Investor/Fund Activity

Warren Buffet:

Profile: Chairman of Berkshire Hathaway, which carries almost $69.9 billion in marketable equities. One of the world’s greastest investors, Buffet employs a Value Investing philosophy. His portfolio has an extremely low turnover rate, and his core positions are in “great businesses” ; simple and consistent. He is interested in the long term competitive advantage of the business, and focuses on “good busineses at fair prices rather than fair businesses at  a great price”. Top 9 holdings make up 80% of the portfolio; top sectors/industires include Consumer Goods (34%) and Financials (31%)

Largest Positions (by % of portfolio): KO (21%), WFC, (17%), AXP (12%), PG (10%),KFT (6%), JNJ (5%), WMT (4%), WSC (4%), USB (3%).

Recent Buys/Adds: JNJ

Recent Sells/Reduce: COP

Mohnish Pabrai:

Profile: Founder and sole manager of Pabrai Funds, with $320 million under management.  Pabrai is another value investor, comparable to Warren Buffet in 1956-1970. He focuses on purchasing equities of small companies which are selling at 50% or less of intrinsic value. He equates this to” buying 1$ bills for 30-50 cents”. Top 6 holdings make up 75% of the portfolio; top sectors/industires include Financials (60%), Consumer Services (19%) and Oil and Gas (18%).

Largest Positions: FRFHF (14%), BPO (12%), HNR (12%), POT (11%), CRESY (8%), ATSG (7%), LUK (5%), GS (5%).

Recent Buys/Adds: FRFHF

Recent Sells/Reduce: ATSG, BRK-B

Joel Greenblatt:

Profile: Founder of Gotham Capital, which boasted 40% annualized returns over a ten year period from 1987 to 1997. Greenblatt is a value investor who uses his version of Earnings Yield and Return on Capital to find businesses that are both good and cheap. Although initally, he managed a very concentrated portfolio, he has recently shifted to having many more positions. We will therefore look at some of his recommendations.

Largest Positions: EPAX, TMB, ARKR

Recent Buys/Adds: EPAX, TMB, ARKR

Recent Sells/Reduce: N/A

David Einhorn:

Profile: President of Greenlight Capital, carrying $1.5 billion in equities. Einhorn runs a “Long-Short” fund that focuses on intrinsic value; he is also interested in special situation and activist investing. His fund has been very successful in shorting financials such as Allied Capital and Lehman Brothers. Top 7 holdings make up 67% of the portfolio; top sectors/industires include Consumer Services (21%), Consumer Goods (20%) and Oil & Gas (16%)

Largest Positions: CIT (11%), PFE (10%), ESV (8%), CAH (6%), CFN (6%), MSFT (5%), NCR (4%), GDX (4%), BDX (3%), BAGL (3%)

Recent Buys/Adds: ESV, PFE, MSFT

Recent Sells/Reduce: GDX, EMC

William Ackman:

Profile: Chairman of Pershing Square, with $3.79 billion under management. Ackman is an activist investor, and is well known for pushing management in the direction he sees is best for shareholder value creation. He is not as much a buy and hold investor as he is a “buy at discount to IV and sell at IV” investor. Top 7 holdings make up 94% of the portfolio; top sectors/industires include Consumer Services (47%), Financials (19%) and Technology (18%)

Largest Positions: TGT (29%), KFT (27%), C (15%), ADP (9%), GGP (9%) CXW (5%), YUM (2%)

Recent Buys/Adds: C, ADP

Recent Sells/Reduce: YUM

Seth Klarman:

Profile: Manager of Baupost Group, a deep value oriented fund which he co-founded in the early 1980s, which currently carries $1.63 billion in marketable equities. His portfolio is fairly eclectic, as he also invests in distressed debt, liquidations, and foreign equities or bonds. He is a huge proponent of patience and discipline, and has sometimes kept as much as half of his fund in cash. Top 9 holdings make up 62.6% of the portfolio; top sectors/industires include Consumer Services (30%), Oil and Gas (24%) and Healthcare (22%)

Largest Positions: VSAT (24%), NWSA (17%), THRX (12%), BBEP (9%), ENZN (8%), CSE (6%), UFS (6%)

Recent Buys/Adds: VSAT, ENZN, ADCT

Recent Sells/Reduce: NWSA, UFS

Mason Hawkins:

Profile: Chairman and Chief Executive Officer Southeastern Asset Management, with $27.7 billion in equities. Hawkins is another value investor. He focuses on finding good businesses, with good management, at a good price.  They use FCF analysis to determine the extent to which companies are trading below Intrinsic Value, and don’t mind investing in popular/tech companies. Top 8 holding make up 40% of the portfolio; top sectors/industires include Consumer Services (19%) and Technology (7%)

