What do the top Hedge Fund and Mutual Fund Gurus like in the Foreign Telecommunications Services industry? This article, the twentieth in a series, identifies through a research of the latest available institutional 13-F filings the Gurus that are most invested in the Foreign Telecommunications Services industry, and the specific Foreign Telecommunications Services stocks they prefer to hold in their portfolios. The previous articles in the series can be viewed by clicking here. (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 Buffett, 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 to have earned the distinction of being called Gurus by the larger investment community .
Studying 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 Foreign Telecommunications Services companies is $840 billion which is 5.6% of the overall market. Since only one fund has holdings in the sector greater than the 5.6% average, the field was expanded to include the top four funds with the highest percentage of their portfolios invested in the Foreign Telecommunications Services Industry. The following is a list of the Guru picks in the Foreign Telecommunications Services Sector:
- Telefonos De Mexico ADR (NYSE:TMX), a Mexican provider of wireless, local exchange, long distance, internet, corporate network and interconnection services.
- Brazilian companies Tele Norte Leste Par ADS (NYSE:TNE) and Brasil Telecom SA ADR (BTM), both Brazilian providers of local exchange, wireless, long distance and broadband internet services; and Vivo Participacoes ADS (NYSE:VIV), a Brazilian provider of digital and analog wireless voice and data services and handsets to contract and pre-paid subscribers.
- Russian Telecommunications Services providers Vimpelcom Ltd. ADR (NASDAQ:VIP), a provider of wireless, fixed line and broadband voice and data services; and Mobile Telesystems ADR (NYSE:MBT), a provider of digital wireless voice and data services in Russia, Ukraine and Eastern Europe.
- European Telecommunications Services providers Vodafone Group PLC ADR (NASDAQ:VOD), a U.K. based provider of digital wireless voice/data services in 30 countries; Telecom Italia (NYSE:TI), an Italian provider of local exchange, wireless and broadband internet services primarily in Italy and Brazil; France Telecom ADS (FTE), a French provider of wireless, local exchange, and broadband internet services; Millicom Intl Cellular (MICC), a Luxemburg-based provider of digital and analog prepaid wireless voice services in 14 countries; and Portugal Telecom SGPS SA (NYSE:PT), a Portuguese provider of wireline, internet, and mobile telecom services.
- Asian Telecommunication Services providers SK Telecom Co Ltd. ADS (NYSE:SKM), a South Korean provider of digital wireless voice and data services; and Nippon Telegraph and Telephone Corp ADR (NYSE:NTT), a Japanese provider of local exchange, wireless, long distance and internet services.
Fund and Guru
Type of Fund
Assets Under Management
Percent Portfolio in the Foreign Telecommunications Services Industry
Major Foreign Telecommunications Company Positions in Portfolio
Brandes Investment Partners, LP (Charles Brandes)
Investment Advisory Firm – Value-oriented
$ 46 billion including $16 billion in US Equities
TMX, SKM, NTT, TI, FTE, TNE, PT, BTM, VIV
Jabre Capital Partners (Philippe Jabre)
Asset Management including Hedge Fund
VIP, VOD, MBT
Dodge & Cox
$ 92 billion
Centaur Capital Partners, LP (Zeke Ashton)
$ 98 million
Brandes Investment Partners, LP, founded by Guru Charles Brandes in 1974, manages $46 billion in equity and fixed income investments for institutional and private clients worldwide, including over $16 billion in U.S. Equities. Brandes makes security selection based on the value investing approach pioneered by Benjamin Graham.
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.
San Francisco-based Mutual Fund Company Dodge & Cox, founded in 1930 by Van Duyn Dodge and E. Morris Cox, offers five no-load mutual funds, a domestic equity fund, an international equity fund, a balanced fund, an income fund, and a global stock fund.
Zeke Ashton's Centaur Capital Partners manages the investments for the Centaur Value Fund and the Tilson Dividend Fund. Its investment philosophy is Buffett-like, based upon value principles. It selects stock investments based upon true business value as reflected by asset value, cash flow generation, management quality, and the competitive advantages of the underlying businesses, when such stocks are available at compelling prices.
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.