Professional Documents
Culture Documents
a quarterly publication by
Q1 2012
marketfolly.com
* This is a free issue from May 2012. CLICK HERE to subscribe for the latest issue *
Table of Contents
Background:
Each quarter, hedge funds and institutional managers are
required to disclose their portfolios to the SEC via 13F filing. These
filings disclose long U.S. equity positions, American Depositary
Receipts (ADRs), stock options (puts/calls), as well as convertible
notes. The 13F filing does not disclose positions in other asset classes
(such as commodities, currencies, or debt). It also does not reveal
short sales or cash positions.
Hedge Fund Wisdom, a quarterly publication by
MarketFolly.com, updates and analyzes the latest portfolios of
prominent investment managers. The positions herein represent a
hedge funds first quarter holdings as of March 31st, 2012. Keep in
mind these updates are not reflective of a funds entire overall
portfolio.
In This Issue:
-
The table below outlines the most frequent buys & sells this
quarter among the 25 prominent hedge funds profiled in this issue.
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Equity Analyses:
p.69 Equinix (EQIX)
p.75 Tempur-Pedic (TPX)
p.80 AutoZone (AZO)
www.hedgefundwisdom.com
Seth Klarman
Baupost Group
Key Takeaways
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www.hedgefundwisdom.com
Baupost Group
Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
Company Name
ViaSat Inc.
BP plc
Hewlett-Packard Co
News Corp.
Theravance Inc.
Microsoft Corporation
News Corp.
Allied Nevada Gold
Idenix Pharmaceuticals
NovaGold Resources
AVEO Pharmaceuticals
Enzon Pharmaceuticals
THERAVANCE NOTE
Syneron Medical Ltd.
Alliance One Intl
Central Pacific Financial
IturanLocation&Control
Sycamore Networks Inc.
Multimedia Games Inc.
Alere Inc.
Genworth Financial Inc.
PDL BioPharma, Inc.
Targacept, Inc.
Ticker
VSAT
BP
HPQ
NWSA
THRX
MSFT
NWS
ANV
IDIX
NG
AVEO
ENZN
THRX
ELOS
AOI
CPF
ITRN
SCMR
MGAM
ALR
GNW
PDLI
TRGT
Put/Call
% of
Portfolio
17.1%
14.2%
13.9%
10.0%
9.6%
7.6%
7.2%
4.4%
2.7%
2.4%
2.1%
2.1%
1.8%
1.5%
1.1%
0.8%
0.8%
0.3%
0.2%
0.1%
Activity
Unchanged
Cut -22%
Cut -8%
Unchanged
Added 2%
Cut -42%
Unchanged
Unchanged
Add 46%
Add 34%
Unchanged
Unchanged
Unchanged
Unchanged
Unchanged
Unchanged
Unchanged
Unchanged
Cut -77%
Cut -93%
Sold
Sold
Sold
Value x
$1000
$506,205
$419,441
$411,068
$296,471
$283,799
$225,785
$212,847
$130,535
$80,758
$71,800
$63,101
$61,566
$52,211
$42,880
$33,126
$23,310
$22,655
$9,418
$6,396
$3,582
# of Shares
10,499,992
9,320,900
17,250,000
15,041,665
14,553,800
7,000,000
10,658,335
4,012,750
8,249,000
10,000,000
5,084,652
9,000,878
51,000,000
4,000,000
8,786,700
1,800,000
1,685,666
530,871
583,538
137,700
-
www.hedgefundwisdom.com
Berkshire Hathaway
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Hathaways
portfolio
continues to be dominated by smaller activity by
its new portfolio managers: Todd Combs and
Ted Weschler.
Last quarters newsletter
highlighted how Berkshire initiated stakes in
Liberty Media (LMCA) and DaVita (DVA). Both
of these stakes are assumed to be attributed to
Ted Weschler given that they were both past
holdings at his old hedge fund, Peninsula
Capital Advisors. He continued to buy shares of
both for Berkshire in the first quarter, boosting
his holdings in Liberty Media by 76% and
DaVita by 123%. And given the style of portfolio
Weschler ran at his old shop, its not out of the
question to attribute Berkshires new buy of
Viacom (VIA.B) to him as well. But despite
which manager may have initiated each stake,
the main takeaways here are the fact that the
Berkshire crew also started a brand new
position in General Motors (GM) and heavily
added to its stake in The Bank of New York
Mellon (BK).
During Berkshires recent annual
meeting in Omaha, Buffett and Charlie Munger
commented that they are very happy with the
new managers and are pleased with their
returns. Both Combs and Weschler receive a
base salary of $1 million as well as a
performance
incentive
for
10%
of
outperformance versus the S&P 500 (on a
rolling basis of 3 years). Whats also interesting
is that 80% of their performance bonus will be
based on the managers own return, while 20%
is based on the return of the other manager.
Q1 2012
Key Takeaways
Berkshire
Warren Buffett
www.hedgefundwisdom.com
Berkshire Hathaway
Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
Company Name
The Coca-Cola Company
Wells Fargo & Company
IBM
American Express Co
Procter & Gamble Co.
Kraft Foods Inc.
Wal-Mart Stores Inc.
ConocoPhillips
U.S. Bancorp
Johnson & Johnson
Moody's Corp.
DIRECTV
The Washington Post
DaVita, Inc.
M&T Bank Corp.
Costco Wholesale Corp
Visa, Inc.
CVS Caremark Corp
USG Corp.
General Dynamics Corp.
Liberty Media
General Motors
Intel Corporation
Torchmark Corp.
Mastercard Incorporated
Dollar General Corp
General Electric Co.
Sanofi-Aventis
Bank of New York Mellon
United Parcel Service
Verisk Analytics, Inc.
Viacom Inc 6.85% Pfd
GlaxoSmithKline plc
Gannett Co., Inc.
Ingersoll-Rand Plc
Comdisco Holding Co
Ticker
KO
WFC
IBM
AXP
PG
KFT
WMT
COP
USB
JNJ
MCO
DTV
WPO
DVA
MTB
COST
V
CVS
USG
GD
LMCA
GM
INTC
TMK
MA
DG
GE
SNY
BK
UPS
VRSK
VIAB
GSK
GCI
IR
CDCO
Put/Call
% of
Portfolio
19.7%
17.9%
17.8%
11.7%
6.5%
3.9%
3.8%
2.9%
2.9%
2.5%
1.6%
1.5%
0.9%
0.7%
0.6%
0.5%
0.5%
0.4%
0.4%
0.4%
0.4%
0.3%
0.3%
0.3%
0.2%
0.2%
0.2%
0.2%
0.2%
0.2%
0.1%
0.1%
0.1%
0.0%
0.0%
Activity
Unchanged
Added 3%
Added 1%
Unchanged
Cut -5%
Cut -10%
Added 20%
Unchanged
Cut 0%
Unchanged
Unchanged
Added 13%
Unchanged
Add 124%
Unchanged
Unchanged
Unchanged
Unchanged
Unchanged
Unchanged
Added 76%
New
Cut -33%
Unchanged
Unchanged
Cut -19%
Unchanged
Unchanged
Add 213%
Unchanged
Cut -35%
New
Unchanged
Unchanged
Cut 0%
Sold
Value x
$1000
$14,802,000
$13,462,596
$13,436,163
$8,772,196
$4,923,411
$2,965,432
$2,858,538
$2,211,963
$2,187,165
$1,914,036
$1,196,282
$1,134,800
$645,441
$541,020
$467,591
$393,469
$338,071
$318,371
$293,642
$284,503
$264,450
$256,500
$217,751
$211,156
$170,319
$168,037
$156,102
$157,467
$135,308
$115,365
$104,750
$75,541
$67,837
$26,678
$26,299
# of Shares
200,000,000
394,334,928
64,395,700
151,610,700
73,254,136
78,017,165
46,708,142
29,100,937
69,039,326
29,018,127
28,415,250
22,999,600
1,727,765
6,000,000
5,382,040
4,333,363
2,865,008
7,106,500
17,072,192
3,877,122
3,000,000
10,000,000
7,745,000
4,235,818
405,000
3,637,164
7,777,900
4,063,675
5,607,466
1,429,200
2,230,148
1,591,670
1,510,500
1,740,231
636,000
-
www.hedgefundwisdom.com
Greenlight Capital
David Einhorn
Has returned 21.5% annualized
Predicted & profited from the demise
of Lehman Brothers
Author of Fooling Some of the
People All of the Time
Key Takeaways
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www.hedgefundwisdom.com
Greenlight Capital
Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
Company Name
Apple Inc.
Seagate Technology PLC
General Motors Company
Gold Miners ETF
Marvell Technology
CareFusion Corporation
DELPHI AUTOMOTIVE
Microsoft Corporation
Ensco plc
Dell Inc.
Sprint Nextel Corp.
Best Buy Co. Inc.
NCR Corp.
Einstein Noah Restaurant
CBS CORP CL B
Xerox Corp.
Aspen Insurance Holdings
HUNTINGTON INGALLS
HCA HLDGS INC COM
Legg Mason Inc.
Liberty Media
DST Systems Inc.
Computer Sciences Corp
CA Technologies
NVR Inc.
Barrick Gold Corporation
Compuware Corporation
STATE BANK FINANCIAL
Expedia Inc.
Junior Gold Miners ETF
Research In Motion
Fifth Street Finance Corp.
BioFuel Energy Corp.
Republic Airways
Tessera Tech
SYMMETRICOM, INC.
ROUNDY'S, INC.
OmniVision Tech
Broadridge Financial
Yahoo! Inc.
The Travelers Co
Furiex Pharma
First Solar, Inc.
Energy Partners Ltd.
Ticker
AAPL
STX
GM
GDX
MRVL
CFN
DLPH
MSFT
ESV
DELL
S
BBY
NCR
BAGL
CBS
XRX
AHL
HII
HCA
LM
LMCA
DST
CSC
CA
NVR
ABX
CPWR
STBZ
EXPE
GDXJ
RIMM
FSC
BIOF
RJET
TSRA
SYMM
RNDY
OVTI
BR
YHOO
TRV
FURX
FSLR
EPL
Put/Call
PUT
% of
Portfolio
15.9%
7.1%
6.9%
6.5%
5.2%
4.9%
4.6%
4.4%
3.7%
3.6%
3.5%
3.3%
3.3%
2.9%
2.8%
2.3%
2.1%
2.0%
1.9%
1.7%
1.6%
1.5%
1.3%
1.3%
0.8%
0.8%
0.7%
0.7%
0.6%
0.5%
0.4%
0.4%
0.3%
0.3%
0.2%
0.2%
0.1%
Activity
Unchanged
Added 1%
Cut -22%
Unchanged
Added 6%
Cut -14%
Unchanged
Cut -51%
Cut -24%
Cut -15%
Cut -7%
Unchanged
Cut -13%
Unchanged
Cut -24%
Cut -9%
Cut -9%
Cut -15%
Cut -26%
Unchanged
Unchanged
Added 39%
New
Cut 0%
Cut -37%
Cut -25%
Unchanged
Unchanged
New
Cut -37%
Cut -45%
Unchanged
Unchanged
Unchanged
Unchanged
Unchanged
New
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Value x
$1000
$877,445
$391,803
$379,957
$360,125
$288,995
$269,994
$252,633
$241,465
$203,377
$198,610
$194,555
$182,676
$182,093
$160,143
$153,568
$124,373
$114,581
$110,700
$103,290
$94,962
$86,387
$85,018
$71,856
$69,878
$46,521
$44,024
$40,979
$36,771
$33,440
$29,460
$23,536
$19,508
$17,660
$16,859
$11,999
$9,866
$6,013
# of Shares
1,463,700
14,538,126
14,813,163
7,264,971
18,372,247
10,412,441
8,194,661
7,487,295
3,842,365
11,964,405
68,265,000
7,714,375
8,387,490
10,733,469
4,528,681
15,392,717
4,101,000
2,750,995
4,175,000
3,400,000
980,000
1,567,734
2,400,000
2,535,472
64,050
1,012,500
4,459,027
2,100,000
1,000,000
1,200,000
1,600,000
1,998,692
27,168,879
3,412,800
695,580
1,709,846
561,934
-
See what stocks hedge funds have been buying and selling in Q2:
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Next Page: Lone Pine Capital
Q1 2012
www.hedgefundwisdom.com
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Mandel spoke at the Ira Sohn
Conference a few days ago where he mentioned
that he had recently gone long department store
Kohls (KSS). He also said he likes the tech
leader companies. Hes obviously referring to
his large positions in Apple (AAPL),
Priceline.com (PCLN), and Google (GOOG). He
would have also been referring to Baidu (BIDU),
except for the fact that Lone Pine completely
exited shares in the first quarter. This name
had previously been lumped in with the others
under the tech leader theme.
Shifting to Lone Pines latest portfolio
disclosure, its quite evident the hedge fund is
playing the El Paso (EP) merger arbitrage as the
company was their top holding at the end of the
first quarter after they boosted their position by
Q1 2012
Key Takeaways
Steve
Stephen Mandel
www.hedgefundwisdom.com
Company Name
El Paso Corp.
Google Inc.
Priceline.com Inc
Apple Inc.
Dollar General Corp
SPDR Gold Shares
Visa, Inc.
Polo Ralph Lauren
QUALCOMM Inc
Monsanto Co.
NETEASE INC
Equinix, Inc.
Teradata Corporation
LAS VEGAS SANDS CORP
Cognizant Tech Solutions
Crown Castle Intl
Express Scripts Inc.
Oceaneering Intl
AutoZone Inc.
TransDigm Group
Wyndham Worldwide
Gap Inc.
Lululemon Athletica Inc.
Green Mountain Coffee
New Oriental Education
Walt Disney Co.
WABCO Holdings Inc.
Fossil, Inc.
MICHAEL KORS
Ross Stores Inc.
Liberty Media Corp
Sensata Technologies
BE Aerospace Inc.
Estee Lauder
V.F. Corporation
W.R. Grace & Co.
Accretive Health, Inc.
KINDER MORGAN
Ulta Salon
Sears Holdings Corp
Banco Santander
Ctrip.com International
VanceInfo Technologies
Owens Corning
Wynn Resorts Ltd.
Ticker
EP
GOOG
PCLN
AAPL
DG
GLD
V
RL
QCOM
MON
NTES
EQIX
TDC
LVS
CTSH
CCI
ESRX
OII
AZO
TDG
WYN
GPS
LULU
GMCR
EDU
DIS
WBC
FOSL
KORS
ROST
LMCA
ST
BEAV
EL
VFC
GRA
AH
KMI
ULTA
SHLD
BSBR
CTRP
VIT
OC
WYNN
Put/Call
PUT
% of
Portfolio
5.7%
5.1%
4.7%
4.6%
3.8%
3.7%
3.3%
3.2%
3.2%
3.2%
3.2%
3.0%
3.0%
2.8%
2.7%
2.7%
2.5%
2.5%
2.4%
2.4%
1.9%
1.8%
1.7%
1.7%
1.6%
1.6%
1.5%
1.5%
1.5%
1.4%
1.2%
1.2%
1.2%
1.2%
1.2%
1.2%
1.1%
1.0%
0.8%
0.7%
0.7%
0.7%
0.6%
0.5%
0.5%
Activity
Added 382%
Cut -3%
Cut -26%
Cut -41%
Cut -12%
Unchanged
Cut -5%
Cut -35%
Added 21%
Added 10%
Added 20%
Added 14%
Added 4%
Cut -17%
Cut -12%
Cut -22%
Cut -45%
Cut -4%
New
Added 7%
Cut -18%
New
Cut -16%
Added 115%
Cut -2%
New
Cut -15%
Cut -37%
Added 44%
New
Unchanged
Cut -4%
New
New
Cut -3%
Added 68%
Cut -2%
Added 130%
New
Added 40%
New
Cut -44%
Cut -3%
New
New
Value x
$1000
$934,838
$838,301
$775,681
$754,800
$621,237
$608,081
$535,294
$527,179
$522,588
$519,075
$520,384
$498,192
$492,599
$465,345
$447,132
$439,368
$410,378
$404,051
$395,781
$385,696
$314,806
$293,055
$284,639
$280,406
$268,180
$257,987
$252,222
$248,795
$245,059
$231,081
$199,507
$197,962
$197,950
$195,956
$192,803
$192,562
$176,984
$163,856
$123,568
$121,443
$114,806
$113,401
$91,717
$89,597
$86,817
# of Shares
31,635,809
1,307,312
1,081,089
1,258,944
13,446,688
3,750,348
4,536,386
3,024,031
7,678,339
6,507,957
8,956,696
3,164,127
7,228,162
8,083,114
5,810,687
8,237,127
7,574,345
7,497,700
1,064,500
3,331,859
6,768,567
11,210,965
3,808,895
5,986,474
9,766,210
5,892,808
4,170,336
1,885,095
5,259,900
3,977,296
2,263,262
5,912,845
4,259,738
3,163,643
1,320,750
3,331,525
8,862,492
4,239,475
1,330,266
1,833,100
12,519,785
5,240,339
7,617,690
2,486,720
695,207
www.hedgefundwisdom.com
Company Name
MedcoHealth
TRIPADVISOR
iPath S&P 500 VIX
Ariba Inc.
Weyerhaeuser Co.
ISOFTSTONE HOLDINGS
Intel Corporation
Tractor Supply Company
7 Days Group Holdings
China Lodging Group
Baidu, Inc.
ARCOS DORADOS
eBay Inc.
Willis Group Holdings
Tesla Motors, Inc.
FMC Technologies, Inc.
Home Inns & Hotels
Green Mountain Coffee
NetApp, Inc.
Williams-Sonoma Inc.
Ameriprise Financial Inc.
YANDEX N V
News Corp.
Fossil, Inc.
SolarWinds, Inc.
Bed Bath & Beyond, Inc.
NetApp, Inc.
Ticker
MHS
TRIP
VXX
ARBA
WY
ISS
INTC
TSCO
SVN
HTHT
BIDU
ARCO
EBAY
WSH
TSLA
FTI
HMIN
GMCR
NTAP
WSM
AMP
YNDX
NWSA
FOSL
SWI
BBBY
NTAP
Put/Call
CALL
PUT
PUT
PUT
PUT
CALL
CALL
PUT
CALL
% of
Portfolio
0.5%
0.4%
0.3%
0.3%
0.3%
0.3%
0.2%
0.1%
0.1%
0.1%
Activity
Unchanged
New
Cut -67%
New
New
Unchanged
Unchanged
New
Cut -19%
Cut -44%
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Value x
$1000
$77,330
$66,546
$53,698
$50,839
$47,566
$46,391
$26,569
$21,492
$13,888
$11,110
# of Shares
1,100,000
1,865,613
3,200,000
1,554,231
2,170,000
5,253,739
945,000
237,326
1,108,375
950,364
-
www.hedgefundwisdom.com
10
Appaloosa Management
2%3'4"$565"#$-'
,#=&01A?0&1!TTT!'TTT)!
<454$0#H+!'<)!
"##$%&!'"((")!
TH?%3#EE!'T<(@)!
G0#?93#E!'G6<@)!
K#09!@#5#0!'K)!
RH>51E?>!'RJL)!
G?>U!#V!*E&043?!'G*<)!
I&%5?!*40!-4>&1!'I*-)!
R?05V#09!K4>?>34?%!'R;")!
"&>&0?%!@#5#01!'"@)!
(=&>1!<#0>4>$!'(<)!
.@<!'.@<)!
@?0:&%%!8&3A>#%#$C!'@6D-)!
2?>I41U!'2LIB)!
KH14#>W;(!'K;()!
8=#!R?0X#01!'8N()!
LH?>3&!<#EEH>43?54#>1!'LJ*L)!
2,I6!2Y,!Z[[!'2,P)!
!
."/,'!"89/%6%/)':&6':;-'
G#15#>!234&>54V43!'G27)!
Key Takeaways
David Tepper
www.hedgefundwisdom.com
11
Appaloosa Management
Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
Company Name
PowerShares QQQ
Apple Inc.
Citigroup, Inc.
United Continental
Google Inc.
QUALCOMM Incorporated
Goodyear Tire & Rubber Co.
Broadcom Corp.
CVR Energy, Inc.
Ford Motor Co.
US Airways Group, Inc.
Huntsman Corporation
Bank of America Corp
Oracle Corp.
Delta Air Lines Inc.
Financial Select Sector
Valero Energy Corp.
Hartford Financial
General Motors
Masco Corporation
Dean Foods Co.
Owens Corning
EMC Corporation
RBS Pfd N
Marvell Technology
Microsoft Corporation
RBS Pfd S
Calumet Specialty Products
SanDisk Corp.
FUSION-IO
RBS Pfd T
Mueller Water Products
Two Harbors Investment
RBS Pfd Q
Nuance Communications
SPDR S&P 500
RBS Pfd M
International Paper Co.
Macy's, Inc.
Hartford Financial Warrant
CF Industries Holdings, Inc.
Chimera Investment Corp
RBS Pfd L
MPG Office Trust, Inc.
MFA Financial, Inc.
