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.

Q1 Returns of Izzy Englander’s Top Picks as He Prepares to Launch Joint Venture With Top Trading Team

Billionaire Israel Englander of Millennium Management is taking the unprecedented step of launching a joint venture to keep the largest of his 170 trading teams in the fold. By the end of 2015 Izzy and Igor Tulchinsky, who manages a 400-person team dubbed WorldQuant LLC, will launch the venture. The new venture will allow Tulchinsky, who currently manages about $4 billion of Izzy’s money, to collect outside money in addition to broadening his quantitative trading strategies. His team will continue to manage money for Millennium Management alongside the new, as-yet-unnamed venture. The move is the first such move by Izzy and allows him to retain one of his top teams, while allowing Tulchinsky to achieve more autonomy and money-making capability.

Millennium Management, Catapult Capital Management

Massive hedge fund like Millennium Management spend immeasureable time and resources conducting due diligence on each company they invest in, which makes them the perfect investors to emulate. However, while Millennium’s returns have outperformed the market since inception, the returns of hedge funds on the whole have not been good for several years, underperforming the market. We analyzed the historical stock picks of these investors and our research revealed that the small-cap picks of these funds performed far better than their large-cap picks, which is where most of their money is invested and why their performances as a whole have been poor. A portfolio of the 15 most popular small-cap stocks among funds outperformed the S&P 500 Total Return Index by 95 basis points per month between 1999 and 2012 in backtesting. The impressive results of this strategy got even better in forward testing after the strategy went live at the end of August 2012. A portfolio consisting of the 15 most popular small-cap stock picks among the funds we track has returned more than 137% and beaten the market by more than 82 percentage points since then, and by 4.6 percentage points in the first quarter of this year (see the details).

Let’s take a look now at Millennium’s top picks heading into 2015 and their performance thus far, beginning with its top long position in NextEra Energy Inc (NYSE:NEE),which reports its latest financial results tomorrow. Analysts are projecting earnings per share (EPS) of $1.28 for NextEra Energy Inc (NYSE:NEE), which recently acquired Hawaiian Electric, the largest utility company in Hawaii, serving 95% of the island state’s residents with power. NextEra Energy Inc (NYSE:NEE) dipped slightly, by 1.39% in Q1, following a big 2014 when it gained over  25%. Millennium’s 3.03 million shares were valued at $322.41 million, the firm’s largest position, though the stake represented just 0.68% of its portfolio, given its massive size. Another billionaire, Daniel S. Och, was the only investor in our database with a larger position in NextEra than Millennium, was only the first of many energy bets in Millennium’s top ten.

Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVAwas Izzy’s top healthcare pick, and it was a solid one with shares returning just under 9% during the first quarter. Izzy’s position of 5.29 million shares was valued at $304.42 million entering 2015. Izzy was just one of several billionaires who were crazy about Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) at the end of 2014, a list which also included George Soros. Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA)will announce its own earnings one day after NextEra, on Thursday, with Wall Street anticipating EPS of $1.25. Teva has beaten estimates in five of its last six earnings reports.

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.