HCA Holdings Inc (HCA), Capital One Financial Corp. (COF): Here’s What This $8 Billion Hedge Fund Company Has Been Buying

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Every quarter, many money managers have to disclose what they’ve bought and sold, via “13F” filings. Their latest moves can shine a bright light on smart stock picks.

Today, let’s look at Maverick Capital, founded by Lee Ainslie and Sam Wyly in 1993. Avoiding bonds, commodities, currencies, and options, it sticks with stocks, holding both long and short positions. It employs fundamental analysis and examines management closely.

The company’s reportable stock portfolio totaled $7.7 billion in value as of March 31, 2013.

Interesting developments

So what does Maverick Capital’s latest quarterly 13F filing tell us? Here are a few interesting details:

HCA Holdings Inc (NYSE:HCA)

The biggest new holdings are HCA Holdings Inc (NYSE:HCA) and Capital One Financial Corp. (NYSE:COF). Other new holdings of interest include mortgage insurers MGIC Investment Corp. (NYSE:MTG) and Radian Group Inc (NYSE:RDN), which have done well over the past year, with MGIC Investment Corp. (NYSE:MTG)’s stock more than doubling and Radian Group Inc (NYSE:RDN)’s more than quadrupling. They stand to benefit from the recovery of the housing market, but they’re not without risk, in part due to debt. MGIC Investment Corp. (NYSE:MTG) has been cleaning up its balance sheet, but has also posted some disappointing results. Radian Group Inc (NYSE:RDN), too, reported widening losses in its last quarter.

Among holdings in which Maverick Capital increased its stake were Skyworks Solutions Inc (NASDAQ:SWKS) and NetApp Inc. (NASDAQ:NTAP), while Maverick reduced its position in companies such as Cognizant Technology Solutions Corp (NASDAQ:CTSH). Skyworks Solutions Inc (NASDAQ:SWKS) is a semiconductor company supplying, among other things, radio chips for iDevices. It sports a strong balance sheet and robust profit margins, but weakness from major players such as Apple Inc. (NASDAQ:AAPL) and Samsung can hurt it. Skyworks recently posted strong earnings, topping estimates, and looks attractively priced to some, but others still worry about insufficient competitive advantages.

NetApp Inc. (NASDAQ:NTAP) is a smaller rival of data storage giant EMC Corporation (NYSE:EMC), and recently advanced in value on hopes that an activist investor might help the company’s prospects. NetApp has initiated a dividend, announced layoffs, and plans to buy back many shares – though such share reduction is often offset by stock issuances for employees. The company recently posted disappointing revenue numbers, but it still looks attractive to some. There’s also speculation that NetApp might end up acquired by bigger fish, such as Oracle Corporation (NASDAQ:ORCL), another key player in data.

Finally, Maverick Capital’s biggest closed positions included Avago Technologies Ltd (NASDAQ:AVGO) and United Technologies Corporation (NYSE:UTX). Other closed positions of interest include Liquidity Services, Inc. (NASDAQ:LQDT), a commercially focused online auctioneer and a Motley Fool Stock Advisor recommendation, was recently included on Forbes’ list of America’s Fastest Growing Tech Companies. It benefits from a relatively capital-light business model and solid profit margins, and specializes in surplus, wholesale, and salvage assets. Its stock has fallen more than 40% over the past year, though, in part due to worries about slowing growth and competition. Some view the stock as still overvalued, and it has significant short interest.

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