What do top hedge fund and mutual fund gurus like in the computer hardware and peripherals industry? This article, the sixteenth in a series, identifies through research of the latest available institutional 13-F filings the gurus who are most invested in the industry, and the sector-specific stocks they prefer to hold in their portfolios. The first 12 articles identified Gurus that are over-weight in the Solar sector, Utilities sector, China stocks, Airline sector, Optical Networking sector, Chemicals industry, Oil and Gas Exploration Industry, the Automobile Industry, the Biotech Industry, the Consumer Non-Durable Goods Sector, the Gold and Silver Mining Industry, and the Regional Banking Industry, and the stocks within those sectors that they hold in their portfolios. Definitions of "gurus" and other such jargon can be found there as well.
The total capitalization of the US equity markets is somewhere in the $15 trillion range, and the total market capitalization of leading computer hardware and peripherals (CHP) companies is $595 billion, which is just below 4.0% of the overall market. The table lists three investment gurus whose funds have invested more than twice that average or at least 8% in the CHP industry. The following is a list of their picks in that sector:
- Personal computer manufacturers such as Apple Inc. (NASDAQ:AAPL) that also manufacture mobile phones and tablets as well as digital music players; Hewlett-Packard Co. (NYSE:HPQ), which besides PCs also manufactures peripherals such as printers and scanners, servers and storage devices, and also provides IT and out-sourcing services; Dell Inc. (NASDAQ:DELL), which provides desktop PCs, mobility products, servers, and networking products.
- Manufacturers of peripheral devices for data storage such as Seagate Technology (NASDAQ:STX) that manufactures hard disk drives for the enterprise, desktop, mobile computing, and consumer electronics markets; Netapp Inc. (NASDAQ:NTAP) that manufactures integrated network storage and data management hardware for corporations and government agencies; Western Digital Corp. (NASDAQ:WDC) that manufactures hard disk drives for desktop and notebook computers, enterprise applications and consumer electronics.
- EMC Corp. (NYSE:EMC) that offers networked information storage systems and software, content management and archiving software and solutions, and data security services and solutions.
Jabre Capital Partners, headquartered in Geneva, was started by Lebanese-born Philippe Jabre in 2007. It is an asset management firm that offers both hedge fund and traditional management strategies. Its hedge fund uses an equity-driven arbitrage strategy.
Fund and Guru
Type of Fund
Assets Under Management
Percent Portfolio in the Computer Hardware and Peripherals Industry
Major Computer Hardware and Peripherals company positions in Portfolio
Jabre Capital Partners (Philippe Jabre)
Asset Management including Hedge Fund
AAPL, STX, NTAP, DELL, WDC
Kingdon Capital Management LLC (Mark Kingdon)
Hedge Fund – GARP
AAPL, NTAP, EMC, WDC, DELL, STX, HPQ
Tiger Global Management LLC (Chase Coleman)
Hedge Fund - Technology Focused
$ 3.7 billion
Hedge fund Kingdon Capital Management, with $2.9 billion AUM -- all in equities -- was founded in 1983 by President Mark Kingdon, and is growth-focused employed a growth at a reasonable price (GARP) approach to investing.
New York-based Hedge Fund Tiger Global Management is managed by Chase Coleman, a former analyst and partner at legendary Julian Roberson’s Tiger Management. It invests in the public and private equity markets across the world, with a focus on technology stocks and also employing fundamental analysis to make its investment decisions.
Credit: Historical fundamentals including operating metrics and stock ownership information were derived using I-Metrix by Edgar Online, Zacks Investment Research, DailyGraphs, Thomson Reuters and Briefing.com. Fund data including assets under management and firm profiles are sourced mostly from Hedgetracker.com. The information and data is believed to be accurate, but no guarantees or representations are made.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.