Didn’t Go to Harvard? At Least You Can See What They’re Buying

Harvard Management Co, run by Yale alum Jane Medillo, is the wholly-owned subsidiary of Harvard University and is one of the 11,000 funds that help manage Harvard’s working capital, pension and massive $32 billion endowment fund. Harvard’s endowment dwarfs the $17 billion endowment fund for Princeton, and $19 billion for Yale. With over $1 billion under her management in the equity portfolio alone, Medillo seems to prefer consumer goods and technology stocks, according to her latest 13F filing with the SEC. Because hedge fund sentiment has been a very, very good tool to beat the market, it’s worth, then, taking a look at Medillo and her team’s top five favorite stocks.

Let’s get started.

Worth 2.5 million shares and 5% of the equity portfolio, Pebblebrook Hotel Trust (NYSE:PEB) takes the top position. The hotel investment company, structured as a REIT, recently announced that it would pay a dividend of $0.16 per share, an increase of 33% from the fourth quarter dividend. The stock also benefits from being a REIT, as well as a 33% increase in revenue for the fourth quarter, which helped boost the company’s bottom line 75% to $26.1 million (qoq). Pebblebrook Hotel Trust (NYSE:PEB) is trading in the $25 to $26 range, which is at the top end of its 52-week spread of $19.17 to $26.07.  It remains to be seen if the stock can arrange a breakout, but it seems that at least one mega-fund thinks it can.

Ralcorp Holdings Inc (RAH)

Second of this top five is Ralcorp Holdings, Inc (NYSE:RAH), a new addition to the fund worth 520,000 shares initially. On January 29th, ConAgra Foods, Inc. (NYSE:CAG) announced its acquisition of Ralcorp Holdings, Inc (NYSE:RAH) for $90.00 per share. This makes the combined company one of the largest packaged food players in North America. At the end of 2012, Ralcorp Holdings, Inc (NYSE:RAH) closed at $89.65, so if Harvard Management bought its shares in Ralcorp Holdings, Inc (NYSE:RAH) on the last day of the quarter, their profit at the time of the sale would have amounted to a cool $182K.

At number three is Warnaco Group Inc (NYSE:WRC), another new addition to the Harvard fund last quarter with 591,261 shares, and yet another buyout play. Warnaco Group Inc (NYSE:WRC) was bought in February by PVH Corp (NYSE:PVH), owner of the Calvin Klein and Tommy Hilfiger brands, for $2.9 billion, which comes to $51.75 per share. In other words, this was 0.18 of a share in PVH Corp (NYSE:PVH) stock for each share of Warnaco Group Inc (NYSE:WRC).  So, given the terms of the deal, each share of Warnaco Group Inc (NYSE:WRC) was worth about $73.44.  If Medillo bought WRC on December 31st of last year, she would have made approximately $1,105,658 on the deal.

Number four is Teavana Holdings, Inc. (NYSE:TEA), yet another new position at 2.4 million shares and another acquisition, this time by Starbucks Corporation (NASDAQ:SBUX) for $620 million. The pairing of the tea-seller and coffee behemoth seems as natural as if Nike bought sock-maker Hanes. Given recent acquisitions by Starbucks Corporation (NASDAQ:SBUX) for bakery chain La Boulange and juice maker Evolution, it seems obvious that Starbucks Corporation (NASDAQ:SBUX) is branching out from just coffee. For shareholders of Teavana Holdings, Inc. (NYSE:TEA), the deal gives then $15.50 in cash for each share.

Last but not least, at 3.57% of the Harvard portfolio is Hudson City Bancorp, Inc. (NASDAQ:HCBK).  The stock has traded in a fairly narrow range since the start of the year, but has still managed to hold onto last summer’s rally following the announcement that Hudson City Bancorp, Inc. (NASDAQ:HCBK) will merge with M&T Bank Corporation (NYSE:MTB). Under the terms of the deal, each Hudson City Bancorp, Inc. (NASDAQ:HCBK) share will receive consideration valued at 0.084 of an M&T share in either cash or stock.  Hudson City Bancorp, Inc. (NASDAQ:HCBK) last traded at $8.51, while M&T Bank was last trading almost $1 higher at $101.73.

Jane Medillo clearly has a knack for finding companies that are ripe for buy-outs and mergers, which has added considerably to Harvard Management’s net worth. Of the top five stocks in the portfolio, four have been bought out or merged during the first quarter of 2013 and three were new additions to the fund.  Looking at the other positions in the fund, there are at least three others than are either buyout candidates (Kayak Software Corp. (NASDAQ:KYAK) by Priceline.com Inc (NASDAQ:PCLN)) or have already been purchased, like Epoch by TD Bank, and Spartech Corporation (NYSE:SEH) by PolyOne Corporation (NYSE:POL).

Because of Medillo’s track record, retail investors should always pay attention; learn how much some readers have made by mimicking hedge fund sentiment.

Disclosure: none

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

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

Top 6 Cities For The Ultra Rich to Live in Comfort

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

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!