Previously we have covered Richard Perry’s new stock picks twice: Richard Perry’s Recent Portfolio Activity and Richard Perry’s Latest Stock Picks. Richard Perry’s Perry Capital has a very long and successful track record of beating the market by taking less risk than the market. During the past 22 years, Perry Capital had only one losing year: 2008. Perry Partners International, Richard Perry’s flagship multi-strategy fund, lost 26.8% in 2008, gained 25.2% in 2009, and returned 16.2% in 2010. Perry Capital manages $14 Billion and has an average return of 15.4% since inception.
Richard Perry uses the same strategies described in Joel Greenblatt’s book, You Can Be a Stock Market Genius. He follows an event-driven approach and invests in companies in mergers and acquisitions, bankruptcy, spinoffs or any other type of restructuring. There are a lot of hedge funds trying to generate alpha by using these strategies though. So, Richard Perry seeks out companies that are willing to work with him to make changes that unlock value.
During the second quarter Richard Perry initiated brand new positions in the following companies: Citigroup Inc Calls (C), Mosaic Co (MOS), Yahoo Calls (YHOO), Universal American Spin Corp (UAM), Anadarko Petroleum (APC), Southern Union (SUG), and Sunoco Calls (SUN). David Tepper and Dan Loeb also initiated brand new positions in MOS during the second quarter. It seems like MOS is one of the new favorite stock picks among hedge funds. Here are Richard Perry top stock picks: