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 Citadel, founded and run by Kenneth Griffin. It's one of the biggest hedge fund companies around, with a reportable stock portfolio totaling $30 billion in value as of March 31, 2012.
The company took a big hit of more than 50% back in 2008, but with an impressive 20% gain in 2011, it finally surpassed its pre-crash high.
So what does Citadel's latest quarterly 13F filing tell us? Here are a few interesting details:
New holdings include ABB Ltd.
Among holdings in which Citadel increased its stake was Chesapeake Energy
Citadel reduced its stake in a lot of companies, including rural telecom Frontier Communications
Finally, Citadel unloaded gobs of companies, including Penn West Petroleum
Kodiak Oil & Gas, meanwhile, has recently reported blow-out revenue increases and has moved from the red into the black with its earnings. Bears may worry about its steep debt load, but it has been paying that down a bit recently. The company has invested in various shale oil fields, which could pay off well down the road. In the meantime, though, it isn't producing a lot of free cash flow and seems overvalued to some.
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 13-F forms can be great places to find intriguing candidates for our portfolios.
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