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Blue Ridge Capital | John A. Griffin Holdings Analysis

This posting has been created together with my Investment Securities Tool which analyzes the holdings of hedge account executives.

Blue Ridge Capital is happened to run by John A. Griffin. Griffin is much like Steve Mandel at Lone Pine Capital and Lee Ainslie at Maverick Capital because each of them are ‘Tiger Cubs’ (a.k.a. students of Julian Robertson even though at Tiger Management). Griffin despite the fact that, is a lot more popular because he was Julian Robertson’s right hand male. So, obviously, the guy understands his things. Blue Ridge looks for absolute dividends by using providers who dominate their markets and shorting the firms that have fundamental troubles. And, right from the start that shows us with a bit of a challenge with regard to studying 13F’s. 13F’s don’t demonstrate simple placements, they reveal lengthy opportunities (except the firm is short via puts, which we *can* see). So, the inherent downside to considering Blue Ridge (or any fund for instance) is the fact that we can’t view the opposite side of the investment portfolio. But, that is progressively necessary for Blue Ridge basically on account of Griffin’s investment plan and the belief that his extended roles could in essence only depict 1 / 2 of the investment portfolio. Now, I use that loosely due to the fact there’s not a chance in my opinion to understand exactly how much of his stock portfolio is simple. But, We do understand that either Griffin at Blue Ridge and Lee Ainslie over at Maverick Capital (investigation on him emerging later this week) like to efficiently hedge that has a harmony of equally quick and extended jobs (for instance a TRUE hedge fund… not like most of these nuts capital today without real hedging). Here’s one thing: they don’t do couples transactions, so don’t label being that. In the past, I remember exclusively getting informed by reps at Maverick they can don’t pairs market, even if a individual simple and extended may very well be inside the same sector or sub-market. So, make that differentiation obvious. But, we’ll deal with what we’ve received (and believe me, it’s still many stable data).

Before you start, I want to give a distinctive shoutout to Alex Prywes for aiding me using the complicated project of considering 13F filings. Alex has helped collect and go through the information of several hedge resources (for example the one beneath). Because of Alex’s help, we can now protect a lot more money. And, on that take note…. to the 13F!

The following are Blue Ridge Capital’s up-to-date holdings by June 30th 2008, as unveiled on their most recent 13F registering together with the SEC. The locations on this newest 13F were in comparison with previous quarter’s 13F and here are the changes made to their profile:

New Positions:

Anadarko Petroleum (APC): 2,335,000 reveals. This location is 4.29Percent of Blue Ridge’s portfolio.

Visa Inc (V): 1,720,000 reveals. 3.43Percent of Blue Ridge’s account.

Vulcan materials: 1,500,000 shares. 2.20% of Blue Ridge’s investment portfolio.

Rowan Cos (RDC): 1,800,000 shares. 2.06Percent of Blue Ridge’s profile.

Amazon (AMZN): 940,000 gives. 1.69% of Blue Ridge’s collection.

Goodrich Petroleum (GDP): 650,000 reveals. 1.32Percent of Blue Ridge’s profile.

Countrywide Financial: 1,433,000 gives. .15Percent of Blue Ridge’s profile.

Bare Escentuals (BARE): 281,500 shares. .13% of Blue Ridge’s portfolio.

Nutrisystem (NTRI): 233,000 reveals. .08Per cent of Blue Ridge’s stock portfolio.

Put into:

Federal National Mortgage (FNM): Increased place by 1104%. Position has become 2.77% of these profile.

Greenlight Capital Re Ltd (GLRE): Increased situation by 76.5%. Position is now .20% of the investment portfolio.

Wyeth (WYE): Increased placement by 62.86Percent. Position is already 6.71Percent with their profile.

Apple (AAPL): Increased situation by 15.65%. Position is actually 5.46Per cent of their portfolio.

Grupo Televisa (TV): Increased place by 11.83%. Position is now 4.46Percent of their stock portfolio.

Echostar (SATS): Increased position by 9.97Per cent. Position is currently 1.61% of their portfolio.

Google (GOOG): Increased posture by 6.09%. Position is actually 6.75Per cent of the portfolio.

