shale fields, such as the Utica.

Among holdings in which GMT Capital increased its stake was Canada-based uranium specialist Cameco (NYSE: CCJ  ) . The company's business is expected to improve as gas and coal prices eventually rise, and also due to new nuclear plants being built. My colleague Sean Williams likes Cameco's transparency, expects higher uranium prices, and notes that China is also expected to demand more uranium over time. Some see the stock having a fair chance to appreciate substantially.

GMT Capital reduced its stake in lots of companies, including Corning (NYSE: GLW  ) , which has struggled in recent years, in part due to low prices and demand for LCD substrates. The stock has pulled back a bit from a 52-week high and sports a P/E ratio of 13. Some worry that Corning's acclaimed Gorilla Glass is threatened by growing interest in sapphire, while others argue that it's clearly a bargain at recent levels, with a forward P/E around 10 and a 2.6% dividend yield, to boot. It's worth noting its major presence in the fiber-optics world, too.

Finally, GMT Capital's biggest closed positions included Harris and NII Holdings. Other closed positions of interest include Sequenom (NASDAQ: SQNM  ) and QuestCor Pharmaceuticals (UNKNOWN: QCOR.DL  ) . Sequenom, which makes molecular and genetic diagnostic tests, is a relatively small concern, with a market cap near $500 million. One of the company's tests checks for Down syndrome in a non-invasive manner, which should be of interest to many older women. Future tests might address conditions such as macular degeneration. Meanwhile, the company is expanding its reach abroad, but it's still posting widening losses along with strong revenue growth.

QuestCor is largely known for its multiple-sclerosis (MS) drug, Acthar, that has sold well in the past, and is being evaluated for many more indications. The stock yields 2.8%, and its dividend was hiked by 25% earlier this year. Questcor has its risks, though, such as an investigation into its marketing practices as well as competition. The stock is heavily shorted, but some see it as a bargain.

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.

Questcor is one of the most debated names in all of biotech. Its premium priced drug, Acthar, is growing at a torrid pace -- and minting money in the process. However, recent events have created significant doubts about Questcor's future. Will insurance companies continue to cover the drug? Will a government investigation lead to huge fines? We highlight these high-profile issues inside our brand-new premium research report on Questcor. In it, you'll learn about the key opportunities and threats facing the company as well as multiple reasons to buy and sell the stock. So make sure to claim a copy today by clicking here now.

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: 2484380, ~/Articles/ArticleHandler.aspx, 9/28/2016 3:16:53 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 Moments ago Sponsored by:
DOW 18,326.15 97.85 0.54%
S&P 500 2,168.47 8.54 0.40%
NASD 5,313.41 7.70 0.15%

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

9/28/2016 3:00 PM
CCJ $8.63 Up +0.14 +1.66%
Cameco CAPS Rating: ****
GLW $23.61 Up +0.28 +1.20%
Corning CAPS Rating: *****
MHRCQ $0.00 Down +0.00 +0.00%
Magnum Hunter Reso… CAPS Rating: **
QCOR.DL $0.00 Down +0.00 +0.00%
Questcor Pharmaceu… CAPS Rating: **
SQNM $0.00 Down +0.00 +0.00%
Sequenom CAPS Rating: **