We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Investment managers with more than $100 million in assets under management (AUM) must file a 13F disclosure with the U.S. Securities and Exchange Commission (SEC) each quarter. This report includes an overview of the manager’s holdings, including stocks, options, and more.
What you need to Know
A 13F report can be helpful in providing a glimpse into the thinking behind institutional investment managers. Often, institutional investors have sophisticated research teams and the resources to move the stocks they are in and the market.
However, it is essential also to remember the limitations of a 13F. The data may be delayed or stale because 13Fs only need to be filed once a quarter. Second, the 13F provides information about the positions and nothing more. In other words, the 13F does not provide the rationale behind a trade. As such, investors should do their due diligence and not blindly follow institutional investors into positions.
With that in mind, let’s take a look at some of the biggest moves by household names:
Warren Buffett:
The biggest news to come out of the “Oracle of Omaha’s” 13F disclosure was the addition of Capital One Financial ((COF - Free Report) ). Buffett’s Berkshire Hathaway purchased nearly 10 million shares of the stock for roughly a $1 billion position. Being that one of Buffett’s most famous quotes is, “Be fearful when others are greedy and be greedy when others are fearful”, it is not a big surprise that Buffett is making a foray into the struggling banking sector.
Capital One has all the attributes of a typical Buffett holding. The company has a robust balance sheet with over $30 billion in cash, a strong dividend, and an aggressive share repurchase program. From a valuation perspective, shares of COF are cheap. COF’s P/E of 6.24x compares favorably to the S&P 500’s P/E of 19.36x.
Image Source: Zacks Investment Research
You can’t mention Buffett without mentioning Apple ((AAPL - Free Report) ). AAPL now comprises Berkshire’s largest position, worth roughly $150 billion. Despite falling oil prices, Buffett continued to double down on shares of Occidental Petroleum ((OXY - Free Report) ).
Michael Burry:
If you have seen the movie “The Big Short” you are familiar with Michael Burry. Burry was portrayed by actor Christian Bale and is known for his high conviction short bets during the 2008 Global Financial Crisis. However, currently, it is Burry’s long positions that are making news. Like Buffett, Burry is betting that the banking crisis will blow over. In Q1, Burry bought a plethora of financials, including Wells Fargo ((WFC - Free Report) ), Western Alliance Bank ((WAB - Free Report) ), Capital One, and more. Burry is also making big bets on Chinese e-commerce names Alibaba ((BABA - Free Report) ) and JD.com ((JD - Free Report) ). JD is currently retesting its spike lows from last October.
Image Source: Zacks Investment Research
Stanley Druckenmiller:
In a recent interview, Stanley Druckenmiller made headlines by saying, “I’m in the hard-landing camp later this year.” Despite his bearish rhetoric, investors must understand how Druckenmiller operates. While he pays close attention to the macro environment, ultimately, price and volume sway his actions. Druckenmiller’s Duquesne Family Office 13F shows he is making bold bets on AI innovation through Microsoft ((MSFT - Free Report) ) and Nvidia ((NVDA - Free Report) ). Year-to-date, these stocks are two of the strongest – gaining 29% and 98%, respectively.
Image Source: Zacks Investment Research
Takeaway
This quarter’s 13F disclosures are an excellent example of why investors should not listen to what institutional investors say but rather what they do. For now, savvy investors are betting on stabilization in the banking sector and innovative technology companies with strong balance sheets.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
13F Season: Buffett, Burry, & Druckenmiller
A Glimpse into Where the “Whales” Are Investing
Investment managers with more than $100 million in assets under management (AUM) must file a 13F disclosure with the U.S. Securities and Exchange Commission (SEC) each quarter. This report includes an overview of the manager’s holdings, including stocks, options, and more.
What you need to Know
A 13F report can be helpful in providing a glimpse into the thinking behind institutional investment managers. Often, institutional investors have sophisticated research teams and the resources to move the stocks they are in and the market.
However, it is essential also to remember the limitations of a 13F. The data may be delayed or stale because 13Fs only need to be filed once a quarter. Second, the 13F provides information about the positions and nothing more. In other words, the 13F does not provide the rationale behind a trade. As such, investors should do their due diligence and not blindly follow institutional investors into positions.
With that in mind, let’s take a look at some of the biggest moves by household names:
Warren Buffett:
The biggest news to come out of the “Oracle of Omaha’s” 13F disclosure was the addition of Capital One Financial ((COF - Free Report) ). Buffett’s Berkshire Hathaway purchased nearly 10 million shares of the stock for roughly a $1 billion position. Being that one of Buffett’s most famous quotes is, “Be fearful when others are greedy and be greedy when others are fearful”, it is not a big surprise that Buffett is making a foray into the struggling banking sector.
Capital One has all the attributes of a typical Buffett holding. The company has a robust balance sheet with over $30 billion in cash, a strong dividend, and an aggressive share repurchase program. From a valuation perspective, shares of COF are cheap. COF’s P/E of 6.24x compares favorably to the S&P 500’s P/E of 19.36x.
Image Source: Zacks Investment Research
You can’t mention Buffett without mentioning Apple ((AAPL - Free Report) ). AAPL now comprises Berkshire’s largest position, worth roughly $150 billion. Despite falling oil prices, Buffett continued to double down on shares of Occidental Petroleum ((OXY - Free Report) ).
Michael Burry:
If you have seen the movie “The Big Short” you are familiar with Michael Burry. Burry was portrayed by actor Christian Bale and is known for his high conviction short bets during the 2008 Global Financial Crisis. However, currently, it is Burry’s long positions that are making news. Like Buffett, Burry is betting that the banking crisis will blow over. In Q1, Burry bought a plethora of financials, including Wells Fargo ((WFC - Free Report) ), Western Alliance Bank ((WAB - Free Report) ), Capital One, and more. Burry is also making big bets on Chinese e-commerce names Alibaba ((BABA - Free Report) ) and JD.com ((JD - Free Report) ). JD is currently retesting its spike lows from last October.
Image Source: Zacks Investment Research
Stanley Druckenmiller:
In a recent interview, Stanley Druckenmiller made headlines by saying, “I’m in the hard-landing camp later this year.” Despite his bearish rhetoric, investors must understand how Druckenmiller operates. While he pays close attention to the macro environment, ultimately, price and volume sway his actions. Druckenmiller’s Duquesne Family Office 13F shows he is making bold bets on AI innovation through Microsoft ((MSFT - Free Report) ) and Nvidia ((NVDA - Free Report) ). Year-to-date, these stocks are two of the strongest – gaining 29% and 98%, respectively.
Image Source: Zacks Investment Research
Takeaway
This quarter’s 13F disclosures are an excellent example of why investors should not listen to what institutional investors say but rather what they do. For now, savvy investors are betting on stabilization in the banking sector and innovative technology companies with strong balance sheets.