Every quarter, many money managers have to disclose what they’ve bought and sold via “13F” filings. Their latest moves can shine a bright light on smart stock picks.
Today let’s look at Citadel Advisors, founded and run by Kenneth Griffin. It’s one of the biggest hedge fund companies around, with a reportable stock portfolio totaling $57.9 billion in value as of June 30, 2013.
According to the folks at InsiderMonkey.com, Griffin and his team use “a combination of advanced computer code, complicated financial algorithms and secrecy. Griffin was using quantitative, technology-based methods before many other firms had cell phones.” The company took a big hit of more than 50% back in 2008, and with an impressive 20% gain in 2011, finally surpassed its 2008 high.
So what does Citadel’s latest quarterly 13F filing tell us? Here are a few interesting details:
The biggest new holdings are Newell Rubbermaid Inc. (NYSE:NWL) and V.F. Corporation (NYSE:VFC) Other new holdings of interest include the Alpine Total Dynamic Dividend Fund (NYSE:AOD), a closed-end fund. It’s worth looking into it if you’re interested, as it contains roughly 90 companies, including well regarded ones such as International Business Machines Corp. (NYSE:IBM) and QUALCOMM, Inc. (NASDAQ:QCOM). But learn more about closed-end funds first, as they offer some appealing features and potentially problematic ones, too (such as low trading volumes). This one sports a distribution rate near 8%, with monthly payouts.
Among holdings in which Citadel Advisors increased its stake was Immersion Corporation (NASDAQ:IMMR), a key developer and licensor of touch feedback technology. Its second quarter featured revenue up 58% and net income in the black instead of in the red, as it was a year earlier. Immersion has more than 1,300 granted or pending patents, positioning it to be a big player in licensing. It already has agreements in place with companies such as Sharp, LG, and Samsung, among many others – such as Xiaomi, a leading smartphone maker in China. Immersion’s stock has surged more than 150% over the past year.
Citadel Advisors reduced its stake in lots of companies, including Navidea Biopharmaceuticals Inc (NYSEMKT:NAVB) and Radian Group Inc (NYSE:RDN). Navidea is a specialist in diagnostics and radiopharmaceutical, with investors excited about Lymphoseek, its FDA-approved injectable agent that can help locate breat cancer and melanoma. How well Lymphoseek sells is rather dependent on Navidea’s partner, Cardinal Health, Inc. (NYSE:CAH). Approval in Europe can also spur sales. Navidea also has more in its pipeline, such a brain-plague-detecting imaging agent for those with Alzheimer’s disease or those suspected of having it.