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Lee Hobson is the founder of the Highside Capital Management hedge fund, which reported $1.6 billion total assets in its last 13F filing. Hobson graduated from Princeton University in 1987 with a B.A. degree and received his M.B.A. from Harvard Business School in 1992.

Prior to forming Highside in 2003, Hobson was a Partner at Lee Ainslie's Maverick Capital from 1994 until 2003. In Maverick, he worked on investments in the consumer sector. He also specialized in Latin America, which helped him to play an important role in Maverick's investments in this region. Before joining Maverick Capital, Hobson worked at PepsiCo (NYSE:PEP) as an associate in the new business development division. Early in his career he worked as an analyst at Goldman Sachs (NYSE:GS) in New York and at Societe Generale in Paris.

According to 13F filings, Lee Hobson's Highside Capital Management had 41 securities in its 13F portfolio as of March 31, 2011. We noticed that Lee Hobson has been holding five of these securities during last three years. In the first quarter of 2011, he sold 12 securities and bought 13 new securities.

During the first quarter of 2011, Hobson placed new bets on BP Plc (NYSE:BP) by buying $46 million worth of call options. He also purchased 2.1 million shares of NCR Corporation (NYSE:NCR) and 2.1 million shares of Dana Holding Corporation (NYSE:DAN) during the first quarter of 2011.

Lee Hobson also increased some of his holdings significantly. He bet big on NII Holdings Inc (NASDAQ:NIHD) by increasing his holdings to $89.6 million at the end of March. He also increased his Liberty Media (LSTZA) position to $51.2 million by buying 185,000 shares during the first quarter of 2011. He sold out his holdings in Market Vectors Gold Miners EFT (NYSEARCA:GDX) and Apollo Group Inc (NASDAQ:APOL) during the first quarter of 2011.

Here is how Hobson’s top picks performed since the end of March 2011:

Stock

Value
(Millions)

Return
Since Mar 31,2011

NII HOLDINGS INC (NIHD)

89.6

0.2%

VERISIGN INC (NASDAQ:VRSN)

86.9

11.4%

MILLICOM INTL CELLULAR S.A. (MICC)

76.9

14.3%

QUALCOMM INC (NASDAQ:QCOM)

68.5

4.5%

CABLEVISION SYSTEMS-NY GRP-A (NYSE:CVC)

64.4

-1.1%

NVR INC (NYSE:NVR)

55.9

-3.0%

MARKET VECTORS GOLD MINERS (GDX)

52.3

-7.5%

LIBERTY MEDIA-STARZ SERIES A (LSTZA)

51.2

-2.0%

ON SEMICONDUCTOR CORPORATION (NASDAQ:ONNN)

49.5

16.6%

BP PLC (BP)

46.3

0.4%

NEW ORIENTAL EDUCATIO-SP ADR (NYSE:EDU)

42.7

21.0%

LOWE'S COS INC (NYSE:LOW)

41.5

-5.9%

AON CORP (NYSE:AON)

40.3

-0.7%

CITIGROUP INC (NYSE:C)

39.8

-6.4%

NCR CORPORATION (NCR)

39.6

4.1%

CLEARWIRE CORP-CLASS A (CLWR)

39.1

-19.5%

APPLE INC (NASDAQ:AAPL)

36.6

-2.3%

DANA HOLDING CORP (DAN)

36.5

2.4%

HUNTSMAN CORP (NYSE:HUN)

36.5

8.9%

CIT GROUP INC (NYSE:CIT)

36.2

-0.9%

PETSMART INC (NASDAQ:PETM)

35.8

12.0%

APOLLO GROUP INC-CL A (APOL)

35.5

-1.0%

VANCEINFO TECHNOLOGIES-ADR (NYSE:VIT)

34.6

-18.4%

TIM PARTICIPACOES SA-ADR (NYSE:TSU)

32.7

14.1%

MARKET VECTORS JR GOLD MINER (NYSEARCA:GDXJ)

30.6

-9.6%

SBA COMMUNICATIONS CORP-CL A (NASDAQ:SBAC)

29.8

-1.8%

PFIZER INC (NYSE:PFE)

28.4

4.5%

EXPRESS SCRIPTS INC (NASDAQ:ESRX)

27.8

9.1%

CIGNA CORP (NYSE:CI)

27.5

11.9%

AMAZON.COM INC (NASDAQ:AMZN)

27.0

10.4%

Value Weighted Return

1,340.0

2.6%

SPY

N/A

1.6%

Hobson's largest stock holdings have gained 2.6% since the end of first quarter 2011, vs. a 1.6% gain for the SPY. NIHD was Hobson's biggest investment at the end of March 2011. NIHD has gained 0.2% since then, underperforming the SPY’s 1.6% return. Hobson has $90 million invested in NIHD.

VRSN was Hobson's second biggest investment at the end of March 2011. VRSN has gained 11.4% since then, outperforming the SPY’s 1.6% return. Hobson has $87 million invested in VRSN. The stock has a market cap of $6.3 billion and P/E ratio of 8. Jim Simons’ Medallion Fund is also bullish about VRSN.

Call options on BP were Hobson's biggest new investment at the end of March 2011. BP has gained 0.4% since March, underperforming the SPY by 1.2 percentage points. Hobson had nearly $46 million invested at the end of March. BP recently traded at $44.5 and has a 3.9% dividend yield. The stock has a market cap of $139.6 billion. T. Boone Pickens' BP Capital, John Griffin’s Blue Ridge Capital, David Einhorn’s Greenlight Capital and Whitney Tilson’s T2 Partners had BP in their portfolios at the end of 2010.

Millicom Intl Cellular S.A. has gained 14.3% since March, outperforming the SPY by 12.7 percentage points. Hobson had nearly $76.9 million invested at the end of March. MICC recently traded at $108.9 and has a 2.2% dividend yield. The stock has a market cap of $11.5 billion and P/E ratio of 6.8.

Source: Lee Hobson's Favorite Stock Picks