John Lykouretzos's Profitable Long-Term Holdings

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Includes: AAP, BRK.A, CCE, CI, GR, HD, NVR, NWL, OXY, PG, QEP, RRC, SBAC, SHW, T, YUM
by: Insider Monkey

John T. Lykouretzos launched Hoplite Capital Management in 2003 after working for five years at Andreas Halvorsen’s Viking Global Investors. Lykouretzos’ expertise is in industrials and financial services. Before joining Viking, Lykouretzos worked at Julian Robertson’s Tiger Management Corporation as an industrials analyst for two years. After graduating from Yale in 1995, he was at Goldman Sachs as a financial analyst for three years.

According to 13F filings, John T. Lykouretzos's Hoplite Capital Management had at least 31 securities in its portfolio as of September 30th, 2010. Lykouretzos has been holding six of these stocks for the last three years. He's been holding on to Advance Auto Parts (NYSE:AAP) for the last five years.

Currently his long-term investments are NVR Inc. (NYSE:NVR), SBA Communications Corp. (NASDAQ:SBAC), Sherwin Williams Co (NYSE:SHW), Advance Auto Parts Inc. (AAP), Range Res Corp. (NYSE:RRC) and Berkshire Hathaway Inc. Del. (NYSE:BRK.A). The value weighted average performance of his long-term picks was 51.05% for the last three years. Considering SPY’s 6.11% return, his long term picks are extremely successful.

During the third quarter of 2010, Lykouretzos bought 16 new stocks. Here are his five largest new stock picks:

1. Procter & Gamble Co. (NYSE:PG): Lykouretzos had $66.7 million in PG shares at the end of September. These shares have gained 9.4% since then, underperforming the SPY by 7.4 percentage points.

2. DIRECTV (DTV): This was a weak performing stock, returning 3.6% since September. Lykouretzos has $49.1 million invested. Farallon’s Thomas Steyer and Facebook Billionaire Chase Coleman have DTV in their portfolios too.

3. Occidental Pete Corp. (NYSE:OXY): OXY was a good pick from Lykouretzos. OXY outperformed the market by nearly 8.6 percentage points. Lykouretzos has $41 million invested.

4. QEP Res. Inc. (NYSE:QEP): QEP is one of Lykouretzos's best performing new stock picks, returning nearly 32%. Lykouretzos has $38 million invested.

5. Home Depot Inc. (NYSE:HD): Lykouretzos had $38.5 million in HD stock at the end of September. The stock gained 18.2% since then, beating the SPY by 1.4 percentage points. Thomas Steyer’s Farallon Capital Management has HD shares too.

The value of the 16 new stocks in Lykouretzos's portfolio was $459 Million at the end of September. The value weighted average performance of his new stock picks was 17.6%+ since the end of September, outperforming the market by 0.8 percentage points.

Here is how Lykouretzos's top 10 positions performed since the end of September 2010.

1. Cigna Corp. (NYSE:CI): CI was Lykouretzos's biggest investment at the end of September 2010. GLD has gained 19.2% since then, outperforming the SPY’s 16.8% return. Lykouretzos reduced his CI holdings by 13.7% during the third quarter but he still holds $138 Million in this stock in his portfolio. David Tepper’s Appaloosa Management has CI shares too.

2. Newell Rubbermaid Inc. (NYSE:NWL): Lykouretzos had almost $114 million of NWL shares at the end of September. NWL has gained 11.3% since then. Lykouretzos reduced his NWL holdings by 29.7% during the third quarter.

3. NVR Inc. (NVR): Lykouretzos had almost $109 million in NVR shares at the end of September. He reduced his holding by 36.1% in the third quarter of 2010. NVR has gained 18.4% since then, outperforming the SPY by 1.6 percentage points.

4. SBA Communications Corp. (SBAC): Lykouretzos’s $72 million in SBA Communication has gained 7.7% since the end of September. Lykouretzos has increased his stock holdings by 39% since the end of June.

5. Coca Cola Enterprises Inc. (NYSE:CCE): Lykouretzos had $70 million in CCE shares at the end of September. These shares have gained 24.1% since then, outperforming the SPY by 7.3 percentage points. During the third quarter of 2010, Maverick Capital also added $126 million in CCE shares to its portfolio.

6. Yum Brands Inc. (NYSE:YUM): Lykouretzos has returned 8.8% from his YUM investment of $68 million since the end of September. The stock underperformed the SPY by 8 percentage points. Lykouretzos reduced the stock holdings by 22.7% during the third quarter of 2010. Stephen Mandel’s Lone Pine Capital had $700 million worth of YUM shares at the end of the third quarter of 2010.

7. Procter & Gamble Co. (PG): Lykouretzos had $67 million in PG shares at the end of September. These shares have gained 9.4% since then, underperforming the SPY by 7.4 percentage points.

8. Sherwin Williams Co. (SHW): SHW has returned 12.6% since the end of September, underperforming the SPY by 4.2 percentage points. Lykouretzos has reduced his stock holdings by 20% since the end of June.

9. Goodrich Corp. (NYSE:GR): The stock had one of the best performances in his portfolio during the last four months. Lykouretzos had $52 million in GR shares at the end of September. GR has gained 26.6% in four months, beating the SPY by 9.8 percentage points. Stephen Mandel’s Lone Pine Capital had nearly $300 Million in Goodrich Corp. stock at the end of the third quarter of 2010.

10. DIRECTV (DTV): DTV has gained 3.6% since September, underperforming the SPY by 13.2 percentage points. Lykouretzos had nearly $49 million invested at the end of September.

Only four of Lykouretzos’s top 10 positions managed to beat the market. The weighted average return of these stocks was 14.7% since the end of September, underperforming SPY’s 16.8% return. We expected a better performance from Lykouretzos but a four month time frame is still too short to judge a hedge fund manager.

Disclosure: I am long SPY.