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 Kleinheinz Capital Partners, founded in 1996 by John Kleinheinz. Kleinheinz considers himself a contrarian, opportunistic, and value-oriented investor, and is most savvy about the telecom, health-care, and energy industries. Kleinheinz has reportedly averaged 22% annual gains since 1996, which is a strong performance.
Kleinheinz Capital's stock portfolio totaled almost $2 billion in value as of March 31, 2012. Its top three holdings, representing about 17% of the portfolio's overall value, were Apple, Monsanto, and Lukoil.
So what does Kleinheinz Capital's latest quarterly 13F filing tell us? Here are a few interesting details:
New holdings include Chinese search engine giant Baidu
Among holdings in which Kleinheinz Capital increased its stake were Level 3 Communications
Cree, meanwhile, is expanding in China and boosting its capacity, as well, leaving it well-positioned to profit as LED lighting gains share from incandescent lighting. Still, with P/E and forward P/E ratios well above market averages, the stock isn't offering much margin of safety, even though its free cash flow has been improving.
Kleinheinz Capital reduced its stake in a lot of companies, including EMC
Finally, Kleinheinz Capital unloaded several companies, such as Diamond Foods
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.
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