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, with a stock portfolio valued at about $2.8 billion as of March 31, 2012. The company is run by Ricky Sandler, who seeks growing companies in growing industries, as well as out-of-favor companies in out-of-favor industries. He also likes to short stocks when he finds ones he expects will decline.
The portfolio's top holdings, representing more than 18% of its value, are Google, CME Group, and Tyco International.
So what does Eminence Capital's latest quarterly 13F filing tell us? Here are a few interesting details:
New holdings include International Game Technology
Among holdings in which Eminence Capital increased its stake was Citigroup
Eminence Capital reduced its stake in lots of companies, including MAKO Surgical
Data storage specialist NetApp recently sunk to a 52-week low as the "scrappy underdog" adjusted its projections downward. Still, data storage needs seem likely to keep building over time, and NetApp has been growing briskly, with revenue climbing at an accelerating rate (though things have been bumpier for earnings).
Finally, Eminence Capital unloaded several companies, such as Ashland
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're nervous about investing in companies such as International Game Technology, Ashland, or MAKO, seek out companies that can reward you well while helping you sleep at night. Our special free report, "3 American Companies Set to Dominate the World," will review three familiar names which are also compelling investments.