Broadrige Financial (BR): Increased location by .84Per cent. Position is now 3.71Percent of their own collection.

Reduced Positions:

American Express (AXP): Reduced location by 23.98Percent. Position is already 6.05Per cent of these portfolio.

Netflix (NFLX): Reduced posture by 28.6Percent. Position is already .93% of the stock portfolio.

Walmart (WMT): Reduced position by 35.75%. Position is 2.54Percent in their collection.

First Marblehead (FMD): Reduced location by 36.64Percent. Position is currently .05% of their own profile.

Elong Inc (LONG): Reduced placement by 51.82Percent. Position is actually .02Per cent of the profile.

Grupo Aeroportuario Del Pacifico (PAC): Reduced placement by 54.83Per cent. Position is now 1.16Per cent of the account.

Crocs (CROX): Reduced situation by 66.06%. Position is now .14Percent in their collection.

Removed Positions (Positions Blue Ridge sold out of entirely):

America Movil (AMX)

Burlington Northern (BNI)

Coach (COH)

Corus Bankshares (CORS)

Fidelity National Information (FIS)

First American Corp California (FAF)

Formfactor (FORM)

Office Depot (ODP)

SLM Corp (SLM)

Smurfit Stone Container (SSCC)

St Joe Co (JOE)

Starbucks (SBUX)

WebMD Health (WBMD)

Positions without transformation:

Covanta (CVA). Position is 5.27Percent with their portfolio.

Millipore (MIL). Position is 4.49% of these portfolio.

Charles Schwab (SCHW). Position is 4.32% in their stock portfolio.

Discovery Holding Co (DISCA). Position is 3.89Percent in their account.

Martin Marietta Materials (MLM). Position is 3.41Percent of their own stock portfolio.

Target (TGT). Position is 3.11Percent with their account.

Thermo Fisher Scientific (TMO). Position is 2.90% of the profile.

Berkshire Hathaway (BRK.A). Position is 2.49Per cent of their own portfolio.

Fomento Economico Mexicano (FMX). Position is 2.31Per cent of their own stock portfolio.

Packaging Corp of America (PKG). Position is 2.18% of these profile.

Compton Petroleum Corp (CMZ). Position is 2.08% of their own account.

Research in Motion (RIMM). Position is 1.86Percent of their own collection.

Eagle Materials (EXP). Position is 1.22Percent in their profile.

Fairfax Financial Holdings (FFH). Position is 1.18% of their collection.

American Express (AXP) Calls. Position is .64Percent of the stock portfolio.

MBIA (MBI). Position is .27% of these portfolio.

Federal Mortgage Loan Mortgage (FRE). Position is .20Per cent of the account.

Evergreen Energy (EEE). Position is .12% of their stock portfolio.

Gold Reserve Inc (GRZ). Position is .10% of these collection.

Washington Mutual (WM) Puts. Position is .02Per cent in their account.

Perfect World Co (PWRD). Position is .01Per cent in their investment portfolio.

Indymac Bancorp (IDMC). Position is .01Per cent of their own portfolio.

Top 10 holdings by % of portfolio:

1. Google (GOOG). 6.75Percent of your stock portfolio
2. Wyeth (WYE). 6.71Per cent of the collection
3. American Express (AXP). 6.05Percent of the account
4. Apple (AAPL). 5.46% with the investment portfolio
5. Covanta (CVA). 5.27Percent of your account
6. Millipore (MIL). 4.49Per cent on the account
7. Grupo Televisa (TV). 4.46% of your stock portfolio
8. Charles Schwab (SCHW). 4.32% with the portfolio
9. Anadarko Petroleum (APC). 4.29Percent of your investment portfolio

10. Discovery Holding Co (DISCA). 3.89Percent with the stock portfolio

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Breakdown: The very first thing I seen was Blue Ridge’s option of Anadarko Petroleum (APC). They included it in muscle size, delivering it up for the fund’s 9th largest positioning. Although I’ve viewed a lot of hedge funds placing this identify during the last 2 quarters, do remember that this registering was by June 30th, 2008. Since that time, gas prices, essential oil prices, and just about any supply in all those sectors have plummeted. But, it truly is really worth remembering we have noticed this brand pop-up on 13F filings a lot more usually not too long ago. And, Blue Ridge did make a seriously big obtain. We’ll have to hold off until up coming quarter to find out regardless of whether it was a buy and sell as well as investment. In earlier times, when Griffin has taken a job as much as a top rated 10 keeping in just one quarter, they have kept in the place. So, the perfect time to have fun playing the waiting video game on that particular. Also, he put in a significant sizeable new placement in Visa (V), carrying it to 3.43Percent in the collection after not really holding a position very last go-rounded (departing it simply shy to be a top-notch 10 grasping).

