Top Funds' Activity in Q3 2020
Before I proceed, three weeks ago, Benjamin Bain and Robert Schmidt of Blain of Bloomberg reported that hedge funds' shot at keeping stock investments secret fades:
U.S. regulators are shelving a controversial plan to allow most hedge funds to keep their stock investments secret after public companies and other critics blasted the proposal as a major blow to market transparency, said people familiar with the matter.Under the rule change the Securities and Exchange Commission was considering, only fund managers who owned at least $3.5 billion in equities would have had to publicly report their holdings, a dramatic increase from the current threshold of $100 million. While the SEC hasn’t publicly announced its decision to scrap the overhaul, some within the agency have been notified it’s dead, said the people who asked not to be named in discussing internal communications. At issue are 13F filings, reports in which asset managers must disclose their investments in U.S. shares every three months. Even though the filings can be delayed by as many as 45 days after the end of each quarter, they are still closely tracked by companies, Wall Street analysts and rival money managers as the most revealing peak into funds’ stock portfolios. When the SEC issued its proposal in July, the agency said it wanted to reduce compliance burdens on smaller money managers while ensuring that it could still monitor the equity investments of the biggest fund companies. But the plan to raise the threshold to $3.5 billion quickly became a lightning rod for attacks. Corporate titans complained in comment letters that the revamp would make it much harder to figure out who owns their companies’ stock and enable investors to covertly build up equity stakes over time -- potentially making it harder to fend off activist campaigns. As opposition mounted, even the two main lobbying groups for hedge funds questioned whether the SEC had overestimated how much fund managers would save in compliance costs if many no longer had to file 13Fs. “This shows the value of the public comment process,” said James Angel, a finance professor at Georgetown University who wrote a letter to the SEC opposing the rule change. “More people should monitor what our regulators are proposing and submit comments. The SEC is a political agency, and they do pay attention to public opinion.” Inside the SEC, senior officials were surprised by the level of opposition, said the people. An SEC spokeswoman declined to comment on whether the proposal has been abandoned. In a statement, the regulator said it still believes that the $100 million trigger -- a level that hasn’t been altered in four decades -- needs to be revised. “It remains clear that the current threshold is outdated,” the agency said. “The comments received illustrate that the form is being used in ways that were not originally anticipated when the form was adopted. We are focused on examining these important issues before we move forward with determining the appropriate threshold.” Goldman Sachs Group Inc. analysts did a tally of responses that the SEC received when the agency’s public comment deadline passed this month and the results were overwhelming: The regulator received 2,238 letters opposing the changes to 13F requirements and just 24 in favor. The Goldman analysts also predicted that the SEC would withdraw its plan. In its proposal, the SEC said that almost 90% of fund managers would no longer have to file 13Fs if the change was approved. But more than 90% of U.S. stock holdings that are currently reported would still be publicly disclosed, the agency said. That’s because funds with $3.5 billion of equities own the vast majority of stocks. The SEC’s proposal would have allowed some of the biggest names in investing to keep their stock holdings private, including John Paulson, Stanley Druckenmiller, George Soros and David Einhorn. The SEC is now closely examining several topics raised in the comment letters, according to two other people who asked not to be named. The issues include whether corporations have enough information about who their shareholders are and whether market participants realize that 13F filings don’t reveal all the ways that funds might invest in companies, the people said. For instance, some derivative transactions aren’t disclosed.
Not exactly sure what that SEC official meant with “it remains clear that the current threshold is outdated,” but I'm very happy the SEC abandoned this proposal and after reading this comment, you will be too.
I believe more transparency is better for financial markets and I agree with SEC chair Jay Clayton who in a recent interview with CNBC’s Bob Pisani, admitted that the commission may need to take a look at issuers’ reliance on 13Fs to determine who their shareholders are.
Hundreds of issuers co-signed letters filed by NIRI national, local NIRI chapters, Nasdaq and the NYSE, as well as 33 companies that submitted stand-alone letters, all expressing concern about how the proposal would reduce visibility into who holds stock.
Clayton said last week that if 13F filings are ‘the only way we have to effectively identify who our shareholders are, that’s a problem. If we’re using 45-day trailing filings of a select group of people to help companies figure out who their shareholders are in the day of electronic communication, that’s something we’ve got to address.’
He added that this may require the SEC to take a look at the commission’s rules around objecting beneficial owners (OBOs) and non-objecting beneficial owners (NOBOs). These rules were introduced in the 1980s and govern how issuers interact with their investors through brokerages.
Alright, keep this in mind as you still get to enjoy a sneak peek into the portfolios of the world's richest and best known fund managers, with the customary 45-day lag.
Everyone is an "expert" on 13F filings but only yours truly brings you quarterly comments where you can literally click on links and go straight to the top holdings of each fund to see firsthand what your favorite superstar fund managers bought and sold last quarter.
A few things to keep in mind:
- The data is lagged by 45 days and it's highly likely some funds added to positions or sold out of positions since the end of Q3. Most quant funds churn their entire portfolio often, other activist funds very rarely, and others are mixed.
- Markets are very volatile, now more than ever, because interest rates are at historic lows and geopolitical risks remain high. Use the information below as part of your tool kit, learn from it but never ever make an investment decision based on what Tepper, Soros or Buffett are doing in their portfolio. Importantly, most of you reading this are better off just buying the S&P 500 ETF (SPY) or the Russell Value and Growth ETFs (IWD and IWF) or a balanced fund ETF (AOA, AOM, or VBAL.TO in Canada) over the long run. Never risk more than you can afford to lose, it's a sure road to ruin.
