Citigroup Inc (NYSE:C) is the fourth-largest holding in the Samlyn Capital portfolio. The financial services company’s stock is up 18.32% over the past year, as investor confidence in financials seems to be returning, now some five years since Citigroup Inc (NYSE:C)’s government bailout. Fund manager Pohly, for his part, may not see a bright outlook for the stock, however, as he’s recently decreased Samlyn’s long position by 34%. Conversely, UBS also upgraded the stock from “neutral” to “buy” of late, so it’s worth considering both sides of the coin when looking at this stock. At 0.69 times book, Citigroup Inc (NYSE:C) is attractively priced, and with no immediate headwinds on the horizon, we see more value appreciation moving forward.
Whirlpool Corporation (NYSE:WHR), makes up 2.56% of the hedge fund’s equity portfolio. The consumer cyclical stock is up more than 40% in the past six months alone. The company’s ROI and ROE figures both outpace the industry: Whirlpool Corporation (NYSE:WHR)’s ROI is 4.84%, compared to an industry average of 3.89%. Likewise, the company’s ROE is 9.50%, which is vastly higher than the industry average of 4.64%. The stock, too, is trading at an above-industry P/E value: 22.97, compared to the industry average. 15.83. Samlyn may not be too bullish on the stock, however, as they have recently decreased their position by nearly 30%.
Looking at Samlyn Capital’s portfolio compared to the other funds we track is interesting from the standpoint mentioned earlier: Pohly elects to allocate a relatively small amount of resources to his favorite stocks. In other words, Samlyn’s largest holding accounts for 3.69% of the portfolio, while their tenth-largest accounts for 2.25% of the portfolio; there’s only a little more than 1% difference in the amount Mr. Pohly allocates to the stock he is most confident in, compared to his tenth best.
This is a very conservative philosophy of diversification, indeed, and may be something for ardent hedge fund piggybackers to consider. All in all, Whirlpool, Citigroup Inc (NYSE:C), American Express, Goodyear and Anadarko Petroleum Corporation (NYSE:APC) each give Pohly and Samlyn Capital a best-in-breed investment in their respective industries, and the sheer size of his equity portfolio makes it worth watching. Check out the rest of Samlyn Capital’s stock picks here, on Insider Monkey.