4 Top Performing Hedge Funds and Their 4Q23 Buys and Sells
A lot has happened in the stock market over the past three years. There was a post-Covid rally in 2021, followed by a crash in 2022, and a strong recovery in 2023. It has not been an easy period for investment, and even most hedge funds have found it challenging.
I examined a list of popular hedge fund managers and compared their performance over the past three years with that of Buffett's Berkshire Hathaway. Eight fund managers managed to outperform his returns, with Michael Burry and David Einhorn delivering the most impressive annualized returns of over 20%. Some may argue that their funds' smaller sizes made it relatively easier to achieve such returns. However, their outperformance certainly merits recognition given the challenging investment landscape in the last three years.
As hedge funds disclose their transactions for the fourth quarter of 2023, analyzing their buying, selling, and holding patterns could provide valuable insights for generating trade ideas.
I will exclude funds with extensive securities portfolios, such as Israel Englander's Millennium Management, Donald Yacktman's Yacktman Asset Management, Steven Cohen's Point72 Asset Management, and Jim Simons' Renaissance Technologies. This is because their transactions are too numerous to analyze effectively, and their broad diversification diminishes the significance of each individual stock transaction.
Below is the rundown.
Michael Burry - Scion Asset Management
Michael Burry, the renowned figure behind "The Big Short," operates more like a trader, evidenced by a high portfolio turnover rate of 76%.
He completely divested from Stellantis (STLA), Euronav (EURN), Crescent Energy (CRGY), and Hudson Pacific Properties (HPP).
Additionally, Burry reduced his holdings in Nexstar Media (NXST), Booking (BKNG), Safe Bulkers (SB), The RealReal (REAL), and Star Bulk Carriers (SBLK), refining his investment portfolio further.
However, his proactive approach shines through in the acquisition of 18 new positions, marked by their average purchase prices:
HCA Healthcare (HCA): $258.33
Oracle (ORCL): $105.68
Citigroup (C): $46.29
CVS Health (CVX): $74.39
Alphabet (GOOGL): $135.28
Amazon (AMZN): $139.53
MGM Resorts (MGM): $40.72
Advance Auto Parts (AAP): $58.48
Warner Bros Discovery (WBD): $11.12
Vital Energy (VTLE): $50.46
Block (SQ): $60.81
Bruker (BRKR): $67.89
Toast (TOST): $18.50
Mettler Toledo (MTD): $1160.52
American Coastal Insurance (ACIC): $8.41
Big Lots (BIG): $6.45
Gen Restaurant (GENK): $9.74
Qurate Retail (QRTEA): $0.75
Finally, he increased his stakes in Alibaba (BABA) and JD.com (JD), which emerged as the largest holdings in his portfolio by the end of 2023, representing 6.15% and 6.11% of his investments, respectively.
David Einhorn - Greenlight Capital
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