Every quarter, many money managers have to disclose what they've bought and sold. Their latest moves can shine a bright light on smart stock picks.
Today let's look at Gardner, Russo & Gardner, a hedge fund company with a record that speaks for itself. Over the past 25 years, according to the folks at GuruFocus.com, it has posted a cumulative gain of about 2,341%, versus 830% for the S&P 500. Over the past 10 full years, it gained 122%, versus 35% for the S&P 500.
To get a sense of the company's investment style, look at its well-respected partner, Thomas Russo. He's known for favoring companies with strong free cash flow, robust balance sheets, and hefty returns on assets. He's also a value guy, aiming to buy such companies at undervalued prices.
Gardner, Russo & Gardner's stock portfolio totaled $6.2 billion in value as of Dec. 31. The company's biggest holdings, representing more than 30% of total assets, were Philip Morris International, Nestle, and Berkshire Hathaway. (Note that the company's holdings are not in just one fund, but spread out over various funds and accounts.)
So what does Gardner, Russo & Gardner's latest quarterly 13F filing tell us? Here are a few interesting details:
New holdings include TJX
Among holdings in which Gardner, Russo & Gardner increased its stake was Bank of America
The hedge fund company reduced its stake in lots of companies, including General Electric
Finally, Gardner, Russo & Gardner unloaded several companies, such as Ford
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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