Ahead of hedge funds reporting their first quarter earnings this week, I have below a look at Valiant Capital's five worst performing stocks YTD. Valiant Capital is managed by Chris Hansen and has what I like to call the Anti-Buffett Portfolio. A lot can be learned from following hedge funds and even more so by analyzing a fund's losing positions. This list is a great place to start for anyone looking for ideas as well as for investors looking to pick up shares that a fund holds at a discount and/or before they take off.
#1 Apple (AAPL)
Apple Inc. is the worst performing stock that Valiant Capital held as of 12/31/2012. Year to date, Apple has dropped 13.82% and currently trades for $452.97 per share. Valiant increased this holding in 4Q2012 by 43% to 313.5 thousand shares. At the end of 2012, this position was worth $166.85 million and took up 17% of the portfolio.
#2 Baidu (BIDU)
Baidu is the second worst performing holding Valiant held as of 12/31/2012. Year to date, Baidu has fallen 4.83% and now trades for $95.45 per share. In the last quarter of 2012, Valiant increased its position in Baidu by 28% to 575 thousand shares. This position was 6% of the portfolio and was worth $57.7 million when last reported. Baidu provides internet search services and is sometimes referred to as "China's Google (GOOG)."
#3 Facebook (FB)
Facebook is Valiant's 3rd worst performing stock in 2013. Up 0.23% YTD, Facebook was one of Valiant's largest holdings coming into 2013 (10% of the portfolio). In 4Q2012, Valiant increased its stake in Facebook by 157% to 3.8 million shares. This position was worth $101.4 million at the end of 2012.
#4 Citrix Systems (CTXS)
Coming in fourth on this list is Citrix Systems which is up 1.43% YTD. Valiant made no changes to its position in Citrix last quarter and ended 2012 holding 394 thousand shares worth $25.897 million. When last reported, this holding was 3% of Valiant's portfolio.
#5 QUALCOMM (QCOM)
Valiant's fifth worst performer so far in 2013 is Qualcomm which is up 4.88% YTD. Last quarter, Valiant made no changes to this holding that took up 5% of the portfolio. At the end of 2012, the fund held 804 thousand shares worth $49.7 million.
While the shares highlighted above are the worst performers for Valiant in 2013, they have fared pretty well. Only two of the five holdings are down in 2013 and both of them less than 15%. Valiant's other holdings are up anywhere between 7.04% (YUM) to 26.86% (SCHW) and that's not including the fund's best performer, Vermillion (VRML), that is up 79.55% in 2013. Valiant will be reporting to the SEC its holdings as of 3/31/2013 on or before May 15th. For anyone interested, I will be posting a full report of the fund's holdings shortly after they are reported. Thanks and good luck with your investments!
This list was created to help investors with ideas for new investments as well as for those wanting to keep up with the performance of Hansen and Valiant Capital. This list should only be used as a screen for potential investments. Due diligence and additional research is advised.