Thomas Bailard Sells Costco, Buys Apple And Pfizer

by: Insider Monkey

Thomas Bailard, the co-founder of Bailard Inc, has 42 years of investment experience. He currently serves as Chairman of the company's private real estate funds. He has also co-authored the widely acclaimed college textbook, "Personal Money Management," six editions of which have been printed. Based in Foster City, California, Bailard Inc employs a combination of fundamental and quantitative analysis to make investments. It invests in the public equity, fixed income, and alternative investments markets across the globe.

Bailard reduced his portfolio from $504 million at the end of June to $433 million at the end of the third quarter. Bailard also reduced the number of his positions. He had had 215 positions at the end of June and now has just 186 positions. Bailard has sold out Eli Lilly & Co (NYSE:LLY) and Costco (NASDAQ:COST). It seems Bailard made the right decision to sell these two stocks. LLY returned 3.18% and COST returned 3.15% since the end of September, both underperforming SPY by eight percentage points. Bailard also slashed his stake in PPL Corp (NYSE:PPL), Alkermes Inc (NASDAQ:ALKS), Mack Cali Realty Corp (NYSE:CLI), and Insulet Corp (NASDAQ:PODD).

Bailard increased his position in Apple Inc (NASDAQ:AAPL). Bailard disclosed to own $4.9 million worth of the stock at the end of September, up 111% from the end of June. Though AAPL only returned 1.97% since the end of September, the stock has a YTD return of 17.98%, beating the SPY by 11 percentage points. Bailard also upped his stake in Pfizer Inc (NYSE:PFE) by 489% to $2.1 million. PFE returned 13.54% since the end of third quarter. AAPL is quite popular among hedge fund managers. For instance, David Einhorn invested over $400 million in AAPL (see the whole list of hedge funds invest in AAPL here).

Bailard also bought new stakes in Intuit (NASDAQ:INTU). Bailard initiated a brand new $1.8 million of INTU stocks over the third quarter. The stock returned 13.76% since the end of third quarter. Additionally, Bailard opened new positions in Kroger Co (NYSE:KR), General Dynamics Corp (NYSE:GD), Texas Instruments Inc (NYSE:TXN), Aes Corp (NYSE:AES), Post Properties Inc (NYSE:PPS), Ford Motor (NYSE:F), Apartment Investment & Management Co (NYSE:AIV), Wynn Resorts Ltd (NASDAQ:WYNN), Agilent Technologies (NYSE:A), etc.

Bailard also invested large amounts in iShares ETFs. His biggest position at the end of September was iShares Barclays Aggregate Bond Fund (NYSEARCA:AGG). This is also a new position and Bailard had $95 million invested in this fund. At the end of June, Bailard’s largest position was iShares Dow Jones US Real Estate (NYSEARCA:IYR). But he sold out all $42.7 million of this position. In addition to AGG, Bailard also had $36.7 million invested in SPDR Gold Trust (NYSEARCA:GLD) and $19 million invested in iShares S&P National AMT-Free Municipal Bond Fund.

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