- It's important to also note that even the best fund managers get clobbered once in a while. Over 90% of active managers underperform the S&P 500 on any given year and over a four-year rolling basis which is why most big pensions index their US stock exposure and use portable alpha strategies to invest in external hedge funds. True, at any given time, there are very hot portfolio managers. Cathie Wood, founder and CEO and CIO of Ark Investment Management is very hot this year, calling the Tesla bull run and investing in disruptive technologies, but it remains to be seen if she will stay at the top or go the way Bill Miller went after beating the S&P for 15 years in a row. Still, you can invest in the Ark Innovation ETF (ARKK) if you want exposure to her ideas for low fees. My point is even the best of the best get clobbered in these markets on any given year (Ray Dalio's Pure Alpha fund is down 18% YTD).
- Speaking of best of best, I almost fell off my chair this week listening to Josh Brown on CNBC's Halftime Report touting Crowdstrike (CRWD) because Chase Coleman increased his position in Q2 and "he's the best living hedge fund manager alive." Umm, no he isn't, Citadel's Ken Griffin is the best hedge fund manager alive followed by Steve Cohen and Izzy Englander but Chase Coleman is a very good tech stock picker (so is Coatue's founder Philippe Laffont who massively increased his position in Crowdstrike in Q2 before Coleman and is still a top holder of the stock).
- What else? A lot of talk of Buffett did this or that or Soros did this or that. Both these gentlemen are legends but they're close to or over 90 years old and not managing the day-to-day portfolios. Buffett has two lieutenants, Todd Combs and Ted Weschler, taking increasingly more positions and Soros has a great female CIO, Dawn Fitzpatrick, managing his portfolio. Don't read too much into their moves. I laugh when I hear folks on CNBC who think Buffett is predicting a "flat yield curve for years" which is why he sold most of his banks in Q3 (Soros maybe but Buffett couldn't care less about the yield curve or macro trades in general).
- What I find fascinating about going over top holdings of top fund managers is you get to appreciate the diversity in views and approaches and also see where the crowded trades are. It's also worth noting while many top hedge funds gorged on tech stocks and gold in Q2, others made a killing focusing on retail names. For example, Lone Pine Capital Management and Melvin Capital Management are top holders of L Brands (LB), a stock that popped big this week on good earnings and has rallied sharply off its March lows and has more room to run higher.
Keep in mind, while everyone is focused on growth (FANG) and hyper growth stocks (Zoom, Roku, PayPal, Square, Docusign, etc), the stock market is made up of a lot of stocks across many sectors and even more industries.
There are always opportunities in the stock market, you just need to focus your attention on the bigger picture and not one or two stocks.
A few more points to help many of you:
- I've already stated most of you are better off over the long run just investing in the S&P 500 ETF (SPY). If you like Tech, Tech, Tech then invest in tech ETFs (QQQ or XLK) or Cloud ETFs (CLOU or WCLD) or Fintech ETFs (FINX or IPAY). Just make sure you look at the fees these ETFs charge and look closely at the holdings because many ETFs are very concentrated in a few companies.
- What else? Try to understand the big picture. For example, cyclical sectors like Financials (XLF), Industrials (XLI), Energy (XLE) and Materials (XLB) tend to do well right before the economy is ready to turn the corner and do well. The hard part is figuring out exactly when that is. Conversely, in tough economic times, Utilities (XLU), Staples (XLP), Real Estate (XLRE), and Healthcare (XLV) tend to outperform and provide stable yields. However, things are unclear in Real Estate right now and there's a lot of biotech (XBI) in healthcare so it's not always easy to make these big calls. As far as tech (XLK), portfolio managers view it as a defensive sector with growth and in an ultra-low yield environment, they can't seem to get enough growth stocks and will always find a way to explain investing in them despite crazy high multiples. Hedge funds love growth stocks, they trade them and some of them make a lot of money trading them.
What else? I want you to get used to charting stuff on StockCharts. It's free and only advanced traders really need to pay for extra services. You just type in any symbol at the very top and then a default chart pops ups showing you a daily chart with a default period, daily RSI, daily MACD, and 50-day and 200-day simple moving averages (these are the defaults).
For example, I typed in "AAPL" at the top of the StockCharts web page to get the default chart on Apple:
From there, I can change the range to one year or go up to five years. I can also change the range to set weekly closings (next to symbol box) and set my simple moving averages to 20, 50, and 200 days or weeks for longer period charts (if you pay StockCharts, you can also view monthly data going back years).
For example, here is Apple's 5-year weekly chart using the weekly simple moving averages I set as my defaults:
You see how it's still trading above its 20-week moving average but toppish and the weekly MACD is telling me a reversal might be going on here (still positive but declining).
I use daily charts for short-term trading and weekly charts for long-term trading ideas and to gauge the long-term trend. You can use the simple or exponential moving averages tor whatever technical indicator you like, just remember, all stocks are different so be careful interpreting too much into any stock using these technical indicators (just another tool, that's all).
What do I mean by that? If you 're buying Enbridge (ENB) to collect the 8% dividend, you don't really care if it's trading choppy and a bit weak as long as the stock doesn't crater, wiping out your gains from the dividend and more:
Got that? All stocks trade differently, some are far more volatile than others.
Let's add something else to your toolkit. I want you to go to barchart.com and hover your cursor over stocks at the very top to see this image:
From there, you can click on stock market sectors to see how sectors are performing today (or this week if you change defaults) or click on "percent change" under performance leaders to see which stocks are performing well today (or this week, month, quarter, YTD etc.).
Here's is what I like to look at every day:
- Today's advances and declines for All US Exchanges (default setting) and then switch period to see top gainers and losers for the week, YTD or whatever period and change settings to view it for large cap shares or ETFs (once you change settings, it automatically updates).
- Top performing sectors for the day and week. Again, you can view many periods, play around with the default settings.
