Israel Englander's Top 25 Stock Picks

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Includes: AET, ANTM, AUXL, BSX, CHK, COG, COP, CVS, CVX, CYH, DNDN, DVN, EGN, ELN, GLD, HCA, HK, HMA, LUFK, MCK, NEE, PXD, PXP, SM, WCG
by: Insider Monkey

Israel Englander is the billionaire behind Millennium Management. He started the hedge fund in 1989 with $35 million and only a B.S. in finance. Since then, Englander has built Millennium into a $11.1 billion hedge fund, almost 20% of which was added in 2010 alone (Read more about Englander’s Millennium here). Englander’s strategy is to exploit inefficiencies in the market, even very small ones. To this point, the Millennium fund maintains over 2,000 positions which are managed by over 120 professionals.

Since the end of March, Englander’s top picks have outperformed the S&P 500 by 2.5 percentage points. Here is how each of these 25 stocks performed during the past four months:

CompanyName

Ticker

value

Return

C V S CAREMARK CORP

CVS

92902

-0%

WELLCARE HEALTH PLANS

WCG

76030

-7%

ELAN PLC

ELN

75217

44%

BOSTON SCIENTIFIC CORP

BSX

72736

-11%

COMMUNITY HEALTH SYS

CYH

66249

-44%

DEVON ENERGY CORP NEW

DVN

66027

-22%

AETNA INC NEW

AET

65283

2%

S M ENERGY CO

SM

62698

7%

PIONEER NATURAL RES

PXD

61246

-20%

CHESAPEAKE ENERGY CORP

CHK

59902

-6%

SPDR GOLD TRUST

GLD

55944

15%

LUFKIN INDUSTRIES INC

LUFK

50139

-25%

WELLPOINT INC

WLP

49389

-10%

PETROHAWK ENERGY CORP

HK

49253

55%

CHEVRON CORP NEW

CVX

46536

-9%

CABOT OIL & GAS CORP

COG

44462

28%

NEXTERA ENERGY INC

NEE

42776

-4%

AUXILIUM PHARMACEUTICALS

AUXL

42152

-30%

CONOCOPHILLIPS

COP

41479

-15%

HEALTH MANAGEMENT ASSOC

HMA

39014

-27%

MCKESSON H B O C INC

MCK

37765

-5%

ENERGEN CORP

EGN

36727

-17%

HCA HOLDINGS INC

HCA

35871

-32%

PLAINS EXPLORATION & PROD CO

PXP

35662

-4%

DENDREON CORP

DNDN

35604

-69%

Click to enlarge

Englander’s largest losses since the end of the first quarter were in the pharmaceutical company Dendreon Corp (NASDAQ:DNDN), in which he lost 69%. While this was a significant loss, there are a lot of major players in the hedge fund market who had very large positions in Dendreon, like Ken Griffin’s Citadel Investment Group (Check out Griffin’s top stock picks here) and Steven Cohen’s $16.3 billion SAC Capital Advisors. Steve Cohen lost nearly $200 Million in one day because of the decline in Dendreon (Read about Cohen’s top picks here).

Englander also sustained major losses through his position in Community Health System (NYSE:CYH); he lost 44% since the end of March. He also lost big on his positions in HCA Holdings (NYSE:HCA) and Auxilium Pharmaceuticals (NASDAQ:AUXL), losing 32% and 30% respectively.

Millennium Management was able to generate major returns through Englander’s position in Petrohawk Energy Corp (NYSE:HK), gaining 55% since the end of the first quarter. Ken Griffin is also a fan. Both hedge funds increased their respective positions by approximately 20%. Englander was also able to produce a significant return via his position in Elan Plc (NYSE:ELN), gaining 44% since March 31, 2011.

We like Israel Englander and believe that investors can beat the market by imitating his top stock picks.

Disclosure: I am long CHK, COP.