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Alex von Furstenberg founded Arrow Capital Management in 2003. This alternative asset management firm primarily invests in global public equities. The firm adopts a unique event-driven, value-oriented style of investing. In early 2011, Alex von Furstenberg announced his departure from Arrow Capital. He handed over his duties to Mal Theodore Serure. Mal Serure joined Arrow Capital in 2005.

As of March 2011, Arrow Capital Management manages $363 million. A major portion of the firm’s portfolio is made up of companies belonging to the Consumer Goods and the Healthcare sectors. Arrow Capital Management has not disappointed investors during the times of financial crisis. It has earned the top spot in our 25 best performing hedge funds in this market turmoil.

Arrow Capital sold off 9 companies in the first quarter of 2011. These include: Diageo Plc (NYSE:DEO), Johnson & Johnson (NYSE:JNJ), McDonald’s Corp (NYSE:MCD), Mead Johnson Nutrition Co (NYSE:MJN), Pfizer Inc (NYSE:PFE), Unilever NV (NYSE:UN), Visa Inc (NYSE:V), Accretive Health Inc (NYSE:AH), and Becton Dickinson & Co (NYSE:BDX). Since March, Visa (V) gained 8%, Mead Johnson Nutrition Co (MJN) returned 13%, and McDonald’s Corp (MCD) gained 9%. However, Pfizer Inc (PFE) lost 16%, Becton Dickinson & Co (BDX) lost 4%, and Diageo Plc (DEO) lost 3% during the same period.

Moreover, Arrow Capital made some reductions in its positions. Philip Morris International Inc (NYSE:PM) was reduced by 35% and Diamond Hill Investment (NASDAQ:DHIL) was reduced the most by 46%. Since March, Diamond Hill (DHIL) lost 11% while Philip Morris (PM) gained a minor 2%. Here are Arrow Capital Management’s favorite stock picks at the end of March:

CompanyName

Ticker

Value (x1000)

Return

COLGATE PALMOLIVE CO

CL

61977

4%

COLGATE PALMOLIVE Calls

CL

54384

4%

JOHNSON & JOHNSON Calls

JNJ

46192

4%

PRIMERICA INC

PRI

34629

-23%

PHILIP MORRIS INTL

PM

24132

2%

ISHARES INC

EWS

22247

-9%

SECTOR SPDR TRUST Calls

XLP

21734

-3%

INTERVAL LEISURE GROUP

IILG

21034

-36%

PHILIP MORRIS Calls

PM

17064

2%

MASTERCARD INC

MA

12717

16%

GOOGLE INC

GOOG

8293

-7%

DAVITA INC

DVA

8124

-16%

PROSHARES TRUST

DDM

8051

-23%

NOVARTIS A G

NVS

7446

0%

KRAFT FOODS INC Calls

KFT

5651

8%

DIAMOND HILL INVT

DHIL

4279

-11%

SPDR GOLD TRUST

GLD

3147

19%

F X C M INC

FXCM

1629

-36%

IAC INTERACTIVECORP

IACI

313

17%

JOHNSON & JOHNSON

JNJ

4%

PFIZER INC

PFE

-16%

ACCRETIVE HEALTH INC

AH

0%

BECTON DICKINSON & CO

BDX

-4%

DIAGEO PLC

DEO

-3%

MCDONALDS CORP

MCD

9%

MEAD JOHNSON NUTRITION

MJN

13%

UNILEVER N V

UN

1%

VISA INC

V

8%

Colgate Palmolive Co (NYSE:CL) makes up the largest portion of Arrow Capital’s portfolio. It has $61.97 million worth of shares, which makes up 17.07% of its portfolio. Arrow Capital also owns 673 thousand call options of Colgate Palmolive Co (CL). It makes up 14.98% of the firm’s equity portfolio. During the first quarter of 2011, Arrow reduced its Colgate holdings by 15% and increased its call options position by 31%. Colgate returned 4% since the end of March. Paul Ruddock and Steve Heinz’s Lansdowne Partners has the largest position in Colgate. Lansdowne owns 4.06 million shares of the company (check out Lansdowne’s $11 billion portfolio)

Primerica (NYSE:PRI) lost 23% since the end of first quarter 2011. Arrow Capital Management has the second largest position in the company with a $34 million position. Primerica makes up 9.53% of Arrow Capital’s 13F portfolio. In the first quarter ending March 31, Arrow Capital reduced Primerica by 2%. The largest position in the company is held by Robert Pitts’ Steadfast Capital Management. Steadfast Capital increased Primerica by 1% during the first quarter. (View Robert Pitts’ top stock picks)

Davita Inc (NYSE:DVA) is a new addition to Arrow Capital’s portfolio. The firm purchased 95 thousand shares of Davita worth $8.05 million in the first quarter of 2011. Davita lost 16% since March. Arthur B Cohen and Joseph Healey’s Healthcor Management, the $3 billion healthcare hedge fund, also added Davita Inc (DVA) during the first quarter. It purchased 1.5 million shares of the company worth $128 million.

Arrow Capital’s positions lost 5.6% since the end of March. However, the hedge fund performed relatively better than the rest and beat the market as the S&P 500 (NYSEARCA:SPY) returned -14.9%. We believe imitating Arrow Capital’s stock picks will help investors realize better returns than the market over the long term.



Disclosure: I am long PM.

Source: Arrow Capital's Amazing Stock Picks