Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Billionaire Jacob Rothschild’s RIT Capital Three New Picks & Two Stocks It Dumped

RIT Capital Partners was founded as Rothschild Investment Trust in 1961 by Jacob Rothschild to manage investments outside of the Rothschild family’s banking business in the United Kingdom. Although the fund invests in a wide range of financial instruments, its main focus, however, is investments in private and public equity. Jacob Rothschild no longer plays an active role in day-to-day business, which has been taken over by an executive committee. At the end of the first quarter, the fund’s equity portfolio carried an estimated market value of $185 million and comprised 8 equity positions. The fund has a large exposure to the consumer discretionary sector, which accounts for 60% of its portfolio. During the first quarter, the fund’s management has shaken up its portfolio, having liquidated a number of its top bets and added several new ones. In this article we’ll take a look at three new acquisitions and two holdings that were dumped.

We believe that imitating hedge funds and other large institutional investors can be helpful in identifying stocks capable of outperforming the broader market. Through extensive research that covered portfolios of several hundred large investors between 1999 and 2012, we determined that following the small-cap stocks that large money managers are collectively bullish on, can generate monthly returns nearly 1.0 percentage points above the market (see more details here).

Jacob Rothschild
Jacob Rothschild
RIT Capital Partners

Dumped Colgate-Palmolive

At the end of the fourth quarter, Colgate-Palmolive Company (NYSE:CL) was RIT Capital’s number one bet as it held 1.03 million shares. Three months later, the fund’s 13F filing reveals that the executive committee has dumped the entire position. At the end of April, Colgate-Palmolive Company (NYSE:CL) posted first quarter results that met and exceeded analysts’ expectations. Adjusted for restructuring costs, earnings stood at $0.63 per share, in line with the consensus among analysts. Revenues came in at $3.76 billion, topping expectations of $3.73 billion. So far this year, the stock has been in a solid uptrend and has advanced by 7.7% to yesterday’s closing price of $70.43 per share.  Billionaire Jim Simons‘ Renaissance Technologies cut its exposure to Colgate-Palmolive by 2% during the quarter to 9.88 million shares, which is the largest stake among the funds followed by Insider Monkey.

Follow Colgate Palmolive Co (NYSE:CL)
Trade (NYSE:CL) Now!

No Love For This Cable Company

Comcast Corporation (NASDAQ:CMCSA) is another big position RIT Capital’s management liquidated over the course of the first quarter. According to the fund’s previous 13F filing, it held 898,500 shares of the media company which were valued at $50.7 million at the end of 2015. Comcast Corporation (NASDAQ:CMCSA) has recently announced a deal to acquire Dreamworks Animation Skg Inc(NASDAQ:DWA) as it looks to bolster its animation portfolio. Comcast is set to splash roughly $3.8 billion for Dreamworks Animation or $41, which was a 50% premium on the price the shares were trading prior to the announcement. Dreamworks will join Illumination Entertainment under NBCUniversal’s umbrella. NBCUniversal CEO Steve Burke said the studio was attracted by Dreamworks’ “deep library of intellectual property,” which means they were more interested in its content, which includes Shrek, The Penguins of Madagascar, and Kung Fu Panda, than current operations. “DreamWorks will help us grow our film, television, theme parks, and consumer products businesses for years to come,” added Burke. Alex Snow‘s Lansdowne Partners still holds a large position in Comcast Corporation (NASDAQ:CMCSA), but has reduced its exposure by 11% to 26.2 million shares worth over $1.6 billion.

Follow Comcast Corp (NASDAQ:CMCSA)

On the next page we’ll take a look at the three new positions initiated by RIT’s management team.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.