Leading Hedge Funds' Best Ideas and Consensus Picks

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 |  Includes: AAPL, AMT, AMX, ANTM, AXP, BBRY, BRK, CA, CDNS, CSCO, CSX, CTV, DFS, EMC, ETN, GOOG, HPQ, INFY, KO, LDOS, MA, MDC, MDT, MSFT, NWS, ODP, ORCL, PCLN, QCOM, ROST, SBAC, SPGI, TGT, TMO, TT, TXT, UTX, WFC, WMT
by: M F

Looks like another great quarter for the hedge fund tracking strategies. My previous observation that the funds exhibit similar downside volatility and much higher upside volatility looks like the right takeaway from this quarter. Historical testing showed a FOF approach outperforms by about 6-12% a year, and out-of-sample results in 2007 (roughly 10% outperformance) and 2008 (roughly 5% YTD) is a good indication that the model is working.

I sat down with Mark Yusko from Morgan Creek the other week, and he commented that the top holding for many of these funds on their 13F is likely not their best idea, but rather was their best idea and has simply appreciated the most. I reserve judgment until I see most of the data from lots of funds, which is why alphaCLONE is going to be such a cool software app (I'm starting to get really excited, the behind the curtains look so far is awesome). Sign up to keep abreast of the launch, targeted for this Summer.

On to the 13fs!

Bespoke takes a look at the hedge fund sector bets here. Taking the top three sectors from each manager below, I find the top sectors are Services 39%, Tech 37%, and Financial at 14%.

Hedge Fund Consensus - Top holdings owned by 15 value hedge funds, ranked by number of funds with the same position. Mastercard (NYSE:MA) was the standout performer, and America Movil (NYSE:AMX) was the only laggard. Everyone still loves Qualcomm (NASDAQ:QCOM).

Apple (NASDAQ:AAPL) (3)
AMX (4)
American Express (NYSE:AXP) (3)
Covidien (COV) (3)
EMC (NYSE:EMC) (3)
Google (NASDAQ:GOOG) (3)
Microsoft (NASDAQ:MSFT) (3)
QCOM (5)
Wal-Mart (NYSE:WMT) (3)

The list of double repeats is at the end of the post.

Hedge Fund Best Ideas - Top two holdings from each of 10 value hedge funds listed below. Mastercard and Southwestern Energy (NYSE:SWN) were the standout performers, and America Movil was the worst.

AAPL
American Tower (NYSE:AMT)
AMX
AXP
CA (NASDAQ:CA)
Cadence Design Systems (NASDAQ:CDNS)
CSX (NASDAQ:CSX)
GOOG
Hewlett-Packard (NYSE:HPQ)
Coca-Cola (NYSE:KO)
McGraw-Hill Companies (MHP)
MSFT
News Corp. (NASDAQ:NWS)
Oracle (NYSE:ORCL)
QCOM
Research In Motion (RIMM)
Ross Stores (NASDAQ:ROST)
Target (NYSE:TGT)
Wells Fargo (NYSE:WFC)
WellPoint (WLP)

Click for individual portfolios:

  • Baupost Group
  • Blue Ridge Capital
  • Warren Buffett
  • Eminence Capital
  • Greenlight Capital
  • Lone Pine Capital
  • Maverick Capital
  • Okumus Capital
  • Private Capital
  • Tiger Global
  • List of double repeats:

    Berkshire Hathaway (NYSE:BRK.A)
    CA
    Cisco (NASDAQ:CSCO)
    Commscope (CTV)
    Discover Financial Services (NYSE:DFS)
    Eaton (NYSE:ETN)
    Infosys Technologies (NYSE:INFY)
    MA
    MDC (NYSE:MDC)
    MHP
    Office Depot (NASDAQ:ODP)
    ORCL
    Priceline.com (NASDAQ:PCLN)
    SAIC (SAI)
    SBA Communications (NASDAQ:SBAC)
    TGT
    Thermo Fisher Scientific (NYSE:TMO)
    Trane (TT)
    Textron (NYSE:TXT)
    United Technologies (NYSE:UTX)
    WLP