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Pavel Begun, the co-founder of 3G Capital Management, grew up in Minsk. He moved to the United States in 1998 to obtain a business degree. After graduating from Western Kentucky, he earned an MBA from the University of Chicago. Starting his career as a research analyst, Begun co-founded 3G Capital Management with Cory Bailey in July 2004 with the idea of “good business, good management and good price."

3G Capital Management is currently holding more than 15 securities in its portfolio as of March 31, 2011. The portfolio value is around $550 million. Finance, technology and consumer goods sectors are the top securities the company is investing in.

3G Capital’s largest investments are the SPDR S&P 500 ETF Trust (NYSEARCA:SPY), Itau Unibanco Hidng-Pref Adr (NYSE:ITUB), Citigroup (NYSE:C) and Coca Cola Enterprises (NYSE:CCE), which is more than 70% of its total holdings.

In the first quarter of 2011, 3G Capital Management sold all of its General Motors Co. (NYSE:GM), Gap Inc (NYSE:GPS), Lexmark (NYSE:LXK), Pepsico (NYSE:PEP), and Tupperware (NYSE:TUP) shares. Begun also reduced his Microsoft (NASDAQ:MSFT) holdings by 84%. Begun purchased 750k shares of Family Dollar Stores Inc (NYSE:FDO) in the first quarter of 2011. Pershing Square’s Bill Ackman is currently very bullish about FDO and he presented his bullish case at the Ira Sohn Investment Conference. Below are the 15 largest holdings of 3G Capital Management.

No.

Security

Stock

Value (x$1000)

Activity

% Port

1.)

Spdr S & P 500 PUTS

SPY

$125,695

-53%

22.85%

2.)

Itau Unibanco Hldng

ITUB

$117,991

217%

21.45%

3.)

Citigroup Inc

C

$52,932

-43%

9.62%

4.)

Citigroup CALLS

C

$48,620

0%

8.83%

5.)

Coca Cola Enterprises

CCE

$48,054

2%

8.73%

6.)

Hewlett Packard Co

HPQ

$43,817

-17%

7.96%

7.)

Family Dollar Stores Inc

FDO

$38,490

New

6.99%

8.)

Amdocs Ltd

DOX

$37,218

51%

6.76%

9.)

Ishares Brazil ETF

EWZ

$13,177

New

2.39%

10.)

Microsoft Corp

MSFT

$7,038

-84%

1.27%

11.)

Tyco International Ltd Swtzlnd

TYC

$6,178

New

1.12%

12.)

Itau Unibanco PUTS

ITUB

$3,848

New

0.69%

13.)

DirecTV

DTV

$3,416

New

0.62%

14.)

Family Dollar Stores Inc

FDO

$1,947

New

0.35%

15.)

B R F Brasil Foods S A

BRFS

$1,642

New

0.29%

Begun's largest holding was SPDR S&P 500 ETF (SPY) puts. SPY has lost 3.7% since the end of first quarter, recouping some of Begun’s loses during the recent decline. His other biggest investiment, Itau Unibanco Hidng-Pref, has gained 21.7% since the end of March.

Citigroup, of which 3G Capital Management has more than 22 million shares, has lost around 4.3% since the end of March 2011. The biggest investors of this security is Paulson & Co. and Fairholme which holds more than 470 million shares. Alden Global Capital is also among Citigroup's investors.

Begun also had Coca Cola Enterprises and Hewlett Packard Co (NYSE:HPQ) in his portfolio. CCE gained around 4% since the end of March. On the other hand, Begun has sold more than 200.000 shares of HPQ during the first quarter of the year. Since the end of first quarter, HPQ has lost 15% of its value. Paulson & Co. is the biggest investor of HPQ. It has over 25.000.000 shares which has a value of $1 billion.

Begun added more than 400.000 shares of Amdocs Ltd. (NASDAQ:DOX) to his portfolio during the first quarter. DOX is one of the profitable securities in 3G Capital's portfolio in the first quarter. DOX gained 5.2% during that time. Lee Ainslie’s Maverick and Eric Mindich’s Eton Park had very large positions in DOX at the end of March.

Overall Begun’s performance is better than the market since the end of the first quarter. He makes concentrated bets. We believe investors can beat the S&P 500 index by imitating Begun’s stock picks.

Disclosure: I am long MSFT, C.