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 $6.8 billion in value as of December 31, 2012.
So what does Maverick Capital’s latest quarterly 13F filing tell us? Here are a few interesting details:
The biggest new holdings are EMC Corporation (NYSE:EMC) and Crown Castle International Corp. (NYSE:CCI). Other new holdings of interest include United Parcel Service, Inc. (NYSE:UPS). The delivery giant has seen its performance stutter a bit due to massive pension-related write-offs, but its volume has been growing, it has been raising its rates, and it recently boosted its dividend by 9%. (It now yields 2.9%. The company has committed to hiring 25,000 veterans, and it stands to benefit if Congress continues gutting the Post Office.
Among holdings in which Maverick Capital increased its stake was Citrix Systems, Inc. (NASDAQ:CTXS). The company is impressing some with its virtualization business, adding on mobile capabilities through its acquisition of Zenprise, and growing its recurring licensing revenue. The company’s last earnings report was solid, but management tempered some expectations for 2013.
Maverick Capital reduced its stake in lots of companies, including Skyworks Solutions Inc (NASDAQ:SWKS), which is a semiconductor company supplying, among other things, radio chips for iDevices. Its focus extends beyond smartphones, though, as it also supplies the car market and medical devices. Recent weakness in Apple Inc. (NASDAQ:AAPL) has hurt Skyworks, but its long-term prospects remain strong, in part due to a strong balance sheet and robust profit margins.
Finally, Maverick Capital’s biggest closed positions included Citigroup Inc. (NYSE:C) and Endo Health Solutions Inc (NASDAQ:ENDP). Other closed positions of interest include SUPERVALU INC. (NYSE:SVU) and Renren Inc (NYSE:RENN). SuperValu is in the tough supermarket business, where profit margins are thin, and competition tight. The company has drawn a $3.3 billion bid from a private-equity firm, in a deal where SUPERVALU INC. (NYSE:SVU) gives up its big-name supermarkets, and ends up focusing more on its wholesale business and remaining chains, such as Save-A-Lot. The company still has a lot of debt, but with a forward P/E ratio of three, there’s a lot of potential, too.