Ticker
QQQ
AAPL
C
UAL
GOOG
QCOM
GT
BRCM
CVI
F
LCC
HUN
BAC
ORCL
DAL
XLF
VLO
HIG
GM
MAS
DF
OC
EMC
RBS-PN
MRVL
MSFT
RBS-PS
CLMT
SNDK
FIO
RBS-PT
MWA
TWO
RBS-PQ
NUAN
SPY
RBS-PM
IP
M
HIG/WS
CF
CIM
RBS-PL
MPG
MFA
Put/Call
% of
Portfolio
31.4%
10.1%
5.5%
4.2%
2.6%
2.5%
2.4%
2.3%
2.1%
2.0%
2.0%
1.8%
1.8%
1.7%
1.7%
1.6%
1.6%
1.5%
1.4%
1.4%
1.3%
1.3%
1.2%
1.2%
1.0%
1.0%
0.9%
0.8%
0.8%
0.8%
0.8%
0.8%
0.8%
0.6%
0.6%
0.5%
0.5%
0.5%
0.5%
0.4%
0.3%
0.3%
0.3%
0.3%
0.2%
Activity
New
Added 277%
New
Added 571%
New
New
Added 43%
New
Cut -36%
New
Added 229%
New
New
Added 92%
New
Added 96%
Added 181%
New
New
Added 2755%
Cut -28%
New
New
Cut -13%
New
Added 72%
Cut -2%
Unchanged
New
New
Cut -10%
Unchanged
New
Cut -8%
New
New
Cut -3%
Cut -24%
Cut -37%
Unchanged
Added 41%
New
Cut -19%
Unchanged
New
Value x
$1000
$1,273,602
$410,637
$222,747
$171,313
$103,969
$102,947
$97,070
$95,009
$85,865
$81,631
$80,888
$71,980
$71,358
$68,056
$66,795
$66,532
$65,769
$60,199
$56,485
$55,502
$53,612
$52,938
$49,011
$47,108
$41,378
$40,313
$35,663
$34,054
$33,772
$32,782
$32,775
$31,441
$30,420
$24,943
$24,093
$21,682
$21,457
$19,350
$18,554
$16,989
$12,663
$12,505
$10,872
$10,044
$7,691
# of Shares
18,854,218
685,000
6,094,305
7,968,035
162,137
1,513,486
8,651,496
2,417,523
3,209,911
6,535,715
10,657,243
5,137,764
7,456,408
2,333,883
6,740,189
4,216,200
2,552,161
2,855,744
2,202,153
4,151,256
4,427,112
1,469,279
1,640,261
2,915,072
2,630,524
1,250,000
2,135,514
1,288,944
681,021
1,153,879
1,725,014
9,441,736
3,000,000
1,468,102
941,869
154,079
1,305,196
551,287
467,001
1,275,475
69,332
4,418,884
582,962
4,292,354
1,029,583
www.hedgefundwisdom.com
12
Appaloosa Management
Rank
46
47
48
49
50
51
52
53
54
Company Name
DELPHI
Boyd Gaming Corp.
DowJonesConstruction
NetApp, Inc.
General Motors Warrant
General Motors Warrant
Beazer Homes USA Inc.
Oracle Corp.
Boston Scientific Corp
Ticker
DLPH
BYD
ITB
NTAP
GM/WS/A
GM/WS/B
BZH
ORCL
BSX
Put/Call
CALL
% of
Portfolio
0.2%
0.1%
0.1%
0.1%
0.1%
0.1%
0.0%
0.0%
Activity
Unchanged
New
New
New
Unchanged
Unchanged
Unchanged
New
Sold
Value x
$1000
$7,244
$5,456
$4,734
$4,477
$2,920
$1,966
$931
$189
# of Shares
229,236
695,975
321,595
100,000
175,561
175,561
286,614
20,100
-
This is a free past issue. For the brand new issue, please go to
www.hedgefundwisdom.com
www.hedgefundwisdom.com
13
Bill Ackman
View a profile of Pershing Square
Subject of the book Confidence
Game: How a Hedge Fund Manager
Called Wall Streets Bluff
Key Takeaways
'
2%3'4"$565"#$-'
>M?!
'
."/,'!"89/%6%/)':&6':;-'
\F<F!,&>>&C!'\<,)!<?%%1!
Bill
www.hedgefundwisdom.com
14
Pershing Square
Rank
1
2
3
4
5
6
7
8
9
10
11
Company Name
Canadian Pacific Rail
J. C. Penney Company
General Growth Properties
Beam, Inc.
Citigroup, Inc.
Kraft Foods Inc.
FortuneBrands Home&Security
Howard Hughes Corporation
Alexander & Baldwin, Inc.
Family Dollar Stores Inc.
J. C. Penney Company, Inc.
Ticker
CP
JCP
GGP
BEAM
C
KFT
FBHS
HHC
ALEX
FDO
JCP
Put/Call
CALL
% of
Portfolio
22.7%
17.2%
15.2%
15.1%
11.8%
7.3%
3.6%
2.8%
2.2%
2.1%
Activity
Added 0%
Added 1%
Unchanged
Unchanged
Added 0%
Cut -27%
Cut -36%
Unchanged
Added 2%
Cut -69%
Sold
Value x
$1000
$1,834,943
$1,384,454
$1,227,250
$1,219,342
$954,854
$589,390
$294,044
$227,889
$176,594
$165,468
# of Shares
24,159,888
39,075,771
72,233,712
20,818,545
26,124,594
15,506,172
13,323,249
3,568,017
3,644,870
2,614,863
-
www.hedgefundwisdom.com
15
Maverick Capital
Key Takeaways
!
2%3'4"$565"#$-'
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@?3CO1!'@)!
,043&%4>&F3#E!',<-L)!
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"0&&>!@#H>5?4>!<#VV&&!'"@<6)!
K#E&>5#!.3#>!'K@7)!
-4X&05C!"%#X?%!'-G8P*)!
2&?01!R#%94>$1!'2R-I)!
*&5>?!'*.8)!
RY6!G%#3U!'R6G)!
!
."/,'!"89/%6%/)':&6':;-'
J2!G?>3#0+!'J2G)!
@?0:&%%!8&3A>#%#$C!'@6D-)!
N&%%1!K?0$#!'NK<)!
*E?]#>F3#E!'*@SL)!
K4015!2#%?0!'K2-6)!
R#E&!;>>1!Y!R#5&%1!'@;L)!
*+#%%#!"0#H+!'*,(-)!
<#0>4>$!'"-N)!
804>?!2#%?0!'82-)!
R<*!'R<*)!
G?>3#!2?>5?>9&0W<A4%&!'G2*<)!
6#C?%!G?>U!#V!23#5%?>9!,0&V&00&91!!
Lee Ainslie
www.hedgefundwisdom.com
16
Maverick Capital
Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
Company Name
CIGNA Corporation
Avago Technologies
QUALCOMM
Apple Inc.
Google Inc.
CareFusion Corp
JPMorgan Chase & Co.
CVS Caremark
Endo Pharma
McKesson Corporation
YOUKU.COM INC.
Sara Lee Corp.
Pfizer Inc.
Skyworks Solutions Inc.
Dollar General Corp
Macy's, Inc.
Amdocs Ltd.
Priceline.com Inc
Credicorp Ltd.
DIRECTV
NetApp, Inc.
Tyco International Ltd.
Oracle Corp.
Valeant Pharma
Avery Dennison Corp
TransDigm Group
Express Scripts Inc.
Green Mountain Coffee
GROUPON INC
Aeropostale, Inc.
SLM Corporation
Fomento Econ
News Corp.
Comcast Corporation
Owens Corning
Liberty Global Inc.
Sears Holdings
Anheuser-Busch InBev
Citigroup, Inc.
Comcast Corporation
CognizantTechSolutions
Aetna Inc.
Progressive Corp.
Teradata Corporation
Sirona Dental Systems
Ticker
CI
AVGO
QCOM
AAPL
GOOG
CFN
JPM
CVS
ENDP
MCK
YOKU
SLE
PFE
SWKS
DG
M
DOX
PCLN
BAP
DTV
NTAP
TYC
ORCL
VRX
AVY
TDG
ESRX
GMCR
GRPN
ARO
SLM
FMX
NWSA
CMCSA
OC
LBTYA
SHLD
BUD
C
CMCSK
CTSH
AET
PGR
TDC
SIRO
Put/Call
% of
Portfolio
4.6%
4.5%
4.5%
4.4%
4.0%
3.2%
3.1%
3.1%
3.1%
3.1%
2.9%
2.9%
2.4%
2.3%
2.3%
1.9%
1.9%
1.8%
1.8%
1.7%
1.7%
1.7%
1.7%
1.7%
1.7%
1.6%
1.6%
1.5%
1.5%
1.5%
1.4%
1.4%
1.4%
1.4%
1.1%
1.1%
1.0%
1.0%
0.9%
0.8%
0.8%
0.8%
0.8%
0.8%
0.8%
Activity
Cut -49%
Cut -41%
Cut -11%
Cut -63%
Cut -3%
Cut -46%
Cut -72%
Cut -16%
Cut -7%
Cut -51%
Cut -50%
Cut -58%
Cut -60%
New
Cut -37%
New
Cut -68%
New
Cut -20%
New
Cut -81%
Cut -82%
Cut -26%
New
Cut -63%
Cut -16%
New
New
Unchanged
Cut -65%
Cut -76%
New
Cut -74%
Cut -68%
Cut -73%
New
New
Cut -25%
Cut -89%
Cut -78%
Cut -55%
New
Cut -86%
Cut -81%
Cut -70%
Value x
$1000
$321,728
$314,147
$311,357
$308,608
$279,786
$220,962
$214,971
$213,718
$213,357
$213,615
$203,918
$203,292
$163,647
$161,684
$161,540
$130,824
$130,621
$126,926
$121,654
$120,108
$118,646
$118,860
$118,877
$116,720
$115,464
$113,113
$112,539
$107,381
$104,729
$102,536
$99,771
$98,659
$96,965
$96,943
$75,864
$73,202
$72,395
$66,289
$60,266
$58,267
$56,579
$56,652
$56,245
$55,005
$55,236
# of Shares
6,532,539
8,061,247
4,574,744
514,733
436,320
8,521,463
4,675,308
4,770,502
5,508,833
2,433,806
9,273,198
9,442,246
7,226,628
5,847,539
3,496,541
3,292,818
4,136,208
176,900
922,880
2,434,300
2,650,118
2,115,703
4,076,728
2,175,793
3,832,190
977,138
2,077,140
2,292,500
6,331,120
4,742,623
6,330,638
1,199,215
4,919,590
3,230,372
2,105,582
1,461,709
1,092,755
911,568
1,648,854
1,974,497
735,265
1,129,430
2,426,447
807,120
1,071,713
www.hedgefundwisdom.com
17
Maverick Capital
Rank
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
Company Name
H&R Block, Inc.
DaVita, Inc.
Citrix Systems, Inc.
Family Dollar Stores
Urban Outfitters Inc.
J. C. Penney Co
CARBO Ceramics Inc.
Six Flags Entertainment
Capital One Financial
Ironwood Pharma
HSN, Inc.
Caribou Coffee Co
Sanderson Farms, Inc.
China Lodging Group
RENREN INC
BANKRATE INC
TriQuint Semi
SolarWinds, Inc.
Pacific Biosciences
BRIGHTCOVE INC
RBSPfd Q
Signet Jewelers Limited
RBS Pfd M
RBS Pfd S
MEDLEY CAPITAL
Bluefly Inc.
Wet Seal Inc.
icad Inc.
RBS Pfd N
Banco Santander-Chile
RBS Pfd T
HCA HLDGS
Trina Solar Ltd.
Par Pharma
ETFS Physical Platinum
U.S. Bancorp
Marvell Technology
Wells Fargo & Co
Amazon.com Inc.
Corning Inc.
Apollo Group Inc.
Home Inns & Hotels
First Solar, Inc.
Yingli Green Energy
Citigroup Dividend
AMBEV
Cardiovascular Systems
Las Vegas Sands
Ticker
HRB
DVA
CTXS
FDO
URBN
JCP
CRR
SIX
COF
IRWD
HSNI
CBOU
SAFM
HTHT
RENN
RATE
TQNT
SWI
PACB
BCOV
RBS-PQ
SIG
RBS-PM
RBS-PS
MCC
BFLY
WTSLA
ICAD
RBS-PN
BSAC
RBS-PT
HCA
TSL
PRX
PPLT
USB
MRVL
WFC
AMZN
GLW
APOL
HMIN
FSLR
YGE
C/PH
ABV
CSII
LVS
Put/Call
% of
Portfolio
0.8%
0.8%
0.7%
0.6%
0.6%
0.5%
0.5%
0.4%
0.4%
0.4%
0.3%
0.3%
0.3%
0.3%
0.2%
0.2%
0.2%
0.2%
0.2%
0.2%
0.2%
0.2%
0.2%
0.1%
0.1%
0.1%
0.1%
0.0%
Activity
New
New
New
New
Cut -91%
Cut -75%
New
Cut -51%
Cut -78%
Cut -50%
Cut -60%
Add 206%
Cut -50%
Cut -55%
New
Cut -50%
New
New
Cut -50%
New
Cut -79%
Cut -74%
Cut -58%
Cut -84%
Cut -59%
Cut -50%
Cut -58%
Cut -62%
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Value x
$1000
$53,531
$52,805
$49,682
$42,569
$38,553
$35,044
$32,186
$29,246
$28,781
$27,974
$20,866
$18,786
$17,558
$17,086
$16,940
$14,869
$14,466
$13,874
$12,118
$11,210
$11,180
$10,678
$10,634
$7,671
$7,747
$6,853
$6,059
$80
# of Shares
3,250,208
585,616
629,598
672,712
1,324,400
989,118
305,223
625,315
516,348
2,101,695
548,679
1,007,828
331,088
1,461,549
3,068,829
600,764
2,097,981
358,968
3,543,333
502,252
658,031
225,840
646,839
459,329
687,420
3,704,101
1,756,106
184,141
-
www.hedgefundwisdom.com
18
Dan Loeb
Third Point
Key Takeaways
2%3'4"$565"#$-'
I&%+A4!'I-,R)!^!#=>&9!+0&W;,(!
*++%&!'**,-)!
J>45&9!8&3A>#%#$4&1!'J87)!
"##$%&!'"((")!
./+0&11!2304+51!'.267)!
K?E4%C!I#%%?0!'KI()!
<?+45?%!(>&!'<(K)!
<413#!2C15&E1!'<2<()!
*X&030#EX4&!Y!K453A!'*LK)!
N&%%1!K?0$#!'NK<)!
8&0?9C>&!'8.6)!
,4#>&&0!L?5H0?%!6&1#H03&1!',7I)!
I&:#>!.>&0$C!'IDL)!
!
."/,'!"89/%6%/)':&6':;-'
G4$!-#51!'G;")!
,%?4>1!./+%#0?54#>!',7,)!
-4X&05C!;>5&0?354:&!'-;L8*)!
./+&94?!'.7,.)!
2H>#3#!'2JL)!
2UC=#0U1!2#%H54#>1!'2NB2)!
L&=&%%!6HXX&0E?49!'LN-)!
going forward.
Third Point also started new stakes in
Medco Health and Express Scripts (ESRX)
during the quarter, playing the merger
arbitrage. Express Scripts received regulatory
approval to acquire Medco and the deal went
through. Post-merger, Loeb continues to like
the combined entity, writing, Based on our
analysis of the combined MHS/ESRX entity, we
believe that Express Scripts remains an
attractive investment candidate, combining
15+% EPS growth, the opportunity for
accelerated synergy realization, and a
reasonable forward PE multiple (13x 2013
EPS).
The hedge fund continued to add to its
position in Sara Lee (SLE) during the quarter.
This should come as no surprise given the
catalysts ahead. The company has announced a
special dividend of $3 per share after the tea &
coffee division is spun-off in June. Existing
shareholders of SLE will receive shares in the
new company, which plans to list in the
Netherlands.
When viewing Third Points equity
portfolio on the next page, just remember they
also invest in debt and other asset classes as
well. Third Points actual top five holdings as of
the end of April are: Yahoo (YHOO), gold,
Delphi
(DLPH),
Apple
(AAPL),
and
Eksportfinans ASA. Also, Delphi shows up as a
new stake on the next page, but thats only
because the company completed its IPO. In
reality, Third Point owned it beforehand.
Loeb is also profiled in the excellent new
book The Alpha Masters along with numerous
other top managers.
View Third Points Updated
Portfolio on the Next Page
www.hedgefundwisdom.com
19
Third Point
Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
Company Name
Yahoo! Inc.
DELPHI
Sara Lee Corp.
Apple Inc.
United Technologies
Google Inc.
Marvell Technology
MedcoHealth Solutions
Family Dollar Stores
Capital One Financial
El Paso Corp.
Cisco Systems, Inc.
Abercrombie & Fitch
Wells Fargo & Co
Teradyne Inc.
Express Scripts
Pioneer Natural
Devon Energy Corp
Weatherford
DISH NETWORK
Ivanhoe Mines Ltd.
Liberty Media
McKesson Corporation
Teva Pharmaceutical
SPDR Gold Shares
Goldman Sachs
Genworth Financial Inc.
RBS Pfd T
Liberty Global Inc.
Thoratec Corp.
Mead Johnson Nutrition
Barrick Gold Corporation
RBS Pfd S
Xerium Technologies Inc.
RBS Pfd Q
RBS Pfd N
BioFuel Energy Corp.
RBS Pfd M
McKesson Corporation
KINDER MORGAN
RBS Pfd P
QUESTCOR PHARMA
Qihoo 360 Technology
Ticker
YHOO
DLPH
SLE
AAPL
UTX
GOOG
MRVL
MHS
FDO
COF
EP
CSCO
ANF
WFC
TER
ESRX
PXD
DVN
WFT
DISH
IVN
LMCA
MCK
TEVA
GLD
GS
GNW
RBS-PT
LBTYA
THOR
MJN
ABX
RBS-PS
XRM
RBS-PQ
RBS-PN
BIOF
RBS-PM
MCK
KMI
RBS-PP
QCOR
QIHU
Put/Call
CALL
CALL
PUT
PUT
% of
Portfolio
26.42%
10.29%
5.45%
5.34%
4.49%
4.42%
3.58%
3.46%
3.35%
2.95%
2.91%
2.60%
2.26%
2.14%
2.08%
2.00%
1.79%
1.75%
1.71%
1.62%
1.26%
1.19%
1.19%
0.89%
0.64%
0.61%
0.51%
0.45%
0.44%
0.42%
0.41%
0.26%
0.25%
0.22%
0.22%
0.10%
0.09%
0.09%
0.04%
0.04%
0.03%
0.01%
0.01%
Activity
Add 26%
New
Add 32%
New
New
New
Cut -8%
New
New
New
Cut -28%
New
New
New
New
New
New
New
New
Cut -50%
New
Added 10%
New
New
Unchanged
Cut -33%
Cut -29%
New
New
New
Cut -85%
Adde49%
New
Cut -20%
New
New
Unchanged
New
New
New
New
New
New
Value x
$1000
$1,073,016
$417,990
$221,221
$217,037
$182,468
$179,547
$145,503
$140,600
$136,052
$119,841
$118,200
$105,750
$91,778
$87,057
$84,450
$81,270
$72,534
$71,120
$69,414
$65,860
$51,155
$48,482
$48,274
$36,048
$25,939
$24,874
$20,800
$18,335
$17,964
$16,855
$16,496
$10,609
$10,020
$8,733
$9,005
$4,040
$3,626
$3,452
$1,512
$1,625
$1,304
$484
$458
# of Shares
70,500,400
13,339,711
10,275,000
362,000
2,200,000
280,000
9,250,000
2,000,000
2,150,000
2,150,000
4,000,000
5,000,000
1,850,000
2,550,000
5,000,000
1,500,000
650,000
1,000,000
4,600,000
2,000,000
3,250,000
550,000
550,000
800,000
160,000
200,000
2,500,000
965,000
358,700
500,000
200,000
244,000
600,000
1,354,000
530,000
250,000
5,578,800
210,000
500,000
2,500,000
80,000
510,000
228,900
www.hedgefundwisdom.com
20
Third Point
Rank
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
Company Name
Potash Corp
Newell Rubbermaid Inc.
HOLLYFRONTIER
Gilead Sciences Inc.
Liberty Media Interactive
Crexus Investment Corp.
MGIC Investment Corp.
Gardner Denver Inc.
ABRAXAS PETROLEUM
MEMC Electronic
SanDisk Corp.
Big Lots Inc.
Plains Exploration
Celanese Corp.
FMC Corp.
Williams Companies, Inc.
GrafTech Intl
WPX ENERGY INC
SUNCOKE ENERGY
ETRADE Financial
EAGLE ROCK ENERGY
Skyworks Solutions Inc.
Sunoco Inc.
YPF S.A.
Yahoo! Inc.
Expedia Inc.
Diamond Foods, Inc.
Ticker
POT
NWL
HFC
GILD
LINTA
CXS
MTG
GDI
AXAS
WFR
SNDK
BIG
PXP
CE
FMC
WMB
GTI
WPX
SXC
ETFC
EROCW
SWKS
SUN
YPF
YHOO
EXPE
DMND
Put/Call
CALL
PUT
% of
Portfolio
Activity
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Value x
$1000
# of Shares
-
www.hedgefundwisdom.com
21
2%3'4"$565"#$-'
804+*9:41#0!'86;,)!
@?054>!@?04&55?!'@-@)!
@43A?&%!B#01!'B(62)!
!
."/,'!"89/%6%/)':&6':;-'
-&:&%!_!<#EEH>43?54#>1!'-D-8)!
@?0U&5!D&35#01!"#%9!@4>&01!'"I7)!
.3A#25?0!'2*82)!
D?%&?>5!,A?0E?3&H543?%1!'D67)!
;%%HE4>?!';-@L)!
,&>>C@?3!@#05$?$&!',@8)!
*E&043?>!<?+45?%!*$&>3C!'*"L<)!
L6"!.>&0$C!'L6")!
IH>U4>!G0?>91!'ILBL)!
BB6!'BB6)!
Blue
John Griffin
www.hedgefundwisdom.com
22
Company Name
Apple Inc.
Priceline.com Inc
Amazon.com Inc.
Monsanto Co.
Google Inc.
JPMorgan Chase & Co.
Netflix, Inc.
Sensata Technologies
Thermo Fisher Scientific
Range Resources Corp
Liberty Global Inc.
Lowe's Companies Inc.
HCA HLDGS INC COM
DOLLAR TREE STORES
TRIPADVISOR
Polo Ralph Lauren Corp.
VeriSign Inc.
Gilead Sciences Inc.
SIRIUS XM Radio Inc.
MARTIN MARIETTA
Delta Air Lines Inc.
BlackRock, Inc.
WABCO Holdings Inc.
MICHAEL KORS
TD AMERITRADE
United Continental
Baidu, Inc.
Citigroup, Inc.
YOUKU.COM INC.
MGIC Investment Corp.
