San Francisco-based Thomas Weisel Partners is a growth focused U.S. investment banking firm heavily focused on technology. It prospered in the dot-com rise, but hit turbulent times in the post-bubble years that then led to the firm's diversification into the healthcare and consumer sectors. Weisel Thomas Partners Asset Management LLC fund has $275 million invested in the U.S. equity markets, mostly in small-capitalization companies in the technology and healthcare sectors.
The fund holds a moderately diversified portfolio of 109 equity positions, about two-thirds of that in small-caps, 25% in mid caps and the remaining 5%-10% in large-capitalization equities. The portfolio turnover is high at 135%, implying an average holding period of nine months. Based on the most recent SEC 13-F filing for the June 2011 quarter, we determined that its portfolio is over-weight in the technology (40%), services (25%) and healthcare (13%) sectors, and it is under-weight energy (8%), basic materials (2%) and consumer (3%) sectors, compared with the weighting of these sectors in the overall economy. The following summarizes the fund’s most significant picks and pans in the latest reported 13-F filing for the June 2011 quarter, updated based on any 13-G filings since the end of the quarter:
Technology sector: Weisel cut $13 million from its $122 million holding in the technology sector, including cutting their position in Internap Network Services (NASDAQ:INAP), a provider of internet services to businesses to help optimize their mission-critical internet-based applications; and Solarwinds Inc. (NYSE:SWI), a developer of network management software. Furthermore, they hold a large $81 million position or about 29% of their portfolio in Webmd Health Corp. (NASDAQ:WBMD), a provider of healthcare-related content to consumers via webmd.com, and to healthcare professionals via medscape.com.
Healthcare sector: Weisel added $1 million to its $36 million holding in the healthcare sector, including adding to their position in Jazz Pharmaceuticals Inc. (NASDAQ:JAZZ), a biotech company developing drugs that target neurology and psychiatry conditions. Also, Weisel cut its position in Alexion Pharmaceuticals (NASDAQ:ALXN), a biotech company that develops drugs to treat cancer, autoimmune disorders, hematologic and neurologic diseases. Furthermore, Weisel also holds large positions in the healthcare sector in Map Pharmaceuticals Inc. (NASDAQ:MAPP), a developer of drugs to treat migraine, diabetes, asthma and chronic obstructive pulmonary disease; Hansen Medical Inc. (NASDAQ:HNSN), a developer of medical robotics for accurate positioning, manipulating and control of catheter and catheter-based technologies; and Trans1 Inc. (TSON), a developer of minimally invasive implants and instruments for the treatment of degenerative lumbar disc disease.
Service sector: Weisel cut $6 million from its $74 million holding in the service sector, including cutting their position in TW Telecom Inc., an integrated telecom services company; RSC Holdings Inc. (NYSE:RRR-OLD), a provider or non-residential and industrial construction equipment rentals via over 450 stores in the U.S. and Canada; and Netflix Inc. (NASDAQ:NFLX), a provider of online movie rental subscription services via Netflix.com. Also, they added to their position in the quarter in Cinemark Holdings Inc. (NYSE:CNK), an operator of movie theaters in the U.S. and Latin America; Cash America International Inc. (NYSE:CSH), an operator of pawn, consumer lending and cash checking centers; and Caseys General Stores (NASDAQ:CASY), an operator of convenience stores. Furthermore, Weisel also hold large positions in Republic Services Inc. (NYSE:RSG), a provider of non-hazardous solid waste collection services for commercial, industrial, residential and municipal customers.
Consumer sector: Weisel cut $16 million from their $22 million position in the consumer sector, including cutting their $10 million position in Tesla Motors Inc. (NASDAQ:TSLA), a manufacturer of high-performance electric vehicles for consumers, and electric vehicle power-train components for other OEMs; and Diamond Foods Inc. (NASDAQ:DMND), a manufacturer of nuts and other snack products.
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Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
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