Largest Positions: DTV (11%), YUM (9%), DELL (8%), CHK (8%), DIS (7%), CX (6%), PXD (6%), AON (4%), BK (3%), LINTA (3%)

Recent Buys/Adds:   AON, BK

Recent Sells/Reduce: DTV, DIS

Bruce Berkowitz:

Profile: Manager of Fairholme Fund which has $9.46 billion in equities. Berkowitz is a value investors who’s main focus is in companies with excellent managent, generating free cashflow, at an attractive price. He holds a fairly concentrated portfolio, and has compounded at 17% annualy since 1999. Top8 holdings make up 64% of the portfolio; top sectors/industries include Financials (38%), Consumer Services (21%) and Healthcare (20%).

Largest Positions: AIF (10%), SHLD (9%), C (8%), GS (7%), BAC (7%), JOE (6%), HUM (5%), BRK-A (4%)

Recent Buys/Adds: AIG, GS, BAC

Recent Sells/Reduce: HUM

Prem Watsa:

Profile: Founder of Fairfax Financial Holdings, which carries $3,76 billion in marketable equities. Watsa is a value investor who is often compared to Warren Buffet. His style is fairly secretive; he seems to manage a very concentrated portfolio, with top holdings accounting for most of the total portfolio. Top 9 holdings make up 94% of portfolio; top sectors/industries include Financials (49%), Healthcare (22%) and Telecommunications (14%)

Largest Positions: JNJ (17%), WFC (15%), KFT (12%), DELL (11%), USB (10%), ICO (7%), LVLT (6%), FTR (5%)

Recent Buys/Adds: N/A

Recent Sells/Reduce: SD

John Hussman:

Profile: Manages Hussman Funds, with $3.49 billion under management. This former economics professor is a value invesor who uses two measures to value investments: valuation and quality of market actions. Valuation looks at the stock ( reasonable in view of the stream of earnings, dividends, revenues and cash flows expected in the future). Quality of market action considers the behavior of a wide range of securities and industry groups, in an attempt to assess the economic outlook of investors and their willingness to accept market risk. Top  12 holdings make up 33.8 % of the portfolio; top sectors include Consumer Services and Technology.

For stocks, in order of most favorable to least favorable, these Climates are: favorable valuation / favorable market action, unfavorable valuation / favorable market action, favorable valuation / unfavorable market action, and unfavorable valuation / unfavorable market action.

Largest Positions: AZN (4%), JNJ (3.5%), PNRA (3,5%), AMGN (3,5%), AMZN (3,5%%), NKE (3%), WMT (3%), BBY (3%), RIMM (3%), CSCO (3%) KO (3%), BBY (3%)

Recent Buys/Adds: AAPL, CSCO, WMT, RIMM, BBY

Recent Sells/Reduce: MHS, PEP, KSS

Whitney Tilson:

Profile: Manager of T2 partners, who’s value fund carries $132 million in equities. Tilson is a very active value investor and founder of various community newsletters and websites. His strategy is similar to Buffet’s, of whom he is a huge fan. He runs a fairly concentrated portfolio, with most of the largest holdings being in other funds. Top holdings account for 62% of total portfolio, top sectors/industries include financials and consumer services.

Largest Positions: GGP (12%), BRK.B (6%), IRDM (6%), BUD (4%), KFT (4%), BP (4%)

Recent Buys/Adds: GGP, BP

Recent Sells/Reduce: BRK-B, IRDM

Jean Marie Eveillard:

Profile: Portfolio Manager of First Eagle Global, with $9.6 billion in equities. Eveillard is a value investor who focuses on the long term results of the companies he invests in. He often takes an active role in meeting with management to discuss their goals and direction. Has been involved in investing since 1979. Top 8 holdings make up 31% of the portfolio; top sectors include Financials (21%), Industrials (19%), Basic Materials (15%).

Largest Positions: GFI (5%), BRK-A (3%), NEM (3%), AXP (3%), MMM (3%)

Recent Buys/Adds: N/A

Recent Sells/Reduce: NEM

Martin Whitman:

Profile: Founder of Third Avenue Value Fund, with $7.4 billion in equities under his management. Whitman is a “buy and hold” value investor, who focuses on sound businesses in exellent financial positions. Unlike most investors, he concentrates on the NAV of companies and tends to sell them when he thinks a fundamental change has occured in their value. He often invests in non-american stocks. Top 7 holdings make up 45% of the porfolio; top sectors include Financials (36%) and Oil & Gas (7%)

Largest Positions: HLDVF.PK (17%), TYIDF.PK (12%), PKX (10%), WHLKF.PK (7%)

Recent Buys/Adds: N/A

Recent Sells/Adds: N/A

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