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Israel Englander has been in the fund management game a long time. He founded his Millennium Management in 1989 and has since made quite the name for himself. Today, Englander is one of the top paid fund managers and his Millennium Management has a portfolio valued at over $11 billion.

Englander’s strategy is to employ a team of 120 analysts to track the market for the smallest inefficiencies. To this end, Englander frequently holds thousands of positions, usually over 2,000. A large part of his success lies in the small gains he achieves through these positions. This strategy has served him well overall, but not so much on his top stock picks; these stocks lost 13.1% compared to a 11.2% loss for the SPY.

Company

Ticker

Value (x1000)

Return Since June

SPDR GOLD TRUST

GLD

83384

19%

S M ENERGY CO

SM

79092

-1%

CITIGROUP INC

C

78593

-39%

APPLE INC

AAPL

62607

23%

CABOT OIL & GAS CORP

COG

59301

6%

OCCIDENTAL PETROLEUM CORP

OXY

59035

-26%

ANADARKO PETROLEUM CORP

APC

57700

-5%

BUCYRUS INTERNATIONAL INC NEW

BUCY

56748

0%

KEYCORP NEW

KEY

55984

-28%

ALPHA NATURAL RESOURCES INC

ANR

53276

-51%

HESS CORP

HES

52947

-24%

PETROHAWK ENERGY CORP

HK

51876

57%

DISCOVER FINANCIAL SERVICES

DFS

50852

-5%

DEVON ENERGY CORP NEW

DVN

50586

-22%

COMERICA INC

CMA

49418

-34%

VISA INC

V

48843

9%

ENERGEN CORP

EGN

47804

-23%

PLAINS EXPLORATION & PROD CO

PXP

46995

-32%

U S BANCORP DEL

USB

46101

-10%

E N S C O PLC

ESV

44084

-13%

C M S ENERGY CORP

CMS

43844

3%

LUBRIZOL CORP

LZ

43544

1%

CAPITAL ONE FINANCIAL CORP

COF

42993

-20%

SOUTHERN UNION CO NEW

SUG

39966

3%

ARCH COAL INC

ACI

39836

-39%

Englander’s top pick is SPDR Gold Trust (NYSEARCA:GLD), after he increased his position in the company by 43% last quarter. It is currently valued at over $83 million and is one of his most profitable positions, returning 19% since June. The stock is a popular hedging option with several other fund managers, including Steve Cohen of SAC Capital Advisors.

Englander is also bullish about SM Energy Co (NYSE:SM). He increased his position in the company by 27%. He currently holds $79 million in the company. SM has done relatively well this quarter; it has only lost 1% so far, and it is outperforming the market by around 10%. Wayne Cooperman, Cobalt Capital Management, is also bullish about SM.

Citigroup (NYSE:C) has not been so kind to Englander this quarter. He has lost 39% on his position since the end of June, a very disappointing return after he increased his position in the company by 308% last quarter. His position was just under $78.6 million at the end of June. At least he isn’t alone; several other fund managers are losing big on Citigroup this quarter as well.

Luckily, Englander fared better on the popular Apple Inc (NASDAQ:AAPL), gaining 23% after increasing his position by 117% in the company last quarter. Apple is a strong performer; it was even able to withstand the brief downturn after Steve Jobs’ announced his resignation. This fact has solidified Apple’s position as the most popular stock with fund managers right now (click here to check out the top 10 most popular hedge fund stocks).

Englander is also bullish about Cabot Oil & Gas Corp (NYSE:COG). He holds a position worth over $59 million in the company and has done well with it after having increased his position by 7% last quarter. Cabot has returned 6% so far this quarter. Richard Chilton, Chilton Investment Company, is also a fan.

APC, BUCY, DFS, V, CMS, LZ, and SUG are Englander’s other stock picks that outperformed the market since June. We like Englander and his top 5 stock picks outperformed the market by more than 12 percentage points since June despite a huge loss in Citigroup. We believe investors can outperform the market over the long-term by imitating his top picks.

Source: Israel Englander's Top Stock Picks