High-Performing Hedge Fund Loves American International Group Inc (AIG), Ads & Energy: Lamar Advertising Co (LAMR)

At No. 4 is NRG Energy Inc (NYSE:NRG); Perry Capital has the largest position in this electric company of the funds we track, worth a little over 6.5% of its total 13F portfolio. Perry increased his holdings by 20% this past quarter, and the stock’s performance over the past several days has been very impressive, particularly as it pushes through resistance at the $25.30 mark. Equally as important, the company has begun its operation of its Borrego solar-generating station in California. Energy generated from this facility will be sold to San Diego Gas & Electric for the next 25 years, and the company should continue to see its bottom line improve as sales increase relative to cost.

Finally, at No. 5, is Express Scripts Holding Company (NASDAQ:ESRX), which recently reported very strong earnings of $27.4 billion, beating analyst’s estimates and coming in at more than double 2011 totals. Even though the stock is expensive relative to the rest of the sector, analysts are still recommending a buy with an average target price near $64 a share.

In short, Perry Capital enjoys the benefit of being diversified among services, technology and financial stocks, and this “fab five” illustrates the variation among sectors within the fund. Perry has made sizable increases to each member of his top five, and his strategy is one worth paying attention to. The fund has outperformed the rest of the market every year but one since its inception in 1998.

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