Michael Lowenstein and Kensico Capital’s Outstanding Stock Picks

Kensico Capital Management is a Connecticut–based hedge fund that was co-founded by Michael Lowenstein and Thomas Coleman in January 2000. Kensico primarily invests in stocks but they invested in credit default swaps in late 2006 and profited handsomely. Coleman, 45 years old, was employed by Halo Capital Partners as a partner prior to founding Kensico. Prior to Halo Capital, Coleman was the CEO of PTI Holding Inc., a manufacturer of bicycle accessories, between 1990 and 1995.

Kensico was one of the most successful hedge funds since the end of first quarter. The fund’s stock picks had an average return of 4.6% during the past 4 months, vs 2% loss for the SPY. Below is a list of Kensico Capital’s latest major reported trading activities:

According to its latest 13F filing, Kensico Capital held a total of 33 securities in its portfolio, 20 of which comprised more than 94% of the overall portfolio value. Kensico made some really good bets in the first quarter of 2011 and managed to beat the market by nearly 7 percentage points since the end of the first quarter.

Lowenstein trimmed his WebMD holdings by almost 20% in the first quarter of 2011. The stock lost almost 31% in value since March 31. Kensico continued to hold about 2.8 million WBMD shares (about 6.5% of its 13F portfolio) at the end of first quarter. Unlike Lowenstein, Chris Lord’s Criterion Capital was getting bullish about the company and bought 353K shares in the first quarter.

Another good decision taken by Lowenstein was to trim its Flowserve (FLS) shares by 10% during the first quarter. The stock lost almost 20% in value since the end of March. Neverthless, Lowenstein continued to hold 182K shares of FLS in his portfolio. Richard Breeden’s Breeden Capital Management probably regrets that it increased its FLS stake by 62% after seeing the performance of the stock since the end of the first quarter.

Kensico’s best performing stock pick was Southern Union (SUG), where the return was remarkably high at 54%. Lowenstein and Coleman made more than $90 Million from this investment.

Most of Kensico’s stock picks managed to outperform the S&P 500 index since the end of March. Kensico increased its Maiden Holdings stake by 7% and the stock gained 25% in less than four months. Another good bet was Visa, where Kensico enjoyed a double-digit return of 21%. The fund increased its Visa holdings by 14% in the first quarter. Empyrean Capital seemed to have a totally opposite view of the company as it invested more than $150 million in Visa put options. Liberty Media Capital, where more than 9% of the Kensico’s 13F assets are parked, generated an impressive return of 17% since the end of March. Kensico increased its LCAPA holdings by 15% in the first quarter.

A new holding in the portfolio, El Paso, has been another double-digit return generator for Kensico with 12%. There were several hedge funds that are etremely bullish about EP in the first quarter of 2011. Barry Rosenstein’s Jana Partners increased its EP holdings by 330% and had more than $548 million in EP. Dan Loeb’s Third Point bought 11 million new shares of EP and Alec Litowitz’s Magnetar Capital increased its EP holdings by 500%.

Kensico was also extremely bullish about WMB, which happens to be in the same industry as SUG and EP. More than 14% of the aggregate portfolio is invested in WMB and yet, the stock lost 1.4% since the end of March. Many other funds shared the same view and were bullish on WMB. Michael Blitzer’s Kingstown Capital increased its WMB holdings by almost 140%.  Just like in EP, Barry Rosenstein and Dan Loeb were also bullish about WMB and increased their long positions.

Overall, Michael Lowenstein’s Kensico Capital has shown a remarkable performance since the end of the first quarter and generated an overall return of 7%. We believe investors can outperform S&P 500 index by imitating Kensico Capital’s top stock picks.

Dividend Stock Alert - Billionaire Robbins' Top Dividend Idea With 70% Upside Potential

Get Paid 3.5% Per Year While Waiting For The Stock Appreciate 70%

Larry Robbins' Glenview Capital Opportunity Fund returned 101.7% in 2013 and Robbins personally made $750 million. The same fund returned 25.3% in 2014. In this FREE REPORT we will share Robbins' top dividend idea that yields 3.5% and has been increasing its dividends for 39 consecutive years. Robbins thinks the stock has the potential to appreciate 70%.

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Click here to Read Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 74 percentage points in 2.5 years. Our beta is only 1.2 (download a FREE newsletter and see the details inside)

Lists

Best Selling Magazines in the World

Shortest People in History

The Most Celebrated Holidays in the World

Most Expensive Handbag Brands in the World

Top Selling Comic Book Issues of this Century

The Most Powerful Women in Politics

Best Paid DJs

Most Rebellious Female Artists

Best Paid TV Actresses of 2014

Best Paid Actors of 2014

Most Expensive Horses in the World

Tallest People Ever

Most Encouraging Feminist Celebrities

Best Paid Supermodels of 2014

Top 10 Suburbs for Retirement in 2015

10 Wealthiest Cities in America

Top 10 TED Talks for Entrepreneurs

Best TED Talks on Education

25 Most Dangerous Places to Live in America

Top 10 Ski Resorts in the United States – 2014 List

Top 10 Most Remote Places in the World

Most Visited Museums in the United States

Wealthiest Photographers in the World

Most Famous Gay Athletes

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

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 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!