Here's What This $77 Billion Hedge Fund Company Has Been Buying and Selling

Do these fast growers belong in your portfolio?

Feb 28, 2014 at 6:05PM

The latest 13F season is here, when many money managers issue required reports on their holdings. It can be worthwhile to pay attention, as you might get an investment idea or two by seeing what some major investors have been buying and selling.

For example, consider Citadel Advisors, founded and run by Kenneth Griffin. It's one of the biggest hedge fund companies around, with a reportable stock portfolio totaling $76.8 billion in value as of Dec. 31, 2013. According to the folks at, Griffin and his team use "a combination of advanced computer code, complicated financial algorithms and secrecy. Griffin was using quantitative, technology-based methods before many other firms had cell phones."

Citadel Advisors' latest 13F report shows that it boosted its positions in Bristol-Myers Squibb (NYSE:BMY) and MGM Resorts International (NYSE:MGM) significantly, while cutting its long position in Kodiak Oil and Gas Corporation (NYSE:KOG) by 57%.

Bristol-Myers Squibb's stock has surged almost 50% over the past year and has averaged  a solid 12% annually over the past 30. The company has been focusing more on specialized, niche drugs lately, and less on formulas for widespread conditions. It has new formulas in its pipeline, targeting cancers and viruses, and has particular strength in immuno-oncology. New drugs are vital, as roughly $6 billion of its annual revenue is at risk, as patents expire in the next few years and generic drugs start competing. Bristol-Myers Squibb stock yields 2.7% and at year-end it was Citadel's 14th-largest holding.

MGM Resorts International offers no dividend, but its stock has more than doubled over the past year, making it the hottest company in Las Vegas. (It does carry a lot of debt, though. That has been worrying some folks less lately, now that business is picking up in Las Vegas.) In its fourth quarter, MGM Resorts posted revenue up 10% over year-ago levels and $330 million in consolidated operating income, compared with a $425 million loss last year. MGM China is doing particularly well, with fourth-quarter revenue up 27%.

Kodiak Oil & Gas is a top operator in the promising Bakken Shale region, and has been boosting its production aggressively, thanks to fracking and other methods. In its fourth quarter, Kodiak's production doubled, with net income up 40% over year-ago levels (though still a penny shy of expectations). Its proven reserves have grown by 77% over the past year, too. Some worry, though, about Bakken oil being more flammable, the threat of increased regulation, and Kodiak's hefty debt load. Bulls, though, will point out that a stronger Kodiak is now able to fund growth from cash flow, not debt.

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Selena Maranjian, whom you can follow on Twitterhas no position in any stocks mentioned, and neither does The Motley Fool. 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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