Louis Navellier’s Navellier & Associates is betting big on 3 new stocks that it has recently added in its portfolio. The fund disclosed these new positions in its 13F filing for the third quarter. Overall the market value of the equity portfolio of Navellier & Associates declined to $1.99 billion in the third quarter, from $2.2 billion in the second quarter. The fund majorly focuses on growth investments and manages three domestic portfolios for institutional clients – Large Cap Growth, Mid Cap Growth and Small to Mid Growth. In its second quarter report, Navellier Large Cap Growth declared trailing 1 year annualized gross return of 27.7% and trailing three year annualized gross return of 14.09%, compared to Russell 1000 Growth index returns of 26.92% and 16.26%, for the same time frame respectively.
The top two picks of the fund remain the same, Micron Technology, Inc. (NASDAQ:MU) and Activision Blizzard, Inc. (NASDAQ:ATVI). However, the fund sold over 334,000 shares of Micron Technology, Inc. (NASDAQ:MU) and over 40,000 shares of Activision Blizzard, Inc. (NASDAQ:ATVI) in the third quarter. The biggest change in the portfolio was Alliance Data Systems Corporation (NYSE:ADS), which as of second quarter was the third largest holding of the fund in terms of market value, but in the third quarter the exposure to the company has been reduced to almost nil. As of September 30, the fund holds just 2,885 shares of Alliance Data Systems Corporation (NYSE:ADS).
Dr Pepper Snapple Group Inc. (NYSE:DPS) is the largest new position in terms of value and the sixth-largest in the equity portfolio. The fund bought just over 1 million shares of the company in the third quarter, which are valued at over $64 million. Based on 2014 second quarter results , Dr Pepper Snapple Group Inc. (NYSE:DPS) has an EPS of $1.06, compared to an EPS of $0.76 in the prior year period and trades at 17.7 times earnings. Apart from Navellier & Associates, Andy Brown’s Cedar Rock Capital and Mario Gabelli’s GAMCO Investors are two other hedge funds that are also bullish on Dr Pepper Snapple Group Inc. (NYSE:DPS). As of June 30, 2014, Cedar Rock Capital owns over 12 million shares and GAMCO Investors owns over 2.2 million shares in the soft drinks maker.
WellPoint Inc (NYSE:WLP) is the second top pick of the fund among the new additions, by market value it is on the seventh spot in the equity portfolio of the fund. Navellier & Associates bought over 530,000 shares of the company in the third quarter, the valuation of which stands at just over $63 million. Based on second quarter results of 2014, WellPoint Inc (NYSE:WLP) has an EPS of $2.40, compared to an EPS of $2.60 in the same quarter last year and trades at 14.61 times its earnings. Two other hedge funds that are bullish on the stock include Jean-Marie Eveillard’s First Eagle Investment Management and Larry Robbins’ Glenview Capital.First Eagle Investment Management owned over 5.3 million shares and Glenview Capital owned over 4.5 million shares of the healthcare company by the end of second quarter of this year.
CVS Health Corp (NYSE:CVS) takes the third spot in the fund’s new addition in terms of market value of its holdings. The fund purchased over 770,000 shares of the company in the quarter, which is valued at over $61.5 million. Based on last declared quarterly results, CVS Health Corp (NYSE:CVS) has an EPS of $1.13, up 16% year on year and trades at 19.9 times earnings. Robert Rodriguez and Steven Romick’s First Pacific Advisors Llc and Cliff Asness’ AQR Capital Management are two of the largest shareholders in the retailing and health care company and as of June30, 2014, owns just under 7.5 million shares and over 3 million shares of CVS Health Corp (NYSE:CVS), respectively.
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