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Patrick McCormack is a hedge fund manager who previously worked at Julian Robertson's Tiger Management hedge fund. His fund Tiger Consumer Management is one of several funds that were seeded by Julian Robertson. Tiger Consumer was founded in 2006 and as the name implies invests primarily in consumer-related themes. At June 30, the fund’s 13F assets totaled approximately $1.26B.

During the second quarter, McCormack reduced stakes in two significant holdings, Green Mountain Coffee Roasters (NASDAQ:GMCR), and kindle maker Amazon (NASDAQ:AMZN). The fund cut its holdings in GMCR by 37% and AMZN by 25% during the quarter. Despite the large cuts, these two stocks still account for sizable portion of the fund’s portfolio. GMCR was the fund’s third largest position, with investments of approximately $57.6M. GMCR accounted for 4.6% of the 13F portfolio at the end of June. Amazon was the funds’ 12th largest holding during the same period. The fund owned $51.5M worth of Amazon stock at the end of the quarter and this position accounted for 4.1% of the portfolio.

Both these stocks have outperformed the S&P since July. GMCR lost 4.3% since June and AMZN lost 13.2. This compares very favorably with the 14.6% loss suffered by the S&P 500 index during the same period. Besides Tiger Consumer, hedge funds Coatue Management, Alydar Capital and SAC Capital have large stakes in GMCR. Hedge funds holding large stakes in Amazon include Fisher Asset Management, Blue Ridge Capital, Tiger Global Management, Legg Mason Capital Management, and Coatue Management.

The complete list of the fund’s holdings at the end of the second quarter is listed below:

Company

Ticker

Value (x1000)

Activity

Return Since June

CARMAX INC

KMX

63235

28%

-22.4%

HARLEY DAVIDSON

HOG

62171

27%

-21.6%

GREEN MTN COFFEE

GMCR

57610

-37%

-4.3%

CONAGRA FOODS INC

CAG

57172

NEW

-9.0%

APPLE INC

AAPL

56393

23%

6.2%

DOLLAR GEN CORP

DG

56266

0%

-5.8%

HERBALIFE LTD

HLF

55795

85%

-13.4%

ADVANCE AUTO PARTS

AAP

54801

24%

-2.0%

POLO RALPH LAUREN

RL

54298

NEW

-8.7%

MEDCO HEALTH SOLN

MHS

52604

0%

-7.1%

STARBUCKS CORP

SBUX

52087

NEW

-11.3%

AMAZON COM INC

AMZN

51530

-25%

-13.2%

PRICELINE COM INC

PCLN

51295

NEW

-12.8%

HANSEN NAT CORP

HANS

50265

NEW

-1.4%

WYNDHAM WORLDWIDE

WYN

50256

0%

-18.2%

KROGER CO

KR

50215

17%

-7.9%

YUM BRANDS INC

YUM

50194

NEW

-9.2%

CARNIVAL CORP

CCL

48259

6%

-20.7%

COACH INC

COH

45540

-23%

-26.2%

BRUNSWICK CORP

BC

42090

-5%

-33.1%

LIFE TIME FITNESS

LTM

41633

6%

-16.5%

ARCOS DORADOS HOLDINGS

ARCO

39704

NEW

15.8%

PHILLIPS VAN HEUSEN

PVH

38597

-26%

-19.4%

ANCESTRY COM INC

ACOM

37469

NEW

-27.5%

DARDEN RESTAURANTS

DRI

36014

-28%

-7.5%

The fund also initiated some sizable brand new positions during the quarter. Its biggest new purchase was in Conagra Foods (NYSE:CAG). The investments in Conagra totaled $57.2M at June 30 and accounted for 4.6% of the portfolio. This was also the fund’s fourth largest holding at quarter end. The stock has lost 9% since June. Ric Dillon’s Diamond Hill Capital is a large holder of Conagra Foods (check out the stocks owned by Diamond Hill Capital).

Tiger Consumer also bought $54M worth of Polo Ralph Lauren (NYSE:RL) during the quarter. This is the second largest brand new purchase in the June quarter and accounted for 4.3% of the portfolio. Polo Ralph Lauren was the fund’s ninth largest holding at June 30. Other funds owning large stakes in the stock include Stephen Mandel’s Lone Pine Capital and Soros Fund Management (see billionaire George Soros’ top stock picks). The stock is another strong performer since June losing only 8.7%.

Carmax (NYSE:KMX) is the fund’s largest holding on June 30 and accounts for 5% of the portfolio. The fund increased its investments in the stock by 28% during the second quarter to $63M. The stock has lost 22% since the start of the third quarter. Tom Gayner’s Markel Gayner Asset Management is a large Carmax holder (check out Tom Gayner’s portfolio).

Patrick McCormack also added to his second largest holding Harley Davidson (NYSE:HOG) during the quarter. The fund upped its HOG stake by 27% to $62M during the quarter. At June end, investments in the motor bike company accounted for 4.95% of the portfolio. The stock has lost 21.6% since June. Hedge funds Impala Asset Management, SAC Capital Advisors, and Citadel Investment Group also own big stakes in Harley Davidson (see billionaire Steve Cohen’s stock picks).

Despite the underperformance by its two largest holdings, the fund’s performance has been boosted by outperformance of several of its other positions and has resulted in Tiger Consumer losing only 11.7% since June. This performance easily beats the 14.6% loss suffered by the S&P during the same period.

Source: Patrick McCormack's Top Stock Picks