Xinyuan Real Estate
YANDEX N V
NovaGold Resources Inc.
Tesla Motors, Inc.
Ivanhoe Energy Inc.
JPMorgan Chase Warrants
AIG When Issued
PACIFIC BIOSCIENCES
Northeast Bancorp
Ticker
AAPL
PCLN
AMZN
MON
GOOG
JPM
NFLX
ST
TMO
RRC
LBTYA
LOW
HCA
DLTR
TRIP
RL
VRSN
GILD
SIRI
MLM
DAL
BLK
WBC
KORS
AMTD
UAL
BIDU
C
YOKU
MTG
XIN
YNDX
NG
TSLA
IVAN
JPM/WS
AIG/WS
PACB
NBN
Put/Call
% of
Portfolio
7.2%
6.6%
5.8%
5.7%
5.5%
4.7%
4.5%
4.4%
4.4%
4.1%
4.1%
3.7%
3.1%
3.0%
2.8%
2.7%
2.5%
2.4%
2.4%
2.3%
2.0%
2.0%
1.8%
1.7%
1.6%
1.4%
1.4%
1.3%
1.3%
0.8%
0.8%
0.7%
0.4%
0.4%
0.3%
0.2%
0.2%
0.1%
0.0%
Activity
Added 92%
Unchanged
Unchanged
Unchanged
Added 4%
Added 43%
Unchanged
Unchanged
Unchanged
Cut -25%
Added 1%
Unchanged
Added 14%
Unchanged
New
Unchanged
Added 86%
Add 122%
Added 12%
New
Unchanged
Unchanged
Added 27%
New
Unchanged
Unchanged
Unchanged
Added 76%
Added 3%
Unchanged
Unchanged
Unchanged
Cut -50%
Unchanged
Unchanged
Unchanged
Unchanged
Unchanged
Cut -27%
Value x
$1000
$431,976
$397,495
$352,751
$345,760
$333,445
$282,087
$272,070
$263,655
$262,731
$249,404
$244,641
$222,672
$186,787
$181,421
$166,757
$162,999
$148,031
$145,114
$143,197
$138,721
$122,946
$117,818
$105,538
$103,663
$96,825
$86,982
$82,724
$81,141
$79,164
$49,107
$47,723
$44,067
$25,830
$21,413
$16,784
$12,484
$12,236
$2,975
$1,440
# of Shares
720,500
554,000
1,741,896
4,335,000
520,000
6,135,000
2,365,000
7,875,000
4,660,000
4,289,720
4,885,000
7,096,000
7,550,000
1,920,000
4,675,000
935,000
3,860,000
2,970,000
61,990,000
1,620,000
12,400,000
575,000
1,745,000
2,225,000
4,905,000
4,045,678
567,500
2,220,000
3,600,000
9,900,600
13,752,933
1,640,000
3,597,500
575,000
15,985,000
933,000
1,150,000
870,000
114,300
www.hedgefundwisdom.com
23
Company Name
Level 3 Communications
PennyMac Mortgage
American Capital Agency
Gold Miners ETF
NRG Energy, Inc.
DUNKIN' BRANDS GROUP
Kohlberg Kravis Roberts
GOLUB CAPITAL
Ivanhoe Mines Ltd.
EchoStar Corp.
Greenlight Capital Re
Valeant Pharmaceuticals
Dynegy Inc.
East West Bancorp
ARCOS DORADOS
Illumina Inc.
Ticker
LVLT
PMT
AGNC
GDX
NRG
DNKN
KKR
GBDC
IVN
SATS
GLRE
VRX
DYN
EWBC
ARCO
ILMN
Put/Call
% of
Portfolio
Activity
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Value x
$1000
# of Shares
-
www.hedgefundwisdom.com
24
John Paulson
Paulson & Co
Key Takeaways
2%3'4"$565"#$-'
<?&1?01!'<S6)!
<#:494&>!'<(D)!
L#:&%%H1!'LD-2)!
*X#:&L&5!'*GD8)!
8A#E?1!Y!G&551!'8LG)!
D4?3#E!'D;*FG)!
TH&15!2#V5=?0&!'T2K8)!
!
."/,'!"89/%6%/)':&6':;-'
80?>1#3&?>!'6;")!
<G!643A?09!.%%41!'<G")!
,A?0E?11&5!^!X#H$A5!#H5!
2#H5A&0>!J>4#>!^!X#H$A5!#H5!
NA40%+##%!'NR6)!
@#1?43!'@(2)!
G&?]&0!R#E&1!'GS@I)!
D?4%!6&1#051!'@8L)!
K&%<#0!-#9$4>$!'K<RW,*)!
John
Paulson
is
profiled
and
interviewed in the new book, The Alpha
Masters, a true must-read due to the unparalled
access to numerous top managers the book
provides. He also recently made an appearance
at the Ira Sohn Conference in New York City
where he presented three long ideas. The first
of which, Caesars (CZR), was one he just started
a position in during the first quarter. His thesis
on buying the equity of this highly leveraged
name is that hes treating it essentially as a
stock with a high option value. He says that
common stock is only 7% of valuation and gets
the upside as the company is turning around.
Paulson argues the key to CZR could not only be
gaming properties but social gaming, which
could be worth $6-9, and online gaming could
be worth $24 per share. The key is growth and
he says the company is already seeing revenue
per available room (RevPAR) growth. Paulson
Q1 2012
www.hedgefundwisdom.com
25
Paulson & Co
Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
Company Name
SPDR Gold Shares
DELPHI
AngloGold Ashanti Ltd.
Hartford Financial
Mylan, Inc.
MGM Resorts
Anadarko Petroleum Corp
Capital One Financial
Motorola Mobility
Baxter International Inc.
CNO FINL GROUP NOTE
MedcoHealth Solutions
Gold Fields Ltd.
AMC NETWORKS
JPMorgan Chase Warrant
XL Group plc
Life Technologies Corp
El Paso Corp.
NovaGold Resources Inc.
CNO Financial Group, Inc.
CAESARS Entertainment
Goodrich Corp.
American Capital, Ltd.
Bank of America Warrant
Scripps Networks
InterDigital, Inc.
SunTrust Banks, Inc.
Popular Inc.
Rock-Tenn Co.
AngloGold Converts
MetLife, Inc.
Wells Fargo & Company
Ralcorp Holdings Inc.
Covidien plc
Novellus Systems, Inc.
Family Dollar Stores Inc.
Capital One Warrants
GRIFOLS, S.A.
AboveNet, Inc.
Randgold Resources Ltd.
Howard Hughes Corp
Thomas & Betts Corp.
GENON ENERGY INC
Boise Inc.
IAMGOLD Corp.
Viacom Inc 6.85% Pfd
Quest Software Inc.
AbitibiBowater Inc.
Gaylord Entertainment Co.
Barrick Gold Corporation
Ticker
GLD
DLPH
AU
HIG
MYL
MGM
APC
COF
MMI
BAX
CNO
MHS
GFI
AMCX
JPM/WS
XL
LIFE
EP
NG
CNO
CZR
GR
ACAS
BAC/WS/A
SNI
IDCC
STI
BPOP
RKT
AU/PA
MET
WFC
RAH
COV
NVLS
FDO
COF/WS
GRFS
ABVT
GOLD
HHC
TNB
GEN
BZ
IAG
VIAB
QSFT
ABH
GET
ABX
Put/Call
% of
Portfolio
18.7%
9.6%
8.2%
5.3%
3.8%
3.4%
3.1%
3.0%
2.9%
2.2%
2.1%
1.9%
1.8%
1.7%
1.7%
1.6%
1.6%
1.6%
1.5%
1.2%
1.2%
1.2%
1.1%
1.0%
1.0%
0.9%
0.9%
0.9%
0.9%
0.9%
0.9%
0.8%
0.7%
0.7%
0.7%
0.6%
0.6%
0.6%
0.6%
0.6%
0.5%
0.5%
0.4%
0.4%
0.3%
0.3%
0.3%
0.3%
0.3%
0.3%
Activity
Unchanged
Cut -12%
Cut -3%
Added 0%
Added 16%
Added 1%
Cut -38%
Cut -14%
Unchanged
Added 89%
Unchanged
Add 100%
Cut -20%
Unchanged
Cut 0%
Cut -34%
Added 2%
Add 100%
Added 39%
Cut -1%
New
Unchanged
Cut -43%
Added 0%
Cut -23%
Added 36%
Cut -52%
Unchanged
Cut -37%
Unchanged
Cut -21%
Unchanged
Unchanged
New
New
Unchanged
Unchanged
Cut -1%
New
Cut -1%
Cut -25%
New
Add 565%
Cut 0%
Added 40%
New
New
Cut -30%
New
Cut -1%
Value x
$1000
$2,806,452
$1,438,898
$1,224,358
$789,882
$574,605
$512,782
$468,657
$457,068
$431,640
$322,812
$312,462
$281,200
$262,121
$256,623
$247,042
$244,915
$243,016
$236,400
$229,292
$181,129
$182,376
$179,084
$157,790
$147,085
$146,070
$139,440
$136,606
$134,830
$135,120
$131,092
$129,402
$119,183
$111,135
$98,424
$99,820
$94,920
$91,109
$86,396
$82,800
$81,866
$75,367
$71,910
$65,670
$57,604
$51,590
$47,460
$46,540
$47,124
$41,888
$39,784
# of Shares
17,310,952
45,534,758
33,162,460
37,470,676
24,503,400
37,649,200
5,982,345
8,200,000
11,000,000
5,400,000
199,976,000
4,000,000
18,857,600
5,750,000
18,463,500
11,291,600
4,977,792
8,000,000
31,937,018
23,281,369
12,372,835
1,427,649
18,199,543
31,631,200
3,000,000
4,000,000
5,651,894
65,770,600
2,000,000
3,043,000
1,829,782
3,491,000
1,500,000
1,800,000
2,000,000
1,500,000
3,992,520
11,205,745
1,000,000
930,502
1,180,000
1,000,000
31,571,989
7,016,300
3,881,900
1,000,000
2,000,000
3,300,000
1,360,000
915,000
www.hedgefundwisdom.com
26
Paulson & Co
Rank
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
Company Name
HCA HLDGS INC COM
United Rentals, Inc.
Agnico-Eagle Mines Ltd.
Allied Nevada Gold Corp.
Walter Energy, Inc.
POST HOLDINGS INC
Medicis Pharmaceutical
International Tower Hill
STATE BANK FINANCIAL
FelCor Lodging Trust Inc.
Prestige Brands Holdings
Tenet Healthcare Corp.
RBS Pfd N
Bank of America Warrant
RBS Pfd M
RBS Pfd P
RBS Pfd Q
STRATEGIC HOTELS
RBS Pfd R
RBS Pfd S
RBS Pfd T
Beazer Homes USA Inc.
News Corp.
SuperMedia Inc.
Teva Pharmaceutical
Dex One Corporation
FAIRPOINT COMM
CHEMTURA CORP
Sunstone Hotel Investors
Hartford Financial Wrrnt
Quad/Graphics, Inc.
Sara Lee Corp.
Transocean Ltd.
FelCor Lodging Trust
CB Richard Ellis Group
PHARMASSET
Southern Union
Whirlpool Corp.
Mosaic Co.
PMI GROUP INC
Transatlantic Holdings
Veeco Instruments
Beazer Homes USA
Vail Resorts Inc.
Put/Call
% of
Portfolio
0.3%
0.2%
0.2%
0.2%
0.2%
0.2%
0.2%
0.2%
0.2%
0.1%
0.1%
0.1%
0.1%
0.1%
0.1%
0.1%
0.1%
0.1%
0.1%
0.1%
0.1%
0.1%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
Activity
New
Unchanged
Cut -1%
New
Unchanged
New
Unchanged
Cut -1%
Cut -35%
Unchanged
New
Cut -73%
Added 10%
Unchanged
Unchanged
Unchanged
Unchanged
Cut -71%
Unchanged
Unchanged
Unchanged
Cut -53%
Cut -94%
Unchanged
Unchanged
Unchanged
Cut -52%
Added 32%
Cut -87%
Unchanged
Cut -86%
New
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Value x
$1000
$39,584
$35,809
$33,934
$32,807
$29,605
$27,342
$25,614
$21,894
$22,101
$20,520
$17,480
$14,337
$13,259
$13,694
$13,728
$9,820
$10,493
$10,791
$10,171
$8,526
$7,717
$7,480
$5,994
$6,232
$6,362
$5,220
$4,136
$4,964
$2,401
$928
$2,085
$1,507
# of Shares
1,600,000
834,900
1,016,600
1,008,521
500,000
830,300
681,400
5,103,500
1,262,200
5,700,000
1,000,000
2,700,000
820,490
13,041,600
835,051
602,433
617,578
1,640,000
623,968
510,524
406,180
2,301,483
300,000
2,607,504
141,193
3,676,394
1,100,000
292,325
246,458
70,000
150,000
70,000
-
www.hedgefundwisdom.com
27
Tiger Management
2%3'4"$565"#$-'
R<*!'R<*)!
25?0XH3U1!'2GJ7)!
2A&0=4>!N4%%4?E1!'2RN)!
D&0424$>!'D62L)!
./+0&11W`!./+&945&9!2#%H54#>1!'7,()!
L&5V%4/!'LK-7)!
2?>I41U!'2LIB)!
<?%%49H1!2#V5=?0&!'<*-I)!
6&E?0U!@&94?!'@*6B)!
!
."/,'!"89/%6%/)':&6':;-'
D?%&?>5!,A?0E?3&H543?%1!'D67)!
<454$0#H+!'<)!
I4$45?%!"%#X&!'I";)!
2#>#3#!,0#9H351!'2(L)!
upper
echelon
of
Tiger
Managements portfolio saw some interesting
changes during the first quarter. The most
notable change would be the fact that Julian
Robertsons firm sold completely out of its
previously
large
stake
in
Valeant
Pharmaceuticals (VRX). His former number
two right-hand man, John Griffin, also sold out
of VRX in the quarter. Given that Robertson
often talks with his former employees, this
similar movement is probably not a
coincidence.
After selling out of Netflix (NFLX) in the
fourth quarter (after shares plummeted), Tiger
Management re-entered a NFLX position just
one quarter later.
NFLX currently trades
around $74. The lowest Tiger could have paid
was $72 and the highest $129 based on NFLXs
trading during the quarter. Needless to say, its
been a wild ride. Tiger also started a bevy of
positions, including: HCA (HCA), Starbucks
(SBUX), Sherwin Williams (SHW) and VeriSign
(VRSN). SHW shares have been on a monster
Q1 2012
Key Takeaways
The
Julian Robertson
www.hedgefundwisdom.com
28
Tiger Management
Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
Company Name
Apple Inc.
The Goldman Sachs Group
Mastercard Incorporated
Liberty Global Inc.
Google Inc.
Visa, Inc.
WuXi PharmaTech
QUALCOMM Incorporated
PNC Financial Services
Wells Fargo & Company
HCA HLDGS INC COM
Starbucks Corp.
Sherwin-Williams Co.
VeriSign Inc.
Express-1 Expedited
Market Vectors Gold Miners
Netflix, Inc.
LCA-Vision Inc.
Cablevision Systems Corporation
SanDisk Corp.
AutoNavi Holdings Limited
JuniorGoldMiners ETF
Callidus Software Inc.
Ryanair Holdings plc
Suncor Energy Inc.
REMARK MEDIA
Cardiome Pharma Corp.
Sealed Air Corporation
Nexen Inc.
Carnival Corporation
SIRIUS XM Radio Inc.
Valeant Pharmaceuticals
Citigroup, Inc.
DigitalGlobe, Inc.
Sonoco Products Co.
Ticker
AAPL
GS
MA
LBTYA
GOOG
V
WX
QCOM
PNC
WFC
HCA
SBUX
SHW
VRSN
XPO
GDX
NFLX
LCAV
CVC
SNDK
AMAP
GDXJ
CALD
RYAAY
SU
MARK
CRME
SEE
NXY
CCL
SIRI
VRX
C
DGI
SON
Put/Call
% of
Portfolio
15.1%
8.9%
6.3%
5.8%
5.7%
5.7%
4.4%
4.2%
3.6%
3.6%
3.6%
3.5%
3.2%
3.0%
2.8%
2.8%
2.6%
2.5%
2.3%
2.0%
1.9%
1.8%
1.7%
1.3%
0.6%
0.4%
0.3%
0.3%
0.2%
0.1%
0.1%
Activity
Added 29%
Added 9%
Added 29%
Unchanged
Cut -13%
Added 21%
Cut -25%
Unchanged
Added 49%
Added 57%
New
New
New
New
New
Added 28%
New
Unchanged
Unchanged
New
Unchanged
Added 29%
New
Unchanged
Unchanged
New
Unchanged
Unchanged
Unchanged
Unchanged
Unchanged
Sold
Sold
Sold
Sold
Value x
$1000
$53,174
$31,225
$22,286
$20,412
$20,226
$20,007
$15,607
$14,703
$12,711
$12,659
$12,533
$12,212
$11,171
$10,700
$9,996
$9,824
$9,238
$8,620
$8,011
$6,992
$6,536
$6,439
$5,896
$4,463
$2,240
$1,530
$1,125
$938
$513
$319
$231
# of Shares
88,690
251,065
52,994
407,595
31,542
169,552
1,083,818
216,030
197,100
370,800
506,600
218,500
102,800
279,000
595,000
198,300
80,300
1,372,577
545,700
141,000
520,759
262,300
754,900
123,022
68,500
254,183
1,596,106
48,600
27,950
9,950
100,000
-
www.hedgefundwisdom.com
29
Key Takeaways
2%3'4"$565"#$-'
,#=&02A?0&1!TTT!'TTT)!,H51!
-H3&>5!8&3A>#%#$4&1!'-J)!L#5&!
I4$45?%!64:&0!'I6;D)!L#5&!
R#%#$43!'R(-7)!L#5&!
TH?>5HE!<#0+!'T8@)!L#5&!
<D6!.>&0$C!'<D;)!
2H>80H15!G?>U1!'28;)!
<A&:0#>!'<D7)!
@?3CO1!'@)!
!
."/,'!"89/%6%/)':&6':;-'
2?>I41U!'2LIB)!
I&>90&#>!'ILIL)!
@&?9!\#A>1#>!LH50454#>!'@\L)!
D4?3#E!'D;*FG)!
J2!25&&%!'7)!
L;;!R#%94>$1!'L;RI)!
.3A#25?0!'2*82)!
"##$%&!'"((")!
N?%$0&&>!'N*")!
George Soros
www.hedgefundwisdom.com
30
Company Name
Micron Technology Note
SPDR S&P 500
SANDISK CORP NOTE
PowerShares QQQ
JDS UNIPHASE NOTE
ADECOAGRO S.A.
CIENA CORP NOTE
Sara Lee Corp.
Lucent Technologies Note
DIGITAL RIV INC NOTE
Cadence Design Note
Motorola Solutions, Inc.
HOLOGIC INC NOTE
Westport Innovations
QUANTUM CORP NOTE
Comverse Technology
Acacia Research Corp
Orbital Sciences NOTE
CVR Energy, Inc.
ARRIS GROUP NOTE
InterOil Corporation
ROVI CORP NOTE
SunTrust Banks, Inc.
CERADYNE INC NOTE
Chevron Corp.
DISH NETWORK
Charter Communications
Elan Corp. plc
Macy's, Inc.
Exar Corp.
SPDR Gold Shares
Express Scripts Inc.
Consumer Staples SPDR
Health Care SPDR
Tesoro Corporation
Extreme Networks Inc.
IXIA NOTE
RF MICRO NOTE
Salesforce.com
SPDR Metals&Mining
JPMorgan Chase & Co.
LINEAR TECH NOTE
Russell 2000 Index
Marathon Petroleum
Transocean Ltd.
Ticker
MU
SPY
SNDK
QQQ
JDSU
AGRO
CIEN
SLE
LU
DRIV
CDNS
MSI
HOLX
WPRT
QTM
CMVT
ACTG
ORB
CVI
ARRS
IOC
ROVI
STI
CRDN
CVX
DISH
CHTR
ELN
M
EXAR
GLD
ESRX
XLP
XLV
TSO
EXTR
XXIA
RFMD
CRM
XME
JPM
LLTC
IWM
MPC
RIG
Put/Call
PUT
PUT
PUT
CALL
PUT
% of
Portfolio
12.1%
7.5%
6.3%
4.3%
4.2%
4.0%
3.4%
2.3%
2.3%
2.2%
2.0%
2.0%
2.0%
1.8%
1.7%
1.6%
1.6%
1.5%
1.5%
1.4%
1.2%
1.2%
1.1%
1.1%
1.1%
1.0%
1.0%
0.9%
0.8%
0.8%
0.8%
0.8%
0.6%
0.6%
0.5%
0.5%
0.5%
0.5%
0.5%
0.4%
0.4%
0.4%
0.4%
0.4%
0.4%
Activity
Added 2%
Added 150%
Added 22%
New
Added 23%
Unchanged
Added 11%
Adde697%
New
New
Added 28%
Cut -45%
New
Cut -9%
New
Added 10%
Add 532%
Added 11%
New
Added 1%
Cut -64%
Added 81%
New
Unchanged
New
Added 87%
Add 209%
Add 1014%
New
Unchanged
Add 274%
Added 33%
New
New
New
Added 7%
Cut -14%
New
New
New
New
Cut -80%
Cut -50%
New
New
Value x
$1000
$829,819
$509,336
$429,357
$294,856
$289,672
$274,402
$231,583
$159,234
$155,499
$152,149
$139,294
$139,011
$134,847
$120,820
$112,992
$111,065
$105,666
$102,794
$100,195
$96,848
$80,758
$80,513
$77,054
$75,098
$73,137
$68,052
$67,778
$58,540
$57,410
$56,000
$51,812
$52,013
$37,624
$37,590
$34,194
$33,691
$33,655
$33,256
$30,902
$29,820
$27,882
$27,771
$26,761
$25,149
$24,998
# of Shares
804,915,000
3,619,500
428,286,000
4,365,000
288,770,000
25,384,049
236,109,000
7,395,910
157,467,000
157,226,000
139,556,000
2,734,816
135,100,000
2,952,606
111,735,000
16,166,666
2,531,518
101,966,000
3,745,600
94,027,000
1,570,858
76,679,000
3,188,000
74,585,000
682,000
2,066,597
1,068,203
3,900,000
1,445,000
6,666,666
319,550
960,000
1,104,000
1,000,000
1,274,000
8,796,666
32,361,000
33,310,000
200,000
600,000
606,400
26,000,000
323,000
580,000
457,000
www.hedgefundwisdom.com
31
Company Name
MERCURY COMPUTER
General Electric Co.