Other experts (like Jon and Pete Najarian) like to look at unusual activity in the options market to buy short-term positions in stocks or options when there's unusual call option buying. They also engage in covered call strategies and buy and sell volatility when the VIX is low or high (follow CNBC Halftime Report on Twitter here).
Top multi-strategy hedge funds have teams of experts doing this all day long on top of other sophisticated and not-so-sophisticated derivatives strategies.
Why am I sharing this with you? To make a point, the stock market is continuously on the move, to really stay abreast of everything going on, you need to put in a lot of time reading and looking at all sorts of data and charts in real time.
This is why I reserve every Friday on my blog to go over markets where I can really go over my market thoughts in more detail.
But most people simply don't have the time to analyze markets either because that's not their number one job or because they simply don't care. Again, these people are much better off investing in a low fee ETF (like SPY) or low fee balanced fund managed by experts.
I realize this comment is long but please stick with me, we have only scratched the surface and are now getting into the fun stuff, I promise.
I'm not a huge fan of the new website but truth be told, I'm just pissed because I'll have to manually change a bunch of links again.
Anyway, what did top funds buy and sell last quarter?
Strangely enough, the traditional market news sources didn't do a great job covering 13-F filings this week.
Zero Hedge did a good job going over what hedge funds bought and sold in Q3:
While we live in a time when the holdings of the top 20 Robinhood "investors" have far more information value for markets and other traders than a glimpse into what hedge funds are doing, not in the least because retail investors are outperforming both the S&P500 and hedge funds 10-to-1...
... unfortunately there is still no regulatory requirement for even superstar retail investors to disclose their holdings, which is why we have to be satisfied with the quarterly 13-F publication spectacle, which just concluded today, and which revealed that even as tech stocks suffered two correction shakeouts since early September, hedge funds mostly stuck with the "safety" of tech stocks during the third quarter heading into the election, even as some hedge funds trimmed Amazon.com as the dominant e-commerce platform thrived amid a pandemic-fueled surge in online shopping, while others sold Netflix
Courtesy of Bloomberg, below is a snapshot of what some of the most prominent tech stock additions as disclosed by today's barrage of 13F filings:
- Coatue Management doubled its holdings of Tesla in the three months ended Sept. 30, making the electric-vehicle maker its second-biggest publicly disclosed holding. Assuming the fund held on, the bet proved prescient with the stock soaring in late trading Monday after it was announced that Tesla will enter the S&P 500 next month.
- Gabe Plotkin’s Melvin Capital Management bought an additional 2.5 million shares of Expedia Group Inc, while Stephen Mandel’s Lone Pine Capital added stay-at-home play DocuSign Inc. and snapped up more shares of Shopify Inc., Facebook Inc., Microsoft Corp. and Netflix Inc.
- D1 Capital and Soroban Capital Partners were among funds that increased their holdings in Microsoft.
- One recent initial public offering that received a lot of attention from hedge funds was Snowflake Inc. The software company was a top new buy for Berkshire, D1 Capital and Temasek Holdings.
Not everyone added to their tech holdings, with some selling although it was not clear if funds that trimmed tech stocks did so because they’ve soured on the investments or if its part of a portfolio exposure plan to manage risk associated with soaring stocks.
- Dan Sundheim’s D1 Capital cut its stake in Netflix by 89% in the third quarter, selling more than 951,000 shares. That’s surprising given Sundheim has long held bullish views of the online-streaming service and last year said the stock could reach $1,000. So far, this has been a prescient move, with Netflix dropping 4.2% in the fourth quarter, as work from home stocks were hammered following vaccine news.
- Lone Pine trimmed holdings in Amazon.com Inc. and Zoom and pared its stake in Salesforce.com. Fellow Tiger-cubs Maverick, Viking and Tiger also trimmed their Salesforce holdings. David Tepper’s Appaloosa Management, Viking and D1 either reduced or liquidated their Amazon stakes.
- Work from home winner Netflix Inc. was trimmed by several funds, including Stanley Druckenmiller’s Duquesne Family Office, Appaloosa and Corvex Management, while Melvin Capital Management exited its stake.
- Maverick Capital boosted its exposure to tech by more than 9% in the third quarter. In the last quarter upped its stake in semiconductor equipment company LAM Research Corp. and business-payments company FleetCor Technologies Inc. Even though it sold some Facebook Inc. shares, the tech giant is still Maverick’s biggest U.S. long holding.
- As noted earlier, Berkshire Hathaway continued its trend of pulling back on certain financial bets in the quarter, cutting its Wells Fargo stake and JPMorgan Chase & Co. bet. The company also trimmed holdings in PNC and M&T Bank.
- Saudi Arabia’s sovereign wealth fund retrenched from its big jump into U.S.-traded stocks battered by the pandemic. The Riyadh-based Public Investment Fund cut its U.S. holdings to $7.0 billion from $10.1 billion during the third quarter, mainly by selling stakes in exchange-traded funds that track the real estate and materials sectors. That left a $2.7 billion stake in Uber Technologies Inc. as its largest U.S. traded holding.
