A “Tiger Club” member, Discovery Capital Management was founded in 1999 by Rob Citrone, who had previously worked as a portfolio manager at Fidelity Investments and Tiger Management. Since then, Discovery Capital has managed annualized returns of approximately 17%, while last year Citrone boasted a return of 27.5%. He employs fundamental analysis with top-down and bottom-up stock picking approach to identify investment opportunities in public equity markets as well as fixed income and alternative investment markets across the globe. Discovery Capital Management current equity portfolio is mainly invested in technology and basic materials stocks and has an estimated market value of $10.5 billion.
Rob Citrone is a big fan of Apple Inc. (NASDAQ:AAPL), which has recently hit an all time high of $100.57 per share, following the 7-to-1 stock split in June 2014. During the second quarter, Citrone has been building a new top position for Discovery Capital through the acquisition of 6.56 million shares of Apple Inc. (NASDAQ:AAPL). The fund’s stake is worth roughly $610 million and accounts for 5.82% of its equity portfolio. Legendary “corporate raider”, Carl Icahn has a massive stake in the company. His fund, Icahn Capital LP, has reported ownership of 52.7 million shares valued at $4.9 billion, in its latest 13F filing.
Citrone is still bullish on The Dow Chemical Company (NYSE:DOW), having increased his fund’s stake in the company by 15% during Q2. As a result, Discovery Capital nod holds 9.17 million shares valued at approximately $472 million, making The Dow Chemical Company (NYSE:DOW) its second biggest equity investment. Dan Loeb, the manager of Third Point, is also a big fan of the stock, having boosted his fund’s holding by more than 200% during the quarter. Third Point currently holds exactly 22 million The Dow Chemical Company (NYSE:DOW) shares, which carry an estimated value of $1.13 billion. This position also accounts for roughly 14% of the fund’s portfolio.
Although it’s still among Discovery Capital’s biggest investments, Micron Technology, Inc. (NASDAQ:MU) has seen it’s importance diminish. During the second quarter, Citrone has reduced his fund’s exposure by 27%, leaving it with approximately 13.4 million Micron Technology, Inc. (NASDAQ:MU) shares, a position which is valued at roughly $441 million. Seth Klarman and his fund, Baupost Group, are also heavily invested in Micron Technology, Inc. (NASDAQ:MU) and have control over 51.6 million shares, worth in excess of $1.7 billion.