DIRECTV
Apple Inc.
HOLLYFRONTIER CORP
GENERAL MOTORS B
MicroStrategy Inc.
Valero Energy Corp.
Fifth Third Bancorp
XYLEM INC.
Gilead Sciences Inc.
TRIPADVISOR
Loral Space & Comm
Pfizer Inc.
Capital One Financial
Level 3 Communications
Churchill Downs Inc.
DaVita, Inc.
Goldman Sachs Group
Citigroup, Inc.
Bancolombia S.A.
Wells Fargo & Company
SPDR HOMEBUILDERS
Regions Financial Corp.
Newmont Mining Corp.
Kraft Foods Inc.
Spreadtrum Comm
Visteon Corp
MedcoHealth Solutions
Owens Corning
Home Inns & Hotels
Bluefly Inc.
Aspen Technology Inc.
Liberty Media Corp
General Motors
DELPHI AUTOMOTIVE
ClickSoftware Tech
Pepsico, Inc.
iShares Xinhua China
E-House (China)
Energy Select Sector
Expedia Inc.
Ariad Pharmaceuticals
CIENA Corp.
CF Industries Holdings
Ticker
MRCY
GE
DTV
AAPL
HFC
GM/PB
MSTR
VLO
FITB
XYL
GILD
TRIP
LORL
PFE
COF
LVLT
CHDN
DVA
GS
C
CIB
WFC
XHB
RF
NEM
KFT
SPRD
VC
MHS
OC
HMIN
BFLY
AZPN
LMCA
GM
DLPH
CKSW
PEP
FXI
EJ
XLE
EXPE
ARIA
CIEN
CF
Put/Call
CALL
PUT
CALL
CALL
CALL
CALL
PUT
% of
Portfolio
0.4%
0.4%
0.4%
0.4%
0.3%
0.3%
0.3%
0.3%
0.3%
0.3%
0.3%
0.3%
0.3%
0.3%
0.3%
0.3%
0.3%
0.2%
0.2%
0.2%
0.2%
0.2%
0.2%
0.2%
0.2%
0.2%
0.2%
0.2%
0.2%
0.2%
0.2%
0.2%
0.2%
0.2%
0.2%
0.2%
0.2%
0.2%
0.2%
0.2%
0.2%
0.2%
0.2%
0.2%
0.2%
Activity
Cut -17%
New
Added 8%
Cut -58%
New
Unchanged
New
New
New
Add 329%
New
Added 45%
Added 3%
Add 3381%
New
New
Added 69%
Cut -42%
New
New
New
Cut -63%
New
New
New
Added 11%
New
Unchanged
New
Added 74%
Add 846%
Unchanged
Add 100%
Cut -3%
Unchanged
Cut -29%
Added 8%
Added 13%
Added 20%
Cut -37%
New
Added 3%
New
Add 333%
New
Value x
$1000
$25,110
$25,128
$25,387
$23,982
$22,923
$23,164
$23,213
$23,090
$21,313
$20,693
$19,544
$18,995
$18,150
$18,015
$17,112
$17,141
$17,082
$15,780
$14,924
$15,351
$14,766
$15,056
$14,931
$15,098
$14,612
$13,722
$13,943
$13,247
$13,294
$13,151
$12,069
$11,988
$12,318
$12,492
$11,576
$11,629
$11,886
$11,180
$10,989
$11,003
$10,760
$11,042
$10,148
$10,524
$10,502
# of Shares
1,895,120
1,252,000
514,529
40,000
713,000
550,700
165,805
896,000
1,517,500
745,688
400,000
532,510
228,011
795,000
307,000
666,200
305,576
175,000
120,000
420,000
228,361
441,000
700,000
2,291,000
285,000
361,000
845,000
249,950
189,100
365,000
473,100
6,480,070
600,000
141,712
451,300
368,000
937,399
168,500
300,000
1,897,000
150,000
330,210
635,000
650,000
57,500
www.hedgefundwisdom.com
32
Bridger Management
Roberto Mignone
Typically focuses on the healthcare
sector
Known for his sleuthing abilities on
the short side
Key Takeaways
2%3'4"$565"#$-'
804+*9:41#0!'86;,)!
<A?0%&1!64:&0!-?X1!'<6-)!
@#>1?>5#!'@(L)!
<&E&/!'<7)!
@&5-4V&!'@.8)!
*03#1!I#0?9#1!'*6<()!
6HX43#>!@4>&0?%1!'6GP)!
6&1+#>1&!"&>&5431!'6"I7)!
,4>>?3%&!.>5&05?4>E&>5!',LB)!!
!
."/,'!"89/%6%/)':&6':;-'
,&>>C@?3!@#05$?$&!',@8)!
@*B(!2H0$43?%!'@*B()!
;>A4X45&/!';LR7)!
<?094#E&!,A?0E?!'<6@.)!
<454$0#H+!'<)!<?%%1!
"#%9E?>!2?3A1!'"2)!<?%%1!
2?%4/!,A?0E?!'2-7,)!
@*,!,A?0E?!'@*,,)!
,A?0E?11&5!^!X#H$A5!#H5!
quarter.
The largest brand new stake for Bridger
is in TripAdvisor (TRIP). This company was
spun-off from Expedia (EXPE) at the end of the
fourth quarter and Bridger obviously sees a
positive path ahead for TRIP. Apart from that,
the only new stakes of any real size are
Bridgers new positions in Charles River Labs
(CRL), Wright Medical Group (WMGI),
Monsanto (MON), and Cemex (CX).
On the selling side of the portfolio, its
definitely worth highlighting Mignones sale of
45% of his position in CareFusion (CFN).
Long-time Hedge Fund Wisdom readers will
recall this company was highlighted in 2010 in
the second issue ever published. CFN was
spun-off from Cardinal Health (CAH) and past
issues have flagged large stakes held by Bridger
as well as David Einhorns Greenlight Capital,
Lee Ainslies Maverick Capital, and Andreas
Halvorsens Viking Global. All of these funds
sold CFN shares during the quarter though they
all continue to be some of the companys largest
holders.
This activity is worth drawing
attention to though, as it is the second
consecutive quarter in which Bridger has
substantially reduced its position size.
Last quarters newsletter noted that
Pharmasset was being acquired by Gilead
Sciences (GILD) and wondered whether or not
Mignones firm would continue to hold a stake
in the combined entity. Well they did, however
they sold almost 70% of the position by
quarters end.
www.hedgefundwisdom.com
33
Bridger Management
Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
Company Name
United Rentals, Inc.
Morgan Stanley
Apple Inc.
Google Inc.
Assured Guaranty Ltd.
Hyatt Hotels Corporation
TRIPADVISOR
General Motors
DIRECTV
Abbott Laboratories
HCA
Cott Corporation
Acorda Therapeutics
CareFusion Corporation
Allergan Inc.
Avis Budget Group
Starwood Hotels&Resorts
MGM Resorts
Charles River Labs
Ironwood Pharma
Gilead Sciences Inc.
Wright Medical Group
Pharmacyclics Inc.
Monsanto Co.
CEMEX, S.A.B. de C.V.
Onyx Pharmaceuticals
MetLife, Inc.
Popular Inc.
iStar Financial Inc.
Casella Waste Systems
hiSoft Technology Intl
ARCOS DORADOS
Seattle Genetics Inc.
Boston Beer Co. Inc.
Amicus Therapeutics
Bank of America Warrant
Rubicon Minerals Corp
Response Genetics, Inc
Pinnacle Entertainment
Anthera Pharmaceuticals
VERASTEM, INC.
Allison Transmission
BPZ Resources, Inc.
BPZ Resources, Inc.
BPZ Resources Notes
Ticker
URI
MS
AAPL
GOOG
AGO
H
TRIP
GM
DTV
ABT
HCA
COT
ACOR
CFN
AGN
CAR
HOT
MGM
CRL
IRWD
GILD
WMGI
PCYC
MON
CX
ONXX
MET
BPOP
SFI
CWST
HSFT
ARCO
SGEN
SAM
FOLD
BAC/WS/A
RBY
RGDX
PNK
ANTH
VSTM
ALSN
BPZ
BPZ
BPZ
Put/Call
CALL
% of
Portfolio
7.1%
7.0%
6.8%
6.6%
5.5%
5.2%
5.0%
4.9%
4.3%
3.4%
3.3%
3.0%
2.8%
2.7%
2.6%
2.5%
2.4%
2.2%
2.0%
1.7%
1.5%
1.5%
1.4%
1.4%
1.3%
1.3%
1.3%
1.2%
0.9%
0.8%
0.8%
0.7%
0.7%
0.7%
0.6%
0.6%
0.5%
0.4%
0.4%
0.3%
0.2%
0.1%
0.1%
0.1%
0.1%
Activity
Cut -36%
Unchanged
Cut -14%
Cut -21%
Unchanged
Unchanged
New
Cut -25%
Cut -35%
Unchanged
Cut -41%
Unchanged
Added 11%
Cut -45%
Unchanged
Cut -29%
Cut -22%
Add 32%
New
Unchanged
Cut -69%
New
Cut -17%
New
New
Cut -53%
New
Added 14%
Unchanged
Unchanged
Unchanged
New
Unchanged
Unchanged
Added 74%
Unchanged
New
New
New
Unchanged
New
New
Cut -36%
New
Cut -37%
Value x
$1000
$101,857
$100,808
$97,727
$95,545
$79,558
$75,512
$71,340
$69,896
$62,168
$49,645
$47,625
$43,612
$39,825
$38,895
$37,294
$36,436
$35,102
$31,871
$28,357
$25,014
$21,987
$20,933
$20,820
$20,339
$19,369
$18,840
$18,675
$17,494
$12,997
$11,174
$11,070
$10,673
$10,190
$9,718
$9,011
$8,838
$6,773
$6,000
$5,879
$3,619
$2,186
$1,791
$1,112
$913
$666
# of Shares
2,374,848
5,132,800
163,000
149,000
4,815,837
1,767,610
2,000,000
2,725,000
1,260,000
810,000
1,925,000
6,617,855
1,500,000
1,500,000
390,800
2,575,000
622,273
2,340,000
785,730
1,879,375
450,000
1,083,487
750,000
255,000
2,496,000
500,000
500,000
8,533,715
1,792,712
1,793,507
737,000
590,000
500,000
91,000
1,706,568
1,900,700
2,070,000
3,000,000
510,795
1,637,428
200,000
75,000
275,830
226,700
728,330
www.hedgefundwisdom.com
34
Bridger Management
Rank
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
Company Name
DexCom, Inc.
CurrencyShares Euro
SPDR S&P 500
Fortuna Silver Mines
iShares Brazil Index
iShares Brazil Index
MAP Pharmaceuticals
PHARMASSET
Salix Pharmaceuticals
Goldman Sachs
Banco Santander-Chile
Citigroup, Inc.
Cardiome Pharma Corp.
SPDR S&P 500
PennyMac Mortgage
PHARMASSET
MAKO Surgical Corp.
INHIBITEX INC
Ticker
DXCM
FXE
SPY
FSM
EWZ
EWZ
MAPP
VRUS
SLXP
GS
BSAC
C
CRME
SPY
PMT
VRUS
MAKO
INHX
Put/Call
PUT
PUT
PUT
CALL
CALL
CALL
PUT
% of
Portfolio
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
Activity
New
Cut -99%
New
New
New
New
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Value x
$1000
$465
$478
$465
$376
$278
$349
# of Shares
44,554
3,600
3,300
83,489
4,300
5,400
-
www.hedgefundwisdom.com
35
Leon Cooperman
Omega Advisors
Key Takeaways
2%3'4"$565"#$-'
2+04>5!L&/5&%!'2)!
(3=&>!K4>?>34?%!'(<L)!
"##$%&!'"((")!
<454$0#H+!'<)!
G?>U!#V!*E&043?!'G*<)!
N&%%1!K?0$#!'NK<)!
*E&043?>!;>5&0>?54#>?%!"0#H+!'*;")!
G%?3U15#>&!"0#H+!'G7)!
B4>9&0!@#0$?>!'B@;)!
6?>$&!6&1#H03&1!'66<)!
D&0424$>!'D62L)!
!
."/,'!"89/%6%/)':&6':;-'
./+0&11!2304+51!'.267)!
*#>!<#0+!'*(L)!
.3A#25?0!'2*82)!
@G;*!'@G;)!
K#0&15!(4%!'K28)!
<?X%&:414#>!'<D<)!
&G?C!'.G*P)!
Leon
www.hedgefundwisdom.com
36
Omega Advisors
Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
Company Name
SLM Corporation
Atlas Pipeline Partners LP
Linn Energy, LLC
Apple Inc.
El Paso Corp.
Transocean Ltd.
WellPoint Inc.
KKR FINANCIAL CORP.
Unitedhealth Group, Inc.
QUALCOMM Incorporated
Atlas Energy, L.P.
The McGraw-Hill Companies
ENERGY XXI
Citrix Systems, Inc.
XL Group plc
ALTISOURCE PORTFOLIO
Boston Scientific Corporation
JPMorgan Chase & Co.
Williams Companies, Inc.
Sprint Nextel Corp.
ETRADE Financial Corp
Lincoln National Corp.
CVS Caremark Corporation
SPDR Gold Shares
Broadridge Financial
Kohlberg Kravis Roberts & Co.
MetLife, Inc.
DISH NETWORK
Charming Shoppes Inc.
Ocwen Financial Corp.
Google Inc.
NYSE Euronext, Inc.
Denbury Resources Inc.
Anadarko Petroleum Corp
Sunoco Inc.
United Continental Holdings
Citigroup, Inc.
Bank of America Corp
Halliburton Company
Wells Fargo & Company
ACE Limited
AIG
The Blackstone Group
Given Imaging Ltd.
KINDER MORGAN, INC
Ticker
SLM
APL
LINE
AAPL
EP
RIG
WLP
KFN
UNH
QCOM
ATLS
MHP
EXXI
CTXS
XL
ASPS
BSX
JPM
WMB
S
ETFC
LNC
CVS
GLD
BR
KKR
MET
DISH
CHRS
OCN
GOOG
NYX
DNR
APC
SUN
UAL
C
BAC
HAL
WFC
ACE
AIG
BX
GIVN
KMI
Put/Call
% of
Portfolio
5.4%
3.8%
3.7%
3.5%
3.3%
3.1%
3.1%
2.8%
2.7%
2.5%
2.5%
2.5%
2.5%
2.3%
2.2%
2.2%
2.1%
2.0%
2.0%
1.8%
1.7%
1.7%
1.7%
1.7%
1.7%
1.7%
1.6%
1.6%
1.5%
1.5%
1.4%
1.4%
1.4%
1.4%
1.3%
1.3%
1.3%
1.2%
1.2%
1.1%
1.0%
0.9%
0.9%
0.9%
0.9%
Activity
Cut -3%
Cut 0%
Added 21%
Added 23%
Added 7%
Added 11%
Added 118%
Unchanged
Added 93%
Added 3%
Unchanged
Cut -12%
Cut -10%
Cut -7%
Added 6%
Added 3%
Added 4%
Added 153%
Added 7%
New
Cut -30%
Unchanged
Unchanged
Cut -44%
Added 7%
Added 4%
Added 10%
Added 22%
Added 6%
New
New
Added 11%
Unchanged
Add 303%
Cut -44%
Unchanged
New
New
Add 606%
New
Unchanged
New
New
Cut -7%
New
Value x
$1000
$269,610
$189,740
$185,188
$175,647
$163,116
$154,432
$154,110
$142,118
$133,873
$126,476
$125,118
$123,855
$122,642
$115,114
$110,848
$108,697
$102,632
$102,115
$99,366
$91,486
$87,169
$86,076
$84,683
$84,167
$82,514
$82,719
$78,894
$78,775
$75,572
$74,328
$70,440
$69,524
$67,946
$67,427
$67,224
$65,765
$65,512
$61,950
$61,836
$52,535
$51,481
$45,166
$44,606
$44,415
$42,890
# of Shares
17,107,224
5,362,918
4,854,200
293,004
5,520,000
2,823,245
2,088,207
15,430,867
2,271,348
1,859,400
3,791,447
2,555,300
3,396,343
1,458,799
5,110,537
1,792,500
17,162,600
2,220,864
3,225,108
32,100,400
7,960,609
3,265,416
1,890,255
519,100
3,451,014
5,577,787
2,112,285
2,392,200
12,808,764
4,755,440
109,850
2,316,700
3,727,127
860,700
1,762,100
3,058,836
1,792,400
6,473,400
1,863,100
1,538,800
703,293
1,465,000
2,798,400
2,371,337
1,109,700
www.hedgefundwisdom.com
37
Omega Advisors
Rank
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
Company Name
Loral Space & Comm
ATLAS RESOURCES
Range Resources Corp
VeriSign Inc.
McMoRan Exploration Co.
Phillips-Van Heusen Corp.
Seagate Technology PLC
Regal Entertainment Group
Western Union Co.
Gannett Co., Inc.
Motorola Solutions, Inc.
Vodafone Group plc
Domtar Corporation
WPX ENERGY INC
SPDR S&P 500
THL Credit, Inc.
Family Dollar Stores Inc.
Ford Motor Co.
Validus Holdings
SIRIUS XM Radio Inc.
Capital One Financial Corp.
Home Loan Servicing
Lam Research Corporation
Center Bancorp Inc.
SUNCOKE ENERGY
Crown Holdings Inc.
Dean Foods Co.
Discovery Communications
NRG Energy, Inc.
eBay Inc.
Express Scripts Inc.
H&R Block, Inc.
PNC Financial Services
TEKELEC INC
Teekay Corporation
Best Buy Co. Inc.
Cablevision Systems
NutriSystem Inc.
Forest Oil Corp.
Microsoft Corporation
Ruby Tuesday, Inc.
Office Depot, Inc.
Research In Motion
iShares InvestGradeCorpBond
Warnaco Group Inc.
MedcoHealth Solutions
Aon Corporation
EchoStar Corp.
Valassis Communications
GMX Resources Inc.
MBIA Inc.
Ticker
LORL
ARP
RRC
VRSN
MMR
PVH
STX
RGC
WU
GCI
MSI
VOD
UFS
WPX
SPY
TCRD
FDO
F
VR
SIRI
COF
HLSS
LRCX
CNBC
SXC
CCK
DF
DISCK
NRG
EBAY
ESRX
HRB
PNC
TKLC
TK
BBY
CVC
NTRI
FST
MSFT
RT
ODP
RIMM
LQD
WRC
MHS
AON
SATS
VCI
GMXR
MBI
Put/Call
% of
Portfolio
0.8%
0.8%
0.7%
0.7%
0.7%
0.6%
0.5%
0.5%
0.5%
0.5%
0.5%
0.4%
0.4%
0.4%
0.4%
0.3%
0.3%
0.3%
0.2%
0.2%
0.2%
0.1%
0.1%
0.1%
0.1%
0.1%
Activity
Unchanged
New
New
New
Added 61%
Unchanged
New
Cut -50%
New
New
New
Unchanged
Cut -12%
New
Unchanged
Unchanged
New
New
Add 3637%
New
New
New
New
Unchanged
New
New
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Value x
$1000
$41,058
$40,596
$33,820
$32,658
$32,451
$31,471
$27,058
$25,829
$25,949
$23,234
$22,823
$22,226
$19,076
$18,161
$17,970
$17,009
$15,187
$12,490
$11,798
$9,332
$9,755
$6,549
$6,608
$5,466
$5,121
$4,972
# of Shares
515,800
1,537,102
581,700
851,800
3,032,800
352,300
1,004,000
1,899,225
1,474,353
1,515,600
449,000
803,256
200,000
1,008,364
127,700
1,322,607
240,000
1,000,000
381,200
4,040,000
175,000
469,817
148,100
545,000
360,414
135,000
-
www.hedgefundwisdom.com
38
Coatue Management
Key Takeaways
2%3'4"$565"#$-'
.aH4>4/!'.T;7)!
D40$4>!@&94?!'D@.I)!
-4X&05C!"%#X?%!'-G8P*)!
G0#?93#E!'G6<@)!
;>V#0E?543?!';LK*)!
L&5V%4/!'LK-7)!
2404H1!7@!6?94#!'2;6;)!
IH>U4>!G0?>91!'ILBL)!
*E&043?>!8#=&0!'*@8)!
!
."/,'!"89/%6%/)':&6':;-'
NC>>!6&1#051!'NPLL)!
KH14#>W;(!'K;()!
L&5!*++!'L8*,)!
TH4>250&&5!'TL28)!
"0&&>!@#H>5?4>!<#VV&&!'"@<6)!
<#$>4]?>5!8&3A!2#%H54#>1!'<82R)!
N4%%4?E1!2#>#E?!'N2@)!
Philippe Laffont
past).
As the proliferation of HD video
continues, this plays right into the companys
wheelhouse as they own the fastest cable
broadband network in the UK. Whats also
interesting he says is that the company is really
buying back shares (10% this year alone, 25% in
the last few years). So, they have the capacity to
literally buy back all of their shares over the
next 5 years.
The Coatue founder also made his firstever television appearance after the event
where he touched on his firms concentrated
portfolio
approach.
