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Here's What This $4 Billion Hedge Fund Has Been Buying

Selena Maranjian
June 21, 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 the Eminence Capital hedge fund company, run by Ricky Sandler, who seeks growing companies in growing industries and out-of-favor companies and industries. He also likes to short stocks when he finds ones he expects will decline.

The company's reportable stock portfolio totaled $3.9 billion in value as of March 31, 2013.

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

The biggest new holdings are Chicago Bridge & Iron (NYSE: CBI) and Family Dollar. Chicago Bridge and Iron offers construction and engineering services to the energy and natural resources sectors, working on projects related to the water, hydrocarbon, and nuclear industries. It has been boosting its revenue growth rate lately, and its latest earnings report featured a $1.9 billion gain in awards, growing its hefty backlog to $25.5 billion. The company bought Shaw Group last year, which is known for constructing nuclear-related buildings. The stock is up 60% over the past year and has averaged annual growth of about 18.5% over the past decade. Analysts at Lazard Capital, which rate the stock a "buy," recently upped their price target for it from $65 to $75.

Among holdings in which Eminence Capital increased its stake was Qualcomm (NASDAQ: QCOM), which is a top player in the smartphone world, supplying iDevices and Android devices alike with its chips. Some promising moves by the company are its push into emerging markets and display technology, as well as its attention to the health-care industry and telemedicine. Qualcomm recently hiked its dividend by 40%, and its yield is now at 2.3%.

Eminence Capital reduced its stake in lots of companies, including IT consulting and outsourcing specialist Cognizant Technology Solutions (NASDAQ: CTSH), led by a