Chicago, IL – May 23, 2019 – Zacks Market Edge is a podcast hosted weekly by cks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here:
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Top Fund Managers in Q1: Risky Trades or Smart Stock Bets?” data-reactid=”15″>Top Fund Managers in Q1: Risky Trades or Smart Stock Bets?
Welcome to Episode #178 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
In this episode, Tracey is joined by Zacks Senior Strategist, Kevin Cook, to discuss what the top hedge fund managers were buying, or selling, in the first quarter of 2019.
Every year, Tracey and Kevin have discussed the 13-F filings, which money managers with over $100 million under management, must file with the SEC forty-five days after the end of the quarter. The 13-F reveals what stocks were bought, and sold, during the quarter.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Berkshire Hathaway Buys Amazon” data-reactid=”20″>Berkshire Hathaway Buys Amazon
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The first big surprise, which was revealed by Warren Buffett himself ahead of the Berkshire Hathaway annual meeting, was that Berkshire added its first position in Amazon (AMZN) in the first quarter.” data-reactid=”21″>The first big surprise, which was revealed by Warren Buffett himself ahead of the Berkshire Hathaway annual meeting, was that Berkshire added its first position in Amazon (AMZN) in the first quarter.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Berkshire bought almost $1 billion worth, which sounds like a lot but is only 0.43% of Berkshire’s portfolio, ranking it at 27th in the portfolio.” data-reactid=”22″>Berkshire bought almost $1 billion worth, which sounds like a lot but is only 0.43% of Berkshire’s portfolio, ranking it at 27th in the portfolio.
By comparison, Apple is now a 23.7% position in the portfolio worth $47 billion.
But unlike Apple, Amazon isn’t normally considered a value stock so this purchase was controversial, to say the least.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Making Bets on China” data-reactid=”25″>Making Bets on China
Who’s afraid of a trade war?
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Not David Tepper of Appaloosa whose largest position continues to be Micron (MU) at 22.8% of his portfolio.” data-reactid=”27″>Not David Tepper of Appaloosa whose largest position continues to be Micron (MU) at 22.8% of his portfolio.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="He also sold Alibaba (BABA) shares last year, only to buy them again in 2019. Is he that confident that a trade agreement is coming?” data-reactid=”28″>He also sold Alibaba (BABA) shares last year, only to buy them again in 2019. Is he that confident that a trade agreement is coming?
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Is Concentration Paying Off?” data-reactid=”29″>Is Concentration Paying Off?
While Tepper is concentrated in Micron, and Buffett is a believer in Apple, Bill Ackman at Pershing Square has gone all in on the consumer.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Ackman’s largest position is Chipotle (CMG) which is now 19.7% of his portfolio. That is followed in a close second by Restaurant Brands (QSR) at 17.8% and then Lowe’s at 13.6%.” data-reactid=”31″>Ackman’s largest position is Chipotle (CMG) which is now 19.7% of his portfolio. That is followed in a close second by Restaurant Brands (QSR) at 17.8% and then Lowe’s at 13.6%.
That’s nearly 50% of his total portfolio in just 3 consumer names, but it has paid off as Chipotle shares are up 64% year-to-date.
But is that much concentration too risky, even for a professional investor?
Big fund managers made some other interesting bets in the first quarter that might leave you scratching your head.
Find out what those trades are and much more in this week’s podcast.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="[In full disclosure, the author of this article owns shares of AMZN in her personal portfolio.]” data-reactid=”36″>[In full disclosure, the author of this article owns shares of AMZN in her personal portfolio.]
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Breakout Biotech Stocks with Triple-Digit Profit Potential” data-reactid=”37″>Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.” data-reactid=”39″>Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="See these 7 breakthrough stocks now>>” data-reactid=”40″>See these 7 breakthrough stocks now>>
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<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.” data-reactid=”49″>Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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