He
said
that,
concentration is a problem over the short-run,
but it sort of goes away over the long run. We
try to invest over the long run and are willing to
take the volatility. The less concentrated you
are, the more your returns will look like the
S&P. If you want to try to outperform, you have
to focus on your best ideas. It is something we
transmitted to investors from day one. They
understand the risk. It puts a premium on
being right. Laffont also touched on the
Facebook IPO, saying he would like to get as
many shares as possible as he really likes the
management team. Its reasonable to assume
that given Coatues prime broker relationships
and status as a well-known tech fund that they
received plenty of IPO shares. Laffont also
mentioned LinkedIn (LNKD), which he also has
a small position in, saying he thinks it could be
a completely different company in 10 years.
Lastly, he commented on his top holding: Apple
(AAPL). The hedgie first got involved with the
name back in 2003 and thinks the iPhone 5 and
potential Apple TV are good catalysts. At 5-10%
of the market, he thinks they can take much
bigger market share.
View Coatue Managements
Portfolio on the Next Page
www.hedgefundwisdom.com
39
Coatue Management
Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
Company Name
Apple Inc.
Equinix, Inc.
Google Inc.
Virgin Media, Inc.
Priceline.com Inc
QUALCOMM Inc
Liberty Global Inc.
Broadcom Corp.
Informatica Corp
Intuit Inc.
Amazon.com Inc.
Chipotle Mexican Grill
Netflix, Inc.
SIRIUS XM Radio Inc.
DUNKIN' BRANDS
Baidu, Inc.
American Tower Corp.
LINKEDIN CORP
Check Point Software
J. C. Penney Company
Research In Motion
Molycorp, Inc.
Red Hat, Inc.
NII Holdings Inc.
H&R Block, Inc.
Level 3 Communications
Digital River Inc.
AOL, Inc.
NutriSystem Inc.
STEC, Inc.
INVENSENSE INC
GROUPON INC
Nokia Corporation
Logitech International SA
Atmel Corporation
Silicon Laboratories, Inc.
Wynn Resorts Ltd.
FUSION-IO, INC
NetApp, Inc.
QuinStreet, Inc.
Green Mountain Coffee
Research In Motion Limited
Williams-Sonoma Inc.
CognizantTechnologySolutions
Ticker
AAPL
EQIX
GOOG
VMED
PCLN
QCOM
LBTYA
BRCM
INFA
INTU
AMZN
CMG
NFLX
SIRI
DNKN
BIDU
AMT
LNKD
CHKP
JCP
RIMM
MCP
RHT
NIHD
HRB
LVLT
DRIV
AOL
NTRI
STEC
INVN
GRPN
NOK
LOGI
ATML
SLAB
WYNN
FIO
NTAP
QNST
GMCR
RIMM
WSM
CTSH
Put/Call
CALL
CALL
CALL
% of
Portfolio
17.9%
11.6%
9.8%
7.0%
6.4%
6.0%
5.3%
3.4%
3.3%
3.3%
3.2%
3.2%
2.9%
2.7%
2.4%
2.1%
2.1%
1.4%
1.2%
0.9%
0.8%
0.7%
0.7%
0.6%
0.6%
0.3%
0.1%
0.1%
0.1%
0.1%
0.1%
0.0%
0.0%
0.0%
Activity
Added 15%
New
Cut -3%
New
Added 5%
Cut -3%
New
New
New
Added 51%
Cut -28%
Added 18%
New
New
New
Cut -62%
New
Cut 0%
Cut -16%
New
Add 239%
Unchanged
Cut -51%
New
Unchanged
Unchanged
Cut -57%
Cut -89%
Cut -58%
Cut -85%
New
Unchanged
New
Cut -98%
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Value x
$1000
$884,133
$572,763
$482,636
$345,193
$318,343
$297,414
$262,615
$165,834
$164,018
$160,768
$160,302
$159,320
$144,308
$133,587
$116,250
$103,775
$102,145
$68,786
$59,789
$43,830
$37,541
$36,541
$32,599
$31,662
$30,904
$13,100
$4,624
$3,713
$3,435
$2,725
$3,077
$919
$386
$178
# of Shares
1,474,661
3,637,747
752,660
13,818,739
443,684
4,369,879
5,243,914
4,219,683
3,100,535
2,672,352
791,574
381,148
1,254,415
57,829,793
3,864,679
711,909
1,620,840
674,444
936,552
1,237,083
2,553,791
1,080,136
544,328
1,729,200
1,876,360
509,122
247,130
195,700
305,875
288,641
170,000
50,000
70,300
22,800
-
www.hedgefundwisdom.com
40
Fairholme Capital
Bruce Berkowitz
Named Morningstars Fund Manager
of the Decade
Manages over $10 billion and runs a
highly concentrated portfolio, making
him ideal to track
Key Takeaways
2%3'4"$565"#$-'
(03A?09!2H++%C!'(2R)!^!1+H>W#VV!2R-I!
@&03H0C!"&>&0?%!'@<P)!
!
."/,'!"89/%6%/)':&6':;-'
"#%9E?>!2?3A1!'"2)!
Bruce
www.hedgefundwisdom.com
41
Fairholme Capital
Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
Company Name
AIG
Sears Holdings Corp
Bank of America Corp
CIT Group, Inc.
The St. Joe Company
Leucadia National Corp.
MBIA Inc.
AIG Warrant
Berkshire Hathaway Inc.
Berkshire Hathaway Inc.
Jefferies Group Inc.
Bank of America Warrant
Citigroup, Inc.
Orchard Supply Hardware
Wells Fargo Warrants
JPMorgan Chase Warrant
Mercury General Corp
Wells Fargo & Company
Assured Guaranty Ltd.
Regions Financial Corp.
Goldman Sachs Group
Ticker
AIG
SHLD
BAC
CIT
JOE
LUK
MBI
AIG/WS
BRK-A
BRK-B
JEF
BAC/WS/A
C
OSH
WFC-WT
JPM/WS
MCY
WFC
AGO
RF
GS
Put/Call
% of
Portfolio
36.3%
14.3%
12.7%
9.8%
6.1%
6.1%
5.8%
3.4%
2.5%
1.0%
0.7%
0.6%
0.2%
0.2%
0.2%
0.1%
0.0%
0.0%
0.0%
0.0%
Activity
Cut -1%
Added 4%
Cut -1%
Cut -1%
Cut -2%
Cut -1%
Cut -1%
Added 0%
Cut -61%
Cut -65%
Add 111%
Added 15%
Cut -81%
New
Added 58%
Unchanged
New
Unchanged
Unchanged
Unchanged
Sold
Value x
$1000
$2,819,861
$1,113,893
$984,165
$763,869
$474,185
$474,524
$453,303
$261,240
$191,749
$78,474
$50,817
$45,495
$14,598
$14,792
$13,045
$6,485
$3,101
$1,072
$854
$138
# of Shares
91,464,833
16,813,480
102,838,555
18,522,529
25,715,428
18,180,980
46,255,370
24,575,760
1,573
967,019
2,697,300
9,783,828
399,400
716,322
1,296,695
484,700
70,900
31,400
51,700
20,900
-
www.hedgefundwisdom.com
42
Chase Coleman
Tiger Global
Key Takeaways
2%3'4"$565"#$-'
I&3U&01!'I.<B)!
K0#>54&0!<#EEH>43?54#>1!'K86)!
*>3&150CF3#E!'*<(@)!
66!I#>>&%%&C!'66I)!
2H+&0:?%H!'2DJ)!
<0#=>!<?15%&!'<<;)!
K#3H1!@&94?!'K@<L)!
!
."/,'!"89/%6%/)':&6':;-'
<#4>15?0!'<286)!
R&3UE?>>!'R.B)!
.>9H0?>3&!2+&34?%5C!R#%94>$1!'.LR)!
,043&%4>&F3#E!',<-L)!<?%%1!
@43A?&%!B#01!'B(62)!
;*<!;>5&0?354:&!';*<;)!
www.hedgefundwisdom.com
43
Tiger Global
Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
Company Name
YANDEX N V
Apple Inc.
Google Inc.
Priceline.com Inc
Liberty Global Inc.
Visa, Inc.
Mastercard Incorporated
Liberty Global Inc.
MakeMyTrip Limited
Live Nation Entertainment
Baidu, Inc.
HOMEAWAY INC
Deckers Outdoor Corp.
Energy Select Sector SPDR
Frontier Communications
Liberty Media Corp
Viacom Inc 6.85% Pfd
Genpact Ltd.
Ancestry.com Inc.
R.R. Donnelley & Sons Co
SUPERVALU Inc.
RenaissanceRe Holdings
Amazon.com Inc.
CompaniaCerveceriasUnidas
Crown Castle International
Polypore International Inc.
Focus Media Holding Ltd.
UBIQUITI NETWORKS
Qihoo 360 Technology
LINKEDIN CORP
W.R. Grace & Co.
Sony Corporation
C&J ENERGY
Northern Oil and Gas
Northern Oil and Gas
KIT digital, Inc.
ARCOS DORADOS
hhgregg, Inc.
BITAUTO HOLDINGS
TAL Education Group
YELP INC
Ticker
YNDX
AAPL
GOOG
PCLN
LBTYA
V
MA
LBTYK
MMYT
LYV
BIDU
AWAY
DECK
XLE
FTR
LMCA
VIAB
G
ACOM
RRD
SVU
RNR
AMZN
CU
CCI
PPO
FMCN
UBNT
QIHU
LNKD
GRA
SNE
CJES
NOG
NOG
KITD
ARCO
HGG
BITA
XRS
YELP
Put/Call
CALL
CALL
PUT
% of
Portfolio
18.1%
12.4%
10.1%
9.5%
6.8%
5.4%
5.3%
3.0%
2.8%
2.6%
2.1%
2.0%
2.0%
1.9%
1.7%
1.4%
1.2%
1.2%
0.8%
0.8%
0.7%
0.6%
0.6%
0.6%
0.6%
0.6%
0.6%
0.6%
0.6%
0.5%
0.5%
0.5%
0.4%
0.4%
0.4%
0.3%
0.3%
0.2%
0.2%
0.2%
0.1%
Activity
Cut -25%
Cut -24%
Added 29%
Cut -36%
Cut -15%
Cut -10%
Cut -4%
Cut -10%
Unchanged
Cut -3%
Cut -64%
Unchanged
New
Cut -3%
New
Cut -50%
Cut -70%
Unchanged
New
New
New
Added 54%
Cut -80%
Cut -6%
New
Unchanged
New
Added 175%
New
Unchanged
New
Added 27%
Unchanged
New
New
New
Added 110%
Added 10%
Cut -37%
Unchanged
New
Value x
$1000
$1,074,800
$734,449
$598,918
$563,238
$404,396
$319,190
$311,620
$179,094
$165,037
$151,265
$126,820
$118,846
$118,219
$111,213
$100,080
$84,086
$73,088
$68,440
$45,480
$44,604
$42,825
$37,865
$36,857
$36,290
$35,471
$35,160
$35,168
$34,793
$33,114
$30,597
$30,345
$27,001
$22,238
$20,740
$20,740
$16,390
$16,781
$12,506
$8,834
$8,880
$4,034
# of Shares
40,000,000
1,225,000
934,000
785,000
8,075,000
2,705,000
741,000
3,739,703
7,184,866
16,092,048
870,000
4,691,881
1,875,000
1,550,000
24,000,000
953,898
1,540,000
4,198,790
2,000,000
3,600,000
7,500,000
500,000
182,000
461,179
665,000
1,000,000
1,400,000
1,100,000
1,354,343
300,000
525,000
1,300,000
1,250,000
1,000,000
1,000,000
2,276,400
927,645
1,098,932
1,666,761
800,000
150,000
www.hedgefundwisdom.com
44
Tiger Global
Rank
42
43
44
45
46
47
48
49
50
51
52
53
Company Name
Sears Holdings
Coinstar Inc.
Heckmann Corp
Endurance Specialty
Validus Holdings, Ltd.
Priceline.com Inc
MICHAEL KORS
IAC/InterActiveCorp.
Sears Holdings Corp
Axis Capital Holdings Ltd.
Harry Winston Diamond
Everest Re Group Ltd.
Ticker
SHLD
CSTR
HEK
ENH
VR
PCLN
KORS
IACI
SHLD
AXS
HWD
RE
Put/Call
CALL
PUT
% of
Portfolio
Activity
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Value x
$1000
# of Shares
-
www.hedgefundwisdom.com
45
John Burbank
Passport Capital
Key Takeaways
2%3'4"$565"#$-'
2,I6!2Y,!Z[[!'2,P)!,H51!
I&&0&!'I.)!,H51!
J2!L?5H0?%!"?1!'JL")!,H51!
,0&54HE!',D")!
@?5&04?%1!2&%&35!2&35#0!'7-G)!,H51!
L&5V%4/!'LK-7)!,H51!
NC>>!'NPLL)!
25!\H9&!'28\)!,H51!
@&5A?>&/!'@.(R)!
2Y,!@&5?%1!?>9!@4>4>$!'7@.)!,H51!
2#%H54?!'2(*)!
!
."/,'!"89/%6%/)':&6':;-'
*9&3#?$0#!'*"6()!
,4%$04EO1!,049&!',,<)!
J2!25&&%!'7)!
<K!;>9H1504&1!'<K)!
@&?9!\#A>1#>!LH50454#>!'@\L)!
@#1?43!'@(2)!
*%+A?!L?5H0?%!6&1#H03&1!'*L6)!
@#>1?>5#!'@(L)!
John
www.hedgefundwisdom.com
46
Passport Capital
Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
Company Name
SPDR S&P 500
Cytec Industries Inc.
iShares Russell 2000
VIVUS Inc.
SPDR Gold Shares
Marathon Petroleum
Deere & Company
Google Inc.
Liberty Media Interactive
US Natural Gas Fund LP
Apple Inc.
PRETIUM RES INCCOM
Materials Select Sector
Netflix, Inc.
Wynn Resorts Ltd.
St. Jude Medical Inc.
Methanex Corp.
SPDR Metals & Mining
Thoratec Corp.
Huntsman Corporation
Accuray Incorporated
Solutia Inc.
Praxair Inc.
Georgia Gulf Corp.
Mercadolibre, Inc.
HCA HLDGS INC COM
Timken Co.
Amazon.com Inc.
GoldMiners ETF
QUALCOMM
Family Dollar Stores Inc.
SPDR Gold Shares
Airgas Inc.
VMware, Inc.
Thomas & Betts Corp.
Owens-Illinois, Inc.
LyondellBasell Industries
Superior Energy Services
Tyco International Ltd.
Sherwin-Williams Co.
Ecolab Inc.
Procter & Gamble Co.
Boise Inc.
Sina Corp.
Teck Resources Limited
Ticker
SPY
CYT
IWM
VVUS
GLD
MPC
DE
GOOG
LINTA
XUNGX
AAPL
PVG
XLB
NFLX
WYNN
STJ
MEOH
XME
THOR
HUN
ARAY
SOA
PX
GGC
MELI
HCA
TKR
AMZN
GDX
QCOM
FDO
GLD
ARG
VMW
TNB
OI
LYB
SPN
TYC
SHW
ECL
PG
BZ
SINA
TCK
Put/Call
PUT
PUT
PUT
PUT
PUT
PUT
PUT
PUT
PUT
PUT
% of
Portfolio
27.1%
6.0%
5.9%
5.6%
3.9%
3.6%
2.8%
2.1%
2.1%
2.0%
1.9%
1.8%
1.6%
1.6%
1.5%
1.5%
1.4%
1.4%
1.3%
1.3%
1.2%
1.1%
1.1%
1.1%
1.0%
1.0%
0.8%
0.7%
0.7%
0.6%
0.6%
0.5%
0.5%
0.5%
0.5%
0.5%
0.5%
0.5%
0.5%
0.5%
0.5%
0.4%
0.4%
0.3%
0.3%
Activity
New
Cut -1%
Add 386%
Added 72%
Added 545%
Cut -37%
New
Added 393%
Cut -27%
New
Added 257%
New
New
New
New
New
New
New
Cut -44%
Added 29%
Unchanged
New
Add 304%
New
Cut -8%
Cut -3%
Added 77%
New
New
Added 297%
Added 142%
Added 8%
New
Added 511%
New
Unchanged
New
Cut -10%
Added 109%
New
Unchanged
New
Cut -21%
Added 135%
Cut -44%
Value x
$1000
$798,586
$176,710
$173,157
$165,213
$115,119
$104,459
$80,900
$62,008
$60,973
$57,312
$54,859
$53,317
$46,952
$46,016
$44,058
$44,310
$42,037
$40,257
$37,634
$37,339
$35,300
$33,075
$32,638
$32,742
$28,672
$27,904
$24,873
$21,669
$20,819
$18,601
$17,889
$16,001
$15,632
$15,732
$15,310
$15,257
$15,356
$14,972
$13,427
$13,475
$13,202
$12,817
$11,772
$10,049
$9,949
# of Shares
5,675,000
2,906,900
2,090,000
7,388,793
710,000
2,409,100
1,000,000
96,700
3,194,000
3,600,000
91,500
3,730,336
1,270,000
400,000
352,800
1,000,000
1,295,400
810,000
1,116,400
2,665,200
5,000,000
1,183,800
284,700
938,700
293,200
1,127,900
490,200
107,000
420,000
273,300
282,700
98,700
175,700
140,000
212,900
653,700
351,800
568,000
239,000
124,000
213,900
190,700
1,433,900
154,600
279,000
www.hedgefundwisdom.com
47
Passport Capital
Rank
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
Company Name
OCEAN RIG
CHEMTURA CORP
eBay Inc.
PACIFIC DRILLING
News Corp.
Nevsun Resources Ltd.
Cliffs Natural Resources
Watson Pharmaceuticals
W.R. Grace & Co.
Southern Copper Corp.
Abbott Laboratories
Alcoa, Inc.
Gilead Sciences Inc.
Rock-Tenn Co.
WebMD Health Corp.
Dendreon Corp.
Walter Energy, Inc.
Keegan Resources Inc.
Idenix Pharmaceuticals
Dollar General Corp
Allot Communications
Illumina Inc.
Las Vegas Sands
Amylin Pharmaceuticals
Ingersoll-Rand Plc
Deckers Outdoor Corp.
Deckers Outdoor Corp.
Targacept, Inc.
China Ming Yang Wind
Western Refining Inc.
NIELSEN HOLDINGS
Anheuser-Busch InBev
SPX Corporation
CARBO Ceramics Inc.
Express Scripts Inc.
Qihoo 360 Technology Co
Halozyme Therapeutics
Caterpillar Inc.
Momenta Pharma
MONSTER BEVERAGE
Key Energy Services Inc.
PioneerNatural Resources
Union Pacific Corporation
Masimo Corporation
National Oilwell Varco
Ticker
ORIG
CHMT
EBAY
PACD
NWSA
NSU
CLF
WPI
GRA
SCCO
ABT
AA
GILD
RKT
WBMD
DNDN
WLT
KGN
IDIX
DG
ALLT
ILMN
LVS
AMLN
IR
DECK
DECK
TRGT
MY
WNR
NLSN
BUD
SPW
CRR
ESRX
QIHU
HALO
CAT
MNTA
MNST
KEG
PXD
UNP
MASI
NOV
Put/Call
PUT
CALL
% of
Portfolio
0.3%
0.3%
0.3%
0.2%
0.2%
0.2%
0.2%
0.2%
0.2%
0.2%
0.2%
0.2%
0.2%
0.2%
0.2%
0.2%
0.2%
0.2%
0.2%
0.2%
0.1%
0.1%
0.1%
0.1%
0.1%
0.1%
0.1%
0.1%
0.1%
0.1%
0.1%
0.1%
0.1%
0.1%
0.1%
0.1%
0.1%
0.1%
0.1%
0.1%
0.1%
0.1%
0.1%
0.1%
0.1%
Activity
Cut -59%
Cut -58%
New
Unchanged
New
Cut -62%
Cut -43%
New
Cut -33%
Cut -74%
New
Cut -33%
New
Cut -45%
Cut -71%
New
Cut -76%
Cut -30%
New
New
New
New
Added 16%
New
New
New
New
New
Unchanged
Unchanged
Cut -5%
Cut -22%
New
Unchanged
New
Cut -53%
New
New
New
Cut -15%
Unchanged
New
New
New
Unchanged
Value x
$1000
$9,482
$7,974
$7,380
$7,205
$7,096
$6,926
$6,774
$6,706
$6,595
$6,466
$6,129
$6,120
$6,108
$5,553
$5,671
$5,328
$5,181
$5,050
$4,895
$4,851
$4,135
$4,209
$4,260
$3,744
$3,903
$3,531
$3,468
$3,210
$2,800
$2,823
$3,014
$2,712
$2,671
$2,710
$2,709
$2,738
$2,552
$2,482
$2,298
$2,422
$2,322
$2,388
$2,488
$2,338
$2,177
# of Shares
561,070
469,600
200,000
711,911
360,000
1,877,700
97,800
100,000
114,100
203,899
100,000
610,800
125,000
82,200
221,700
500,000
87,500
1,332,900
500,000
105,000
177,850
80,000
74,000
150,000
94,400
56,000
55,000
627,000
1,186,500
150,000
100,000
37,300
34,450
25,700
50,000
112,000
200,000
23,300
150,000
39,000
150,300
21,400
23,150
100,000
27,400
www.hedgefundwisdom.com
48
Passport Capital
Rank
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
Company Name
HSN, Inc.
zipRealty Inc.
TUDOU
PulteGroup, Inc.
MSC Industrial Direct
Baker Hughes
Research In Motion
Giant Interactive Group
Albemarle Corp.
Celldex Therapeutics
SandRidge Energy
Halliburton Company
NCI Building Systems
MISSION NEWENERGY
Watts Water Technologies
ITC Holdings Corp.
Tetra Tech Inc.
Pike Electric Corporation
Johnson Controls Inc.
The Andersons, Inc.
Pentair, Inc.
Rentech, Inc.
Cosan Ltd.
AVX Corp.
MYR Group, Inc.
AO Smith Corp.
Acuity Brands, Inc.
Barrick Gold Corp
Shutterfly, Inc.
The Home Depot
ADECOAGRO S.A.
Pilgrim's Pride Corp
20+ Year Treasury
NextEra Energy, Inc.
Arcelor Mittal
United States Steel Corp.