Finally, a quick look at what some of the marquee hedge funds bought and sold in Q3:
ADAGE CAPITAL PARTNERS
- Top new buys: BMY, LSPD, SAGE, PH, OXY, TWTR, RKT, WEC, ANNX, CMI
- Top exits: PFE, CCK, TM, GRA, HSC, ATR, WM, SIRI, VMC, PCG
- Boosted stakes in: AMZN, JNJ, ST, BRK/B, HZNP, UPS, UAA, HON, DHR, TXN
- Cut stakes in: OTIS, ROST, CSCO, BAC, RTX, C, FIVE, ITT, FCX, BMRN
- Top exits: AVGO, QCOM, VST, TSLA, HUM
- Boosted stakes in: PCG, MU, MSFT, ET
- Cut stakes in: AMZN, T, GOOG, BABA, FB, NFLX, PYPL, WFC, V, MO
BALYASNY ASSET MANAGEMENT
- Top new buys: LULU, BAC, GOOGL, TJX, SNX, ROP, CARR, VAR, TMUS, XOM
- Top exits: JPM, FLT, NSC, C, NKE, AZN, SAIC, TWLO, LSTR, CTLT
- Boosted stakes in: MCD, CTSH, MDT, SWKS, WAT, CMCSA, RTX, TWTR, AJG, MSI
- Cut stakes in: FISV, QGEN, LITE, NXPI, QRVO, ITW, DKS, GM, LHX, HOLX
- Top new buys: PSTH, MU, AMAT, PEAK, HWM
- Top exits: AKBA, HCA, ABC, UNVR, VTR
- Boosted stakes in: PCG, SSNC, VRNT, HDS, VSAT
- Cut stakes in: EBAY, GOOG, TBPH, HPQ, FB, VIST, CLNY, FOXA, QRVO
- Top new buys: ABBV, MRK, BMY, SNOW, TMUS, PFE
- Top exits: COST
- Boosted stakes in: BAC, GM, KR, LILAK
- Cut stakes in: WFC, JPM, PNC, GOLD, MTB, LBTYA, AXTA, DVA, AAPL
- Top new buys: WMT, PG, KO, JNJ, PEP, MCD, ABT, MDLZ, EL, DHR
- Top exits: INDA, LMT, PM, FIS, MO, CI, FISV, ADP, AMT, TMUS
- Boosted stakes in: BABA, EEM, VWO, IEMG, COST, SBUX, JD, TGT, NIO, DG
- Cut stakes in: IVV, SPY, FXI, MCHI, EWY, EWZ, LOW, HD, SHW, SINA
- Top new buys: SNOW, RUN, Z, NUAN, LB, ZG, GPS, DECK, AEO, URBN
- Top exits: BA, HWM, SFIX, NOW, TDG, BBBY, TWTR, SKT, HD, AAP
- Boosted stakes in: TSLA, GPN, SQ, PLAN, UBER, SHOP, FB, DIS, DOCU, NFLX
- Cut stakes in: LBRDK, DXCM, SMAR, OKTA, MU, GH, DDD, SRNE, SDC, LRCX
CORSAIR CAPITAL MANAGEMENT
- Top new buys: PSTH, ECPG, BERY, CCK, APG, PCG, GSAH, MS, LKQ, GVA
- Top exits: IWO, REPH, HGV, IWM, SMIT, GSL
- Boosted stakes in: VRT, GDDY, NATR
- Cut stakes in: QQQ, BXRX, PRSP, VOYA, PLYA, CHNG, STAR, HMHC, C, WMB
- Top new buys: ILMN, FE, ACM, TWTR, DIS, ZEN, HCA, NAV, FIVE
- Top exits: IAA, CNC, TIF, FLMN, CZR
- Boosted stakes in: EXC, BABA, ATVI, CNP, ATUS, CMCSA, HUM, LYV, EVRG
- Cut stakes in: MSGS, AMZN, PCG, NFLX, ADBE, TMUS
D1 CAPITAL PARTNERS
- Top new buys: U, IR, BEKE, BLL, DT, SNOW, OM, GDRX, ADI, CD
- Top exits: AMZN, AZO, FLT, BFAM, ESTC, TSM, SBUX, API, ALLO, HST
- Boosted stakes in: CVNA, JD, MSFT, EXPE, GOOGL, PNC, LYV, FB, RH, JPM
- Cut stakes in: BABA, NFLX, LVS, DHR, FIS, HLT, AVB, ORLY, PLAN, HPP
DUQUESNE FAMILY OFFICE
- Top new buys: NUAN, GDX, NEE, XLI, EXPE, CVNA, PANW, ADI, SNE, NET
- Top exits: XBI, HD, WFC, CB, INSM, SRPT, AZO, MAR, CRWD, TCDA
- Boosted stakes in: MSFT, PENN, BABA, TMUS, SBUX, MELI, AMZN, JD, VZ, FIS
- Cut stakes in: JPM, PYPL, WDAY, GOOGL, BKNG, CCL, LYV, FSLY, REGN, NFLX
- Top new buys: UNIT, CUB
- Top exits: T, RYAAY, SPR
- Boosted stakes in: DELL, CRMD
- Cut stakes in: WELL, RILY
- Top new buys: EVH, MX
- Top exits: SMPL
- Boosted stakes in: NCR, STKL, IWM
- Cut stakes in: MED, RCII
- Top new buys: SNX, NCR, TWTR, INTC, INGR, DDS, UHAL, ICPT, GHC, PANA
- Top exits: TPX, SATS, WHR, XELA
- Boosted stakes in: GLD, AAWW, JACK, REZI, NBSE
- Cut stakes in: AER, GDX, GPOR, CNX, APG, TECK, CC, CHNG
- Boosted stakes in: IEP, XRX
- Cut stakes in: HLF, LNG
IMPALA ASSET MANAGEMENT
- Top new buys: FDX, RKT, FCX, VALE, SBSW, FND, MHK, ALK, THO, AGQ
- Top exits: QCOM, HES, VAC, DOOO, MU, TGT, DKS, SKX, TJX, CRNC
- Boosted stakes in: KSU, WYNN, KNX, KL, CMI, SBLK, CNK, CENX
- Cut stakes in: RIO, SIX, DRI, HOG, TOL, ADNT, TTWO, NSC, MT, LPX
LAKEWOOD CAPITAL MANAGEMENT
- Top new buys: LBRDK, TMUS, CWH, GLD, LOW, UPWK, SAIC, VVV, MIK
- Top exits: YNDX, BLDR, NKLA, SHAK
- Boosted stakes in: ABG, ANTM, COF, C, SKX, APO, BHC
- Cut stakes in: BIDU, BC, CI, CMCSA, CWK, AXS, GOOGL, WRK, FB, GS
- Top new buys: IDA, BLDP, EQT, CDE, LOOP, KCAC, RIDE
- Top exits: ONEM, GE, SMMT, GDX, AAL, NKE, SALT
- Boosted stakes in: FCX, TSM, OTIS, FSLR, EGO, DAR, ETN, COG, TMUS, AG
