Here's What This Billionaire Has Been Buying
Every quarter, many money managers have to disclose what they've bought and sold, via 13F filings. Their latest moves can shine a bright light on smart stock picks.
Today, let's look at Moore Capital Management, managed by billionaire Louis Moore Bacon. Bacon is known for employing a global macroeconomic focus in his investing and has been among the top 20 money earners since the 1990s, per GuruFocus.com.
The company's reportable stock portfolio totaled $6.3 billion in value as of March 31, 2012.
So what does Moore's latest quarterly 13F filing tell us? Here are a few interesting details:
New holdings include Wells Fargo and Chimera Investment (NYS: CIM) . Chimera Investment is not as well-known as Wells Fargo, but pays a much more attractive dividend, with a yield recently topping 14%. It's a mortgage REIT that invests in riskier loans than peers such as Annaly Capital Management, and offsets that risk by employing less debt. Some have been avoiding it, though, partly because of some delays in filings.
Moore increased its stake in a number of holdings, including, JPMorgan Chase and Kodiak Oil and Gas (NYS: KOG) . Kodiak is a small oil company that has recently moved from the red into the black. It has valuable assets in the Bakken shale field and elsewhere, and its revenue has been growing at triple-digit rates recently. It's also been cited as a possible acquisition target.
Moore reduced its stake in lots of companies, including Apple and Crocs (NAS: CROX) . Many investors don't have much faith in shoemaker Crocs, and the company itself has dampened expectations recently. Still, it has been posting double-digit revenue and earnings gains and has strong profit margins, especially for a shoe company.
Finally, Moore unloaded several companies, including, Pharmasset (which was bought by Gilead Sciences), Windstream (NAS: WIN) , and Exelon (NYS: EXC) . Windstream took a big hit upon posting disappointing earnings last quarter, but a lower stock price also served to boost its dividend yield, which recently topped 10%. Windstream specializes in rural telecommunications and has been posting accelerating revenue growth, but shrinking revenue. It's growing its broadband business, though, and may still reward shareholders.
Exelon is our nation's biggest nuclear-power utility, and has suffered in this environment of very low natural-gas prices. With its acquisition of Constellation Energy, it has also become America's largest competitive energy provider, and it sports coal- and gas-fired plants as well as nuclear-powered ones. Many see it as a solid value right now.
We should never blindly copy any investor's moves, no matter how talented the investor. But it can be useful to keep an eye on what smart folks are doing. 13-F forms can be great places to find intriguing candidates for our portfolios.
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The article Here's What This Billionaire Has Been Buying originally appeared on Fool.com.Longtime Fool contributor Selena Maranjian, whom you can follow on Twitter, owns shares of Windstream, Apple, JPMorgan Chase, and Gilead Sciences, but she holds no other position in any company mentioned. Click here to see her holdings and a short bio. The Motley Fool owns shares of JP Morgan Chase, Apple, and Wells Fargo, and has created a covered strangle position in Wells Fargo. Motley Fool newsletter services have recommended buying shares of Gilead Sciences, Wells Fargo, Apple, and Exelon, along with creating a bull call spread position in Apple and writing a covered straddle position in Exelon. The Motley Fool has a disclosure policy.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.