Monsanto Co.
Rowan Companies Inc.
CF Industries Holdings
Mead Johnson Nutrition
First Solar, Inc.
AK Steel Holding Corp
Mosaic Co.
Alpha Natural Resources
Trina Solar Ltd.
Ticker
HSNI
ZIPR
TUDO
PHM
MSM
BHI
RIMM
GA
ALB
CLDX
SD
HAL
NCS
MNELF
WTS
ITC
TTEK
PIKE
JCI
ANDE
PNR
RTK
CZZ
AVX
MYRG
AOS
AYI
ABX
SFLY
HD
AGRO
PPC
TLT
NEE
MT
X
MON
RDC
CF
MJN
FSLR
AKS
MOS
ANR
TSL
Put/Call
PUT
CALL
CALL
PUT
CALL
CALL
% of
Portfolio
0.1%
0.1%
0.1%
0.1%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
Activity
Added 93%
Unchanged
Added 31%
New
New
Cut -35%
Added 143%
Unchanged
Unchanged
New
Unchanged
Unchanged
New
Unchanged
New
Unchanged
Unchanged
New
Unchanged
Unchanged
Cut -21%
New
Cut -95%
Unchanged
Cut -50%
New
New
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Value x
$1000
$2,206
$2,081
$1,636
$1,416
$1,249
$1,158
$1,250
$929
$888
$509
$392
$7
$78
$4
$77
$77
$116
$83
$62
$107
$90
$83
$79
$80
$57
$76
$82
# of Shares
58,000
1,519,058
55,400
160,000
15,000
27,600
85,000
189,500
13,900
100,000
50,000
200
6,800
8,233
1,900
1,000
4,400
10,100
1,900
2,200
1,900
39,800
5,300
6,000
3,200
1,700
1,300
-
www.hedgefundwisdom.com
49
Passport Capital
Rank
136
137
138
139
140
141
142
143
144
145
146
147
148
149
150
Company Name
Wells Fargo & Company
Priceline.com Inc
YOUKU.COM INC.
Expedia Inc.
Suncor Energy Inc.
Kronos Worldwide Inc.
Quanta Services, Inc.
Dole Food Company Inc.
Monsanto Co.
Alkermes, Inc.
Tiffany & Co.
Hexcel Corp.
Vale S.A.
Acorda Therapeutics
AmericanCapitalAgency
Ticker
WFC
PCLN
YOKU
EXPE
SU
KRO
PWR
DOLE
MON
ALKS
TIF
HXL
VALE
ACOR
AGNC
Put/Call
PUT
CALL
% of
Portfolio
Activity
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Value x
$1000
# of Shares
-
www.hedgefundwisdom.com
50
Richard Perry
Perry Capital
Key Takeaways
2%3'4"$565"#$-'
./+0&11!2304+51!'.267)!
*:#>!,0#9H351!'*D,)!
2,I6!2Y,!Z[[!'2,P)!
*$>43#W.?$%&!@4>&1!'*.@)!
*%%4&9!L&:?9?!"#%9!'*LD)!
8&:?!,A?0E?!'8.D*)!<?%%1!
42A?0&1!6H11&%%!b[[[!';N@)!,H51!
!
."/,'!"89/%6%/)':&6':;-'
R&05]!'R8S)!
I#%%?0!8A04V5C!'I8")!
@#5#0#%?!@#X4%45C!'@@;)!
"##9043A!'"6)!
645&!*49!'6*I)!
6G2!,0&V&00&9!'6G2W,6)!
6G2!,0&V&00&9!'6G2W,,)!
2#H5A&0>!J>4#>!^!X#H$A5!#H5!
!
www.hedgefundwisdom.com
51
Perry Capital
Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
Company Name
Express Scripts Inc.
American Tower Corp.
Yahoo! Inc.
DELPHI
BP plc
Avon Products Inc.
Universal American Corp
Anadarko Petroleum Co
SPDR S&P 500
RBS Pfd M
Agnico-Eagle Mines Ltd.
Anadarko Petroleum Corp
RBS Pfd S
BP plc
Allied Nevada Gold Corp.
Teva Pharmaceutical
RBS Pfd T
RBS Pfd Q
iShares Russell 2000 Index
Johnson & Johnson
RBS Pfd N
North American Energy
United Community Banks
Teva Pharmaceutical
Kinross Gold Corporation
SanofiContingentValueRight
CAESARS ENTERTAINMENT
Bristol-Myers Squibb Co
Cisco Systems, Inc.
BioMarin Pharmaceutical Inc.
Edwards Lifesciences Corp.
Northrop Grumman Co
General Motors Warrants
Becton, Dickinson and Co
Arrow Electronics, Inc.
Hyatt Hotels Corporation
McGraw-Hill Companies
Intel Corporation
iShares Silver Trust
International Flavors
General Mills Inc.
Bristol-Myers Squibb
Fidelity National Financial
Wal-Mart Stores Inc.
Dollar General Corporation
Ticker
ESRX
AMT
YHOO
DLPH
BP
AVP
UAM
APC
SPY
RBS-PM
AEM
APC
RBS-PS
BP
ANV
TEVA
RBS-PT
RBS-PQ
IWM
JNJ
RBS-PN
NOA
UCBI
TEVA
KGC
GCVRZ
CZR
BMY
CSCO
BMRN
EW
NOC
GM/WS/A
BDX
ARW
H
MHP
INTC
SLV
IFF
GIS
BMY
FNF
WMT
DG
Put/Call
CALL
CALL
CALL
PUT
CALL
CALL
% of
Portfolio
12.85%
9.82%
9.53%
9.06%
6.49%
5.12%
3.99%
3.91%
3.87%
3.69%
3.32%
3.26%
3.20%
3.08%
2.60%
2.26%
2.24%
2.16%
1.82%
1.48%
1.27%
1.08%
0.95%
0.51%
0.47%
0.37%
0.29%
0.06%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
Activity
New
Added 12%
Added 23%
Cut -20%
Cut -22%
New
Unchanged
Added 7%
New
Cut -3%
New
Cut -59%
Unchanged
Cut -53%
New
New
Cut -29%
Unchanged
New
Unchanged
Cut -10%
Unchanged
Cut 0%
New
New
Cut 0%
New
New
New
New
New
New
Cut -1%
New
New
New
New
New
New
New
New
New
New
New
New
Value x
$1000
$267,107
$204,241
$198,022
$188,397
$135,000
$106,480
$82,943
$81,239
$80,547
$76,745
$68,938
$67,848
$66,576
$64,067
$53,971
$46,980
$46,672
$44,941
$37,753
$30,741
$26,348
$22,532
$19,822
$10,668
$9,790
$7,628
$5,938
$1,350
$755
$784
$778
$745
$761
$745
$739
$786
$771
$745
$785
$809
$753
$749
$759
$808
$762
# of Shares
4,930,000
3,240,886
13,010,675
5,961,919
3,000,000
5,500,000
7,694,185
1,037,000
572,026
4,668,176
2,065,258
866,067
3,986,560
1,423,700
1,659,100
1,042,600
2,456,395
2,645,164
455,900
466,051
1,630,451
4,598,466
2,033,030
236,755
1,000,000
5,650,572
402,839
40,000
35,700
22,900
10,700
12,200
45,743
9,600
17,600
18,400
15,900
26,500
25,000
13,800
19,100
22,200
42,100
13,200
16,500
www.hedgefundwisdom.com
52
Perry Capital
Rank
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
Company Name
Essex Property Trust Inc.
Microchip Technology Inc.
AFLAC Inc.
Silver Wheaton Corp.
Wynn Resorts Ltd.
Atmel Corporation
Titanium Metals Corp
Southern Copper
Pfizer Inc.
NVIDIA Corporation
United Therapeutics
Smithfield Foods
Morgan Stanley
Pepsico, Inc.
SPDR Gold Shares
Sohu.com Inc.
Human Genome Sciences
Paychex Inc.
General Motors Warrants
Amazon.com Inc.
MBIA Inc.
CARPENTER TECH
ADTRAN Inc.
Cypress Semiconductor
The Cooper Companies Inc.
RBS Pfd R
HERTZ GLOBAL HOLDING
Dollar Thrifty Automotive
MedcoHealth Solutions Inc.
Motorola Mobility Holdings
Walgreen Co.
iShares Emerging Markets
Goodrich Corp.
RBS Pfd P
The Cooper Companies Inc.
AFLAC Inc.
Rite Aid Corp.
Yahoo! Inc.
Southern Union Co.
General Motors
Ticker
ESS
MCHP
AFL
SLW
WYNN
ATML
TIE
SCCO
PFE
NVDA
UTHR
SFD
MS
PEP
GLD
SOHU
HGSI
PAYX
GM/WS/B
AMZN
MBI
CRS
ADTN
CY
COO
RBS-PR
HTZ
DTG
MHS
MMI
WAG
EEM
GR
RBS-PP
COO
AFL
RAD
YHOO
SUG
GM
Put/Call
CALL
% of
Portfolio
0.04%
0.04%
0.03%
0.03%
0.03%
0.03%
0.03%
0.03%
0.03%
0.03%
0.03%
0.03%
0.03%
0.03%
0.02%
0.02%
0.02%
0.02%
0.02%
0.01%
0.01%
0.01%
0.01%
0.01%
CALL
PUT
CALL
PUT
CALL
Activity
New
New
New
New
New
New
New
New
New
New
New
New
New
New
New
New
New
New
Cut -1%
New
New
New
New
New
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Value x
$1000
$758
$755
$676
$608
$574
$586
$542
$545
$657
$636
$721
$661
$568
$531
$405
$513
$494
$496
$512
$304
$299
$245
$299
$234
# of Shares
5,000
20,300
14,700
18,300
4,600
59,400
40,000
17,200
29,000
41,300
15,300
30,000
28,900
8,000
2,500
9,300
59,900
16,000
45,743
1,500
30,500
4,700
9,600
15,000
-
www.hedgefundwisdom.com
53
Glenview Capital
2%3'4"$565"#$-'
8&>&5!R&?%5A3?0&!'8R<)!
@3B&11#>!'@<B)!<?%%1!
*&5>?!'*.8)!
.c80?9&!K4>?>34?%!'.8K<)!
<454$0#H+!'<)!
*++%&!'**,-)!
;>$&01#%%!6?>9!';6)!
R#1+40?!'R2,)!
!
."/,'!"89/%6%/)':&6':;-'
TH&15!I4?$>#15431!'I"7)!
D4?3#E!'D;*FG)!
<D2!<?0&E?0U!'<D2)!
66!I#>>&%%&C!'66I)!
K?E4%C!I#%%?0!'KI()!
2&?$?5&!8&3A>#%#$C!'287)!
-?X#0?5#0C!<#0+!'-R)!
Key Takeaways
At
Larry Robbins
www.hedgefundwisdom.com
54
Glenview Capital
Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
Company Name
Life Technologies Corp
Crown Castle International
Flextronics International
AIG
Thermo Fisher Scientific
CIGNA Corporation
Fidelity National Info
Cardinal Health, Inc.
BMC Software Inc.
Xerox Corp.
HCA HLDGS INC COM
Aon Corporation
Time Warner Cable Inc.
URS Corporation
Lincare Holdings Inc.
McKesson Corporation
Tenet Healthcare Corp.
Lowe's Companies Inc.
Tyco International Ltd.
McKesson Corporation
The Babcock & Wilcox Co
Health Management Assoc
Take-Two Interactive
Liberty Global Inc.
American Tower Corp.
Sealed Air Corporation
Target Corp.
Meritor, Inc.
General Motors
Aetna Inc.
Lifepoint Hospitals Inc.
ETRADE Financial Corp
Sprint Nextel Corp.
Citigroup, Inc.
Clearwire Corporation
Apple Inc.
Ingersoll-Rand Plc
Mueller Water Products
Hospira Inc.
State Street Corp.
Rovi Corporation
Express Scripts Inc.
Apollo Group Inc.
Time Warner Inc.
TRIPADVISOR
Ticker
LIFE
CCI
FLEX
AIG
TMO
CI
FIS
CAH
BMC
XRX
HCA
AON
TWC
URS
LNCR
MCK
THC
LOW
TYC
MCK
BWC
HMA
TTWO
LBTYA
AMT
SEE
TGT
MTOR
GM
AET
LPNT
ETFC
S
C
CLWR
AAPL
IR
MWA
HSP
STT
ROVI
ESRX
APOL
TWX
TRIP
Put/Call
CALL
% of
Portfolio
10.4%
5.9%
5.6%
5.2%
4.7%
4.6%
4.6%
4.5%
4.1%
3.6%
3.5%
3.2%
2.9%
2.8%
2.5%
2.5%
2.4%
2.2%
2.1%
1.6%
1.5%
1.4%
1.4%
1.3%
1.3%
1.3%
1.2%
1.1%
1.0%
0.9%
0.9%
0.9%
0.8%
0.8%
0.7%
0.5%
0.5%
0.5%
0.4%
0.4%
0.4%
0.4%
0.4%
0.3%
0.2%
Activity
Cut -15%
Cut -15%
Added 17%
Added 29%
Added 0%
Added 88%
Added 4%
Added 141%
Added 3%
Cut -2%
Cut -11%
Unchanged
Added 30%
Added 1%
Cut -1%
Cut -66%
New
Cut -13%
Cut -53%
New
Added 27%
Added 118%
Cut -12%
Added 23%
Cut -57%
Cut -22%
Cut -56%
Cut -3%
Cut -18%
New
Add 154%
New
Added 45%
New
Unchanged
New
New
Added 16%
New
Cut -14%
New
Cut -64%
New
New
New
Value x
$1000
$573,927
$327,068
$312,029
$289,354
$262,138
$253,498
$252,817
$248,206
$224,765
$201,364
$192,235
$176,132
$162,857
$152,529
$140,704
$138,778
$134,905
$123,622
$117,987
$87,770
$81,223
$75,763
$75,686
$72,849
$72,207
$71,356
$66,583
$61,714
$52,823
$51,493
$49,649
$49,172
$45,618
$42,493
$39,807
$28,838
$27,568
$25,563
$24,561
$23,558
$23,143
$21,506
$21,221
$14,349
$11,967
# of Shares
11,755,972
6,131,756
43,217,244
9,385,465
4,649,487
5,147,161
7,633,374
5,757,505
5,596,736
24,936,694
7,770,229
3,590,138
1,998,240
3,587,234
5,436,790
1,581,152
25,405,900
3,939,500
2,100,152
1,000,000
3,154,277
11,274,276
4,919,489
1,454,647
1,145,780
3,695,310
1,142,658
7,647,279
2,059,371
1,026,583
1,258,860
4,490,565
16,006,206
1,162,600
17,459,027
48,100
666,700
7,676,685
656,900
517,755
711,000
396,936
549,200
380,100
335,500
www.hedgefundwisdom.com
55
Glenview Capital
Rank
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
Company Name
Hartford Financial
HartfordFinancial Warrant
UNWIRED PLANET INC
RBS Pfd S
Citigroup Warrant
RBS Pfd N
RBS Pfd P
First American Financial
RBS Pfd R
Quest Diagnostics Inc.
Viacom Inc 6.85% Pfd
Fiserv, Inc.
R.R. Donnelley & Sons
CVS Caremark Corp
Oracle Corp.
Family Dollar Stores Inc.
Seagate Technology PLC
Expedia Inc.
Laboratory Corp
Textron Inc.
Ticker
HIG
HIG/WS
UPIP
RBS-PS
C/WS/A
RBS-PN
RBS-PP
FAF
RBS-PR
DGX
VIAB
FISV
RRD
CVS
ORCL
FDO
STX
EXPE
LH
TXT
Put/Call
% of
Portfolio
0.2%
0.1%
0.1%
0.1%
0.1%
0.0%
0.0%
0.0%
0.0%
Activity
New
Unchanged
Unchanged
Unchanged
Unchanged
Unchanged
Unchanged
New
Unchanged
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Value x
$1000
$11,472
$7,016
$5,829
$4,178
$3,682
$933
$535
$760
$330
# of Shares
544,200
526,750
2,568,031
250,000
8,561,020
57,565
32,819
45,700
20,000
-
www.hedgefundwisdom.com
56
Andreas Halvorsen
Viking Global
Key Takeaways
2%3'4"$565"#$-'
"##$%&!'"((")!
804+*9:41#0!'86;,)!!
NC>>!'NPLL)!
23A%HEX&0$&0!'2-G)!
25&043C3%&!'26<-)!
N?51#>!,A?0E?!'N,;)!
<0#=>!<?15%&!'<<;)!
R#E&!I&+#5!'RI)!
L#X%&!'L.)!
G&0U1A40&!R?5A?=?C!'G6BWG)!
"#%9E?>!2?3A1!'"2)!
;%%HE4>?!';-@L)!
8A&0E#!K41A&0!234&>54V43!'8@()!
!
."/,'!"89/%6%/)':&6':;-'
<4$>?!'<;)!
<?+45?%!(>&!'<(K)!
"4%&?9!234&>3&1!'";-I)!
K&9./!'KI7)!
@&5-4V&!'@.8)!
&G?C!'.G*P)!
./+0&11!2304+51!'.267)!
<A&:0#>!'<D7)!
I6!R#05#>!'IR;)!
8?5?!@#5#01!'88@)!
*11H0&9!"H?0?>5C!'*"()!
,4#>&&0!L?5H0?%!6&1#H03&1!',7I)!
;>A4X45&/!';LR7)!
<A&3U,#4>5!2#V5=?0&!'<RB,)!
The
www.hedgefundwisdom.com
57
Viking Global
Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
Company Name
Cisco Systems, Inc.
Google Inc.
Invesco Ltd.
LyondellBasell Industries
Mastercard Incorporated
Priceline.com Incorporated
Valeant Pharmaceuticals
U.S. Bancorp
Biogen Idec Inc.
H&R Block, Inc.
TRIPADVISOR
Citigroup, Inc.
Wynn Resorts Ltd.
Albemarle Corp.
News Corp.
Humana Inc.
Schlumberger Limited
QUALCOMM Incorporated
Cardinal Health, Inc.
Universal Health Services
Stericycle, Inc.
Estee Lauder Companies
Prudential Financial, Inc.
Carter's, Inc.
HOST HOTELS & RESORT
Texas Instruments Inc.
CareFusion Corporation
Watson Pharmaceuticals
Crown Castle International
The Home Depot, Inc.
Noble Corp.
DaVita, Inc.
Marsh & McLennan Co
Berkshire Hathaway
EOG Resources, Inc.
Goldman Sachs
Illumina Inc.
Apple Inc.
Sherwin-Williams Co.
Thermo Fisher Scientific
American Tower Corp.
Baidu, Inc.
SanDisk Corp.
JPMorgan Chase & Co.
ACE Limited
Ticker
CSCO
GOOG
IVZ
LYB
MA
PCLN
VRX
USB
BIIB
HRB
TRIP
C
WYNN
ALB
NWSA
HUM
SLB
QCOM
CAH
UHS
SRCL
EL
PRU
CRI
HST
TXN
CFN
WPI
CCI
HD
NE
DVA
MMC
BRK-B
EOG
GS
ILMN
AAPL
SHW
TMO
AMT
BIDU
SNDK
JPM
ACE
Put/Call
% of
Portfolio
5.6%
5.5%
5.4%
5.1%
4.8%
3.9%
3.7%
3.4%
3.3%
3.2%
3.0%
2.5%
2.5%
2.1%
1.9%
1.9%
1.9%
1.8%
1.8%
1.6%
1.6%
1.5%
1.3%
1.3%
1.3%
1.3%
1.2%
1.2%
1.2%
1.1%
1.1%
1.1%
1.1%
1.0%
0.9%
0.9%
0.9%
0.9%
0.8%
0.8%
0.7%
0.7%
0.7%
0.6%
0.6%
Activity
Added 335%
New
Cut -5%
Added 16%
Added 21%
Added 15%
Added 25%
Cut -39%
Added 118%
Added 0%
New
Added 324%
New
Added 26%
Added 143%
Added 21%
New
Cut -61%
Added 409%
Added 3%
New
Added 24%
Cut -35%
Added 32%
Cut 0%
Added 1%
Cut -44%
New
New
New
New
Cut -59%
Added 141%
New
Added 40%
New
New
Cut -87%
Cut -38%
New
Cut -56%
Cut -86%
Cut -47%
Cut -53%
New
Value x
$1000
$682,950
$675,482
$662,942
$621,366
$583,987
$476,036
$450,348
$415,071
$405,151
$389,853
$372,444
$308,841
$307,179
$262,355
$233,232
$232,992
$227,819
$223,313
$222,448
$192,404
$189,643
$185,344
$162,963
$161,583
$152,820
$153,248
$150,849
$149,584
$143,984
$134,967
$134,007
$133,009
$133,617
$127,478
$110,161
$108,674
$108,818
$103,902
$102,448
$99,419
$90,563
$88,307
$85,470
$78,124
$77,104
# of Shares
32,290,800
1,053,400
24,857,253
14,235,209
1,388,662
663,466
8,387,949
13,102,000
3,215,487
23,670,511
10,441,404
8,449,838
2,459,800
4,104,428
11,833,200
2,519,381
3,257,817
3,281,127
5,160,026
4,590,894
2,267,373
2,992,318
2,570,800
3,246,600
9,306,978
4,559,614
5,817,571
2,230,600
2,699,368
2,682,721
3,576,400
1,475,102
4,074,959
1,570,900
991,549
873,800
2,068,400
173,300
942,751
1,763,385
1,437,061
605,800
1,723,546
1,699,100
1,053,335
www.hedgefundwisdom.com
58
Viking Global
Rank
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
Company Name
LAS VEGAS SANDS
Agrium Inc.
MEDNAX, Inc.
Banco Santander (Brasil)
Linear Technology Corp.
Health Management Assoc
CBS CORP CL B
St. Jude Medical Inc.
Cobalt International
AmerisourceBergen
Visa, Inc.
AMERIGROUP Corp
EQT Corporation
Monsanto Co.
