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William P. Jones is founder of William Jones & Associates, which manages $3.6 billion in client assets. Jones graduated from Harvard University in 1973. He founded WJ&A fifteen years later. Prior to forming WJ&A, Jones was a Director and Senior Portfolio Manager at Mackay-Shields Associates. Before that, Jones worked as a Vice President and Trust Officer at Chase Manhattan Bank from 1980 until 1982.

WJ&A has a conservative investment strategy, which focuses on long-term growth of client capital through proper asset allocation. WJ&A has 10 portfolio managers, each averaging 26 years of investment experience in bonds, equities and hedge funds.

According to the latest 13F filings, WJ&A had 260 securities worth $1.45 billion in its 13F portfolio as of March 31, 2011. We noticed that Jones has been holding 100 of these securities for at least five years. In the first quarter of 2011, he sold 20 securities and bought 31 new securities. He sold out $5 million worth of Brazil Mid-Cap Etf and $3 million worth of Currency Shares Australian Dollar Trust (NYSEARCA:FXA) during that quarter. His biggest purchase in the first quarter was Netapp Inc Com (NASDAQ:NTAP) with $12.5 million.

Here is how Jones’ top picks performed since the end of March:

Stock

Value (Millions)

Performance
Since Mar 31,2011

DOVER CORPORATION (Special) (NYSE:DOV)

134.4

-3.09%

ENTERPRISE PRODS PARTNERS(NYSE:EPD)

59.9

-4.07%

APPLE INC COM (NASDAQ:AAPL)

48.9

-2.48%

GOOGLE INC CL A (NASDAQ:GOOG)

43.5

-9.71%

SPDR GOLD TRUST (NYSEARCA:GLD)

41.2

4.10%

SOUTHWESTERN ENERGY (NYSE:SWN)

40.0

-1.77%

NATURAL RESOURCE PAR (NYSE:NRP)

33.2

-7.79%

VERIZON COMMUNICATIONS (NYSE:VZ)

33.0

-2.52%

EOG RESOURCES INC (NYSE:EOG)

27.8

-9.90%

QUALCOMM INC COM (NASDAQ:QCOM)

27.1

2.95%

SCHLUMBERGER LTD COM (NYSE:SLB)

26.9

-10.20%

CROWN CASTLE INTL CORP (NYSE:CCI)

24.5

-2.68%

MFA FINANCIAL INC COM (NYSE:MFA)

22.5

1.63%

TEEKAY OFFSHORE PARTNERS (NYSE:TOO)

21.4

-5.96%

CME GROUP INC (NASDAQ:CME)

20.7

-1.43%

BLACKSTONE GROUP (NYSE:BX)

20.4

-3.05%

INTERNATIONAL BUSINESS MA (NYSE:IBM)

20.4

4.99%

AMERICAN TOWER CORP (NYSE:AMT)

19.7

0.66%

JPMORGAN CHASE & CO (NYSE:JPM)

18.8

-3.86%

MCDONALDS CORP (NYSE:MCD)

18.8

7.11%

MICROSOFT CORP COM (NASDAQ:MSFT)

18.6

-2.10%

IVANHOE MINES LTD (IVN)

17.8

-7.98%

EXXON MOBIL CORP (NYSE:XOM)

17.6

-2.30%

DANAHER CORP (NYSE:DHR)

17.1

5.76%

EL PASO PIPELINE PARTN (NYSE:EPB)

16.9

-4.11%

DCP MIDSTREAM PARTNE (NYSE:DPM)

16.9

-2.45%

PEPSICO INC (NYSE:PEP)

16.8

10.65%

COLGATE PALMOLIVE CO (NYSE:CL)

16.8

7.52%

LEUCADIA NATL CORP (NYSE:LUK)

15.8

-1.07%

GENESEE & WYO INC (NYSE:GWR)

15.2

-0.31%

Value Weighted Performance

872.6

-2.22%

SPY

N/A

1.33%

Only Eight of Jones' top positions managed to beat the market. Jones' largest stock picks have lost 2.2% since the end of first quarter 2011, vs. a 1.3% gain for the SPY.

DOV was Jones' biggest investment at the end of March 2011. DOV has lost 3.1% since then, underperforming the SPY’s 1.2% return. Jones has $134.4 million invested in DOV. DOV recently traded at $63.7 and has a 1.8% dividend yield. The stock has a market cap of $11.9 billion and P/E ratio of 15.4. Vanguard Group, State Street Corp, Ken Fisher's Fisher Asset Management, Wellington Management and Clint Carlson are other high profile DOV investors. Tokyo-based investment bank Nomura published its list of “conviction buy” stocks for the U.S. equity market on May 10, 2011. DOV is one of the ten stocks in this list.

EPD was Jones' second biggest investment at the end of March 2011. EPD has lost 4.1% since then, underperforming the SPY’s 1.3% return. EPD recently traded at $40.7 and has a 6.0% dividend yield. Jones has $59.9 million invested in EPD. The stock has a market cap of $34.4 billion and P/E ratio of 26.7.

AAPL has lost 2.5% since March, underperforming the SPY by 3.8 percentage points. Jones increased his AAPL shares by 6.7% during the first quarter of 2011. Jones had nearly $49 million invested at the end of March. Apple is the most popular stock among hedge funds. Hedge fund stars like David Einhorn, John Griffin, Stephen Mandel, Chase Coleman, Clint Carlson and John Burbank all own AAPL in their portfolio. Apple is also one of the Fortune’s top ten picks for 2011 which fail to beat the market.

Google has lost 9.7% since March, underperforming the SPY by 11 percentage points. Jones increased his Google shares by 28.7% during the first quarter of 2011. Jones had nearly $44 million invested at the end of March. Google is one of the 10 stocks Wall Street analysts are insanely bullish about. Google is the most popular in terms of the number hedge funds with holdings. There were 43 hedge funds with Google positions out of the 175 funds we have been following.

Pepsi has had one of the best performances in his portfolio since the end of March. Jones had $16.8 million in PEP shares at the end of March. PEP has gained 10.7% in the last seven weeks, beating the SPY by a large margin. Bill Miller, Clint Carlson, Jim Simons’ Medallion Fund and Bridgewater Associates’ Ray Dalio are other high profile Pepsi investors. During the third quarter of 2010 Chase Coleman completely sold his Pepsi shares. The worst performing stock among the top holdings was SLB, losing 10.2% since the end of March.

In a previous article on William Jones we have shown that his long-term holdings manage to beat the market by a large margin. He knows how to take advantage of long term secular trends. DOV, EPD, AAPL, and GOOG are among the stocks Jones had in his portfolio at the end of December. Investors should consider investing in these names in order to beat the market in the long term.

Source: William Jones' Favorite Stock Picks