When we talk about Julian Robertson, we always think of his hedge fund Tiger Management and his Tiger Cubs. For people who want to start a career in hedge fund industry, working at a Tiger Cub hedge fund is definitely a good beginning. Rob Citrone’s Discovery Capital Management is one of these Tiger Cub hedge funds. Citrone once worked as a portfolio manager at Fidelity Investments and Tiger Management before founding Discovery Capital. Based in Connecticut, the fund focuses on liquidity, valuation multiples, past and potential growth in picking stocks and has a focus on technology, services, basic materials and financial sectors.
Here are the activities in the top 20 positions in Discovery Capital Management’s 13F portfolio:
Company Name | Ticker | Value | Activity |
APPLE INC | 837796 | 4% | |
UNIVERSAL DISPLAY CORP | 239423 | 63% | |
QUALCOMM INC | 172077 | New | |
SPRINT NEXTEL CORP | 170737 | New | |
VISA INC | 166972 | -27% | |
GREEN MOUNTAIN COFFEE | 89191 | -16% | |
WATSON PHARMACEUTICALS | WPI | 85723 | 27% |
BAIDU INC | 74451 | 262% | |
NEW ORIENTAL EDUC & TECH | 64107 | 477% | |
MICROSOFT CORP | 61971 | New | |
SECTOR SPDR TRUST | 59463 | New | |
R F MICRO DEVICES INC | 53561 | New | |
OMNIVISION TECHNOLOGIES | 48879 | 72% | |
SALIX PHARMACEUTICALS | 46222 | 10% | |
NATIONAL OILWELL VARCO | 45487 | 7% | |
HALLIBURTON COMPANY | 44337 | 74% | |
SYMANTEC CORP | 43400 | 0% | |
CREDICORP LTD | 43235 | -54% | |
CORE LABORATORIES NV | 42072 | 2% | |
UNITEDHEALTH GROUP INC | 35047 | 165% |
Citrone reduced his portfolio value from $3.1 billion at the end of June to $2.9 billion at the end of the third quarter. He also reduced the number of positions in Discovery Capital Management from 68 to 64. Citrone sold out 23 positions in total. The biggest position he sold out was Jabil Circuit Inc (JBL). Discovery reported to own $192 million worth of the stock at the end of June. JBL returned 14.67% since the end of September. During the third quarter, Citrone also sold out ConocoPhillips (COP), EMC Corp (EMC), Lattice Semiconductor Corp (LSCC), Home Inns & Hotels Management Inc (HMIN), and Sandisk Corp (SNDK).
Citrone increased his stakes in Baidu Inc (BIDU) by 262% to $74.5 million. This Chinese company’s stock returned 18.73% since the end of the third quarter, beating the market by almost 11 percentage points. Citrone also significantly increased his position in New Oriental Education & Technology GP Inc (EDU) by 477%. But the stock lost 0.83% since the end of September.
In the third quarter, Citrone opened a new position in Qualcomm Inc (QCOM). His Discovery Capital Management disclosed to own $172 million worth of the stock at the end of September. QCOM returned 14.48% since the end of the third quarter, outperforming the SPY by more than six percentage points. Citrone also initiated a brand new $171 million position in Sprint (S) over the third quarter. However, S lost 13.82% since September 30th. In addition to QCOM and S, Citrone also opened positions in Microsoft Corp (MSFT), Sector SPDR Trust (XLF), RF Micro Devices Inc (RFMD) and 14 other stocks.
We like Rob Citrone. His boldest stock pick this year was Apple (AAPL) and as a result of that he outperformed most hedge funds. We encourage investors to focus on the best stock picks of Citrone and we believe that they will be able to beat the market by doing so.
