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Here's What This $21 Billion Money Manager Has Been Buying and Selling

http://www.fool.com/investing/general/2013/01/31/heres-what-this-21-billion-money-manager-has-been.aspx

Selena Maranjian
January 31, 2013

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 Thornburg Asset Management, which was founded  in 1982, and is based far from Wall Street in Santa Fe, New Mexico. It manages seven equity funds, nine bond funds, and separate portfolios for select institutions and individuals. Morningstar has praised the company's performance, its managers, and the fact that they eat their own cooking. (It does note that costs could be lower.)

The company's reportable stock portfolio totaled $21.5 billion  in value as of December 31, 2012.

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

The biggest new holdings are BP and Banco Santander. Other new holdings of interest include LinnCo (NASDAQ: LNCO), an oil-and-gas-related company, with a dividend yield topping 7%. It also exists to own units of Linn Energy and convert distributions into dividends. Linn Energy is admired for its successful long-term hedging, and seen by some as a very promising investment.

Among holdings in which Thornburg increased its stake was Chinese search-engine giant Baidu (NASDAQ: BIDU), which has had its stock pressured by China's slowing growth rate, though the company is still growing at a good clip, with revenue and earnings sporting five-year average annual growth rates of more than 60%. And much of China and Asia has yet to get online, representing huge growth potential. Meanwhile, a forward P/E of only about 17  makes it well worth considering.

Thornburg reduced its stake in lots of companies, including mortgage REIT Annaly Capital Management (NYSE: NLY), and telecom concern Level 3 Communications (NYSE: LVLT). Annaly's profitability is threatened by changes in interest rates and, as the company has been making some acquisitions to address some of its risks, it's turning into a different kind of company than the one many of its investors originally liked. It does sport a fat dividend yield above 12%, but some mREITs have reduced their dividends, and more cutting may be ahead. Annaly's has been inching downward  recently.

Level 3 Communications, long burdened with a mountain of debt, shrank by 10% over the past year. The company is expanding its services