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 Graham Capital Management, founded in 1994 by Ken Tropin and in the multi-strategy macro-oriented hedge fund business. The overall company manages investments for endowments, foundations, sovereign wealth funds, global pensions, investment advisors, and wealthy individuals, among others.
The company’s reportable stock portfolio totaled $1.8 billion in value as of March 31.
So what does Graham Capital’s latest quarterly 13F filing tell us? Here are a few interesting details.
The biggest new holdings are Royal Dutch Shell plc (ADR) (NYSE:RDS.B) and puts on the SPDR Gold Trust ETF. Other new holdings of interest include LeapFrog Enterprises, Inc. (NYSE:LF). Educational multimedia company LeapFrog topped earnings expectations in its latest quarterly report, with revenue up 15% and net losses narrowing. LeapFrog Enterprises, Inc. (NYSE:LF) is posting positive free cash flow and sports single-digit P/E ratios for this year and next. Some see it as more attractive than the big toy companies Mattel and Hasbro, Inc. (NASDAQ:HAS).
Among holdings in which Graham Capital Management increased its stake was TriQuint Semiconductor (NASDAQ:TQNT). The stock recently received an upgrade to “buy” from analysts at Charter Equity, but my colleague Rich Smith thinks the stock is still overvalued. Anyone thinking the stock is on the rich side won’t be happy about the company’s stock-buyback plans. Its last earnings report was disappointing, but management sees better days ahead due to the introduction of many new products, along with a growing market.
Graham Capital Management reduced its stake in lots of companies, including SandRidge Energy Inc. (NYSE:SD). Focused on the Mississippi Lime and Gulf of Mexico regions, the company has been improving its performance on many counts, such as declining well costs. Some are waiting to find out, by the end of the month, whether the company’s CEO will remain or depart, with a departure possibly leading to a breakup of the company or other strategies recommended by activists.