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Glenn Greenberg is better known as the co-founder of Chieftain Capital, which he founded together with John Shapiro in 1984. But in late 2009 the duo parted ways due to personal conflicts. Mr. Shapiro and partners Tom Stern and Joshua Slocum left to launch a new firm but retained the name Chieftain Capital while Mr. Greenberg remained at the existing firm, renaming it Brave Warrior Advisors. Brave Warrior focuses on value investing for institutions and individuals.

Greenberg believes that the more companies you own, the less you will know about each, and the less you know about a business, the more likely you are to make mistakes due to fear and greed. He usually owns less than 10 stocks. Greenberg invests in companies with little competition, and places a great deal of emphasis on Return On Invested Capital.

Glenn Greenberg maintains a very concentrated portfolio. During the first quarter, he sold his entire stake in LTM. His decision turned out to be right as the stock went down returning -2.2 % since the end of March. Here are Greenberg’s favorite stocks and the activities in each stock during the first quarter:

Company Name

Ticker

Value

Activity

Return

LOCKHEED MARTIN CORP

LMT

0

Sold Out

-4.9%

COMCAST CORP NEW

CMCSK

103567

-35%

0.5%

GOOGLE INC

GOOG

68883

-26%

-10.0%

BROADRIDGE FINANCIAL SOLUTNS

BR

62901

-24%

2.1%

U S BANCORP DEL

USB

78315

-24%

-6.4%

LABORATORY CORP AMERICA HLDGS

LH

102141

-15%

6.8%

RYANAIR HOLDINGS PLC

RYAAY

94993

-10%

7.8%

FISERV INC

FISV

160297

-2%

1.5%

HEWLETT PACKARD CO

HPQ

68240

0%

-11.1%

ARCH CAPITAL GROUP LTD NEW

ACGL

79853

3%

2.5%

MASTERCARD INC

MA

118664

13%

12.4%

AON CORP

AON

87145

New

-2.6%

VALEANT PHARMACEUTICALS

VRX

119112

New

5.4%

WILEY JOHN & SONS INC

JW.A

24961

New

1.6%

The weighted average return of Greenberg’s portfolio is 1.7% since the end of March, beating the market b a couple of percentage points. Greenberg increased MA holdings by 13% in the first quarter and the stock gained 12.4% since the end of March. Stephen Mandel’s Lone Pine Capital, Tom Russo’s Garner Russo & Gardner, Jean-Marie Eveillard’s First Eagle Investment Management and Chase Coleman’s Tiger Global Management Llc are also among the hedge funds with large MA holdings.

Greenberg’s newest and largest holding was VRX which returned 4% since the end of the first quarter. Jeffrey Ubben’s Valueact Capital, John Griffin’s Blueridge Capital and Andreas Halvorsen’s Viking Global had large portions in VRX as well. Greenberg reduced his bets in CMCSK by 35% and GOOG by 26%. Neither of these stocks managed to do well since the end of March.

We like Greenberg’s concentrated portfolio and value investing approach. We believe investors can benefit significantly by following Brave Warrior’s stock picks and imitating Greenberg’s portfolio.

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

Source: Glenn Greenberg's Favorite Stock Picks