Did You See What Billionaire Mason Hawkins Did?

Page 1 of 2

Billionaire Mason Hawkins: There are more than 40 hedge fund billionaires in action today. Tracking the consensus picks of this group is the heart of the MarketWatch Insider Monkey Billionaire Hedge Fund Index [s:BHFI], which has outperformed the indices handily over its lifetime of nearly two years. Our research at Insider Monkey indicates that retail investors who follow the best picks of the best fund managers can beat the market by 18 percentage points a year over the long-term.

Within this elite group of billionaire hedge fund managers, George Soros, Carl Icahn and Dan Loeb are a few of the guys present, but one other lesser known name is Mason Hawkins of Southeastern Asset Management. Hawkins has a net worth of approximately $1.8 billion and manages roughly $32 billion in assets at his fund. Last week, Hawkins and Southeastern made a couple interesting moves that you should be aware of.

Mason Hawkins

Wendy’s

In a passive filing with the SEC on Thursday, Hawkins disclosed that his stake in The Wendy’s Company (NASDAQ:WEN) had fallen just below the 5% level, representing about half of his total stake reported in Southeastern’s most up-to-date equity portfolio (see it here). With shares of the fast food operator up more than 55% year-to-date and trading at an extremely overvalued price-to-earnings growth multiple above 17, it’s quite possible the billionaire is taking his profits now. Wendy’s last paid its quarterly dividend in mid-September and currently offers a yield of 2.3%, so Hawkins’ decision to slash his holdings after this date makes sense.

Mike Vranos and John Burbank are a couple hedge fund managers that dropped their stakes in Wendy’s entirely in the last round of 13F filings, but there’s still a fair amount of interest here. We think it’s best to see how Hawkins trades the stock in the next few months because even with the solid income and Wendy’s restaurant transformation taking hold, there are better entry points into this stock.

Quicksilver Resources

Unconventional oil & gas play Quicksilver Resources Inc (NYSE:KWK) was another company cut by Mason Hawkins last week, this time entirely. In his last 13F, Hawkins reported ownership of $38 million in Quicksilver and he had held the stock since the third quarter of 2011. It’s not crystal clear exactly why the fund manager decided to drop the long-term holding from his equity portfolio, but poor returns are a simple reason why a move might’ve been made.

Quicksilver’s stock price had been squeezed by almost -50% over the past year as lower gas prices and above-average debt hasn’t exactly endeared the asset-heavy firm to investors. A sale earlier this year of its Barnet Shale resources to Tokyo Gas led to a modest recovery in share price over the past few months, which may be why Hawkins decided to sell.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!