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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

AAPL

837796

4%

UNIVERSAL DISPLAY CORP

PANL

239423

63%

QUALCOMM INC

QCOM

172077

New

SPRINT NEXTEL CORP

S

170737

New

VISA INC

V

166972

-27%

GREEN MOUNTAIN COFFEE

GMCR

89191

-16%

WATSON PHARMACEUTICALS

WPI

85723

27%

BAIDU INC

BIDU

74451

262%

NEW ORIENTAL EDUC & TECH

EDU

64107

477%

MICROSOFT CORP

MSFT

61971

New

SECTOR SPDR TRUST

XLF

59463

New

R F MICRO DEVICES INC

RFMD

53561

New

OMNIVISION TECHNOLOGIES

OVTI

48879

72%

SALIX PHARMACEUTICALS

SLXP

46222

10%

NATIONAL OILWELL VARCO

NOV

45487

7%

HALLIBURTON COMPANY

HAL

44337

74%

SYMANTEC CORP

SYMC

43400

0%

CREDICORP LTD

BAP

43235

-54%

CORE LABORATORIES NV

CLB

42072

2%

UNITEDHEALTH GROUP INC

UNH

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.



Disclosure: I am long MSFT, COP.

Source: Discovery Capital's Top Stock Picks