First Horizon National
Huntsman Corporation
Cognizant Tech Solutions
Penn West Energy Trust
Hartford Financial Services
WellCare Health Plans
Aetna Inc.
Oncothyreon Inc
BioMarin Pharmaceutical
PNC Financial Services
Coach Inc.
CIGNA Corporation
Capital One Financial Corp.
Gilead Sciences Inc.
INHIBITEX INC
Pioneer Natural Resources
FedEx Corporation
MetLife, Inc.
Assured Guaranty Ltd.
eBay Inc.
Check Point Software
Alexion Pharmaceuticals
Express Scripts Inc.
Axis Capital Holdings
Chevron Corp.
DR Horton Inc.
GRIFOLS, S.A.
Occidental Petroleum
Tata Motors Ltd.
Ticker
LVS
AGU
MD
BSBR
LLTC
HMA
CBS
STJ
CIE
ABC
V
AGP
EQT
MON
FHN
HUN
CTSH
PWE
HIG
WCG
AET
ONTY
BMRN
PNC
COH
CI
COF
GILD
INHX
PXD
FDX
MET
AGO
EBAY
CHKP
ALXN
ESRX
AXS
CVX
DHI
GRFS
OXY
TTM
Put/Call
% of
Portfolio
0.6%
0.6%
0.6%
0.6%
0.6%
0.5%
0.5%
0.5%
0.5%
0.5%
0.5%
0.4%
0.4%
0.4%
0.4%
0.3%
0.3%
0.3%
0.2%
0.2%
0.2%
0.1%
0.1%
0.1%
0.0%
Activity
New
New
Cut -22%
New
Cut -8%
Cut -10%
New
Added 59%
New
Added 729%
New
New
New
Cut -50%
New
New
New
Cut -78%
New
New
New
Added 5%
New
New
New
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Value x
$1000
$77,057
$76,168
$74,478
$72,995
$68,084
$66,354
$61,546
$57,297
$56,135
$55,889
$54,586
$52,222
$46,585
$44,234
$44,166
$42,155
$35,690
$35,084
$29,769
$23,569
$23,676
$14,223
$14,793
$10,506
$231
# of Shares
1,338,500
881,885
1,001,463
7,960,200
2,020,300
9,874,124
1,815,000
1,293,100
1,869,300
1,408,500
462,600
776,200
966,300
554,600
4,255,000
3,008,961
463,817
1,792,785
1,412,219
327,900
472,020
3,262,215
431,923
162,922
3,000
-
www.hedgefundwisdom.com
59
Thomas Steyer
Farallon Capital
Key Takeaways
2%3'4"$565"#$-'
*++%&!'**,-)!
,043&%4>&F3#E!',<-L)!
<G2!'<G2)!
.aH4>4/!'.T;7)!
N?0>?3#!'N6<)!
,0#$0&11!.>&0$C!',"L)!
N&X@I!'NG@I)!
<#+?!R#%94>$1!'<,*)!
<?0&KH14#>!'<KL)!
D<*!*>5&3A!'N((K)!
8&%H1!'8J)!
!
."/,'!"89/%6%/)':&6':;-'
.//#>!@#X4%!'7(@)!,H51!
<A&:0#>!'<D7)!,H51!
,A?0E?11&5!^!X#H$A5!#H5!
2;!<#0+!'2(L.)!
-4>U5#>&!'-8(L)!
*9:?>3&9!*>?%#$43!'**8;)!
"&#.C&!'".(P)!
R<*!R#%94>$1!'R<*)!
N&%%1!K?0$#!'NK<)!
2A?>9?!;>5&0?354:&!'2LI*)!
J>45&9!6&>5?%1!'J6;)!
LP2.!.H0#>&/5!'LP7)!
!
Thomas
www.hedgefundwisdom.com
60
Farallon Capital
Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
Company Name
El Paso Corp.
MedcoHealth Solutions
Motorola Mobility
Goodrich Corp.
Owens-Illinois, Inc.
Hudson Pacific Properties
Oracle Corp.
Visa, Inc.
State Street Corp.
Google Inc.
TransDigm Group
Apple Inc.
American Tower Corp.
Union Pacific Corporation
Target Corp.
Priceline.com Incorporated
QUALCOMM Incorporated
General Dynamics Corp.
CBS CORP CL B
News Corp.
Check Point Software
WellPoint Inc.
Progressive Waste Solutions
Equinix, Inc.
Knology, Inc.
Comcast Corporation
Pall Corp.
Warnaco Group Inc.
Fidelity National Info
Microsoft Corporation
Town Sports International
Progress Energy Inc.
BP plc
FEI Co.
Life Technologies Corp
Yahoo! Inc.
eBay Inc.
WebMD Health Corp.
Copa Holdings SA
CareFusion Corp
VCA Antech Inc.
Tenet Healthcare
Baxter International
CVS Caremark
EnCana Corp.
Ticker
EP
MHS
MMI
GR
OI
HPP
ORCL
V
STT
GOOG
TDG
AAPL
AMT
UNP
TGT
PCLN
QCOM
GD
CBS
NWSA
CHKP
WLP
BIN
EQIX
KNOL
CMCSA
PLL
WRC
FIS
MSFT
CLUB
PGN
BP
FEIC
LIFE
YHOO
EBAY
WBMD
CPA
CFN
WOOF
THC
BAX
CVS
ECA
Put/Call
% of
Portfolio
13.72%
10.14%
8.97%
7.25%
3.38%
3.20%
3.09%
3.04%
2.53%
2.47%
2.40%
2.38%
2.13%
2.09%
2.01%
1.66%
1.60%
1.58%
1.58%
1.54%
1.50%
1.48%
1.46%
1.46%
1.35%
1.25%
1.12%
1.12%
1.08%
1.06%
1.06%
0.83%
0.79%
0.70%
0.54%
0.50%
0.49%
0.48%
0.43%
0.42%
0.38%
0.29%
0.27%
0.27%
0.27%
Activity
Added 54%
Add 382%
Cut -6%
Cut -18%
Cut -31%
Unchanged
Cut -8%
Added 27%
Cut -18%
Cut -3%
Added 32%
New
Added 16%
Cut -13%
Cut -21%
New
Added 4%
Cut -22%
New
Cut -51%
Cut -8%
Cut -3%
Unchanged
New
Unchanged
Cut -53%
Cut -4%
New
Cut -44%
Cut -59%
Unchanged
New
Cut -53%
Unchanged
Unchanged
Added 69%
Added 29%
New
New
New
New
Cut -35%
Cut -76%
Cut -24%
Unchanged
Value x
$1000
$664,592
$491,046
$434,191
$351,232
$163,660
$154,838
$149,503
$147,245
$122,395
$119,527
$116,397
$115,458
$103,038
$101,031
$97,151
$80,360
$77,543
$76,682
$76,298
$74,724
$72,778
$71,586
$70,527
$70,695
$65,291
$60,620
$54,224
$54,312
$52,495
$51,116
$51,279
$40,098
$38,025
$34,005
$26,381
$23,987
$23,637
$23,150
$20,592
$20,433
$18,568
$14,087
$12,912
$13,097
$13,119
# of Shares
22,490,420
6,985,000
11,065,000
2,800,000
7,012,000
10,233,860
5,127,000
1,247,837
2,690,000
186,400
1,005,500
192,600
1,635,000
940,000
1,667,256
112,000
1,140,000
1,045,000
2,250,000
3,795,000
1,140,000
970,000
3,253,100
449,000
3,587,394
2,020,000
909,336
930,000
1,585,000
1,585,000
4,060,082
755,000
845,000
692,428
540,364
1,576,000
640,745
905,000
260,000
788,000
800,000
2,652,900
216,000
292,336
667,636
www.hedgefundwisdom.com
61
Farallon Capital
Rank
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
Company Name
Fuel Systems Solutions
TELUS Corporation
Illumina Inc.
Westport Innovations
Potash Corp
Fresh Del Monte Produce
Schlumberger Limited
NOVADAQ TECH
Chiquita Brands
Tata Motors Ltd.
SanofiContingentValueRight
LOOPNET INC COM STK
Ultra Petroleum Corp.
LPL INVESTMENT
FLIR Systems, Inc.
Dole Food Company Inc.
Horsehead Holding Corp.
Beacon Roofing Supply
TUDOU HOLDINGS
DELPHI
DigitalGlobe, Inc.
SAVIENT PHARMA
Cninsure Inc.
ADECOAGRO S.A.
Exxon Mobil Corp.
Chevron Corp.
PHARMASSET, INC. COM
SI CORPORATION
Linktone Ltd.
ADVANCED ANALOGIC
GeoEye, Inc.
BLUE COAT SYS
HCA HLDGS INC COM
Wells Fargo & Company
PHARMASSET, INC. COM
SHANDA INTERACTIVE
United Rentals, Inc.
NYSE Euronext, Inc.
Ticker
FSYS
TU
ILMN
WPRT
POT
FDP
SLB
NVDQ
CQB
TTM
GCVRZ
LOOP
UPL
LPLA
FLIR
DOLE
ZINC
BECN
TUDO
DLPH
DGI
SVNT
CISG
AGRO
XOM
CVX
VRUS
SONE
LTON
AATI
GEOY
BCSI
HCA
WFC
VRUS
SNDA
URI
NYX
Put/Call
PUT
PUT
PUT
% of
Portfolio
0.26%
0.23%
0.21%
0.20%
0.17%
0.16%
0.16%
0.15%
0.14%
0.13%
0.13%
0.11%
0.11%
0.10%
0.08%
0.07%
0.05%
0.05%
0.04%
0.03%
0.02%
0.01%
0.01%
0.01%
Activity
Added 8%
New
New
Unchanged
Unchanged
Added 19%
New
New
Unchanged
Cut -39%
Unchanged
New
New
Unchanged
Unchanged
Unchanged
Unchanged
Cut -79%
New
Unchanged
New
Unchanged
Unchanged
New
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Value x
$1000
$12,738
$11,365
$10,259
$9,583
$8,473
$7,964
$7,636
$7,350
$6,652
$6,244
$6,143
$5,540
$5,354
$5,054
$4,105
$3,629
$2,427
$2,339
$1,852
$1,497
$1,067
$654
$500
$323
# of Shares
486,945
200,000
195,000
234,200
185,455
348,682
109,200
1,103,800
756,727
231,514
4,550,000
295,000
236,600
133,206
162,182
363,636
213,100
90,790
62,700
47,368
80,000
300,000
80,000
29,887
-
www.hedgefundwisdom.com
62
This is a free past issue. The new issue is available at: www.hedgefundwisdom.com
Carl Icahn
Icahn Capital
Key Takeaways
2%3'4"$565"#$-'
>M?!
!
."/,'!"89/%6%/)':&6':;-'
@#5#0#%?!2#%H54#>1!'@2;)!
.%!,?1#!'.,)!
!
www.hedgefundwisdom.com
63
Icahn Capital
Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
Company Name
Icahn Enterprises
Federal-Mogul Corp.
Motorola Mobility
Forest Labs
Amylin Pharma
CVR Energy, Inc.
Hain Celestial Group
Navistar International
American Railcar
Mentor Graphics Corp.
Oshkosh Corporation
WebMD Health Corp.
Commercial Metals
Take-Two Interactive
Enzon Pharma
Dynegy Inc.
Motricity, Inc.
Motorola Solutions
El Paso Corp.
Ticker
IEP
FDML
MMI
FRX
AMLN
CVI
HAIN
NAV
ARII
MENT
OSK
WBMD
CMC
TTWO
ENZN
DYN
MOTR
MSI
EP
Put/Call
% of
Portfolio
41.0%
13.5%
10.4%
9.4%
3.7%
3.4%
3.2%
3.0%
2.9%
2.5%
2.1%
1.8%
1.6%
1.2%
0.4%
0.1%
0.1%
Activity
Added 17%
Unchanged
Cut -14%
Unchanged
Unchanged
Add 229%
Unchanged
Unchanged
Unchanged
Unchanged
Unchanged
Added 18%
Cut -9%
Unchanged
Unchanged
Unchanged
Unchanged
Sold
Sold
Value x
$1000
$4,008,551
$1,314,590
$1,020,240
$914,487
$358,973
$336,628
$312,390
$293,320
$278,568
$239,547
$200,774
$171,400
$154,958
$112,397
$40,389
$10,104
$7,460
# of Shares
92,812,051
76,385,255
26,000,000
26,361,686
14,381,925
12,584,227
7,130,563
7,251,426
11,848,898
16,120,289
8,665,260
6,700,525
10,455,991
7,305,626
5,904,863
18,042,212
6,782,039
-
www.hedgefundwisdom.com
64
Barry Rosenstein
JANA Partners
Key Takeaways
2%3'4"$565"#$-'
I40&38D!'I8D)!
<#:&>50C!R&?%5A<?0&!'<DR)!
R&11!'R.2)!
D415&#>!'D<)!
G?0>&1!Y!L#X%&!'GB2)!
<#3?!<#%?!.>5&0+041&1!'<<.)!
*:41!GH9$&5!'<*6)!
250?C&0!.9H3?54#>!'286*)!
I?0%4>$!'I*6)!
<?0>4:?%!'<<-)!
L#0V#%U!2#H5A&0>!'L2<)!
K#0&15!(4%!'K28)!
!
."/,'!"89/%6%/)':&6':;-'
<C5&3!'<P8)!
6#3U!8&>>!'6B8)!
-4V&!8&3A>#%#$4&1!'-;K.)!
2H>#3#!'2JL)!
804+*9:41#0!'86;,)!
@?004#55!D?3?54#>1!'D*<)!
R<*!R#%94>$1!'R<*)!
"##$%&!'"((")!
G@<!2#V5=?0&!'G@<)!
I&%+A4!'I-,R)!
Jana
www.hedgefundwisdom.com
65
JANA Partners
Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
Company Name
Marathon Petroleum
El Paso Corp.
DIRECTV
Expedia Inc.
Energizer Holdings Inc.
Liberty Media Corp
McGraw-Hill Co
Apple Inc.
Coventry Health Care Inc.
Motorola Solutions, Inc.
Anadarko Petroleum
Hess Corporation
Visteon Corp
Barnes & Noble, Inc.
Coca-Cola Enterprises Inc.
Liberty Media Interactive
Avis Budget Group, Inc.
Comverse Technology Inc.
Strayer Education Inc.
Netflix, Inc.
SEMGROUP CORP A
Darling International Inc.
Carnival Corporation
Norfolk Southern Corp.
SPDR Gold Shares
Forest Oil Corp.
Anadarko Petroleum Corp
Convergys Corporation
SUNCOKE ENERGY
Opko Health, Inc.
Marathon Petroleum
Life Technologies Corp
Rock-Tenn Co.
Cytec Industries Inc.
Savient Pharmaceuticals
Sunoco Inc.
WPX ENERGY INC
TRIPADVISOR
MARRIOTT VACATIONS
HCA HLDGS INC COM
Google Inc.
BMC Software Inc.
EXELIS INC
DELPHI
Ticker
MPC
EP
DTV
EXPE
ENR
LMCA
MHP
AAPL
CVH
MSI
APC
HES
VC
BKS
CCE
LINTA
CAR
CMVT
STRA
NFLX
SEMX
DAR
CCL
NSC
GLD
FST
APC
CVG
SXC
OPK
MPC
LIFE
RKT
CYT
SVNT
SUN
WPX
TRIP
VAC
HCA
GOOG
BMC
XLS
DLPH
Put/Call
CALL
CALL
% of
Portfolio
11.5%
6.6%
6.5%
5.4%
5.4%
5.3%
5.3%
4.9%
4.7%
4.7%
4.1%
4.1%
3.2%
3.0%
3.0%
2.6%
2.3%
2.1%
2.0%
1.9%
1.7%
1.6%
1.6%
1.5%
1.2%
1.0%
0.9%
0.7%
0.6%
0.5%
Activity
Cut -61%
Added 7%
New
Added 29%
Added 78%
Added 12%
Cut -70%
Cut -23%
New
Added 123%
Added 3%
New
New
New
New
Cut -15%
New
Added 22%
New
Cut -39%
Cut -27%
New
New
New
Added 43%
New
New
Added 6%
New
Added 34%
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Value x
$1000
$279,851
$160,739
$157,959
$131,782
$131,691
$128,722
$128,205
$119,479
$115,017
$113,749
$99,880
$99,612
$77,133
$73,844
$73,361
$63,142
$55,511
$51,462
$48,450
$45,830
$41,625
$38,624
$38,042
$36,426
$27,903
$24,842
$22,562
$16,636
$15,283
$12,682
# of Shares
6,454,131
5,439,559
3,201,441
3,940,857
1,775,288
1,460,256
2,645,031
199,281
3,233,532
2,237,823
1,274,954
1,689,767
1,455,335
5,573,111
2,565,073
3,307,615
3,923,050
7,490,821
513,900
398,383
1,428,453
2,217,233
1,185,851
553,332
172,115
2,049,704
288,000
1,246,168
1,075,491
2,681,193
-
www.hedgefundwisdom.com
66
Alan Fournier
Pennant Capital
Key Takeaways
2%3'4"$565"#$-'
,043&%4>&F3#E!',<-L)!
N*G<(!'NG<)!
<?>?94?>!L?5H0?%!6&1#H03&1!'<LT)!
!
."/,'!"89/%6%/)':&6':;-'
2+04>5!L&/5&%!'2)!
*X&030#EX4&!Y!K453A!'*LK)!
2CE&50?!K4>?>34?%!'2P*)!
G?X3#3U!Y!N4%3#/!'GN<)!
N4%%41!"0#H+!'N2R)!
www.hedgefundwisdom.com
67
Pennant Capital
Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
Company Name
DaVita, Inc.
TransDigm Group
Fidelity National Info
QUALCOMM Incorporated
WellPoint Inc.
Dollar General Corporation
Apple Inc.
NVR Inc.
TRIPADVISOR INC COM
Family Dollar Stores Inc.
HUNTINGTON INGALLS
Terex Corp.
Sensata Technologies
Coca-Cola Enterprises Inc.
WESCO International Inc.
Union Pacific Corporation
Priceline.com Incorporated
Unitedhealth Group, Inc.
Citigroup, Inc.
WABCO Holdings Inc.
Range Resources Corp
Google Inc.
PHH CORP
Pfizer Inc.
Hologic Inc.
Old Republic Intl
AEROFLEX HOLDING
Middleby Corp.
Universal Stainless & Alloy
Petroleo Brasileiro
Valero Energy Corp.
Quest Diagnostics Inc.
Fluor Corporation
PHH CORP NOTE
Foster Wheeler AG
Broadcom Corp.
Canadian Natural
Amgen Inc.
Human Genome Sciences
Sprint Nextel Corp.
Abercrombie & Fitch Co.
Symetra Financial Corp
The Babcock & Wilcox Co
Willis Group Holdings
Ticker
DVA
TDG
FIS
QCOM
WLP
DG
AAPL
NVR
TRIP
FDO
HII
TEX
ST
CCE
WCC
UNP
PCLN
UNH
C
WBC
RRC
GOOG
PHH
PFE
HOLX
ORI
ARX
MIDD
USAP
PBR-A
VLO
DGX
FLR
PHH
FWLT
BRCM
CNQ
AMGN
HGSI
S
ANF
SYA
BWC
WSH
Put/Call
% of
Portfolio
6.3%
6.2%
6.0%
5.7%
4.8%
4.6%
4.4%
4.2%
4.1%
4.1%
4.0%
3.9%
3.7%
3.4%
3.1%
3.1%
2.9%
2.9%
2.7%
2.5%
2.3%
2.0%
1.9%
1.9%
1.6%
1.2%
0.9%
0.8%
0.7%
0.6%
0.6%
0.6%
0.6%
0.5%
0.4%
0.4%
0.2%
0.2%
0.1%
Activity
Cut -6%
Cut -15%
Cut -9%
Cut -15%
Added 2%
Cut -4%
Cut -23%
Added 19%
Cut -15%
Added 17%
Added 23%
Cut -2%
Cut -4%
Cut -1%
Cut 0%
Cut 0%
New
Cut -1%
Added 13%
New
Cut -1%
Cut -1%
Unchanged
Unchanged
Cut -15%
Cut -1%
Added 6%
Cut -10%
Unchanged
Cut -7%
Cut -13%
Cut -4%
Cut -7%
Unchanged
Added 40%
Cut -20%
New
Added 13%
Add 374%
Sold
Sold
Sold
Sold
Sold
Value x
$1000
$279,543
$274,754
$266,256
$253,441
$210,101
$204,505
$194,227
$187,475
$182,661
$181,442
$174,943
$171,526
$162,857
$149,409
$137,884
$137,495
$129,868
$127,035
$120,291
$110,163
$101,589
$88,805
$85,249
$82,803
$70,404
$52,495
$39,377
$34,685
$29,296
$27,349
$26,028
$25,072
$24,616
$23,931
$15,818
$15,720
$10,784
$9,176
$3,626
# of Shares
3,100,181
2,373,482
8,039,144
3,723,781
2,846,892
4,426,516
323,955
258,113
5,120,850
2,867,281
4,347,499
7,623,370
4,864,316
5,224,106
2,111,224
1,279,263
181,000
2,155,331
3,291,122
1,821,471
1,747,316
138,489
5,510,629
3,656,574
3,267,027
4,975,868
3,534,708
342,809
685,770
1,070,000
1,010,000
410,000
410,000
23,900,000
695,000
400,000
325,000
135,000
440,000
-
www.hedgefundwisdom.com
68
Equity Analysis:
Investment Thesis Summaries
Overview
These analytical summaries examine why a hedge fund was buying a specific stock and what
their potential investment thesis could be. Written by hedge fund analysts, this section highlights
stocks that saw large hedge fund buying in the quarter. When presenting an investment idea to a fund
manager, an analyst outlines numerous aspects of a thesis. This section aims to briefly summarize the
following bullet points:
-
Company background
The business model & current situation
The investment thesis
The bull case versus the bear case
Market valuation
Potential catalysts (if any)
Hedge fund activity in the stock
This quarters issue features a write-up on a company seeing robust secular growth trends and
REIT-ification optionality versus threat of low-price competition from wholesalers and fear of
overcapacity:
-
Equinix (EQIX)
Also included is an investment thesis summary of a company with a superior product but
competition might be catching up:
-
Tempur-Pedic (TPX)
Lastly, this issue features analysis of a company combating industry slowdown with companyspecific growth levers (but its trading at the top of its historical valuation range):
-
Autozone (AZO)
www.hedgefundwisdom.com
69
Investment Thesis
Summary
Equinix (EQIX)
Company Background
EQIX was founded in 1998 by ex-DEC managers who believed that the proliferation of internet
networks and rapid growth in the infrastructure would need hubs to bring the networks together in
order to efficiently exchange data. The company has become a leader in IT infrastructure collocation
and network interconnections. EQIX has the most data centers globally in strategic high-density
locations in order to provide close proximity to the largest number of end-users as well as companies
that are outsourcing their IT.