- Cut stakes in: C, MU, DAL, LRCX, AMAT, LUV, UAL, AES, ADI, VMC
- Top new buys: GLPI, PGRE, EXPE, NTST, H, MGP, XHR, RLJ
- Top exits: FR, SEAS, INVH, MAR, HST, BXP, TRNO, DRH, ESRT, REXR
- Boosted stakes in: EQR, AVB, SHO, WELL, AIV, RHP, DEI, HPP, CPT, JBGS
- Cut stakes in: HLT, PEAK, WH, SBRA, MAA, MAC, HGV, LVS
- Top new buys: VAR, MXIM, MPLN, BMCH, GLIBA
- Top exits: QGEN, PAYA, UTZ, FSR, HYLN, CCC, PACB, SNY, PCG, IR
- Boosted stakes in: EHC, ABBV, GRUB, PIC, SYNH, NVS, PTAC, MRK, CHNG, AVTR
- Cut stakes in: UBER, VLDR, LCA, AZN, BDX, NOVA, HCAC, PRGO, PKI, PAE
- Top new buys: BX, NKE, GPN, BECN, GPRO, OSH, GME, MCD, LB, TGT
- Top exits: BTI, STNE, IRBT, SCHW, NTAP, GIS, CHGG, FL, PLCE, BIG
- Boosted stakes in: LRCX, GLW, TGTX, LOGI, FLT, PRSP, DD, AMAT, LIVN, AXP
- Cut stakes in: GOOG, NFLX, AVTR, DLTR, MSFT, APD, AMZN, FB, HUM, ALNY
MELVIN CAPITAL MANAGEMENT
- Top new buys: ALGN, MCD, DDOG, TJX, AMD, MSCI, WDAY, SBAC, LYV, TEAM
- Top exits: CRM, FLT, FIS, CSGP, WEN, YUM, TWLO, NFLX, FB, VRSN
- Boosted stakes in: BABA, PINS, NKE, NOW, EXPE, ADBE, FISV, GOOGL, DOCU, LVS
- Cut stakes in: AZO, PYPL, AMZN, MSFT, DPZ, JD, RACE, DECK, CAR, BURL
OAKTREE CAPITAL MANAGEMENT
- Top new buys: MEG, UNIT, VALE, AMX, CEO, EQR, GTXMQ, XPEV, LEA
- Top exits: TMHC, BABA, CZR, IHRT, CCO, SRNE, BCEI
- Boosted stakes in: TRMD, NMIH, IBN, EGLE, KC, TV, ASC, ITUB
- Cut stakes in: CCS, AU, TSM, PBR, MELI, BBD, API, GTH, INDA, BIDU
- Top new buys: GOOGL, ATH, VRT, MSI, FVAC, EPD, MNRL
- Top exits: JPM, CNC, GTN, VICI, DNRCQ
- Boosted stakes in: COOP, OCN, ASPU, FCRD, NAVI, STKL, AMCX, ASH, FOE, SNR
- Cut stakes in: CI, PE, SRGA, GCI, NBR, LEE, ABR
- Cut stakes in: A, HLT, LOW
- Top new buys: ADI, PSTH, FISV, FIS, ARMK
- Top exits: NOC
- Boosted stakes in: YUM, ATUS, MSFT, CSX, RTX
- Cut stakes in: FB, SNE, AMZN
SOROS FUND MANAGEMENT
- Top new buys: QQQ, PLTR, XLI, MCHP, U, VAR, MXIM, DIS, MCHI, NGHC
- Top exits: TDG, GRFS, BK, BAC, JPM, GS, PNC, USB, WFC, TFC
- Boosted stakes in: DHI, DRI, ARMK, GM, ATVI, PFSI, TIF, MT, CHTR, APTV
- Cut stakes in: IGSB, PCG, TMUS, NLOK, PTON, C, GOOGL, OTIS, LPLA, LQD
- Top new buys: SPY, CTVA
- Top exits: EBAY
- Boosted stakes in: ACM, ACIW, IWN, GDOT, IWR, MMSI, SCOR, BOX
- Cut stakes in: NLOK, AAP, IWM, CERN, CVLT
- Top new buys: DCT, SNOW, SE, IAU, GOVT, SCHP, XLK, BNTX, EWT, IWM
- Top exits: FIS, VRT, PDD, NIO
- Boosted stakes in: PYPL, AMZN, IBN, HDB, DDOG
- Cut stakes in: TME, TMO
- Top new buys: PCG, MSFT, TDG, FTV, EXPE, PINS, AVTR, CZR, PLNT, GDRX
- Top exits: BAX, RTX, NKE, EVRG, ATVI, TTWO, GPS, CNNE
- Boosted stakes in: BABA, JD, BKI, FB, V, BURL, INTU, TEL, ETRN, SHY
- Cut stakes in: GB, IQV, ADBE, DIS, AMZN, IAA
- Top new buys: SNOW, GSX, BEKE, SUMO, BIGC, JAMF, FROG, GDRX, CD, ASAN
- Top exits: NEWR, ATH, CHWY
- Boosted stakes in: PDD, CRWD, PTON, ZM, NOW, AMZN, UBER, WDAY, TEAM, MSFT
- Cut stakes in: SVMK, PYPL, TWLO, CRM, BABA
- Top new buys: NGHC, KDP, GDRX, VICI, HEC, FSLR, LIN, RXT, DLR, RPAY
- Top exits: SOXX, O, X, TMUS, TME, NLOK, SCHW, AVB, SJM, CDAY
- Boosted stakes in: GRUB, GLIBA, KC, BDX, GOOGL, AMT, TEAM, CVX, ADBE, AMD
- Cut stakes in: PCG, CRWD, UBER, ATHM, NFLX, SBAC, ESS, BXP, THO, BXMT
VIKING GLOBAL INVESTORS
- Top new buys: TSM, AVB, AMD, RTX, GOOGL, CSGP, ZBH, BILL, BMY, OTIS
- Top exits: UBER, JD, CRM, PLAN, LOW, SHW, LIN, NFLX, DHR, BABA
- Boosted stakes in: MSFT, TMUS, MELI, FIS, CME, JPM, BKNG, PH, NUAN, HLT
- Cut stakes in: AMZN, CMCSA, CI, LVS, ALL, DRI, FTV, SE, RPRX, WDAY
Zero Hedge also covered the 50 most popular and 50 most shorted hedge fund stocks:
50 Most Popular Hedge Fund Stocks:
50 Most Shorted Hedge Fund Stocks:
Again, don't buy or sell any of your holdings based on this information, it's lagged data and sometimes hedge funds are spectacularly wrong (like David Einhorn and Jim Chanos and others shorting Tesla as it melts up).
Speaking of Tesla, check out the mini bubble happening right now in smaller electric vehicle stocks like Ayro Inc (AYRO) and Electrameccanica (SOLO):
