Hedge Replication aims help investors replicate hedge fund alpha by providing valuable insight on their 13F holdings. We track a pool of over 200 best-of-breed hedge funds across the equity long/short, event driven, and concentrated long-only space. On a quarterly basis after each filing date, we sift through our hedge fund universe and publish a list of 20 stocks that matter the most.
Last quarter, our list of 20 stocks returned +8.9% in aggregate (between Nov 14, 2013 to Feb 14, 2014), versus +2.6% for the S&P 500 Index.
We are pleased to publish two of the conviction picks from our universe of hedge funds this quarter:
Anadarko Petroleum (NYSE:APC):
- Our take: The company's stock price has recently took a hit on fears of litigation. We believe now is an attractive time to initiate a position in this well-performing oil and gas exploration business. In fact, the stock ranks 2nd in terms of news buys and accumulations in our universe of event-driven hedge funds.
- Our take: Recent earnings disappointment provide a rare opportunity for long-term investors to accumulate a stake in this outstanding business. With credit card payments rising in emerging markets, we believe Mastercard is well positioned to benefit from this secular growth. The company is widely held in our universe of fundamental long/short equity funds.
For a complete list of our 20 stock picks, please head over to our corporate website.
Disclosure: I am long APC, MA.