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What do the top Hedge Fund and Mutual Fund Gurus like in the electronics sector? This article, the forty-second in a series, identifies, through research of the latest available institutional 13-F filings, the Gurus who are most invested in the Electronics sector, and the specific stocks within that group that they prefer to hold in their portfolios. The group includes manufacturers of a wide range of miscellaneous electronics products such as sensors, printed circuit boards, capacitors, filters, optical components, circuit protectors, fuses; manufacturers of scientific and measurement electronics products; Contract Electronics Manufacturers (CEMs); and distributors of electrical and electronics products.

Furthermore, please note that this article will be among the last in this series, as the latest March 2011 quarter 13-F Institutional filings are now almost complete. Please check my
article page for previous articles in this series.
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 a high personal net worth deploying large sums of capital from their funds regularly. 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 US Equity markets is somewhere in the $15 trillion range, and the total market capitalization of leading companies in the Miscellaneous Electronics Group (as defined above) is $225 billion or 1.5% of the overall market. The Table lists the top six investment Gurus whose funds have invested more than twice that average or 3.0% in the group. The following are their leading picks in that group:
  • Flextronics International Ltd. (NASDAQ:FLEX), a Singaporean contract manufacturer of flexible circuits and printed circuit boards for computer and telecommunications markets.
  • Thermo Fisher Scientific (NYSE:TMO) manufactures mass spectrometry, liquid and gas chromatography, and optical spectroscopy instruments.
  • Corning Inc. (NYSE:GLW) manufactures glass substrates for LCDs, optical fiber and cables for telecommunications, and ceramic pollution control products.
  • Waters Corp. (NYSE:WAT) manufactures liquid chromatography and mass spectrometry instruments primarily for the pharmaceutical industry.
  • Danaher Corp. (NYSE:DHR) manufactures water treatment and vapor recovery systems, fuel dispensers, digital imaging systems and test products.
  • Mettler Toledo (NYSE:MTD), a Swiss manufacturer of precision instruments and services, they are the largest provider of weighing instruments for use in laboratory, industrial and food retailing applications; a leading provider of analytical instruments for use in life sciences, reaction engineering and real-time analytic systems used for in-line measurement in production processes; and the largest supplier of end-of-line inspection systems used in production and packaging for food, pharmaceutical and other industries.
  • Amphenol Corp (NYSE:APH) manufactures electrical, electronic and fiber optics connectors, interconnect systems and coaxial and flat-ribbon cables.
  • Avnet Inc. (NYSE:AVT), one of the largest industrial distributors, based on sales, of electronic components, enterprise computer and storage products and embedded subsystems.
  • Plexus Corp. (NASDAQ:PLXS), a contract manufacturer of digital and analog electronics, printed circuit boards, RF devices, micro-processors and assemblies.
  • Anixter International (NYSE:AXE) distributes telecommunications and security products, electrical wire and cable products and fasteners and other small parts via 228 warehouses with approximately 7 million square feet of space located in 263 cities and 50 countries.
  • SPX Corp. (NYSE:SPW) manufactures thermal equipment, test and measurement products, flow technology equipment and industrial products.
  • Itron Inc. (NASDAQ:ITRI) manufactures meters and automated meter reading and advanced meter reading infrastructure software for the Utility industry.
  • TTM Technologies Inc. (NASDAQ:TTMI), a contract manufacturer of complex printed circuit boards (PCBs) and back-plane assemblies (which are PCBs populated with electronic components) for networking and aerospace industries.
  • Perkinelmer Inc. (NYSE:PKI), a leading provider of technology, services and solutions to the diagnostics, research, environmental safety, industrial and laboratory services markets, they manufacture chromatographs, spectrometers, surgical lamps, optical and temperature sensors, and imaging readers.
Table
Fund and Guru
Type of Fund
Assets Under Management
Percent Equity Portfolio invested in Miscellaneous Electronics Group Companies
Major Miscellaneous Electronics Group company positions in Portfolio
Glenview Capital (Larry Robbins)
Hedge Fund - Multi-strategy
$ 6.4 billion
9.4%
FLEX, TMO, GLW, WAT
Maverick Capital (Lee Ainslie)
Hedge Fund
$ 9.4 billion
4.0%
GLW, ITRI
Hillman Capital Management, Inc. (Mark Hillman)
Asset Manager including Mutual Funds
$ 450 million
4.0%
GLW
SAC Capital Advisors (Steven Cohen)
Hedge Fund
$ 13.1 billion
3.5%
DHR, TMO, GLW, FLEX, TTMI, PKI
Columbia Wanger Asset Management LLC
Mutual Fund
$ 25.1 billion
3.2%
MTD, APH, AVT, PLXS
Pioneer Investment Management Inc.
Mutual Fund
$ 26.7 billion
3.0%
AXE, TMO, SPW, AVT, ITRI
Hedge Fund Glenview Capital Management, founded in 2001 by CEO Larry Robbins, is a multi-strategy fund focused on making large bets on large-cap stocks, often taking an activist approach to some of their large bets. The fund assets of almost $7 billion are concentrated in usually 60-80 positions, and are split between Glenview Funds, a short fund, and Little Arbor Funds, a multi-strategy fund.

Dallas, TX-based Hedge Fund Maverick Capital was founded in 1993 by Lee Ainslie. Mr. Ainslie is one of the Tiger Cubs, so called because they learned to pick stocks at Julian Robertson's legendary hedge fund Tiger Management LLC. For an almost $10 billion fund, it is relatively concentrated in only 71 securities, with 40% of the fund being invested in the Technology Sector.
Bethesda, Maryland-based Hillman Capital Management, headed by Guru Mark Hillman is a value manager, and invests in out-of-favor companies that have quantitative competitive advantages, and whose value is not yet factored into the market.

Steven Cohen, hedge fund manager and founder of Stamford, Connecticut-based SAC Capital Advisors, with $13.1 billion in assets under management (AUM) is among the most high-profile hedge fund managers. He has been dubbed as 'The Hedge Fund King' in a 2006 Wall Street Journal article and was ranked 94th on Time Magazine's annual list of the most influential people. His net worth is estimated by Forbes at $8 billion, ranking him as the 35th richest person in the U.S. and 114th richest person in the world. His Hedge Fund, SAC Capital, is among the giants on Wall Street both in terms of assets under management as well as consistent long-term performance at about 30% annual returns over the last two decades. The fund primarily invests in technology, industrial and retail/consumer goods industries. For a detailed profile on SAC Capital, please refer to
my earlier article on them.
Chicago-based Mutual Fund Company Columbia Wanger Asset Management, LP, provides its services to investment companies, Pension and profit sharing plans. They manage mutual funds for them, investing in public equity and fixed income markets worldwide. Their primary focus is in small-cap and mid-cap stocks.
Boston-based Mutual Fund Company Pioneer Investments, established in 1928 by Philip Carret as Pioneer Fund is now the third oldest Mutual Fund in the U.S. As of the end of 2010, the Pioneer Fund has generated a total return of over 1,000,000% since inception in 1928. The Pioneer Fund is also often cited as the first Mutual Fund based on ethical values. It uses a “sin screen” to exclude investment in companies that made or sold tobacco and alcohol.
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.
Source: Top Electronics Picks by Fund Gurus Concentrated in the Sector