It is just nuts, the shares have gone exponential this month on massive volume and while people will blame retail investors (Robinhoodies, Dave Portnoy's gang, etc.) I wonder if a hedge fund like Renaissance Technologies (RenTec) or some asset managers like BlackRock or other large ones are behind these moves.
It's like anything that is ESG is being bought hard on massive volume, shoot first, ask questions later, just nuts.
What else did I look at this week?. I checked out who added to Snap Inc (SNAP) last quarter and who bought the Palantir IPO (PLTR). Go to the old Nasdaq website, type in "SNAP" and then "PLTR" at the very top of the page where it prompts you which symbol and then scroll down looking for th institutional holdings link in the blue box on the left hand side of the page:
For Snap, I noticed the large Canadian pension CPP Investmetns increased its position in Q3 and so did Exoduspoint Capital management, a top muti-strategy fund (to view image above, you need to click on column heading Change % after you see top institutional holders of Snap).
For Palantir Inc., the who's who of the hedge fund world (Cohen, Soros, etc.) got in on the IPO as did two large Canadian pensions, CPP Investments and PSP Investments:
Shares of Snap and Palantir have been on fire this year and are poised to move higher but always be careful buying any stock after a major run-up, it will retrace before reaccelerating up (I prefer Snap here, it's re-accelerating up but Palantir is in beast mode, no telling how high it can go).
Anyway, I've rambled on long enough, wanted to give you a lot of food for thought in this post. Before going to the top holdings of top funds, a couple of tweets below to make you think about where we are now:
The % of MSCI World stocks beating the index YoY is up to 39%.— Julien Bittel, CFA (@BittelJulien) November 20, 2020
The last 2X we fell to 32% before working higher was in May ‘99 & Mar ‘08.
An extreme narrowing of breadth usually occurs around mkt tops.
Add current valuations to the mix, & things look a lot like the early 00’s. pic.twitter.com/7m2P7jZYUu
Have fun looking at the latest quarterly activity of top funds listed below.
Uncertainty at record highs yet short interest at record lows. https://t.co/jeGochfx2O— Bespoke (@bespokeinvest) November 21, 2020
The links below take you straight to their top holdings and then click on the column head "Change (%)" to see where they increased and decreased their holdings (you have to click once or twice to see).
These funds are run almost exclusively by men but one of the most impressive ones, ARK, is run by a lady called Cathie Wood, the best investor you never heard of (well, by now, you've all heard of her).
Top multi-strategy and event driven hedge funds
As the name implies, these hedge funds invest across a wide variety of hedge fund strategies like L/S Equity, L/S credit, global macro, convertible arbitrage, risk arbitrage, volatility arbitrage, merger arbitrage, distressed debt and statistical pair trading. Below are links to the holdings of some top multi-strategy hedge funds I track closely:
1) Appaloosa LP
2) Citadel Advisors
3) Balyasny Asset Management
4) Point72 Asset Management (Steve Cohen)
5) Peak6 Investments
6) Kingdon Capital Management
7) Millennium Management
8) Farallon Capital Management
9) HBK Investments
10) Highbridge Capital Management
11) Highland Capital Management
12) Hudson Bay Capital Management
13) Pentwater Capital Management
14) Sculptor Capital Management (formerly known as Och-Ziff Capital Management)
15) ExodusPoint Capital Management
16) Carlson Capital Management
17) Magnetar Capital
18) Whitebox Advisors
19) QVT Financial
20) Paloma Partners
21) Weiss Multi-Strategy Advisors
22) York Capital Management
Top Global Macro Hedge Funds and Family Offices
These hedge funds gained notoriety because of George Soros, arguably the best and most famous hedge fund manager. Global macros typically invest across fixed income, currency, commodity and equity markets.
