The latest 13F season is here, when many money managers issue required reports on their holdings. It can be worthwhile to pay attention, as you might get an investment idea or two by seeing what some major investors have been buying and selling.
For example, consider Lone Pine Capital, founded by Steve Mandel in 1997. Lone Pine is one of the biggest hedge fund companies around, and it has reportedly outperformed the S&P 500 handily since inception. Its reportable stock portfolio totaled $23 billion in value as of March 31, 2014. According to its recently released 13F statement, Lone Pine established or added to positions in Qualcomm, (QCOM 0.17%), DaVita HealthCare Partners Inc (DVA +0.01%), and Lowe's Companies, (LOW 0.92%).
Qualcomm is the leading mobile chipmaker -- and it gets most of its revenue by licensing its technology, not through chip sales. It's benefiting from chip-price increases and has been enjoying double-digit revenue and earnings growth for many years, along with robust free cash flow -- though growth is slowing. Bears worry about Qualcomm facing increasing competition, slowing smartphone growth in China, and possible legal wrangling following news that the SEC is looking into its practices abroad. Qualcomm has been hiking its dividend aggressively for a decade now, and its dividend recently yielded 2.1%.
Dialysis specialist DaVita Healthcare Partners, sporting a market cap near $15 billion, is a significant holding of Warren Buffett's Berkshire Hathaway. Buffett's investment manager Ted Weschler likes the company in part because it offers dependable growth and solid returns on investments. On the other hand, DaVita faces reimbursement complications, such as Medicare cuts. The company's first quarter featured revenue up 8% over year-ago levels, but adjusted operating earnings dropped and missed expectations. DaVita has grown in part by acquisition, such as its major $4.4 billion purchase of HealthCare Partners in 2012.
Lowe's has been benefiting from a recovering housing market, but it still has to deal with an aggressive rival in Home Depot, which has been improving its online operations, among other things. Lowe's, meanwhile, is aiming for growth in part by opening more stores. Lowe's last quarter featured revenue growing rather slowly but net income jumping 16% over year-ago levels. Profit margins have been growing, and share count is dropping significantly. Lowe's stock yields 1.6%.
