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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 (GS) as a financial analyst for three years.

According to 13F filings, Lykouretzos's Hoplite Capital Management had at least 37 securities in its portfolio as of December 31, 2010. He sold his longest-term holding, Advance Auto Parts (AAP), in the last quarter. He had held AAP for the last five years. The other two largest stocks that Lykouretzos sold in the last quarter are Occidental Petroleum (OXY) and Home Depot (HD). OXY has returned 5.1%, and HD has returned 6.1%, since the end of December.

Lykouretzos has been holding four of his stocks for the last three years. Currently his long-term investments are NVR Inc. (NVR), SBA Communications Corp. (SBAC), Sherwin Williams Co (SHW) and Berkshire Hathaway Inc. Del. (BRK.A). The average performance of his long-term picks was 39.7% for the last three years. Considering SPY’s 8.7% return, his long term picks are extremely successful. Investors might benefit from Lykouretzos’ wisdom by imitating his long-term stock holdings.

Here are Lykouretzos’ 10 largest new stock picks:

Top Ten New Holdings

Stock

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

Return
Since Dec. 31, 2010

DEVON ENERGY CORP NEW (DVN)

82.7

16.1%

HUNTSMAN CORP (HUN)

53.9

10.5%

CITIGROUP INC (C)

53.0

-4.0%

INVESCO LTD (IVZ)

51.2

11.0%

EXPRESS SCRIPTS INC (ESRX)

43.6

3.9%

GENERAL MTRS CO (GM)

42.9

-12.1%

BE AEROSPACE INC (BEAV)

34.7

-4.1%

JPMORGAN CHASE & CO (JPM)

28.2

7.4%

APOLLO GROUP INC (APOL)

24.1

12.2%

PROGRESSIVE CORP OHIO (PGR)

23.9

7.2%

Value Weighted Return of Top 10 New Holdings

5.6%

SPY

5.3%

Six of Lykouretzos’ top 10 new positions managed to beat the market. Lykouretzos’ largest new stock picks have gained 5.6% since the end of 2010, vs. 5.3% gain for the SPY. Lykouretzos’ biggest new investment, DVN, has had one of the best performances in his portfolio since the end of December. Lykouretzos had $82.7 million in DVN shares at the end of December. DVN has gained 16.1% in the last two months, beating the SPY by 10.8 percentage points.

Andreas Halvorsen and T. Boone Pickens have investments in DEVON Energy. Citigroup is one of the top 10 stocks that hedge funds were buying like crazy during the fourth quarter. Stephen Mandel’s Lone Pine, Bruce Berkowitz’s Fairholme, Lee Ainslie’s Maverick Capital, George Soros, Bill Miller’s Legg Mason Capital Management, Bill Ackman’s Pershing Square, David Tepper’s Appaloosa, Daniel Loeb’s Third Point, Andreas Halvorsen’s Viking Global, Richard Perry’s Perry Capital, Joseph DiMenna’s Zweig-DiMenna, Leon Cooperman’s Omega Advisors, Brevan Howard, and John Paulson’s Paulson & Co. are among the prominent investors who are bullish about Citigroup. The worst performing stock among the new purchases was General Motors, losing 12.1% since the end of December.

We think it’s more appropriate to check out Lykouretzos’ 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

CIGNA CORP (CI)

127.6

19.5%

SHERWIN WILLIAMS CO (SHW)

98.4

-3.0%

DIRECTV (DTV)

85.0

15.3%

DEVON ENERGY CORP NEW (DVN)

82.7

16.1%

COCA COLA ENTERPRISES INC NE (CCE)

81.7

3.2%

NVR INC (NVR)

81.4

8.0%

SBA COMMUNICATIONS CORP (SBAC)

74.9

3.0%

GOODRICH CORP (GR)

72.6

-2.1%

YUM BRANDS INC (YUM)

63.2

4.4%

INTUIT (INTU)

55.6

7.1%

Value Weighted Return of Top 10 New Holdings

823

7.9%

SPY

N/A

5.3%

CI was Lykouretzos’ biggest investment at the end of December 2010. CI has gained 19.5% since the end of December, outperforming the SPY’s 5.3% return. Lykouretzos reduced his exposure by 10% in the last quarter. David Tepper, Andreas Halvorsen and Lee Ainslie are other hedge fund managers with CI positions. Lykouretzos bought $38 million of DTV shares during the last quarter of 2010. DTV has returned 15.3% since the end of December.

Lykouretzos’ 10 largest positions have returned 7.9% since the end of December, outperforming the SPY by 2.6 percentage points. Investors might benefit by paying close attention to his largest and newest stock picks.

Disclosure: I am long C, SPY.

Source: Hoplite Capital's Rewarding Stock Picks