George Soros, Carl Icahn, Stanley Druckenmiller, Julian Robertson have converted their hedge funds into family offices to manage their own money.
1) Soros Fund Management
2) Icahn Associates
3) Duquesne Family Office (Stanley Druckenmiller)
4) Bridgewater Associates
5) Pointstate Capital Partners
6) Caxton Associates (Bruce Kovner)
7) Tudor Investment Corporation (Paul Tudor Jones)
8) Tiger Management (Julian Robertson)
9) Discovery Capital Management (Rob Citrone)
10 Moore Capital Management
11) Element Capital
12) Bill and Melinda Gates Foundation Trust (Michael Larson, the man behind Gates)
Top Quant and Market Neutral Hedge Funds
These funds use sophisticated mathematical algorithms to make their returns, typically using high-frequency models so they churn their portfolios often. A few of them have outstanding long-term track records and many believe quants are taking over the world. They typically only hire PhDs in mathematics, physics and computer science to develop their algorithms. Market neutral funds will engage in pair trading to remove market beta. Some are large asset managers that specialize in factor investing.
1) Alyeska Investment Group
2) Renaissance Technologies
3) DE Shaw & Co.
4) Two Sigma Investments
5) Cubist Systematic Strategies (a quant division of Point72)
6) Numeric Investors now part of Man Group
7) Analytic Investors
8) AQR Capital Management
9) Dimensional Fund Advisors
10) Quantitative Investment Management
11) Oxford Asset Management
12) PDT Partners
13) Angelo Gordon
14) Quantitative Systematic Strategies
15) Quantitative Investment Management
16) Bayesian Capital Management
17) SABA Capital Management
18) Quadrature Capital
19) Simplex Trading
Top Deep Value, Activist, Event Driven and Distressed Debt Funds
These are among the top long-only funds that everyone tracks. They include funds run by legendary investors like Warren Buffet, Seth Klarman, Ron Baron and Ken Fisher. Activist investors like to make investments in companies where management lacks the proper incentives to maximize shareholder value. They differ from traditional L/S hedge funds by having a more concentrated portfolio. Distressed debt funds typically invest in debt of a company but sometimes take equity positions.
1) Abrams Capital Management (the one-man wealth machine)
2) Berkshire Hathaway
3) TCI Fund Management
4) Baron Partners Fund (click here to view other Baron funds)
5) BHR Capital
6) Fisher Asset Management
7) Baupost Group
8) Fairfax Financial Holdings
9) Fairholme Capital
10) Gotham Asset Management
11) Fir Tree Partners
12) Elliott Associates
13) Jana Partners
14) Miller Value Partners (Bill Miller)
15) Highfields Capital Management
16) Eminence Capital
17) Pershing Square Capital Management
18) New Mountain Vantage Advisers
19) Atlantic Investment Management
20) Polaris Capital Management
21) Third Point
22) Marcato Capital Management
23) Glenview Capital Management
24) Apollo Management
25) Avenue Capital
26) Armistice Capital
27) Blue Harbor Group
28) Brigade Capital Management
29) Caspian Capital
30) Kerrisdale Advisers
31) Knighthead Capital Management
32) Relational Investors
33) Roystone Capital Management
34) Scopia Capital Management
35) Schneider Capital Management
36) ValueAct Capital
37) Vulcan Value Partners
38) Okumus Fund Management
39) Eagle Capital Management
40) Sasco Capital
41) Lyrical Asset Management
42) Gabelli Funds
43) Brave Warrior Advisors
44) Matrix Asset Advisors
45) Jet Capital
46) Conatus Capital Management
47) Starboard Value
48) Pzena Investment Management
49) Trian Fund Management
Top Long/Short Hedge Funds
These hedge funds go long shares they think will rise in value and short those they think will fall. Along with global macro funds, they command the bulk of hedge fund assets. There are many L/S funds but here is a small sample of some well-known funds.
1) Adage Capital Management
2) Viking Global Investors
3) Greenlight Capital
4) Maverick Capital
5) Pointstate Capital Partners
6) Marathon Asset Management
7) Tiger Global Management (Chase Coleman)
8) Coatue Management
9) D1 Capital Partners
10) Artis Capital Management
11) Fox Point Capital Management
12) Jabre Capital Partners
13) Lone Pine Capital
14) Paulson & Co.
15) Bronson Point Management
16) Hoplite Capital Management
17) LSV Asset Management
18) Hussman Strategic Advisors
19) Cantillon Capital Management
20) Brookside Capital Management
21) Blue Ridge Capital
22) Iridian Asset Management
23) Clough Capital Partners
24) GLG Partners LP
25) Cadence Capital Management
26) Honeycomb Asset Management
27) New Mountain Vantage
28) Penserra Capital Management
29) Eminence Capital
30) Steadfast Capital Management
31) Brookside Capital Management
32) PAR Capital Capital Management
33) Gilder, Gagnon, Howe & Co
34) Brahman Capital
35) Bridger Management
36) Kensico Capital Management
37) Kynikos Associates
38) Soroban Capital Partners
39) Passport Capital
40) Pennant Capital Management
41) Mason Capital Management
42) Tide Point Capital Management
43) Sirios Capital Management
44) Hayman Capital Management
45) Highside Capital Management
46) Tremblant Capital Group
47) Decade Capital Management
48) Suvretta Capital Management
49) Bloom Tree Partners
50) Cadian Capital Management
51) Matrix Capital Management
52) Senvest Partners
53) Falcon Edge Capital Management
54) Park West Asset Management
55) Melvin Capital Partners
56) Owl Creek Asset Management
57) Portolan Capital Management
58) Proxima Capital Management
59) Tourbillon Capital Partners
60) Impala Asset Management
61) Valinor Management
62) Marshall Wace
63) Light Street Capital Management
64) Rock Springs Capital Management
65) Rubric Capital Management
66) Whale Rock Capital
67) Skye Global Management
68) York Capital Management
69) Zweig-Dimenna Associates
Top Sector and Specialized Funds
I like tracking activity funds that specialize in real estate, biotech, healthcare, retail and other sectors like mid, small and micro caps. Here are some funds worth tracking closely.
