Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Madison Street Partners Reshuffles Its Portfolio and Bets on ETFs; See Its Top Stock Picks

Page 1 of 2

Steven Owsley‘s Madison Street Partners recently filed its 13F form for the second quarter with the SEC. There has been significant changes in the fund’s equity portfolio, which led to a turnover ratio of 194% for the quarter, as the fund delved into passive investing and a vast majority of the top equity holdings comprised of Exchange Trade Funds (ETFs). The top stock picks coming in after a row of ETFs include Exxon Mobil Corporation (NYSE:XOM), Merck & Co., Inc. (NYSE:MRK), and Caterpillar Inc. (NYSE:CAT).



Founded in 2004, the Denver, Colorado based fund, Madison Street Partners has about $120 million worth of regulatory assets under its management. Madison looks to invest in small and middle sized companies that are undervalued or overlooked by other investors. During the second quarter the market value of the fund’s public equity portfolio rose to $145.53 million from $98.82 million a quarter earlier.

Steven Owsley
Steven Owsley
Madison Street Partners

Why do we pay attention to hedge fund sentiment. Most investors ignore hedge funds’ moves because as a group their average net returns trailed the market since 2008 by a large margin. Unfortunately, most investors don’t realize that hedge funds are hedged and they also charge an arm and a leg, so they are likely to underperform the market in a bull market. We ignore their short positions and by imitating hedge funds’ stock picks independently, we don’t have to pay them a dime. Our research has shown that hedge funds’ long stock picks generate strong risk adjusted returns. For instance the 15 most popular small-cap stocks outperformed the S&P 500 Index by an average of 95 basis points per month in our back-tests spanning the 1999-2012 period. We have been tracking the performance of these stocks in real-time since the end of August 2012. After all, things change and we need to verify that back-test results aren’t just a statistical fluke. We weren’t proven wrong. These 15 stocks managed to return more than 123% over the last 35 months and outperformed the S&P 500 ETF (SPY) by 66 percentage points (see more details here).

During the April-June period, Madison initiated a position in Exxon Mobil Corporation (NYSE:XOM) with some 8,700 shares valued at $722,000. The downhill trajectory of oil prices has led to a nearly 20% dive in Exxon Mobil Corporation (NYSE:XOM)’s stock price on a year-to-date basis. The company reported an EPS of $1 in the second trimester, which was $0.11 short of estimates. Revenues of $74.1 billion were, however, $1.62 billion higher than the expectations. Among the funds that we track, Donald Yacktman‘s Yacktman’s Asset Management is the largest stockholder of Exxon Mobil Corporation (NYSE:XOM) with 6.92 million shares valued at $588.08 million as of the end of March.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

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 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!