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(This post is part of our series on tracking hedge fund portfolios. If you're unfamiliar with tracking investments they disclose via SEC filings, check out our series preface on hedge fund filings.)

Next up is Chris Shumway's hedge fund Shumway Capital Partners. Prior to founding his firm, Shumway was previously one of Julian Robertson's right-hand men at legendary hedge fund Tiger Management. As such, he joins the other successful Tiger Cubs and is included in the Tiger Cub portfolio created with Alphaclone for hedge fund replication. Shumway Capital Partners focuses on intensive fundamental research to drive their long/short equity strategy. Back in 2009, Shumway was listed in Barron's top 100 hedge funds for 2009 with a rolling 3-year annualized return of 28%. However, 2010 has proven difficult for the firm as its Sakkonet Fund was down 10% in May after it had gained 4.3% through April. Shumway received his MBA from Harvard Business School and his undergraduate degree from the University of Virginia.

The positions listed below are its long equity, note, and options holdings as of March 31st, 2010, as filed with the SEC. All holdings are common stock unless otherwise denoted:

Brand New Positions

  • Kraft Foods (KFT)
  • Comcast (CMCSA)
  • Air Products & Chemicals (APD)
  • Bank of America (BAC)
  • General Dynamics (GD)
  • Bard (BCR)
  • Staples (SPLS)
  • Liberty Global (LBTYA)
  • CME Group (CME)
  • Comcast (CMCSK)
  • TD Ameritrade (AMTD)
  • Illumina (ILMN)
  • Lowe's (LOW)
  • Discovery Communications (DISCA)
  • Cablevision (CVC)
  • Hartford Financial (HIG)
  • Sigma Aldrich (SIAL)
  • Waters (WAT)
  • Annaly Capital Management (NLY)
  • Credit Suisse (CS)
  • Liberty Global (LBTYK)
  • Illinois Toolworks (ITW)
  • SBA Communications (SBAC) Notes

Increased Positions

  • Novo (NVO): Increased position size by 413.8%
  • Goldman Sachs (GS): Increased by 275.4%
  • Baidu (BIDU): Increased by 85.4%
  • Apple (AAPL): Increased by 62.4%
  • Cisco Systems (CSCO): Increased by 57.2%
  • Disney (DIS): Increased by 47.6%
  • PNC Financial (PNC): Increased by 32.2%
  • Ingersoll-Rand (IR): Increased by 28.5%
  • Pfizer (PFE): Increased by 21.1%

Reduced Positions

  • Wells Fargo (WFC): Reduced position by 74.7%
  • Omnicom Group (OMC): Reduced by 70.8%
  • Juniper Networks (JNPR): Reduced by 62.4%
  • Pepsico (PEP): Reduced by 61.4%
  • Las Vegas Sands (LVS): Reduced by 60.2%
  • Urban Outfitters (URBN): Reduced by 57.9%
  • St Jude Medical (STJ): Reduced by 54.8%
  • Ctrip (CTRP): Reduced by 53.7%
  • JPMorgan Chase (JPM): Reduced by 45.8%
  • Gap (GPS): Reduced by 41.9%
  • Mastercard (MA): Reduced by 36.4%
  • Johnson & Johnson (JNJ): Reduced by 24.7%
  • Quest Diagnostics (DGX): Reduced by 22.9%
  • Visa (V): Reduced by 22.6%
  • Salesforce.com (CRM): Reduced by 15.4%

Positions Sold Out of Completely

  • Qualcomm (QCOM)
  • Qualcomm (QCOM) Calls
  • Select Sector Financials (XLF) Calls
  • EMC (EMC)
  • Freeport McMoran (FCX)
  • Brocade Communications (BRCD)
  • Colgate Palmolive (CL)
  • CVS Caremark (CVS)
  • Radioshack (RSH)
  • Memc Electronics (WFR)
  • Fifth Third (FITB)
  • Allstate (ALL)
  • AOL (AOL)
  • Monsanto (MON)
  • Research in Motion (RIMM)
  • NII Holdings (NIHD) Notes
  • Kinross Gold (KGC) Notes
  • BioMarin Pharmaceutical (BMRN) Notes

