Hedge fund and mutual funds have begun filing their 13Fs for the second quarter of 2013 with the Securities and Exchange Commission. The second quarter of 2013 was a volatile one for equity markets as concerns over an early end to the Federal Reserve’s bond buying program weighed down sentiment. Still, all three major indexes managed to finish higher for the quarter. While the improved U.S. economic outlook has boosted equities, some analysts say that a correction could be on its way, given that the Dow Jones and the S&P 500 are hovering around all-time high levels. Therefore, it is important that investors keep an eye on what the smart money is doing. So here is a look at what some major funds bought and sold during the second quarter of 2013 as per the most recent 13F filings with the SEC.
Brookside Capital Management Bullish on Services Sector
Boston, Massachusetts-based hedge fund Brookside Capital LLC recently filed its 13F with the SEC. The filing showed that the fund is bullish on the services sector, with nearly 30% of the fund’s assets allocated to the sector at the end of the second quarter.
During the quarter, Brookside Capital added several new positions. The company added new position in Constellation Brands Inc. (NYSE: STZ), the Victor, New York-based wine company. At the end of the quarter, STZ accounted for 3.31% of Brookside’s portfolio. The fund also added new positions in Illumina Inc. (NASDAQ: ILMN), Herbalife Ltd. (NYSE: HLF), and TripAdvisor Inc. (NASDAQ: TRIP).
Brookside also closed several positions during the second quarter. One of the major positions closed by the fund was in AutoZone Inc. (NYSE: AZO), the Memphis, Tennessee-based retailer and distributor of automotive replacement parts and accessories in the U.S. The fund sold all of its position in the company, which comes as a surprise given the ongoing improvement in U.S. auto sales. Data released just last week showed that auto sales in the U.S. are now near the pre-financial crisis levels.
Other positions closed by Brookside during the second quarter included Qualcomm Incorporated (NASDAQ: QCOM), Ralph Lauren Corp. (NYSE: RL), FedEx Corporation (NYSE: FDX), and Two Harbors Investment Corp. (NYSE: TWO).
Brookside’s top holdings at the end of the second quarter were Ulta, Salon, Cosmetics & Fragrance Inc. (NASDAQ: ULTA), PPG Industries Inc. (NYSE: PPG), Monsanto Co. (NYSE: MON), Mead Johnson Nutrition Company (NYSE: MJN), and Gilead Sciences Inc. (NASDAQ: GILD).
Clarivest Asset Management Adds Position in Boeing
San Diego, California-based hedge fund Clarivest Asset Management LLC opened a new position in defense & aerospace giant Boeing Company (NYSE: BA) during the second quarter of 2013, according to the fund’s 13F filing. The second quarter of 2013 was an excellent one for Boeing, with the stock gaining more than 19.30%. Boeing is benefiting from rising demand for commercial aircrafts in Asia. However, the defense business is likely to remain a worry for the company, given the sequester in the U.S. and spending cuts in Europe.
Other major new positions added by Clarivest Asset Management during the second quarter included Hanesbrands Inc. (NYSE: HBI), LyondellBasell Industries NV (NYSE: LYB), American Tower Corp. (NYSE: AMT), and SanDisk Corporation (NASDAQ: SNDK).
The fund also closed several positions during the second quarter. Some of the major positions closed during the quarter included Deere & Company (NYSE: DE), the farm equipment company, and Eastman Chemical Co. (NYSE: EMN). At the end of the first quarter, the fund had invested 1.1% of its portfolio in DE and 1.02% of its portfolio in EMN. Other positions closed by Clarivest Asset Management included Foot Locker Inc. (NYSE: FL), Panera Bread Co. (NASDAQ: PNRA), Cooper Tire & Rubber Co. (NYSE: CTB).
Clarivest’s top holdings at the end of the quarter included Apple Inc. (NASDAQ: AAPL), Google Inc. (NASDAQ: GOOG), Qualcomm Incorporated, Comcast Corporation (NASDAQ: CMCSA), and The Home Depot Inc. (NYSE: HD). In terms of sector, Clarivest is bullish on technology and services, with 28.3% and 26.1% of the fund’s assets invested in the two sectors, respectively.
Scout Investments Opens New Position in Netflix
Netflix Inc. (NASDAQ: NFLX) shares have gained more than 165% this year as the company’s fundamentals have improved significantly. Not surprisingly, the stock is seeing interest from major funds. During the second quarter, Kansas City, Missouri-based hedge fund Scout Investments Inc. added a new position in the Los Gatos, California-based company. At the end of the quarter, 0.39% of Scout Investments’ total portfolio was invested in NFLX.
Scout also added a new position in Generac Holdings Inc. (NYSE: GNRC), a designer and manufacturer of a range of generators and other engine powered products for the residential, light, commercial, industrial and construction markets. At the end of the quarter, 0.43% of Scout’s total portfolio was invested in GNRC. The fund also opened new positions in Cabela’s Inc. (NYSE: CAB), DTE Energy Co. (NYSE: DTE), Louisiana-Pacific Corporation (NYSE: LPX).
Overall, Scout Investments added 20 new positions in the second quarter of 2013.
Scout Investments also closed several positions during the second quarter of 2013. In fact, the filing shows that the fund closed positions in 32 stocks during the quarter. One of the major positions closed by the fund was in Grupo Televisa SAB (ADR) (NYSE: TV), the Mexico-based television broadcaster. At the end of the first quarter, Scout had invested 1.42% of its portfolio in the Mexican company; however, the fund sold all of its position by the end of the second quarter, according to the latest 13F filing.
Other major positions closed by Scout Investments during the second quarter of 2013 included Naspers Limited (ADR) (OTC: NPSNY), NewMarket Corporation (NYSE: NEU), and Kodiak Oil & Gas Corp. (USA) (NYSE: KOG).
Scout Investments’ top holdings at the end of the quarter included HSBC Holdings Plc (ADR) (NYSE: HBC), and Kubota Corporation (ADR) (OTC: KUBTY).
In terms of sector allocation, Scout has invested 11.90% of its portfolio in the technology sector, 12.60% in basic materials sector, and 16.90% in the financial sector.