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 Columbia Wanger Asset Management, which sports an overall reportable portfolio valued at $21.1 billion as of June 30, 2012. Founded in 1992, it mainly serves other investment companies, as well as pension and profit-sharing plans. As a subsidiary of Ameriprise Financial, it manages mutual funds and tends to favor small-cap and mid-cap companies.
So what does Columbia Wanger's latest quarterly 13F filing tell us? Here are a few interesting details:
New holdings include Arcos Dorados
Among holdings in which Columbia Wanger increased its stake were Deckers Outdoor
LED lighting specialist Cree 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 trailing 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. It has faced headwinds due to somewhat sluggish consumer demand for LED products in our weak economic environment, but that won't last forever. Analysts at JPMorgan Chase, for example, think long-term LED prospects are strong, especially for LED lighting.
Columbia Wanger reduced its stake in lots of companies, including Silver Wheaton
Finally, Columbia Wanger unloaded several companies, such as health care information technology specialist Allscripts Healthcare Solutions
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.
Arcos Dorados isn't the only south-of-the-border growth story. The Motley Fool has identified one top stock that could be considered the "Costco of Latin America." But hurry, because the free report is available only for a limited time.
Longtime Fool contributor Selena Maranjian, whom you can follow on Twitter, owns shares of McDonald's and JPMorgan Chase, 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 McDonald's, JPMorgan Chase, and Arcos Dorados Holding. Motley Fool newsletter services have recommended buying shares of McDonald's. The Motley Fool has a disclosure policy.
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