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 investing giant Daniel Loeb, founder of the Third Point hedge fund. Loeb is a well-known activist investor, famous for publicly airing his opinions about companies in which he invests and not mincing words when he's displeased. Loeb was instrumental in pointing out discrepancies in former Yahoo! CEO Scott Thompson's biography. Yahoo! now has a new CEO.
His activity bears watching, because the guy seems to know a thing or two about investing. According to the folks at GuruFocus.com, over the 15 years ending in 2011, Loeb racked up a cumulative gain of 1,022%, compared with just 124% for the S&P 500.
Third Point's reportable stock portfolio totaled $3.3 billion in value as of June 30, 2012. At that time, Yahoo! shares made up 34% of the overall portfolio's value, while Delphi Automotive made up 9%.
So what does Third Point's latest quarterly 13F filing tell us? Here are a few interesting details:
New holdings include Ariad Pharmaceuticals
Some see Vertex as a potential monster stock of the future, with its promising cystic fibrosis treatment, Kalydeco. Its sales are growing briskly, and approval in Europe is expected soon. It's also working on hepatitis C treatments, though it has strong competition on that front. The company got a bit of bad news recently, though, when some young rats treated with Kalydeco developed cataracts. It's not clear if this will happen to humans, but the FDA has issued an alert and has called for further investigation.
Among holdings in which Third Point increased its stake was Apple
Third Point reduced its stake in Weatherford International
Finally, Third Point unloaded several companies, such as Genworth Financial
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. 13F forms can be great places to find intriguing candidates for our portfolios.
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