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Jeffrey G. Edwards is the founder and Managing General Partner of JGE Capital Management LLC, which was founded in 1996. Edwards also owns East Peak Partners and uses it as a vehicle to make public and private investments. Edwards prefers to invest in the areas of healthcare and technology, and runs a very concentrated portfolio.

At the end of March he had only 7 stocks in his 13F portfolio and four of these positions accounted for 80% of his portfolio. Here are his favorite stock picks and the activities in each stock during the first quarter:

Company Name

Ticker

Value

Activity

Return

HEALTHSOUTH CORP

HLS

17486

-36%

10.4%

HERBALIFE LTD

HLF

26442

Unchanged

34.4%

S B A COMMUNICATIONS CORP

SBAC

19840

Unchanged

-2.4%

SPDR GOLD TRUST

GLD

6993

Unchanged

7.2%

CROWN CASTLE INTERNATIONAL

CCI

21275

25%

-4%

DESCARTES SYSTEMS GROUP INC

DSGX

6660

New

1.2%

SENSATA TECHNOLOGIES HOLDING

ST

5210

New

3%

The weighted avarage return of Edwards’ portfolio is 9.9% since the end of March. Edwards added two new stocks to his portfolio: Descartes Systems Group (NASDAQ:DSGX)and Sensata Technologies Holding (NYSE:ST).Both stocks outperformed the market; ST gained 3% since the end of March. Adam Weiss and James Crichton’s Scout Capital Management, Alan Fournier’s Pennat Capital Management, and Stephen Mandel’s Lone Pine Capital are also among the hedge funds with large ST holdings. DSGX returned 1.2% since the end of March. The only other hedge fund with a DSGX position was Jim Simons’ Renaissance.

Edwards’s largest holding was Herbalife Ltd. (NYSE:HLF), which returned 34.4% since the end of March. Steven Richman’s East Side Capital, Jim Simons’ Renaissance Technologies and Patrick McCormack’s Tiger Consumer Management had large positions in HLF as well. Edwards made two unfortunate moves during the last quarter; he upped his bet in CCI by 25%, which lost -4%, and reduced his bet in HLS by -36%, which gained 10.4% since the end of March.

East Peak Partners’ 13F portfolio managed to beat S&P 500’s (NYSEARCA:SPY) 1.6% loss by more than 11.5 percentage points in two months. We believe that Edwards’ concentrated portfolio and value investing approach is worth following and the investors can benefit by imitating East Peak’s portfolio.

Source: East Peak Partners' Favorite Stock Picks