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Clint Carlson is the founder, president and CIO of Carlson Capital, which reported $4.8 Billion total assets in its last 13F filing. Carlson holds a bachelor's degree and an M.B.A. from Rice University, and a Doctorate of Law degree from the University of Houston. Prior to forming Carlson Capital in 1993, Carlson was the head of risk arbitrage for the investment arm of the Bass Brothers organization. Carlson Capital’s primary investment strategies include risk arbitrage, relative value arbitrage and distressed/credit arbitrage. Carlson managed approximately $6 billion across five hedge funds, including two multi-strategy and three single strategy funds as of December 31, 2010. Carlson Capital’s biggest fund, the $3.86 billion Double Black Diamond LP, was founded in 1997. The fund gained an annualized 11 percent until 2009. In 2008 McKinsey`s Ron Hulme joined Carlson Capital as CEO. Hulme was employed for 26 years with McKinsey & Co. before taking the job with Carlson.

According to 13F filings, Carlson had at least 290 securities in its portfolio as of December 31, 2010. The five largest stocks that Carlson sold in the last quarter are Pactiv Corp (PTV), Hewitt Associates (HEW), RadioShack Corp (RSH), PPL Corp (PPL) and Qualcomm Incorporated (QCOM).

Here are Carlson’s 10 largest new stock picks:

Top Ten New Holdings

Stock

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

Return
Since Dec 31,2010

BUCYRUS INTL INC NEW (BUCY)

85.6

1.8%

INVESCO LTD (IVZ)

48.7

10.6%

PNC FINL SVCS GROUP INC (PNC)

38.0

4.1%

LYONDELLBASELL INDUSTRIES N (LYB)

37.8

18.9%

MARSHALL & ILSLEY CORP NEW (MI)

36.4

13.9%

PROCTER & GAMBLE CO (PG)

34.6

-2.9%

CISCO SYS INC (CSCO)

32.9

-10.4%

COMCAST CORP NEW (CMCSK)

32.6

15.8%

AUTOMATIC DATA PROCESSING IN (ADP)

29.3

10.8%

NVIDIA CORP (NVDA)

25.7

24.3%

Value Weighted Return of Top 10 New Holdings

402

7.6%

SPY

N/A

5.3%

Six of Carlson’s top 10 new positions managed to beat the market. Carlson’s largest new stock picks have gained 7.6% since the end of 2010, vs. 5.3% gain for the S&P 500 (SPY). Carlson’s biggest new investment, BUCY, has gained 1.8% in the last 70 days, underperforming the SPY by 3.5 percentage points. Carlson had $85.6 million in BUCY shares at the end of December.

NVDA has had one of the best performances in his portfolio since the end of December. Carlson had $25.7 million in NVDA shares at the end of December. NVDA has gained 24.3% since the end of December, beating the SPY by 19 percentage points. NVDA is one of the 20 stocks wall street analysts expect to dive the most. The worst performing stock among the new purchases was CISCO, losing more than 10% since the end of December. Bill Miller’s Legg Mason Capital, John Burbank’s Passport Capital, David Tepper’s Appaloosa and Leon Cooperman’s Omega Advisors are other hedge funds with Cisco positions. LyondellBasell is very popular among hedge funds. Since its market cap is much smaller than giant banks or tech companies, hedge funds amassed a 13% share in LYB. There were 99 hedge funds with LYB positions at the end of December and they spent a net $2.5 Billion on LYB during the fourth quarter. Daniel Loeb’s Third Point, Tom Steyer’s Farallon Capital, David Einhorn’s Greenlight Capital, and Andreas Halvorsen’s Viking Global are among the hedge funds with LYB positions

Top Ten Holdings

Stock

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

Return
Since Dec 31,2010

ALCON INC (ACL)

162.9

1.2%

BANK OF AMERICA CORPORATION (BAC)

93.8

9.5%

BUCYRUS INTL INC NEW (BUCY)

85.6

1.8%

HEWLETT PACKARD CO (HPQ)

72.2

-0.1%

ALBERTO CULVER CO NEW (ACV)

72.1

0.5%

PEPSICO INC (PEP)

63.1

-0.3%

ENERGY PARTNERS LTD (EPL)

60.0

0.9%

GENZYME CORP (GENZ)

59.9

6.8%

GOOGLE INC (GOOG)

58.6

-0.4%

DANAHER CORP DEL (DHR)

57.0

9.5%

Value Weighted Return of Top 10 Holdings

785

2.8%

SPY

N/A

5.3%

The above table shows the performance of Carlson’s 10 largest positions. ACL was Carlson's biggest investment at the end of December 2010. ACL has gained 1.2% since the end of December, underperforming the SPY’s 5.3% return. Carlson increased his exposure by 30.3% in the last quarter. Alcon is one of the top 10 stocks hedge funds own the most. Carlson bought $68 million of ACV shares during the last quarter of 2010. ACV has returned 0.5% since the end of December. HPQis another popular stock among hedge funds. They spent around $1 Billion to acquire HPQ shares during the fourth quarter. Bill Miller, Lee Ainslie, David Tepper, Jim Simons, and Leon Cooperman are among the prominent investors with large HPQ holdings.

His 10 largest positions have returned 2.8% since the end of 2010, underperforming the SPY by 2.5 percentage points.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: 6 of Carlson Capital's Top 10 New Stock Picks Beat the Market