Matthew Tewksbury’s Stevens Capital Management recently disclosed, with the SEC, its long equity positions for the second quarter of 2014. The fund’s highly diversified equity portfolio had, as of June 30 2014, a market value of more than $3.72 billion. Over the quarter, Stevens Capital started 511 new stock positions, increased its stakes in 264 of its preexisting holdings, and sold out of 522 of them. In this article, we will take a look at the fund’s top 3 positions, in order to find out if any of them stand as attractive investment options.
All of the top five positions in Mr. Tewksbury’s list changed over the second quarter. The largest position for the first quarter, Verizon Communications Inc. (NYSE:VZ), was displaced to the 57th spot in his list, after a 63% reduction in his holdings. The telecom giant was replaced by an aerospace titan: The Boeing Company (NYSE:BA). This $86.6 billion market cap company saw Stevens Capital increase its stake by 33% over the second quarter. The fund now owns 373,499 shares of The Boeing Company (NYSE:BA), worth more than $47.5 million.
Another major hedge fund that boosted its exposure to The Boeing Company (NYSE:BA) over the second quarter is Michael Messner’s Seminole Capital (Investment Mgmt). The fund added 4% to its holdings and now owns 555,307 shares of the company.
Second on this list is a newcomer: Pfizer Inc. (NYSE:PFE), a $179 billion market cap research-based biopharmaceutical company. Over the second quarter, Stevens Capital acquired almost $45 million in stock, or 1.51 million shares.
Going forward, Pfizer Inc. (NYSE:PFE) seems well positioned to outperform its peers. A solid, industry-leading pipeline, and an internal restructuring are some of the main growth drivers. In addition, a 3.7% dividend yield makes the investment even more attractive, especially since analysts expect the payout ratio to increase over the next few years.
Ken Fisher’s Fisher Asset Management is placing an even larger bet on Pfizer Inc. (NYSE:PFE). This fund, which is the largest hedge fund shareholder of record (amongst those we track), disclosed a 4% increase in its exposure to the company over the second quarter. Fisher now owns 31.48 million shares of the biopharmaceutical company, with a market value of more than $934 million.
The Procter & Gamble Company (NYSE:PG) escalated from the sixth, to the third spot in this list. This $220.7 billion market cap branded consumer packaged goods provider felt Stevens Capital’s bullishness over the quarter; the fund upped its stake by 17%, to 568,786. The position at The Procter & Gamble Company (NYSE:PG) is worth roughly $44.7 million, and accounts for 1.2% of the fund’s equity portfolio’s total market value.
Donald Yacktman is also long The Procter & Gamble Company (NYSE:PG). His fund disclosed ownership of 28.19 million shares of the company as of June 30, 2014, following a 6% increase in its position. Warren Buffett holds an even larger stake in the company, as his fund last declared holding 52.79 million shares of the company – as of March 31.
Disclosure: Javier Hasse holds no position in any stocks or funds mentioned.