Every quarter, many money managers have to disclose what they've bought and sold. Their latest moves can shine a bright light on smart stock picks.
Today let's look at Gardner, Russo & Gardner, a hedge fund company with a record that speaks for itself. Over the past 25 years, according to the folks at GuruFocus.com, it has posted a cumulative gain of about 2,341%, versus 830% for the S&P 500. Over the past 10 full years, it gained 122%, versus 35% for the S&P 500.
To get a sense of the company's investment style, look at its well-respected partner, Thomas Russo. He's known for favoring companies with strong free cash flow, robust balance sheets, and hefty returns on assets. He's also a value guy, aiming to buy such companies at undervalued prices.
Gardner, Russo & Gardner's stock portfolio totaled $6.2 billion in value as of Dec. 31. The company's biggest holdings, representing more than 30% of total assets, were Philip Morris International, Nestle, and Berkshire Hathaway. (Note that the company's holdings are not in just one fund, but spread out over various funds and accounts.)
So what does Gardner, Russo & Gardner's latest quarterly 13F filing tell us? Here are a few interesting details:
New holdings include TJX
Among holdings in which Gardner, Russo & Gardner increased its stake was Bank of America
The hedge fund company reduced its stake in lots of companies, including General Electric
Finally, Gardner, Russo & Gardner unloaded several companies, such as Ford
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 13F forms can be great places to find intriguing candidates for our portfolios.
If you'd like to profit from the busy arena of gambling, know that some expect online gambling to be the Next Big Thing. If so, you might want to check out this special free report, "The Next Trillion-Dollar Revolution," which will introduce you to a company poised to prosper from the explosive growth of mobile communications.
Longtime Fool contributor Selena Maranjian, whom you can follow on Twitter, owns shares of Berkshire Hathaway and Ford Motor, but she holds no other position in any company mentioned. Click here to see her holdings and a short bio. The Motley Fool owns shares of Bank of America, Ford, and Berkshire Hathaway. Motley Fool newsletter services have recommended buying shares of Berkshire Hathaway and Ford, as well as creating a synthetic long position in Ford. The Motley Fool has a disclosure policy.