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Richard Driehaus, the founder of Driehaus Capital, is a long-term investor. This strategy has served Driehaus quite well since the inception of his fund, frequently beating the market and generating double digit returns. In 2000, Driehaus was named as one of the 25 most influential people in the mutual fund industry within the last 100 years by Barron’s. He is not only one of the best mutual fund managers, but also a philanthropist. Every year, he gives $4 million to various charities and non-profit organizations and funds an additional $200,000 Driehaus Prize for Classic Architecture and the Richard H. Driehaus Museum.

We will take a look at Driehaus’ activity based on the most recent 13F filings. Here are Driehaus Capital’s top 20 stock positions in its 13F portfolio:

Company Name

Ticker

Value

Activity

GOLAR L N G LTD

GLNG

27760

6%

GREEN MOUNTAIN COFFEE

GMCR

25785

-14%

LEAR CORP

LEA

24718

12%

CARPENTER TECHNOLOGY

CRS

24071

162%

NU SKIN ENTERPRISES INC

NUS

22910

67%

APPLE INC

AAPL

22751

31%

DECKERS OUTDOOR CORP

DECK

22475

-18%

D S W INC

DSW

21577

-23%

ALEXION PHARMACEUTICALS

ALXN

21437

65%

ACACIA RESEARCH CORP

ACTG

21219

10%

COPA HOLDINGS SA

CPA

20914

134%

UNIVERSAL DISPLAY CORP

PANL

20694

111%

VALE S A

VALE

20395

28%

UNDER ARMOUR INC

UA

16905

-23%

ULTA SALON COSMETICS

ULTA

16038

80%

H M S HOLDINGS CORP

HMSY

16034

229%

T R W AUTOMOTIVE

TRW

15878

16%

CEPHEID

CPHD

15878

New

CERNER CORP

CERN

14118

39%

MARKET VECTORS E T F TRUST

RSX

14117

0%

Driehaus reduced his portfolio’s value from $2.4 billion at the end of June to $1.8 billion at the end of September. The number of different positions in his 13F portfolio is also lower. Driehaus had 422 different positions at the end of the second quarter. Now it has 340 different positions in total. Over the third quarter, Driehaus sold out many positions. For instance, his Driehaus Capital had $16 million invested in Omnivision Technologies Inc (NASDAQ:OVTI) at the end of June, and the fund did not report owning any shares of OVTI at the end of September. OVTI lost 20.3% so far since the end of September, while SPY returned 6.10% in the same period. Driehaus also sold out his stakes in Ultratech Inc (NASDAQ:UTEK), Velti Plc (VELT), F5 Networks Inc (NASDAQ:FFIV), Zoll Medical Corp (NASDAQ:ZOLL), and Cymer Inc (NASDAQ:CYMI).

The largest stock position in Driehaus’ latest 13F portfolio is Golar LNG Ltd (NASDAQ:GLNG). The fund had $27.8 million invested in GLNG at the end of September, up 6% from the end of June. GLNG is up 30.68% so far since the end of September, beating the market by more than 24%. Charles Clough was also bullish about GLNG. He invested $25 million in this stock.

Driehaus is also bullish about Carpenter Technology Corp (NYSE:CRS). Over the third quarter, he significantly increased his stakes in this position by 162%. At the end of September, his fund had $24 million invested in this stock. CRS returned 10.15% since the end of September, beating the market by 4 percentage points. Jim Simons also had $9.1 million invested in CRS. In addition to CRS, Driehaus also largely increased his position in Nu Skin Enterprises Inc (NYSE:NUS) by 67% to $23 million. NUS gained 14.39% since the end of the third quarter, also beating the 6.10% of SPY.

We like Driehaus and his idea of generating superior return over a full market cycle. We believe that by focusing on the best stock picks of Driehaus Capital, investors are more likely be able to beat the market in the long term.

Disclaimer: This article is based on SEC filings made by the fund discussed in the article. The stock holdings reflect aggregate positions held by the fund at the end of the reporting period. The fund may have other positions in its portfolios or the positions may have changed dramatically since the end of the reporting period. The author isn’t affiliated with the fund and isn’t compensated by the fund. The opinions discussed in the article are solely Insider Monkey’s and the fund doesn’t recommend or endorse the stocks discussed in the article. Investors should contact an investment professional to tailor their portfolios for their investment goals, risk tolerance, and investment horizon.

Source: Richard Driehaus' Top Stock Picks