Hedge Fund Bridger Management's Q3 Portfolio Moves

by: Insider Monkey

Bridger Management was founded in July 2000 by Roberto Mignone, who graduated from Harvard Business School and once worked at Blue Ridge Capital for John Griffin. Bridger Management now has approximately $2 billion under management. Mignone employs a long/short strategy that is usually net long between 20 and 60 percent. He usually has around 40 long positions and more than 60 short positions in his portfolio.

Roberto Mignone was extremely bullish at the end of September. Bridger reported to own $1.2 billion worth of S&P 500 (NYSEARCA:SPY) call options at the end of September, increasing the position by 843% from the end of last quarter. Bridger made a handsome profit from this position as SPY returned 10.88% so far since the end of September. In addition to S&P 500 calls, Bridger Management also largely increased its position in Assured Guaranty Ltd (NYSE:AGO) by 224% to $44.6 million. Assured Guaranty is a Bermuda-based holding company that provides credit protection products to the United States and international public finance, infrastructure and structured finance markets. AGO returned 3.38% since the end of third quarter. It has a market cap of $1.94B and a P/E ratio of 65.18. Wilbur Ross’ Invesco Private Capital had $200+ million invested in AGO. Ric Dillon also had $100+ million of AGO shares.

Bridger Management disclosed owning $72.5 million worth of Apple Inc (NASDAQ:AAPL) at the end of third quarter. Bridger did not report to hold any AAPL shares last quarter. Apple reported revenue of $28.27 billion for the third quarter of 2011, up from $20.34 billion for the same period a year ago. Its net income was $6.6 billion, up from $4.3 billion last year. Since the end of September, AAPL lost 0.54%. Rob Citrone also had over $700 million invested in AAPL.

In addition to Apple, Bridger Management also opened a new position in Bristol-Myers Squibb (NYSE:BMY). The fund initiated a brand new $42.0 million BMY shares over the third quarter. Bristol Myers Squibb is engaged in the discovery, development, licensing, manufacturing, marketing, distribution and sale of pharmaceutical products on a global basis. The company reported net income of $969 million, or 56 cents per share, up 2.1% from a year ago. Profit excluding certain items was 61 cents per share, beating the average estimate of 15 analysts surveyed by Bloomberg by 2 cents. Since the end of September, the stock returned 1.45%. Jim Simons had more than $200 million invested in BMY shares.

Over the third quarter, Bridger Management sold out a few positions. For instance, the fund had $63.8 million in Arcos Dorados Holdings (NYSE:ARCO) and $63.5 million in Forest Labs Inc (NYSE:FRX) at the end of June. But it sold out these stocks during the third quarter. It seems Bridger made the right decision as ARCO and FRX lost 6.12% and 1.66% respectively.

Overall Roberto Mignone’s top stock holdings are Carefusion (NYSE:CFN), Google (NASDAQ:GOOG), Las Vegas Sands (NYSE:LVS), Morgan Stanley (NYSE:MS), Directv (NYSE:DTV), and General Motors (NYSE:GM). The largest position is CFN with a $110 million value. This position is dwarfed by his one and a quarter billion SPY call position though. He seems to have more conviction in the stock market in general than individual stocks.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.