Money on the Line

I love the new feature on AlphaClone that lets an investor view what fund has placed the biggest bet on a stock (as defined by % of their portfolio in the stock).  Who won in the recent BIDU and DNDN stock jumps?

Kleinheinz and S.A.C.

Kleinheinz Is an example of a fund most investors have never heard of.  Their firm is a Fort Worth, TX based hedge fund founded by John B. Kleinheinz in 1996. The firm has a global value oriented investment approach and their top 10 position clone has beaten the market by over 20% a year since 2000.  Top positions today include AAPL RIMM and LUKOV.

Below is an excerpt of a full interview from Hedge Fund News:

After graduating from Stanford University in 1984, John Kleinheinz started his career as an investment banker doing corporate finance and mergers and acquisitions work for Nomura Securities and Merrill Lynch in Tokyo, New York and London. In 1993, he became the second principal of San Antonio Capital Management, a hedge fund management company started in 1990 by Dana McGinnis. In February 1996, he hung his own shingle in Fort Worth where he launched the Global Undervalued Securities Fund, L.P. By the end of 1996, the fund was up 130% and had $25 million in capital. Since then, John¿s record has been nothing short of remarkable, multiplying the original dollar invested by a factor of more than 15 in 8 years. As the name indicates, the Global Undervalued Securities Fund focuses on value situations on a global basis. Over the years, the fund has shifted its focus to countries or industry sectors as varied as Russian equities, internet stocks, Japanese equities, healthcare stocks and emerging market debt. John’s conviction style of investing is not for the faint of heart, as he has occasionally suffered significant drawdowns. However, on a calendar year basis, he lost less than 4% in his only down year (2000). John has paid careful attention to matching his investor base with his investment style and limiting the amount of capital managed by closing to new investors (the fund is currently closed). Presently, he manages $750 million, of which half has come from Texas-based investors.