Next, I noticed he was including more conveys of Wyeth (WYE). This brand was currently a huge fund carrying, Private Equity and this man included in his placement by 62%, providing it for the fund’s 2nd most significant holding. Recently, there has definitiely been a rotation into almost any stocks relating to medical care. This is no exemption. Also truly worth noting is Griffin’s accessory for his presently huge Apple (AAPL) situation. He carries on to use in this identify and definitely seems to be constructing a great core location eventually.

Though Griffin built some buying, he was unquestionably busier in the marketing area of things. And, which enables me a lot more interested than normal in regards to what limited jobs he has. But, for the reason that hedge money may not be required to make known short positions inside their 13F filings (except for Put placements), our company is kept at nighttime on that you. But, anyways, into the gross sales. Griffin was promoting some buyer companies in Netflix (NFLX) and Walmart (WMT). He only offered for sale 20-30% of his placements there thus it could you should be some revenue having or placement sizing minimizing… not a thing far too significant occurring. If he is constantly offer these companies, We’ll keep close track of it up coming quarter and discover. Two quarters before, since i in-depth in my Blue Ridge evaluation, we observed that Griffin was beginning to provide Coach (COH), Formfactor (FORM), and Smurfit Stone (SSCC). This recent quarter, he continuing that trend, promoting away from every one of the left over gives in all those organizations. Additionally, he distributed away from 66% of his Crocs (CROX) situation, which I’m confident was obviously a way to obtain ache for him, supplied how the gives you have plummeted in appeal after some time. Next, quarter, it will be appealing to determine if he provides off the ‘cheap consumer’ plays including Walmart (WMT) and Objective (TGT).

Griffin also absolutely taken away America Movil (AMX) from Blue Ridge’s portfolio. This really is helpful, since this is the 2nd hedge account at this point we’ve observed fully sell using this identify. (Bear in mind AMX used to be among the most popular holdings between the numerous hedge finances I observe). The stock has been around a downwards spiral for quite a few many weeks and it appears that many hedge finances were definitely the people responsible for the exodus. On the coming 7 days, we’ll see what Griffin’s ‘Tiger Cub’ friends ended up up to because of their respective AMX roles also.

Also truly worth pointing out is the fact that Griffin easily out of stock of Burlington Northern (BNI) absolutely. Over the past 13F processing, we identified he had just added BNI as a new situation. And, now approximately, we find out which he has easily out of stock. Merely because virtually all hedge capital I observe have some kind of being exposed to the rails, this hit me as fairly strange. Maybe Griffin was only sealing in a number of easy gains. On the other hand, possibly there was something changed him away from the identify. Interesting transfer, nonetheless. Griffin also had a small live in Office Depot (ODP). He available completely beyond his place this prior quarter, having only added in it a brand new place over the last 13F declaring.

Lastly, I recently sought to indicate many of the more substantial positions that Blue Ridge continues to keep on their investment portfolio: Millipore (MIL), Covanta (CVA), Grupo Televisa (TV), and Charles Schwab (SCHW). These opportunities are best 10 holdings for Blue Ridge for numerous quarters now and so are definitely worth a style as they quite simply appear to be long term represents for Griffin.

Blue Ridge Capital’s most interesting/peculiar move(s)? Increasing their risk in Fannie Mae (FNM) by above 1100Percent, bringing it to 2.77% of the investment portfolio. (Bear in mind that these opportunities have been at the time of June 30th, 2008). I only provide this up due to the latest developments in FNM and FRE. Whether it be for the market or an asset, John Griffin was certainly up to anything listed here and we also can only speculate as to what he’s been performing with this location before calendar month plus a 1 / 2.