Bill Miller of Legg Mason Capital Management must comply with the same SEC regulations that all 400+ of the other hedge funds we track comply with as well, including the dissemination of a quarterly holdings disclosure known as a 13F. We pay close attention to these filings, as we have found some profitable tell-tale moves by smart money managers that retail investors can make use of. Our small-cap strategy, based on the most popular small stocks amongst hedge funds, is up over 29% since it was published last August (learn more here). With that analysis in mind, continue reading for our take on Legg Mason Capital Management’s largest new purchases as laid out in its most recent 13F filing for Q4 2012.
Facebook Inc (NASDAQ:FB) is no stranger to many hedge fund’s portfolios; of the hundreds we track, sixty-seven professed to owning the social network in the last quarter of 2012. The stock has declined 27% since its IPO on the NASDAQ last May and has struggled to achieve the upwards traction pre-IPO investors were hoping for. The company is still making strides to advertise to its wide user-base; the latest revamping of its news feed offering is meant to be less subtle and more interactive, although user fatigue is becoming more and more of an issue. Billionaire Jim Simons of Renaissance Technologies purchased 5.6mm shares last quarter (view his top picks here).
Realogy Holdings Corp (NYSE:RLGY) debuted on the NYSE in October of last year and has proven to be a large winner for those who got in at the time; the stock is up nearly 40% since then. The relocation and real estate service provider owns brokerage brands Century 21 and Coldwell Banker amongst others. RLGY was recently downgraded by both CRT Capital and Barclays in the past few weeks, with average price targets residing around the $46-47 mark (the stock is currently trading right up against those numbers). Billionaire Daniel S. Och of OZ Management has nearly $90mm invested in Realogy Holdings Corp (NYSE:RLGY) (read about the fund’s top five positions here).
Expeditors International of Washington (NASDAQ:EXPD) is an $8bn provider of global logistics solutions, providing clients with an extensive network with which to move and position goods. EXPD has a trend of disappointing during earnings, with the most recent let down occurring at the end of last month. The misses are slight and have not deterred Wall Street from loving the stock; Credit Suisse, Avondale Partners, and Edward Jones have all given Expeditors International of Washington (NASDAQ:EXPD) bullish ratings since the start of the year. The stock still has 15% of upside to meet average price targets one year out. Billionaire Ken Griffin of Citadel Investment Group owns over a million shares of the stock (see his top holdings here).
Which stocks were the best of the rest?