Top 15 Holdings (by percentage of assets reported on 13F filing)

  1. Apple (AAPL): 9.5%
  2. Disney (DIS): 5.8%
  3. Cisco Systems (CSCO): 5.3%
  4. Kraft Foods (KFT): 5.3%
  5. Teva Pharmaceuticals (TEVA): 5.3%
  6. Pfizer (PFE): 4.6%
  7. Equinix (EQIX): 4.5%
  8. Goldman Sachs (GS): 3.9%
  9. Time Warner (TWX): 3.7%
  10. Johnson & Johnson (JNJ): 3.5%
  11. Comcast (CMCSA): 2.7%
  12. Visa (V): 2.5%
  13. Baidu (BIDU): 2.4%
  14. Mastercard (MA): 2.2%
  15. JPMorgan Chase (JPM): 2.1%

Shumway's biggest portfolio change was its new position in Kraft Foods (KFT) as it is now its fourth largest US equity long. Numerous other hedgies like KFT these days, including Bill Ackman who previously detailed his investment thesis on Kraft. Additionally, Shumway started quite a sizable stake in Comcast (via CMCSA and CMCSK). The fund was also out adding to some of their mainstay holdings such as Apple, Cisco Systems, Disney, and Pfizer.

We also wanted to point out that the fund's Equinix (EQIX) position listed above is only its equity stake. Shumway also holds various notes and their aggregate exposure to EQIX actually makes it one of its largest positions (slightly smaller than the size of their CSCO stake). And if you hadn't already noticed, many stocks in its portfolio are those on Goldman Sachs' VIP list of stocks most important to hedge funds. Maybe that helps explain its poor performance in the month of May.

On the selling side of things, Shumway Capital Partners was also somewhat active. In the fourth quarter of 2009, we saw that Shumway was betting big on Wells Fargo (WFC). Well, that certainly changed quickly as the fund dumped almost 75% of its position in the first quarter of 2010. However, in the financial sector its added to its stakes in Goldman Sachs and PNC Financial. Additionally, it sold completely out of hedge fund favorite stocks Qualcomm, EMC, Research in Motion and Freeport McMoran. It was also interesting to see Shumway sell out of CVS Caremark as we've seen some other hedge fund managers bullish on CVS shares as of late.

Assets reported on Shumway's 13F filing were $7.9 billion this quarter. Data from the SEC is aggregated and sorted automatically by Alphaclone, our source for hedge fund tracking, replicating, and performance backtesting. Remember that these filings are not representative of the hedge fund's entire base of AUM.

This post is part of our daily hedge fund portfolio tracking series. We've already detailed activity from numerous managers so click the links below to be taken to the respective portfolio updates: Seth Klarman's Baupost Group, Warren Buffett's Berkshire Hathaway, Stephen Mandel's Lone Pine Capital, and Bill Ackman's Pershing Square, David Einhorn's Greenlight Capital, Eddie Lampert's RBS Partners, David Tepper's Appaloosa Management, Mohnish Pabrai's Investment Fund, John Griffin's Blue Ridge Capital, Lee Ainslie's Maverick Capital, Bruce Berkowitz's Fairholme Capital Management, Andreas Halvorsen's Viking Global, Dan Loeb's Third Point, John Paulson's hedge fund Paulson & Co, Chase Coleman's Tiger Global, Roberto Mignone's Bridger Management, Phil Falcone's Harbinger Capital Partners, and David Stemerman's Conatus Capital. Be sure to check back daily for new hedge fund updates.

Disclosure: No positions

Original post

Source: Shumway Capital Partners Adds Large New Stakes in Kraft Foods and Comcast