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

Page 1 of 2

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.

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. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

On the Move: The 10 Fastest Growing Businesses in 2015

Fast Money: The 10 Highest Paying Fast Food Restaurants

Mixing It Up: The 14 Best Music Mashups of 2014

Rito Pls Buff: The 10 Least Played Champions in LoL Season 4

10 Covers of Popular Songs that are Better than the Originals

Must See TV: The 9 Most Anticipated Shows of 2015

The 15 Biggest Box Office Bombs of All Time

10 Things The World Can’t Stand About Americans

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

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!