1) Avoro Capital Advisors (formerly Venbio Select Advisors)
2) Baker Brothers Advisors
3) Perceptive Advisors
4) Broadfin Capital
5) Healthcor Management
6) Orbimed Advisors
7) Deerfield Management
8) BB Biotech AG
9) Birchview Capital
10) Ghost Tree Capital
11) Sectoral Asset Management
12) Oracle Investment Management
13) Palo Alto Investors
14) Consonance Capital Management
15) Camber Capital Management
16) Redmile Group
17) RTW Investments
18) Bridger Capital Management
19) Boxer Capital
20) Bridgeway Capital Management
21) Cohen & Steers
22) Cardinal Capital Management
23) Munder Capital Management
24) Diamondhill Capital Management
25) Cortina Asset Management
26) Geneva Capital Management
27) Criterion Capital Management
28) Daruma Capital Management
29) 12 West Capital Management
30) RA Capital Management
31) Sarissa Capital Management
32) Rock Springs Capital Management
33) Senzar Asset Management
34) Southeastern Asset Management
35) Sphera Funds
36) Tang Capital Management
37) Thomson Horstmann & Bryant
38) Ecor1 Capital
39) Opaleye Management
40) NEA Management Company
41) Great Point Partners
42) Tekla Capital Management
43) Van Berkom and Associates
Mutual Funds and Asset Managers
Mutual funds and large asset managers are not hedge funds but their sheer size makes them important players. Some asset managers have excellent track records. Below, are a few funds investors track closely.
2) BlackRock Inc
3) Wellington Management
4) AQR Capital Management
5) Sands Capital Management
6) Brookfield Asset Management
7) Dodge & Cox
8) Eaton Vance Management
9) Grantham, Mayo, Van Otterloo & Co.
10) Geode Capital Management
11) Goldman Sachs Group
12) JP Morgan Chase & Co.
13) Morgan Stanley
14) Manulife Asset Management
15) RCM Capital Management
16) UBS Asset Management
17) Barclays Global Investor
18) Epoch Investment Partners
19) Thornburg Investment Management
20) Kornitzer Capital Management
21) Batterymarch Financial Management
22) Tocqueville Asset Management
23) Neuberger Berman
24) Winslow Capital Management
25) Herndon Capital Management
26) Artisan Partners
27) Great West Life Insurance Management
28) Lazard Asset Management
29) Janus Capital Management
30) Franklin Resources
31) Capital Research Global Investors
32) T. Rowe Price
33) First Eagle Investment Management
34) Frontier Capital Management
35) Akre Capital Management
36) Brandywine Global
37) Brown Capital Management
38) Victory Capital Management
40) ARK Investment Management
Canadian Asset Managers
Here are a few Canadian funds I track closely:
1) Addenda Capital
2) Letko, Brosseau and Associates
3) Fiera Capital Corporation
4) West Face Capital
6) 1832 Asset Management
7) Jarislowsky, Fraser
8) Connor, Clark & Lunn Investment Management
9) TD Asset Management
10) CIBC Asset Management
11) Beutel, Goodman & Co
12) Greystone Managed Investments
13) Mackenzie Financial Corporation
14) Great West Life Assurance Co
15) Guardian Capital
16) Scotia Capital
17) AGF Investments
18) Montrusco Bolton
19) CI Investments
20) Venator Capital Management
21) Van Berkom and Associates
22) Formula Growth
23) Hillsdale Investment Management
Pension Funds, Endowment Funds, and Sovereign Wealth Funds
Last but not least, I the track activity of some pension funds, endowment and sovereign wealth funds. I like to focus on funds that invest in top hedge funds and have internal alpha managers. Below, a sample of pension and endowment funds I track closely:
1) Alberta Investment Management Corporation (AIMco)
2) Ontario Teachers' Pension Plan
3) Canada Pension Plan Investment Board
4) Caisse de dépôt et placement du Québec
5) OMERS Administration Corp.
6) British Columbia Investment Management Corporation (BCI)
7) Public Sector Pension Investment Board (PSP Investments)
8) PGGM Investments
9) APG All Pensions Group
10) California Public Employees Retirement System (CalPERS)
11) California State Teachers Retirement System (CalSTRS)
12) New York State Common Fund
13) New York State Teachers Retirement System
14) State Board of Administration of Florida Retirement System
15) State of Wisconsin Investment Board
16) State of New Jersey Common Pension Fund
17) Public Employees Retirement System of Ohio
18) STRS Ohio
19) Teacher Retirement System of Texas
20) Virginia Retirement Systems
21) TIAA CREF investment Management
22) Harvard Management Co.
23) Norges Bank
24) Nordea Investment Management
25) Korea Investment Corp.
26) Singapore Temasek Holdings
27) Yale Endowment Fund
Below, a regulatory filing revealed a slew of changes to Berkshire Hathaway's portfolio in the third quarter. CNBC's Becky Quick reports.
Fifth, CNBC's "Squawk on the Street" team is joined by Jeff Currie, global head of commodities research at Goldman Sachs, to discuss his outlook for commodities in 2021.Lastly, The International Institute of Finance is warning global debt could reach $277 trillion by end of year. Mark Zandi, Moody’s Analytics chief economist, joined 'Power Lunch' earlier today to discuss the potential impact on the global economy.