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 Passport Capital, founded by John Burbank in 2000 and known for combining macroeconomic analysis and fundamental research. Burbank himself is famous for having called the subprime mortgage crisis and reportedly earned a 220% return on it in 2007 -- though he lost 50% the following year.
The company's reportable stock portfolio totaled $2.9 billion in value as of March 31, 2012.
Interesting developments
So what does Passport Capital's latest quarterly 13F filing tell us? Here are a few interesting details:
New holdings include Dendreon
Among holdings in which Passport increased its stake was VIVUS
Passport reduced its stake in a lot of companies, including metal miner Nevsun Resources
Finally, Passport unloaded several companies, such as First Solar
Steel giant ArcelorMittal might look attractive to some, but in the face of slumped demand in Europe, it has been cutting its production capacity, which doesn't bode well for future results. Meanwhile, China steelmakers have lowered prices, and India's GDP growth is slowing, further boosting the bearish case on steel.
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 13-F forms can be great places to find intriguing candidates for our portfolios.
If industrial stocks interest you, check out our special free report, "3 Stocks To Own For The New Industrial Revolution," which details a new technology that might shift the "Made in China" trend back toward "Made in America."