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Louis Moore Bacon founded Moore Capital Management in 1989. He launched Moore Global Investments in 1990 with his $25,000 family inheritance. During the past two decades, he has been one of the top 20 money earners. He is among the 10 richest U.K. hedge fund managers. His personal wealth is estimated to be more than $1.5 billion. Louis Moore Bacon is also one of the 25 most popular hedge fund managers of 2010.

During the second quarter of 2011, he reduced put options of SPDRS & P 500 ETF Trust (SPY) by 27% and call options of iShares Trust (FXI) by 92%. Since the end of June, SPY lost 11% and FXI lost 13%. SPY put options are still the largest holding of Moore Global Investments’ 13F portfolio. Jeffrey Altman’s Owl Creek Asset Management also likes to hedge using SPY puts. Owl Creek increased its position by 100 times by the end of second quarter.

Louis Bacon added several companies to his top holdings during second quarter. Here are the top stock picks as of June:

Company

Ticker

Value (x1000)

Activity

Return Since June

SPDR S & P 500 ETF Puts

SPY

424284

-27%

-11%

VANGUARD INTL EQUITY ETF

VWO

291720

New

-13%

ISHARES TRUST

EEM

152320

New

-14%

POWERSHARES QQQ Calls

QQQ

71313

New

-7%

ANGLOGOLD ASHANTI LTD

AU

71093

0%

10%

GOLDMAN SACHS Calls

GS

59891

New

-21%

SECTOR SPDR TRUST Puts

XLF

55260

125%

-18%

99 CENTS ONLY STORES

NDN

49183

127%

-9%

MARKET VECTORS ETF Calls

GDX

46947

New

20%

SPDR Sector ETF Puts

XRT

46778

52%

-12%

E X C O RESOURCES INC

XCO

45987

866%

-28%

MARKET VECTORS ETF

MOO

45210

1076%

-6%

ARCH COAL INC

ACI

45189

New

-29%

ALTERRA CAPITAL

ALTE

39822

0%

-13%

CEPHALON Calls

CEPH

38208

856%

1%

MOSAIC CO.

MOS

37831

New

4%

MOSAIC CO. Puts

MOS

32896

New

4%

MOSAIC CO. Calls

MOS

32558

New

4%

MARKET VECTORS ETF Calls

MOO

32274

0%

-6%

MARKET VECTORS ETF Puts

MOO

32274

0%

-6%

POWERSHARES QQQ Puts

QQQ

30237

489%

-7%

APPLE INC

AAPL

29707

18%

11%

SPDR GOLD ETF Puts

GLD

29200

New

25%

NEWS CORP

NWSA

27840

0%

-8%

China ETF Calls

FXI

27488

-92%

-13%

Vanguard Intl Equity Index Funds is the second largest holding of Louis Bacon’s 13F portfolio. He purchased 6 million shares of the company in the second quarter. The $291 million investment makes up 8.74% of Moore Global’s equity portfolio. Since the end of June, VWO lost 13%. Louis Bacon’s Moore Global has the second highest stake in the company preceded by Ray Dalio’s Bridgewater Associates. Ray Dalio has $926 million invested in VWO (check out billionaire Ray Dalio’s top stock picks).

During the second quarter, Louis Bacon added Mosaic Co. to Moore Global’s equity portfolio. As of now, he has both put and call option positions of Mosaic along with 558 thousand shares of the company. He has profited from his investment in Mosaic as the company gained 4% since the end of June. Another investor to purchase Mosaic in the second quarter is Appaloosa Management’s David Tepper. Mosaic is the 7th largest holding of Tepper’s latest equity portfolio (view billionaire David Tepper’s favorite stocks).

Louis Bacon also profited from the 11% increase in Apple since the end of June. During the second quarter, Bacon increased his stake in the company by 18%. Apple is currently the most popular stock among hedge fund managers (see the l0 most popular stocks among hedge funds). Ken Griffin, Stephen Mandel, Chase Coleman, Jim Simons, Lee Ainslie, David Einhorn, and Phill Gross are among the hedge fund managers who have large positions in Apple. Ken Griffin’s Citadel Investment Group has both put and call options of Apple. He has the highest stake in the company.

Louis Bacon has a stellar reputation and a strong track record. We believe investors can beat the market over the long term by imitating his top stock picks.

Source: Billionaire Louis Bacon's Favorite Stocks