Mohnish Pabrai is a noted author and value investor who actively strives to emulate his investing idol, Warren Buffett. Pabrai's activity level in Q2 was fairly muted as he only added two new positions, Brookfield Residential Properties (NYSE:BRP) and Harvest Natural Resources (NYSE:HNR). With BRP, Pabrai is slowly building a piecemeal collection of publicly traded Brookfield Asset Management (NYSE:BAM) subsidiaries. I own BAM shares myself but perhaps would not buy at these levels. I have been considering BRP but lack of a dividend is a concern. HNR is an energy producer and a stock Pabrai has held in the past and thus knows well.
Pabrai's new stakes are less than a tenth in value compared to the 2 stocks he sold though International Coal Group was acquired by Arch Coal (ACI) so Terex (NYSE:TEX) was the only true sell in the quarter. In fact, Pabrai's biggest move in the quarter was doubling his share count in Goldman Sachs (NYSE:GS). Again we see another value investor putting big money on the financials, though GS may be a safer pick than say Berkowitz's bets on AIG (NYSE:AIG) and Bank of America (NYSE:BAC).
David Winters is the manager of the respected Wintergreen Fund and former protege under Michael Price at Mutual Series. For the most part, Winters held pat in the 2nd quarter with the exception of a few big moves. He added substantially to stakes in Google (NASDAQ:GOOG) and MasterCard (NYSE:MA). Both companies are cash flow cows with minimal capital expenditures. GOOG may become more PPE oriented with its announced purchase of Motorola Mobility (NYSE:MMI) but much of the deal's appeal lies in MMI's wireless patent portfolio. Winters divested positions in Barrick Gold (NYSE:ABX) and Potash (NYSE:POT).
Boone Pickens is the famous oil tycoon but also happens to run a hedge fund geared toward energy investments. In Q2, Pickens' fund, BP Capital, bought new stakes in Hess (NYSE:HES), a mid-tier integrated energy company, and best-in-class oil services company, Schlumberger (NYSE:SLB), while selling off ABB (NYSE:ABB), A123 Systems (AONE), Devon Energy (NYSE:DVN) and Oceaneering International (NYSE:OII). Pickens also added to positions in Chesapeake Energy (NYSE:CHK), SandRidge Energy (NYSE:SD), National Oilwell Varco (NYSE:NOV) and Weatherford (NYSE:WFT).
Barron's roundtable analyst Meryl Witmer also runs a hedge fund called Eagle Value Partners. In the 2nd quarter, Witmer's firm added two new stocks, Innophos Holdings (NASDAQ:IPHS) a specialty phosphates producer, and Macquarie Infrastructure (NYSE:MIC), a subsidiary of the Australian financial firm, Macquarie Group. Witmer also added substantially to power provider, Calpine Corp (NYSE:CPN) while moving out of Motorola Solutions (NYSE:MSI) and Sealed Air Corp (NYSE:SEE).
ValueAct Capital is a low-profile but highly successful activist hedge fund. The appearance of ValueAct on the shareholder roster is not necessarily a sign of possible agitation as ValueAct does not usually invest with the intent of taking on management but will if necessary. During Q2, ValueAct opened new positions in Fidelity National Financial (NYSE:FNF), InternationalContinental Exchange (NYSE:ICE) and Rockwell Collins (NYSE:COL). These new stakes are dwarfed by the quadrupling of the firm's stake in Motorola Solutions, which is now the firm's largest holding.
Readers can view all of these money managers' moves in spreadsheet format:
- ValueAct Capital Q2 2011 13F Holdings Spreadsheet
- Mohnish Pabrai Q2 2011 13F Holdings Spreadsheet
- David Winters Q2 2011 13F Holdings Spreadsheet
- Boone Pickens Q2 2011 13F Holdings Spreadsheet
- Meryl Witmer Q2 2011 13F Holdings Spreadsheet
Disclosure: I am long BAM, CHK.PD.