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Joe DiMenna’s picture often appears on the social pages that write about rich people. The managing director of Zweig DiMenna Partners participates in various philanthropy and art activities. DiMenna and his wife are serious art collectors. In 2010, they donated $5 million to New York Historical Society, the largest cash donation to arts institution. But $5 million is not really a huge amount of money compared with what DiMeena has made since he joined Martin Zweig and founded Zweig DiMenna Partners in 1984. The fund currently has approximately $3.5 billion assets under management. According to Businessweek, a source once told them that "Joe DiMenna is the best stock-picker no one has ever heard of.”

What are the new moves of DiMenna’s fund in the third quarter? And how did these positions perform in the fourth quarter? Below we compiled a list of top 20 positions in the fund as of September 30.

Company Name

Ticker

Value

Activity

APPLE INC

AAPL

130027

175%

ANADARKO PETROLEUM

APC

50309

159%

PHILIP MORRIS

PM

48408

New

BARRICK GOLD CORP

ABX

46734

New

DOLLAR GENERAL

DG

42742

New

MOTOROLA MOB WI

MMI

40485

New

TYCO INTERNATIONAL

TYC

38989

60%

COMCAST CORP

CMCSA

36510

45%

CROWN CASTLE INTL

CCI

35217

141%

CEPHALON INC

CEPH

35155

New

PRICELINE COM INC

PCLN

33678

New

NEWMONT MINING CORP

NEM

33309

-14%

NETLOGIC MICROSYSTEMS

NETL

31733

New

VISA INC

V

31549

New

EL PASO CORP

EP

29788

-9%

DOLLAR TREE INC

DLTR

26043

New

C I G N A CORP

CI

24033

13%

WELLPOINT INC

WLP

23813

63%

MCDONALDS CORP

MCD

22903

279%

AMAZON COM INC

AMZN

22400

56%

DiMenna reduced the value of his 13F portfolio from $1.8 billion at the end of June to $1.4 billion at the end of September. The number of positions in the portfolio was also lower. Zweig DiMenna Partners had 164 positions at the end of the second quarter. It had 121 positions at the end of September, according to its latest 13F report. DiMenna sold out many positions over the third quarter. For instance, he used to have $21.2 million invested in Johnson & Johnson (NYSE:JNJ) at the end of June, but his fund did not disclose owning any shares of JNJ at the end of September. JNJ returned 0.62% since the end of the third quarter, versus 11.59% for SPY. DiMenna also sold out his stakes in Rockwood Holdings Inc (NYSE:ROC), Starwood Hotels & Resorts Worldwide Inc (NYSE:HOT), Halliburton Company (NYSE:HAL), EMC Corp (NYSE:EMC), Ensco Plc (NYSE:ESV), and Covidien Plc (NYSE:COV).

On the other hand, DiMenna also bought many new positions. The largest new position he opened in the third quarter was Philip Morris International Inc (NYSE:PM). Zweig DiMenna Partners initiated a brand new $48.8 million of PM during the third quarter. Since the end of September, PM returned 21.16%, beating the market by more than 9 percentage points. Tom Russo was also bullish about PM. At the end of September, his Gardner Russo & Gardner had over $500 million invested in this stock. DiMenna also bought new stakes in Barrick Gold Corp (NYSE:ABX), Dollar General Corp (NYSE:DG), and Motorola Mobility Holdings Inc (NYSE:MMI).

DiMenna is also bullish about Apple Inc (NASDAQ:AAPL). AAPL was the largest position in the 13F portfolio of his fund at the end of both the third and the second quarter. Moreover, DiMenna increased his stakes in AAPL by 175% during the third quarter. At the end of September, the fund had $130 million invested in AAPL. AAPL returned 2.53% since the end of the third quarter. It has a market cap of $360.91B and a P/E ratio of 14.03. AAPL is a popular stock among hedge funds. Rob Citrone, Stephen Mandel, Chase Coleman and many other famous hedge fund managers are bullish about AAPL.

Anadarko Petroleum Corp (NYSE:APC) was the second largest position. Zweig DiMenna Partners had $50.3 million invested in APC at the end of September, up 159% from the end of June. The oil and natural gas company returned 29.33% so far in the fourth quarter, outperforming the market by over 18%.

Zweig DiMenna Partners’ portfolio has a pretty high turnover. The fund lost 0.7% through the end of September. DiMenna might have wanted to shake things up and take advantage of the sharp declines we have observed in September. We like his top stock picks. We are bullish about Apple, energy stocks, high dividend stocks, and gold.

Source: Zweig DiMenna's Top Stock Picks