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Here's What This Multistrategy Money Manager Has Been Buying

Selena Maranjian
February 12, 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 Graham Capital Management, founded in 1994 by Ken Tropin and in the multistrategy macro-oriented hedge fund business. The overall company manages investments for endowments, foundations, sovereign wealth funds, global pensions, investment advisors, and wealthy individuals, among others.

The company's reportable stock portfolio totaled $1.4 billion in value as of Dec. 31, 2012.

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

The biggest new holdings and closed positions were exchange-traded funds (ETFs). Added were, for example, the iShares MSCI Switzerland Index ETF and the iShares MSCI Mexico Index ETF. Sold were the iShares iBoxx High Yield Corporate Bond ETF and the iShares MSCI Emerging Index ETF.

Other new holdings of interest include Halcon Resources (NYSE: HK) and Pengrowth Energy (NYSE: PGH). Oil and gas company Halcon has been growing by acquiring assets such as shale-field properties and is expected to grow by 30% annually in the next few years. Its net income and free cash flow have been modest or negative in the past few years, though.

Pengrowth has drawn some investors' interest with its dividend yield north of 10%. It has struggled lately, with issues such as rising costs, and has cut back on its production a bit. My colleague Sean Williams sees it as a somewhat risky but also very promising portfolio candidate.

Among holdings in which Graham Capital increased its stake was Turquoise Hill Resources (NYSE: TRQ). Turquoise Hill is majority-owned by U.K.-based mining giant Rio Tinto a