Seeking Alpha
Recommended for you:
Newsletter provider, fund holdings, insider ownership
Profile| Send Message|
( followers)  

Richard Lockwood Chilton, founder of Chilton Investment Company, is a billionaire. According to Forbes, Chilton is ranked 773rd on the list of the richest people in the world with an estimated net worth of $1.3 billion. Chilton took home more than $100 million in 2007. During the tough financial period in 2008, Chilton Investment lost 23% net of fees. But the bad days seem to be behind them. The fund gained 24% net of fees in 2009. Chilton has a B.S. in Finance and Economics and has worked at Merrill Lynch and Allen & Company before opening Chilton Investment Company in 1992.

Top 20 positions in Chilton Investment’s portfolio at the end of the third quarter:

Company Name

Ticker

Value

Activity

AVAGO TECHNOLOGIES LTD

AVGO

135649

9%

SOUTHWESTERN ENERGY

SWN

113485

-12%

POTASH CORP

POT

111122

106%

MOSAIC CO.

MOS

110584

-15%

MARVELL TECHNOLOGY

MRVL

101722

-3%

AGNICO EAGLE MINES LTD

AEM

99635

-15%

WEATHERFORD INTL

WFT

96897

-15%

L K Q CORP

LKQX

96355

20%

EOG RESOURCES INC

EOG

85157

-15%

RANGE RESOURCES CORP

RRC

84850

-15%

AGRIUM INC

AGU

84465

5%

ISHARES TRUST

SLV

84315

-15%

CABOT OIL & GAS CORP

COG

82120

-15%

CORNING INC

GLW

74396

18%

ALPHA NATURAL RESOURCES

ANR

71835

-13%

DOLLAR GENERAL CORP NEW

DG

71153

0%

SANDISK CORP

SNDK

67825

New

AIRGAS INC

ARG

67375

57%

SILVER WHEATON CORP

SLW

67178

-15%

VIVUS INC

VVUS

66132

11%

Chilton reduced his 13F portfolio’s value from $5.6 billion at the end of June to $4.3 billion at the end of September. Though the total portfolio value decreased, the number of positions in the portfolio was increased from 169 at the end of the second quarter to 175 at the end of the third quarter.

Chilton opened many new positions in the third quarter, and he also sold out a few positions. For instance, Chilton sold out its stakes in Monsanto Co (NYSE:MON), which he had $110 million invested in at the end of June. MON gained 13.3% since the end of September, versus 2.82% for SPY in the same period. Chilton also sold out $44 million of Transocean Ltd (NYSE:RIG), which was down 5.12% so far since the end of the third quarter. In addition to these two positions, Chilton also sold out 19 other positions, including Baidu Inc Call (NASDAQ:BIDU), Medtronic Inc (NYSE:MDT), Cobalt International Energy Inc (NYSE:CIE), ST Jude Medical Inc (NYSE:STJ), and Ford Motor Co (NYSE:F).

Chilton doubled his stake in Potash Corp Saskatchewan Inc (NYSE:POT). Chilton Investment reported to own $111 million worth of the stock at the end of September. However, POT was down 5.77% so far since the end of the third quarter. Chilton also increased his positions in LKQ Corp (LKQX) and Corning Inc (NYSE:GLW) both by approximately 20%. LKQX gained 14.07% and GLW returned 13.41% since the end of September, beating the 2.82% for SPY.

Chilton opened a few new positions in the third quarter. The biggest new position was Sandisk Corp (NASDAQ:SNDK). Chilton initiated a brand new $68 million SNDK during the third quarter. SNDK returned 12.88% since the end of September, beating the market by about 10 percentage points. George Soros also had $270 million invested in SNDK. Chilton also bought new stakes in EQT Corp (NYSE:EQT). His fund disclosed to own $44 million worth of EQT at the end of the third quarter. EQT gained 4.1% since then, outperforming the 2.82% for SPY in the same period. Steven Cohen invested $45 million in EQT at the end of September.

We like Chilton. The two biggest new positions opened by the fund in the third quarter both generated better-than-market returns in the fourth quarter. Chilton also increased his stakes in a few stocks that had strong performance so far. We believe that by focusing on Chilton’s best stock picks, investors will be more likely to outperform the market in the long term.

Source: Billionaire Richard Chilton's Top Stock Picks