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Lee Hobson is the founder of Highside Capital Management hedge fund, which reported $2.1 Billion total assets in its last 13F filing. Hobson graduated from Princeton University in 1987 with a B.A. degree and received his M.B.A. from Harvard Business School in 1992.

Prior to forming Highside in 2003, Hobson was a Partner at Lee Ainslie's Maverick Capital from 1994 until 2003. In Maverick, he worked on investments in the consumer sector. He is also specialized in Latin America, which helped him to play an important role in Maverick's investments in this region. Before joining Maverick Capital, Hobson worked at PepsiCo (NYSE:PEP) Foods International as an associate in the new business development division. Early in his career he worked as an analyst at Goldman Sachs (NYSE:GS) in New York and at Societe Generale in Paris.

According to 13F filings, Lee Hobson's Highside Capital Management had 41 securities in its 13F portfolio as of December 31, 2010. Insider Monkey, your source for free insider trading data, noticed that Lee Hobson has been holding 5 of these securities during last three years. In the last quarter of 2010, he sold 16 securities and bought 12 new securities. Here are the 10 largest new stock picks:

Top Ten New Holdings

Stock

Value in Millions (NYSEARCA:USD)
As of Dec 31,2010

Return
Since Dec 31,2010

MARKET VECTORS GOLD MINERS (NYSEARCA:GDX)

52.3

-4.1%

APOLLO GROUP INC-CL A (NASDAQ:APOL)

45.4

16.0%

CVS CAREMARK CORP (NYSE:CVS)

41.7

-4.6%

LIBERTY MEDIA-STARZ SERIES A (LSTZA)

31.6

8.2%

MIPS TECHNOLOGIES INC (NASDAQ:MIPS)

29.6

-15.3%

FIDELITY NATIONAL FINL-A (NYSE:FNF)

28.7

4.2%

POTASH CORP OF SASKATCHEWAN (NYSE:POT)

28.6

16.3%

CANADIAN NATURAL RESOURCES (NYSE:CNQ)

26.7

7.8%

HUNTSMAN CORP (NYSE:HUN)

26.5

16.6%

VIVO PARTICIPACOES SA-ADR (NYSE:VIV)

22.5

3.1%

Value Weighted Return of Top 10 New Holdings

334

4.3%

SPY

7.0%

Five of Hobson's top 10 new positions managed to beat the market.

Hobson’s largest new stock picks have gained 4.3% since the end of 2010, vs. 7.0% gain for the SPY. HUN has had one of the best performances in his portfolio since the end of December. Hobson had $26.5 million in HUN shares at the end of December. HUN has gained 16.6% in the last seven weeks, beating the SPY by 9.6 percentage points. GDX was Hobson's biggest new investment at the end of December 2010. GDX has lost 4.1% since then, underperforming the SPY’s 7.0% return. Hobson has $52.3 million invested in GDX.

David Einhorn’s Greenlight Capital increased its Gold Miners ETF (GDX) by 37% during the last quarter of 2010. John Griffin's Blue Ridge Capital sold some of its $300+ Million GDX position in order to buy Novagold.(NYSEMKT:NG) . Lee Ainslie’s Maverick and Chase Coleman’s Tiger Global Management have long running APOL investments. Andreas Halvorsen's Viking Global is another hedge fund that recently bought APOL. LSTZA is one of the largest holdings of Jonathan Auerbach’s Hound Partners. Seth Klarman sold his LSTZA shares during the fourth quarter. The worst performing stock among the new purchases was MIPS Techologies, losing more than 15% since the enf of December. When the stock plunged nearly 13% on January 26th, Lee Hobson purchased an additional 3.1 million shares of MIPS.

We think it’s more appropriate to check out Hobson’s 10 largest positions to understand more about his performance. Here are the results:

Top Ten Holdings

Stock

Value in Millions (USD)
As of Dec 31,2010

Return
Since Dec 31,2010

SPDR GOLD TRUST (NYSEARCA:GLD)

305.2

-2.4%

NII HOLDINGS INC (NASDAQ:NIHD)

87.7

-8.2%

CITIGROUP INC (NYSE:C)

80.4

3.8%

NVR INC (NYSE:NVR)

79.5

9.5%

VERISIGN INC (NASDAQ:VRSN)

78.4

12.5%

MILLICOM INTL CELLULAR S.A. (MICC)

76.5

-5.6%

CIT GROUP INC (NYSE:CIT)

72.1

-8.1%

EXPEDIA INC (NASDAQ:EXPE)

70.3

-16.5%

CABLEVISION SYSTEMS-NY GRP-A (NYSE:CVC)

67.7

11.2%

QUALCOMM INC (NASDAQ:QCOM)

65.6

19.6%

Value Weighted Return of Top 10 New Holdings

983

0.5%

SPY


7.0%

GLD was Hobson's biggest investment at the end of December 2010. GLD has lost 2.4% since the end of December, underperforming the SPY’s 7.0% return. Hobson reduced his exposure by 26.6% in the last quarter but he still holds a $305 Million position in his portfolio. His two best performing positions are QCOM and VRSN. QCOM is one of the top 25 long stock holdings of legendary investor George Soros. Jim Simons’ Medallion Fund had nearly $108 Million invested in VRSN at the end of December. The biggest drag on Lee Hobson’s recent performance is the decline in EXPE. His 10 largest positions have returned 0.5% since the end of December, underperforming the SPY by 6.5 percentage points.

Return of Long Term Holdings in Last 3 Years

Stock

Value in Millions (USD)
As of Dec 31,2010

Return
Since Feb 18,2008

NII HOLDINGS INC (NIHD)

87.7

0.8%

MILLICOM INTL CELLULAR S.A. (MICC)

76.5

-13.8%

CABLEVISION SYSTEMS-NY GRP-A (CVC)

67.7

42.9%

QUALCOMM INC (QCOM)

65.6

19.6%

APPLE INC (NASDAQ:AAPL)

45.2

183.1%

Average Return

343

46.5%

SPY

N/A

5.3%

The above table shows the performance of Hobson’s long-term stock holdings. Hobson’s largest investment over the last three years is NIHD. He reduced his holding by 6.5% during the last quarter of 2010. Apple is one of Lee Hobson's best performing long term investment which returned 183.1% in the last three years. John Burbank, Stephen Mandel, Barry Rosenstein, Dan Loeb, and David Einhorn are also among the hedge fund managers with huge Apple investments.

Hobson’s largest long term holdings have gained 46.5% since February 2008. Considering SPY’s 5.3% return, Hobson's long term picks are extremely successful. This underlines Hobson's talent in picking long term winners.



Disclosure: I am long C, SPY.

Additional disclosure: I am long physical gold.

Source: Highside Capital: Top 10 Holdings, 10 New Stock Picks