Seeking Alpha
Consensus Picks DIY Tools, Top 20 Small-cap Newsletter, Trade Alert Service (Auto)
Profile| Send Message|
( followers)

What do the top hedge fund and mutual fund gurus like in the broadcasting and publishing industry? This article, the 18th in a series, identifies through a research of the latest available institutional 13-F filings the gurus that are most invested in the broadcasting and publishing industry (including also Semiconductor materials and testing services stocks), and the specific broadcasting and publishing stocks they prefer to hold in their portfolios. The first 16 articles in the series 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, the Insurance Industry, the Computer Hardware and Peripherals Industry, the Big Pharmaceuticals and Generic Pharmaceuticals segments, and the Money Center and Foreign Bank Sector, and the stocks within those sectors that they hold in their portfolios (For those familiar with the series, skip over to the fifth paragraph).

A guru is defined as someone who is regarded as having great knowledge, wisdom, and authority in a certain area. When it comes to hedge funds, there are a number of ways to anoint leading managers as gurus including long-term performance, low portfolio volatility and an elite reputation in the investment community.

Many of us are familiar with leading investors and hedge fund managers such as Warren Buffet, George Soros, Carl Icahn and Julian Robertson, but the hedge fund community alone includes over 9,000 funds; add in mutual funds, ETFs, and other investment entities and the number is likely to be at least two to three times that number. While there is no official list of gurus, less than one percent or between 100 to 200 fund managers are commonly believed by the larger investment community to have earned the distinction of being called gurus.

The study of the investing habits of gurus can be informative as these are very savvy, well-respected investors with high personal net worth deploying large sums of capital from their funds on a regular basis. They have a long-term track record of success, and while one can easily just ride their coattails, the savvy investor may want to use these lists as a starting point to conduct their own due diligence.

The total capitalization of the U.S. equity markets is somewhere in the $15 trillion range, and the total market capitalization of leading broadcasting and publishing companies is $510 billion which is 3.4% of the overall market. The Table lists four investment gurus whose funds have invested more than three times that average or at least 10.2% in the broadcasting and publishing Industry.

As you will see, noticeably absent from the list of top sector holdings of hedge funds and mutual funds concentrated in the broadcasting and publishing Industry is the world's largest media company Walt Disney Co (NYSE:DIS). At $82 billion, it accounts for over 16% of the market capitalization of the entire sector, so it would be natural to expect DIS to be a core holding of top hedge funds and mutual funds concentrated in the sector, so its absence is especially noteworthy. Also, noticeably absent from the list is media darling and new age broadcasting radio company Sirius XM Radio Inc. (NASDAQ:SIRI). The following is a list of the guru picks in the broadcasting and publishing Sector:

  • U.S. cable television and broadband companies Comcast Corp. (NASDAQ:CMCSA), providing cable services and content to 22.8 million subscribers in 39 states as well as internet and phone services ; and Cablevision Systems (NYSE:CVC), providing cable television systems to 3.1 million subscribers in the New York City area.
  • International Media Conglomerates such as News Corporation CL B (NASDAQ:NWS), international holding company engaged in newspaper, magazine and book publishing, and TV broadcasting and Films; and Time Warner Inc. (NYSE:TWX), global holding company with interests in television networks, filmed entertainment and publishing.
  • U.S. media conglomerates including Liberty Media Corporation division tracking stocks Liberty Interactive Group (LINTA) a holding company for QVC and various e-commerce businesses, and Liberty Capital (LCAPA) a holding company engaged in video and online commerce, media, communications and entertainment industries, and; and Washington Post Co CL B (WPO), engaged in newspaper and magazine publishing, television and cable television broadcasting and educational services.
  • International cable television and broadband company Liberty Global (NASDAQ:LBTYA), holding company for cable broadband and satellite subsidiaries with 15.2 million subscribers in 14 countries.
  • Radio broadcasting Company Cumulus Media Inc CL A (NASDAQ:CMLS), engaged in radio broadcasting through 84 AM and 230 FM Stations in 59 mid-sized US media markets.
  • Book publishing company Mcgraw-Hill Companies (MHP), publishes information products for the education, financial services and business information markets worldwide.

Table

Fund and Guru

Type of Fund

Assets Under Management

Percent Portfolio in the Broadcasting and Publishing Industry

Major Broadcasting and Publishing Company Positions in Portfolio

Baupost Group LLC (Seth Klarman)

hedge fund – Value

$7 billion including $1.7 billion invested in US equities

15.9%

NWS

Weitz Wallace R & Co. (Wallace Weitz)

mutual fund

$2.0 billion

13.5%

LINTA, LCAPA, LBTYA, CMCSA, WPO, CMLS

Tiger Global Management LLC (Chase Coleman)

hedge fund - Technology Focused

$ 3.7 billion

13.4%

LBTYA, LINTA, LCAPA, CVC

Brave Warrior Capital, Inc. (Glenn Greenberg)

hedge fund

$ 1.2 billion

12.2%

CMCSA

Baupost Group, headed by Seth Klarman, manages $7 billion in several hedge funds on behalf of individual and institutional investors. He is a value investor, and currently his fund is concentrated in only 15 equities. Besides his $1.7 billion investments in the US equity markets, he also invests in distressed debt and foreign equities and bonds.

Guru Wallace Wetiz, founder of mutual fund company Weitz Wallace R & Co., is portfolio manager of Hickory fund and Partners III Opportunity fund and co-manages Value Fund and Partners Value Fund. His approach to investing combines Benjamin Graham's value investing margin of safety approach with a conviction of qualitative factors that allow companies to have some control over their own destinies can be more important than statistical measurements such as historical book value or reported earnings.

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.

Brave Warrior Capital, a hedge fund co-founded in 1984 by guru Glenn Greenberg and John Shapiro, maintains a highly concentrated portfolio of 11 holdings. Mr. Greenberg describes that as a defense against ignorance, and maintains that the more companies you own the less you know about each, and the less you know about a business the more you are likely to make a mistake out of fear or greed.

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.

Disclaimer: Material presented here is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock you should do your own research and reach your own conclusion. Further, these are my opinions and I may be wrong. I may have positions in securities mentioned in this article. You should take this into consideration before acting on any advice given in this article. If this makes you uncomfortable, then do not listen to my thoughts and opinions. The contents of this article do not take into consideration your individual investment objectives so consult with your own financial adviser before making an investment decision. Investing includes certain risks including loss of principal.

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

Source: Top Broadcasting and Publishing Picks by Fund Gurus Concentrated in the Sector