Top Picks of Guru Martin Zweig's Hedge Fund

by: GuruFundPicks
American stock investor, investment advisor and financial analyst Martin Zweig can be called one of the original "gurus" of investing, back when the term guru wasn’t applied to investing experts like it is today. Born in 1942, Zweig’s basic investing methodology is based on selecting growth stocks that also have certain value characteristics, determined through a system that uses both fundamental analysis and market timing. Although he has many media appearances and newsletters to his credit, he is arguably made most famous by his 1986 book, “Winning on Wall Street” which laid out his methodology of market timing and stock selection. Besides his investing prowess, he is also known for his lavish lifestyle as back in 2005 his New York City apartment was listed at $70 million and as the most expensive residence in the United States.
Martin Zweig quit the game in 2005, but his investing legend lives on in his hedge fund Zweig-DiMenna Associates that he co-founded in 1984 with Joseph A. DiMenna, Jr. The firm has assets under management of $3.5 billion, with $2.1 billion invested in U.S. equities as of the latest 13-F filing by the firm for the period ended March 2011. Zweig-DiMenna is considered one of the earliest hedge funds, and its co-founder Joseph DiMenna is considered as a pioneer in long/short investing. The $1.6 billion Zweig-DiMenna International Ltd. hedge fund has returned 16.1% compound annual return or total return of 3,429% since inception in 1987, and the $847 million Zweig-DiMenna Partners, LP has returned 18.1% compound annual return or a total return of 9,057% since inception in 1984. As illustrated in the table, the following are the Zweig-DiMenna Partners LP top picks for the latest March 2011 quarter:
  • Canadian company Goldcorp Inc. (NYSE:GG) is engaged in mining and exploration of silver, copper and gold throughout North and South America.
  • Marathon Oil Corp. (NYSE:MRO) is engaged in the exploration, production, refining, transportation and marketing of oil and natural gas worldwide.
  • Google Inc. (NASDAQ:GOOG) is a leading online search engine and provider of Internet content services and web-based and desktop software applications.
  • Red Hat Inc. (NYSE:RHT) is a provider of open source enterprise operating systems and related systems management services based on Linux.
  • Chesapeake Energy (NYSE:CHK) is engaged in the exploration and production of natural gas and crude oil properties throughout the U.S.
  • Comcast Corp. CL A (NASDAQ:CMCSA) is a provider of cable services and content to 23 million subscribers in 39 states as well as Internet and phone services.
  • Wyndham Worldwide Corp. (NYSE:WYN) offers vacation ownership interests and providing property management for resorts and a franchisor of over 7,000 hotels.
  • Cigna Corp. (NYSE:CI) is a provider of managed healthcare services through HMO, PPO, POS and Indemnity Plans that over 12 million members.
  • Williams Companies (NYSE:WMB) is engaged in the exploration, production, gathering, processing and transportation of natural gas mainly in the U.S.
  • Royal Dutch Shell ADS (NYSE:RDS.A) is engaged in the exploration, production and refining of crude oil and natural gas worldwide.
New or Increased Position
Market Value
Goldcorp Inc.
$ 45 million
Marathon Oil Corp.
$ 37 million
Google Inc.
$ 33 million
Red Hat Inc.
$ 30 million
Chesapeake Energy Corp.
$ 28 million
Comcast Corp.
$ 28 million
Wyndham Worldwide Corp.
$ 27 million
Cigna Corp.
$ 26 million
Williams Cos. Inc.
$ 25 million
Royal Dutch Shell PLC
$ 25 million
Credit: Historical fundamentals including operating metrics and stock ownership information were derived using I-Metrix by Edgar Online, Zacks Investment Research, Thomson Reuters and The information and data is believed to be accurate, but no guarantees or representations are made.
Disclaimer: Material presented here is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock you should do your own research and reach your own conclusion. Further, these are my ‘opinions’ and I may be wrong. I may have positions in securities mentioned in this article. You should take this into consideration before acting on any advice given in this article. If this makes you uncomfortable, then do not listen to my thoughts and opinions. The contents of this article do not take into consideration your individual investment objectives so consult with your own financial adviser before making an investment decision. Investing includes certain risks including loss of principal.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.