A former employee of Salomon Brothers and Goldman Sachs, Sir Michael Hintze has founded CQS Cayman LP in 1999. The fund invests in a wide range of financial securities, including asset-backed securities, loans and equity. Hintze is famous for returning 179% on clients’ capital in the middle of the “Great Recession”, thanks to its bearish bet against the US mortgage market. According to CQS Cayman’s latest 13F filing, its equity portfolio is well diversified to include sectors such as consumer discretionary, health care, technology and others. The estimated market value of the portfolio at the end of June is $1.62 billion, up from the $1.23 billion at the end of the first quarter. In this article, CQS Cayman’s top 3 positions will be analyzed.
Twenty-First Century Fox Inc (NASDAQ:FOX) continues to be Michael Hintze darling: during the second quarter CQS Cayman’s stake in the company has grown 7% and maintained Twenty-First Century Fox Inc (NASDAQ:FOX) as its biggest equity position. The fund controls 5.49 million shares valued at $188 million. Chase Coleman And Feroz Dewan the managers of Tiger Global Management LLC are also betting big on Twenty-First Century Fox Inc (NASDAQ:FOX), but have slightly decreased their investment in the company during the quarter. Their fund now holds 18.5 million shares, which are valued at roughly $651 million.
During the quarter, Hintze has decreased his fund’s investment in BHP Billiton Limited (ADR) (NYSE:BHP) by 17%. Still the company is his second biggest equity investment, as CQS Cayman owns roughly 754,100 shares worth in excess of $51 million. Ken Fisher, on the other hand, has chosen to boost his fund’s stake in BHP Billiton Limited (ADR) (NYSE:BHP) by 2%. His fund, Fisher Asset Management, has reported ownership over 3.27 million BHP Billiton Limited (ADR) (NYSE:BHP) shares worth a little over $224 million.
Not far behind is General Motors Company (NYSE:GM), with the CQS holding a little over 1.4 million shares worth approximately 50.8 million. During Q2, Hintze has boosted his fund’s stake in the automaker by 21% to make it his third largest equity position. Legendary value investor, Warren Buffett holds a huge stake in General Motors Company (NYSE:GM) and has further increased it during the quarter. As a result, Berkshire Hathaway has control over 32.9 million shares of General Motors Company (NYSE:GM), valued at approximately $1.19 billion.