Data centers offer access to locations with technology, power, and security required to host
other companies servers. Collocation qualifies as property-generated revenue, which is relevant to
the REIT structure. In addition to collocation, EQIX offers interconnections and managed
infrastructure as value-added services. Interconnection refers to connecting one network to another
so that they can exchange data.
If an internet user is using a network like AT&T, but he needs to access data from a company
that is relying on Sprints network, then data needs to get exchanged, or hop from one network to the
other. In a data transmission, data may require a number of hops if the intermediaries or facilitators
dont have both networks physically located in the same area. The more hops involved in a
transmission, the greater the delay. As data consumption increases exponentially and clients need
ever faster access to data, e.g., high-frequency traders or video viewing, the growing need for localized
ecosystems with as many networks and companies at the same place as possible is filled by companies
like EQIX.
EQIX operates state-of-the art facilities with all the power, cooling, and security required. The
company has targeted specific verticals with low latency needs, and worked on bringing many
customers in the same locations, so that they could all benefit from faster data transfers. A great
example is the financial industry, where brokers, data providers, and traders can all be hosted in
machines that are very close to each other and can thus exchange data without the delay of rerouting
them through different networks and data exchange providers.
A Look at the Industry
Q1 2012
www.hedgefundwisdom.com
70
Equinix (EQIX)
www.hedgefundwisdom.com
71
Equinix (EQIX)
Of the
retailers,
EQIX is the
largest with
a $7 billion
market cap,
a $9.2 billion
EV, and it
trades at 13x
EV/EBITDA.
Valuation
Q1 2012
www.hedgefundwisdom.com
72
Equinix (EQIX)
Valuation
On the trading side, TCY is the closest comparable to EQIX, and on the transaction side, SVVS
is the most relevant. TCY trades at 16x EV/EBITDA and SVVS was acquired for 13x EBITDA.
Historically, EQIX seems to trade around 10-15x EBITDA. Therefore, the current 13x multiple seems
fair, though it likely already incorporates at least in part investors expectation that the company
will eventually convert into a REIT. At this valuation, the company needs to deliver consistently
strong results quarter after quarter. Any slip up in customer churn or pricing could cause investors to
get concerned about the opportunity.
The upside from a REIT conversion can be assessed by comparing EQIX to the wholesalers,
who trade at 15-18x EBITDA. Assuming a mid-range multiple of 16.5x would imply upside of 35%. At
DLRs multiple, EQIX would have a 50% upside. EQIX is projected to grow faster than the REIT
wholesalers in the next few years as it can utilize its strong cashflow and has many opportunities to
expand. This would justify a premium multiple, but the uncertainty in the timing of the conversion is
an offset.
It is more difficult to assess the probability and timing of a potential conversion. In order to
qualify for a REIT, EQIX needs to generate at least 75% of rental-type sales and dividend at least 90%
of its taxable income to shareholders every year. On the former, EQIXs sales mix is currently very
close to the 75% minimum requirement, which doesnt give it a lot of room for any change in the mix
and limits its expansion opportunities into more service-based revenue. On the latter, it currently has
high CAPEX plans for the next few years, so converting at this point might be premature because it
would limit its capital flexibility.
There are tradeoffs to the REIT structure, and it may be that EQIXs business model may not
have matured enough yet to pursue a conversion. The timeframe from starting the process, preparing
the company, and eventually converting into a REIT is estimated at 2 years based on the recent
experience at American Tower (AMT). Since EQIX is currently just evaluating the option, it could be
a 3-5 year event.
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Equinix (EQIX)
Summary
EQIX is a leader in a market fueled by strong secular growth trends and it trades at a
reasonable multiple. Substantial upside can come from market outgrowth or from the conversion into
a tax-efficient REIT structure. On the other hand, the REIT structure has been under evaluation for
years, and it takes years to implement. EQIXs business and strategy may not be compatible with the
REIT structure. Also, it faces increasing competition from wholesale data center providers, who offer
a much cheaper alternative.
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Growth Story
Tempur-Pedic (TPX)
Company Background
TPX is headquartered in Lexington, KY, has annual sales of $1.4bn, and a market capitalization
of $2.9bn. It is the largest manufacturer, marketer, and distributor of specialty bedding (no springs
or coils) with ~25% market share. It makes high-end mattresses that are more comfortable because
they use temperature-sensitive high-density visco-elastic (memory foam) material that conforms to
your body. Its beds and pillows relieve pressure and align the neck and spine, thus alleviating back
pain. The beds are typically priced at more than $1K. The primary competitor is Select Comfort
(SCSS), which makes its own specialty bed, the Sleep Number bed, which allows a couple of set the
firmness on their side of the bed individually.
The National Aeronautics and Space Administration (NASA) developed a visco-elastic
pressure-relieving material to cushion astronauts from the G-force experienced during lift-off, a
material that became available to the public in the 1980s. A Swedish company developed a
commercial material in the early 1990s and produced the first Tempur-Pedic mattress. The owners of
the Swedish company gave the rights to a company that was formed in the US to introduce the
mattress to the market. This company, along with other international distributors of the mattresses
merged in the late 1990s. In late 2002, the private equity firms TA Associates and Friedman,
Fleischer and Lowe bought the holding company for ~$400mm, and then took it public in December
2003. Mattress companies have been the target of private equity firms because the bedding market is
quite stable and the industry has very low capital investment requirements. The high cashflow
generation means that the companies can support high loads of debt, repay them quickly, and buy
back shares. However, in the case of Tempur-Pedic, the investment was made to support expansion
because of the large market opportunity with a superior and differentiated product.
TPXs strategy is to be very focused on customer needs and innovate its bedding in order to
always offer the most comfortable sleeping surfaces possible. More than 2/3 of its sales come from
mattresses, 90% of which are sold through the retail channel (furniture stores) and the rest are sold
direct, through chiropractors, or 3rd-party distributors. Retail sales carry a 50% gross margin, while
direct sales have an 80% margin. 2/3 of the sales are domestic with a 50% gross and 20% operating
margin; the international sales have 5-10% higher margins and are growing faster due to the lower
penetration. The other 1/3 of sales comes from pillows, adjustable bed bases, and other products,
which can have even higher margins.
TPX IPO'd in mid-Dec 2003 at $14 and hit a pre-crisis peak of $37 in late 2007. It troughed
below $5 in March 2009, and in mid-April 2012 hit its all-time high of $86. During 1Q12, the stock
traded in the range of $53 to $84. Since disappointing investors on its earnings call on April 19, it has
dropped 45% to $46. After it IPO'd, TPX had $600mm in annual sales and was trading at ~10x
EV/EBITDA. By late 2007, when the stock price hit a high, the sales run-rate had almost doubled.
But by mid-2009 it had dropped close to its IPO levels. Since the financial crisis, it has doubled.
Q1 2012
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Tempur-Pedic (TPX)
Growth Story
Industry Background
The US mattress market is a $6bn
industry, and the international market is
double the size. Traditional mattresses are
made with coils or springs and account for 90%
of the units but 75% of the sales because of
their lower average sales price (ASP). Specialty
mattresses dont use coils or springs but rather
rely on specialty materials. They account for
the rest of the units and sales, with an ASP
usually 3.5x that of a traditional mattress.
Historically, the industry has been
dominated by 4 large players who control
>50% of the market: Select Comfort, Sealy,
Simmons, and Serta. The first two are public
and the last two are private companies. They
are referred to as the 4Ss.
Select Comfort (SCSS) has $750mm
sales and a $1.4bn market cap. SCSS is TPXs
main competitor in specialty bedding and is
considered a rapidly rising major player in the
segment with its Sleep Number bed. The
company was formed in 1987 from an employee
who left Comfortair, a company that invented
adjustable air-supported sleep systems. As it is
smaller and has lower brand awareness, it is
considered to have the highest growth
potential.
Sealy (ZZ) used to be the leading
mattress manufacturer, but it has recently been
overtaken as its sales have been on a decline. It
has been unable to compete in the high-growth
specialty bedding segment. It is the maker of
the PosturPedic brand and has $1.2bn sales,
but its market cap is only $165mm, 1/10th of
what it was in 2007. It was bought by KKR (the
companys 3rd private equity owner) from Bain
Capital for $1.5bn in 2004, but since the IPO in
2006 the stock price has declined ~90%. The
company was founded in the late 1800s.
Simmons is a private company, has a
135-year history in the industry, and is the
maker of the BeautyRest and NaturalCare
Valuation
Q1 2012
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76
Growth Story
Tempur-Pedic (TPX)
Valuation
In 1Q, the stock traded in the range of $53 - $84, and its currently at $46. Analysts expect the
mattress industry to grow at a rate of only a few percent over the next few years, but specialty bedding
is forecasted to grow 2-3x as fast. TPX also has international growth opportunities, where its
penetration is significantly lower than in the US. It is estimated that TPX will be able to grow top line
at a 15% clip for at least a few years. EPS should grow at >20% based on operating leverage and free
cashflow deployment in the form of share buybacks.
TPX has a market cap of $2.9bn and net debt of $0.4bn for an EV of $3.4bn. It trades at 8.3x
2011 EBITDA and 7.6x consensus 2012 EBITDA. Historically, it has traded in the 6-12x LTM EBITDA
range, with an average of ~9x, which would imply a <10% upside. On a P/E basis, it trades at 14x
2011 EPS, 12x 2012 EPS, and 10x 2013 EPS. Historically, it has usually traded in the 10-30x range,
averaging 20x. However, as the company is transitioning from a high-growth, low-hanging-fruit story
to a more mature company where growth comes from tougher incremental penetration and its facing
increasing competition from other established layers, the multiple will probably have to compress. A
mid-to-lower range 15-17.5x multiple sounds reasonable, which would imply 7-25% upside.
The two publicly-traded peers are SCSS and ZZ, with SCSS being a more direct comparable to
TPX. SCSS has a market cap of $1.4bn and an EV of $1.2bn. It trades at an EV/EBITDA of 11x LTM
and almost 9x 2012, and a P/E of 21x LTM, 17x 2012 and 14x 2013. It is smaller than TPX $750mm
sales, so it is considered to have higher growth potential as it catches up with a very similar strategy
and business model.
ZZ is a bigger player in traditional mattresses and is highly levered following the LBO
recapitalization by KKR in 2004. It has a market cap of $165mm and an EV of $850mm. It is trading
at an EV/EBITDA of 7x LTM and 2012 as analysts dont project any growth, and a P/E of ~40x for
both LTM and 2012. As a highly levered company that is close to breakeven in terms of profitability,
small changes in growth or efficiency can have a dramatic impact on the P/E ratio, which is expected
to drop to 16x of 2013 earnings. Despite being the worst-positioned company, ZZ has the highest
2013 EPS multiple because it is more of a turnaround story with low margins and the opportunity to
compete more aggressively in the premium segment of the market.
Compared to its peers especially SCSS TPX seems to have 15% upside to SCSS 2012
EV/EBITDA multiple and 40% to SCSS 2013 EPS multiple. Assuming that SCSS deserves a premium
multiple for its higher growth prospects still indicates that a ~20% might be reasonable. In early May,
TPX was trading at $60 (30% higher than the current price level), and before its earnings in mid/lateApril it was trading above $80 (80% higher).
Current Situation
Q1 2012
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77
Growth Story
Tempur-Pedic (TPX)
Current Situation
Following its 1Q earnings call after the market close on April 19th, TPX shares lost 20% from
$84 to $67. The company reported robust growth of 18% in sales, which was in line with analyst
expectations, as were its earnings. However, the impression is that the industry grew faster than TPX,
which was a big blow to the stock. Also, the company reaffirmed its 2012 guidance of $3.80-3.95 on
$1.6bn of sales, which fell short of consensus of $4.06 EPS and $1.7bn sales. Analysts became less
sanguine about the stocks growth prospects because of intensifying competition in the specialty
bedding segment and the potential of cannibalization from the introduction of lower-priced beds.
More intense competition in specialty beds will translate into slower growth for TPX and
potentially lower prices and margins. Also, TPX has been focused on the higher end of the premium
segment with very few low-priced offerings. In order to continue growing, it has to expand its product
line into lower-priced products. These products may satisfy some of TPXs current customers, thus
resulting in a down-mix shift.
On May 7, TPX made a surprise announcement that it will be offering its Cloud Supreme
mattress on sale from mid-May to July. Offering sales discounts is very uncharacteristic of TPX and
goes against its strategy, which is why the market reacted so negatively. The stock lost almost 20%
within a couple of days as the move was interpreted as a red flag that could signal deeper fundamental
issues and slowing growth.
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Growth Story
Tempur-Pedic (TPX)
Summary
Hedge funds have been attracted to TPX because of its strong balance sheet, shareholder-friendly
management, robust growth, and solid execution. It has all the ingredients to continue growing
earnings at a rapid pace. However, competition is intensifying and what has made TPX successful
can also be viewed as a source of risk to the relatively rich valuation: growth can slow down with more
players, and margins can compress. The stock price took a big hit following disappointing guidance
and concerns that the company needs to resort to discounts in order to boost sales.
*** Since publication, shares of TPX have fallen over 30% on the concerns
highlighted above Next: Analysis of AutoZone (AZO)
Q1 2012
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79
AutoZone (AZO)
Hedge Fund Activity
Steve Mandels Lone Pine Capital established a
new $400 million position in AutoZone (AZO) during
the quarter. Scout Capital and Hoplite Capital also
started new positions in the name. Whats interesting
is that many hedge funds are becoming interested in
the stock just as large stakeholder Eddie Lampert and
his RBS Partners have been selling shares.
Company Background
AZO is the largest retailer of automotive parts and accessories. It was
founded in 1979 as part of a wholesale grocer by one of the grocers founders,
at which time it was known as Auto Shack. Within 5 years it grew from 1 store
to almost 200. At that time, the grocers management believed that the entire
company was undervalued, so they approached and eventually completed a
management buyout with KKR in 1984.
By 1987, it was evident that the auto parts business was the most
promising division, so KKR with management decided to spin it out and sell
the grocer. That was the year of the name change to AutoZone. With KKRs
assistance, AZO grew very rapidly by investing in new technologies, leveraging
infrastructure, and building out its store network. AZO IPOd in 1991 at a $1bn
valuation. KKR retained 2/3 ownership following the IPO and eventually
exited in 1996. In 1998, Eddie Lampert / RBS Partners became a significant
shareholder. Currently, AZO has ~4,900 retail stores.
Industry Background
Q1 2012
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AutoZone (AZO)
Industry Background
The auto parts aftermarket has two segments: the Do It Yourself (DIY) segment, which caters to
car owners looking to repair and maintain their vehicles without the help of professionals; and the Do
It For Me (DIFM) or commercial segment, which caters to individuals who pay service shops for
repairs and maintenance. Through commercial sales programs, retailers deliver auto parts to local
garages, auto dealers, and service stations. DIY is a $44bn market and has been growing at a 4%
annual rate. DIFM is a larger and highly-fragmented market growing at a slightly slower pace.
The main driver-dynamics in the industry are: the increasing age of vehicles on the road
increases the demand for replacement parts as older vehicles break down more frequently (especially
relevant are cars 7 years or older as they come out of warranty), the decreasing number of miles driven
is negative for demand because of the slower wear and tear of the cars, increasing gas prices can make
customers more budget conscious about maintenance, as well as eventually shift their focus to the
purchase of new cars that are much more fuel efficient.
The auto parts aftermarket has been benefiting from a tailwind in the aftermath of the financial
crisis. During the crisis, demand dropped as customers postponed maintenance and brought their
auto spending to halt. However, even though miles driven declined, car maintenance isnt entirely
discretionary and can only get pushed out to a certain extent, generating pent-up demand, which was
manifested in the following years. As new car sales dropped dramatically, the average age of cars has
been steadily increasing. The result has been strong same-store-sales growth at auto parts retailers.
However, as the economy improves, the DIY market is at risk of slowing down. It is also
expected that the growth of the DIFM market will eventually outpace DIY growth as cars become
increasingly complicated. This is why retailers are shifting resources towards the commercial / DIFM
market, where their market share is much lower and they can grow much faster by increasing their
penetration. The Big 3 have 1/3 of the DIY market but only 10% of the DIFM market. AZO, the
largest retailer, still has a <2% market share in DIFM. This presents a growth opportunity for retailers
as they add commercial capabilities to more of their stores. As DIY slows down, retailers will
increasingly shift focus to DIFM.
There are three big retailers in the auto parts aftermarket (the Big 3): AutoZone, Advance
Auto Parts, and OReilly Auto Parts. AZO is the largest player in the industry with $8bn in sales (up
from $6bn in 2007) and it is the most profitable with a 21% EBITDA margin. It has a $14.5bn market
cap and a $17.9bn EV, and it trades at 10x EBITDA and 17.5x EPS.
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AutoZone (AZO)
Industry Background (Continued)
Advance Auto Parts (AAP) is the 2nd largest auto aftermarket distributor with ~3,650 stores.
AAP generates slightly more than $6bn in sales (up from slightly less than $5bn in 2007) and is the
least profitable with a 13% EBITDA margin. It started in 1929 as a general merchandiser with the
name Advance Stores, but refocused on auto parts in the late 1980s and switched its name.
AAP executed a DIFM expansion strategy earlier than AZO, achieved organic growth but
sacrificed incremental margins, and now it is cutting expenses in order to improve profitability.
However, the strategy has resulted in lower margins because of the investments in a larger headcount
and in lost market share in the core DIY segment, perhaps because of lost management focus. The
companys same-store-sales have lagged the industry for the past couple of years.
As a result, even though AAP is the 2nd largest in terms of distribution network, it has only a
$4.9bn market cap and $5.1bn EV (valued at less than half of ORLY), and it trades at 6x EBITDA and
12x EPS. AAP trades at the lowest multiple of the Big 3 because of its lagging growth, both on samestore-sales and because it has allowed the 3rd player, ORLY, to catch up with a much more successful
acquisition-based growth strategy. Its competitors have continued to invest and may be taking market
share, while AAP has been focused more on improving margins.
OReilly Auto Parts (ORLY) has ~3,800 stores and generates slightly less than $6bn in sales (up
from $2.5bn in sales in 2007) with a 17% EBITDA margin. It used to be significantly smaller than
AAP but caught up through aggressive growth and acquisitions, as AAP shifted towards organic
growth in more recent years. ORLY started in 1957, when a parent and son team disagreed with the
restructuring of the auto supply company they were working at, which would have retired the father
and relocated the son, so they decided to start their own auto parts business in a market they knew
well. The company became publicly traded in 1993. ORLY has an $11.8bn market cap and a $12.0bn
EV, and it trades at 11x EBITDA and 23x EPS. ORLY trades at a high premium because it has been
successfully growing through acquisitions that generate synergies, it has made significant investments
that should reduce its inventory capital requirements going forward, and it is expected to generate
incremental excess cashflow to support further share buybacks.
Two other competitors that arent part of the Big 3 are Genuine Parts Company (GPC) and
CarQuest. CarQuest is a private company slightly smaller than AAP and ORLY in terms of
distribution. GPC generates the same amount of sales from auto parts as AAP and ORLY, but it is a
more diversified company. It distributes replacement parts for cars, as well as parts for industrial
machinery and office supplies. The auto parts segment accounts for half the companys sales.
Valuation
Q1 2012
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82
AutoZone (AZO)
Valuation
AZO has traded historically at 7-10x EBITDA and 13-18x P/E. It is currently trading at 10x
EBITDA and 17.5x P/E, the top end of its range. This reflects bullish investor expectations as the
companys strategy has been to take advantage of the tailwinds in the DIY market (rapidly increasing
average age of cars on the road as car owners delayed new car purchasers) and invest into marketing
and in its commercial segment. As a result, AZOs commercial sales have been growing at a >20% rate
and its earnings have been beating consensus for 12 quarters straight. Sell-side analysts have the most
conviction in this stock out of the Big 3 because of its strong execution, leading industry metrics,
recent investments, and superior organic growth profile. Nevertheless, based on its historical
valuation range, AZO seems fairly valued.
Compared to the public peers, AZO is usually valued at a premium forward P/E multiple to
AAP and a discount to what at least used to be a smaller and faster-growing ORLY. Historically, AZO
has traded at a 10-20% discount to ORLY and a similar premium to AAP. AZO currently trades at
almost 15x 2012 EPS. AAPs lagging same-store-sales trends are reflected in relatively flat EPS in
2012, so it trades at 12x 2012 EPS. ORLYs faster growth is reflected in a premium multiple of 20x
2012 EPS. The trading multiples indicate that there could be some upside in AZOs shares if it can
deliver consistent growth through its commercial segment, but the market seems to be a bit skeptical.
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83
AutoZone (AZO)
The Bull Case
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Summary
The auto parts aftermarket retailers have been benefiting from tailwinds in the aftermath of the
financial crisis, but these tailwinds are already slowing down and could reverse as the economy
improves and pent-up demand for new cars starts reducing the average age of cars on the road.
Nevertheless, AZO is well-positioned to continue its rapid earnings growth due to its recent
investments into beefing up its commercial segment, where its market share has been lagging. In an
increasingly challenging environment, AZO still has a favorable growth profile, but its valuation is
already at the top of its historical range.
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