Roberto Mignone's Top Stock Picks

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 |  Includes: ARCO, BPOP, CAH, CAR, CFN, COT, FRX, GM, GOOG, H, HCA, HOT, IRWD, LPLA, LVS, MS, ONXX, SPY, STT, T, UNH, URI, UTHR
by: Insider Monkey

Roberto Mignone launched Bridger Management before his 29th birthday in 2000. After cutting his teeth at the infamous Julian Robertson’s Tiger Management, the so-called “Tiger Cub” has since grown his Bridger Management hedge fund to over $2 billion. Mignone’s strategy is to select just a few dozen positions and monitor them carefully (Read more about his strategy here). In fact, he is so cautious that he never lets a stock grow over 10 percent and never opens a position greater than 5% of the portfolio. He also makes sure that his stocks are hedged fairly evenly across industries; he has just as many healthcare positions as service-oriented ones, and he keeps just as many financial positions as technology ones.

His top stock picks in his 13F portfolio lost 12% since the end of June, which is less than the market has been performing overall; the S&P 500 lost just -10.5% in the same period.

Company

Ticker

Value (x1000)

Activity

Returns Since June

SPDR S&P 500 ETF Calls

SPY

131970

0%

-10%

CAREFUSION CORP

CFN

101330

-7%

-6%

DIRECTV GROUP INC

DTV

91476

7%

-15%

GOOGLE INC

GOOG

80261

45%

11%

MORGAN STANLEY

MS

75537

9%

-26%

HYATT HOTELS CORP

H

73476

20%

-17%

LAS VEGAS SANDS CORP

LVS

70280

NEW

3%

HCA HOLDINGS INC

HCA

69709

6%

-36%

ARCOS DORADOS

ARCO

63797

NEW

15%

GENERAL MOTORS CO

GM

63756

11%

-15%

FOREST LABS

FRX

63534

NEW

-13%

STARWOOD HOTELS

HOT

61084

NEW

-22%

COTT CORP

COT

53974

0%

-7%

UNITED RENTALS INC

URI

51435

33%

-33%

LPL INVESTMENT HOLD

LPLA

50973

51%

-19%

GOOGLE INC Calls

GOOG

50638

NEW

11%

GOOGLE INC Puts

GOOG

50638

NEW

11%

POPULAR INC

BPOP

49353

13%

-28%

AVIS BUDGET GROUP

CAR

44488

-34%

-24%

UNITEDHEALTH

UNH

40748

-31%

-13%

IRONWOOD PHARMA

IRWD

39300

0%

-21%

ONYX PHARMA

ONXX

38830

-33%

-11%

STATE STREET CORP

STT

34043

-57%

-23%

CARDINAL HEALTH

CAH

33089

-38%

-10%

UNITED THERAPE

UTHR

31029

126%

-8%

Click to enlarge

Mignone’s largest loss was in HCA Holdings Inc., losing -36%. He also lost 33% in his position in United Rentals Inc., -28% in Popular Inc. and -26% Morgan Stanley. These losses come after Mignone re-upped his position in each of these four companies during the last quarter, increasing his position by 6%, 33%, 13% and 9% respectively. Morgan Stanley recently saw significant insider buying at around $20 per share. The stock currently trades below $18. Bruce Berkowitz has the largest stake in MS among the 300+ funds we are tracking (check out Berkowitz’s top stock picks).

However, Mignone has done well on his new positions. While he did lose 22% in his Starwood Hotels position, he gained15% in his new position Arcos Dorados and 11% in his Google Inc. positions. Las Vegas Sands Corp., which is also a new position, earned Mignone a return of 3% since the end of the second quarter. Billionaire investor Ken Griffin has a large stake in LVS (see Ken Griffin’s top stock picks).

While Mignone has had over 10 years experience running this hedge fund, he recent performance warrants caution. We like Mignone as someone for an investor to watch, but, given his current low returns, we cannot recommend mirroring his stock picks, at least not just yet.

Disclosure: I am long SPY, MS.