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



Here's What This Multistrategy Money Manager Has Been Buying

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 Graham Capital Management, founded in 1994 by Ken Tropin and in the multistrategy macro-oriented hedge fund business. The overall company manages investments for endowments, foundations, sovereign wealth funds, global pensions, investment advisors, and wealthy individuals, among others.

The company's reportable stock portfolio totaled $1.5 billion in value as of June 30, 2013.

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

The biggest new holdings are Anadarko Petroleum and calls on Apache. Other new holdings of interest include Kodiak Oil & Gas (UNKNOWN: KOG.DL  ) . Kodiak recently bought 42,000 acres in the productive Bakken region, upping its assets there by 27% and adding thousands of new barrels of oil to its production levels. Bulls love Kodiak's rapid growth and see more room to grow. Bears worry that it might be too focused on the Bakken and not sufficiently diversified. It's also increasing its share count and has significant debt, which is likely to grow more as Kodiak continues investing heavily.

Among holdings in which Graham Capital Management increased its stake was National Oilwell Varco (NYSE: NOV  ) , which is dominant in oil and gas drilling and oil-field services equipment. It recently posted second-quarter earnings that showed margins shrinking a bit, which sent shares downward. Its backlog for capital equipment orders jumped 24% over year-earlier levels, though to a record level of nearly $14 billion. The company recently doubled its dividend (yielding 1.4%) and seems an attractive buy to many.

Graham Capital Management reduced its stake in lots of companies, including Ultra Petroleum (NASDAQOTH: UPLMQ  ) . It, too, just reported its second-quarter results, revealing that it's still an ultra-low-cost producer of natural gas. That helps it not get as hurt by low natural gas prices as many peers. The company also swung to a profit of $116 million, from a $1.2 billion loss last year. It has significant debt, but rising gas prices can help it pay that down.

Finally, Graham Capital's biggest closed positions included the SPDR Select Financial and iShares MSCI Mexico Capped ETFs. Other closed positions of interest include Dendreon (NASDAQOTH: DNDNQ  ) and Prospect Capital (NASDAQ: PSEC  ) . Dendreon, maker of prostate cancer drug Provenge, reports its latest results tomorrow, and the stock has risen as bulls expect a narrower loss than last quarter's and hope for approval of the drug in Europe. Bears worry about competing drugs, though.

Prospect is a private equity business development company ("BDC") specializing in funding energy companies and recently yielding 12%. Some worry BDCs as being adversely affected by rising interest rates, but Prospect isn't scared and even expects to profit from them. Prospect's share count has been soaring in recent years, but some feel that the money raised by that will pay off down the road. In a recent presentation, management pointed out, among other things, that its portfolio is diversified across 31 industries, and that senior management has a lot of skin in the game (some $35 million, to be precise).

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.

If you'd like another stock idea from another smart investor, The Motley Fool's chief investment officer has selected his No. 1 stock for this year, and you can learn all about it in the special free report: "The Motley Fool's Top Stock for 2013." Just click here to access the report and find out the name of this under-the-radar company.

Read/Post Comments (1) | Recommend This Article (5)

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.

Add your comment.

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: 2585045, ~/Articles/ArticleHandler.aspx, 9/27/2016 6:22:32 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 18,228.30 133.47 0.74%
S&P 500 2,159.93 13.83 0.64%
NASD 5,305.71 48.22 0.92%

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

12/31/1969 7:00 PM
DNDNQ $0.00 Down +0.00 +0.00%
Dendreon Corp CAPS Rating: *
KOG.DL $0.00 Down +0.00 +0.00%
Kodiak Oil and Gas CAPS Rating: *****
NOV $33.44 Down -0.45 -1.33%
National Oilwell V… CAPS Rating: *****
PSEC $8.26 Up +0.01 +0.12%
Prospect Capital CAPS Rating: ***
UPLMQ $4.88 Down -0.07 -1.41%
Ultra Petroleum CAPS Rating: **