Now that the 13Fs have been filed with the SEC, it is time to update the Hedge Consensus, Activist Consensus, and Hedge Fund Best Ideas Portfolios. Background on this post can be found in these links:
Let Seth Klarman Manage Your Portfolio
Cloning the Buffett Portfolio
Constructing a Best Ideas Hedge FOF
Show Me Your Hand – Greenlight
Below is commentary on the YTD performance as well as new portfolio holdings:
12/31/2006 – 5/16/2007
(Note: The Best Ideas strategy was initiated after the beginning of the year, & the performance may not have been similar do to possibly different holdings. However, Goldman estimates the top holdings of hedge funds only experience ~ 20% turnover, so the results should be fairly close. The similar performance (with different holdings) of the two hedge fund strategies lends some comfort here.)
The best ideas portfolio makes the most sense to me. It selects each hedge funds best ideas, and also allows the investor to maintain a constant number of holdings. The consensus strategy could have a variable number of holdings. The concept of consensus implies crowding to me, but if I were to follow it, I would likely use the Combo strategy, as that increases the number of funds to 25, and underlying holdings up to 400+ stocks.
New Portfolios
(New holdings are in bold, sold positions in italics after the portfolio)
Activist Consensus
BBI
BGP
DADE
HD
KSU
SHLM
THX
TLM
TNS
TWX
UNM
YHOO
HLT
LCAPA
LGND
LINTA
MCD
MSFT
PDLI
SYMC
TWC
WLT
WMB
Hedge Fund Consensus
AMX
AXP
BRK
FD
GOOG
MSFT
QCOM
WMT
AAPL
AMT
CMCSK
FDC
TYC
UNH
WU
(and the double repeats are below as well)
AAPL
AMP
ASD
BEAS
BIDU
CF
CMCSK
CROX
CSCO
CVS
ESRX
FLML
HRZ
MA
MDC
MLM
SAI
SINA
TV
TXT
USG
UNP
UNH
WLP
WU
YHOO
Hedge Fund Best Ideas
AMP
AMT
AMX
AT
BAM
BNI
BSG
CA
CVS
DISCA
GOOG
HLX
MSFT
PHG
QCOM
SCHW
SLM
UFS
USG
WMT
AXP
CVA
DEO
ETN
FDC
IBM
KO
MLS
NWS-A
OSIP
COMBO (Includes all the hedge and activist funds)
AXP
BRK
CVS
DADE
FD
GOOG
HD
MLM
MSFT
QCOM
UNM
WMT
WU
YHOO
