See What These $17 Billion Outperformers Have Been Buying

It can pay to keep an eye on the big guys.

Feb 10, 2014 at 5:35PM

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 Westfield Capital Management, an investment advisor serving institutions and wealthy investors. It employs deep fundamental research as it seeks out stocks that are underloved by the market, and its largest fund, the Large Cap Growth Equity Fund, has outperformed its Russell 1000 Growth benchmark since inception in 1989. Better still, it's a 100% partner-owned organization, so its staff's interests are aligned with those of clients.

The company's reportable stock portfolio totaled $17.0 billion in value as of Dec. 31, 2013.

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

The biggest new holdings are Teva Pharmaceutical Industries and Tyco International. Other new holdings of interest include Dynavax Technologies Corporation (NASDAQ:DVAX) and Regions Financial Corporation (NYSE:RF). Dynavax shares are down some 46% over the past year. Its future might be bright if its adult hepatitis B vaccine Heplisav can overcome FDA safety concerns. Dynavax also has more formulations in its pipeline, tackling cancer, asthma, and more, though most are in early trial stages.

Southeast-focused regional bank Regions Financial emerged from the recent financial crisis in relatively good shape, having repaid its TARP obligation back in 2012. Its fourth quarter was a bit mixed, with earnings down from year-ago levels but full-year earnings up over the previous year and loans rising, as well. Bulls are hopeful about the bank's mobile ambitions and like its innovations, such as its "Regions Savings Secured Loan," a new fixed-rate installment loan responding to demand for (dangerous) payday loans. Regions Financial tripled its dividend in early 2013 and yields 1.2%.

Among holdings in which Westfield Capital Management increased its stake was Acadia Pharmaceuticals (NASDAQ:ACAD). Acadia has nearly quadrupled in value over the past year on high hopes for its pimavanserin drug, which treats psychosis in patients with Parkinson's disease. The company thinks the drug might be effective against psychosis related to Alzheimer's Disease and schizophrenia, as well. Bears worry about the richly valued company's negligible revenue, rising share count, and clinical trial costs. Many think the stock has gotten ahead of itself, especially because ultimate FDA approval for pimavanserin is not guaranteed.

Westfield's biggest closed positions included Citrix Systems and Altera Corporation (NASDAQ:ALTR). Other closed positions of interest include Altria Group, (NYSE:MO). Programmable chipmaker Altera posted mixed fourth-quarter results, with revenue up 2% over year-ago levels, but earnings down. (Both numbers exceeded expectations, though.) Altera faces some tough competition and its profit margin has been pulling back. Still, some see its stock as appealing now, as the company could perform well in the long run, in part due to investments in the Chinese market. Altera stock yields 1.8%.

Domestic tobacco titan Altria sports a sizable dividend yield of 5.4% and its dividend has risen by about 8.5% annually, on average, over the past five years. Altria's future may not be as glorious as its past, due to rising taxes, regulations, competition from discount cigarettes, a shrinking smoker base, and even counterfeit cigarettes. Still, bulls point to its substantial free cash flow. They're hopeful about its move into electronic cigarettes -- one analyst even sees them eclipsing regular cigarettes within a decade -- but the FDA might regulate those, too. Altria's fourth-quarter results were disappointing, with Marlboro volume shrinking by 5.7% over year-earlier levels.

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

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Selena Maranjian, whom you can follow on Twitter, has no position in any stocks mentioned. The Motley Fool recommends Teva Pharmaceutical Industries. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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