Billionaire Chris Hohn’s Top Picks: Time Warner Cable Inc (TWC), Moody’s Corporation (MCO), Ambac Financial Group, Inc. (AMBC)

Ambac Financial Group, Inc. (NASDAQ:AMBC) is the third-largest stock pick of Hohn, who holds 1.96 million shares of the surety insurance firm with a market value of $48.05 million. The shares of Ambac Financial Group have grown 2.52% year-to-date and it has a current market cap of $1.14 billion. The financial group operates through multiple subsidiaries including Ambac Assurance Corporation, Ambac Assurance UK Limited, and Everspan Financial Guarantee Corporation. Ambac Financial Group, Inc. (NASDAQ:AMBC) announced its quarterly financial results last week, posting net income of $214.7 million or $4.57 per diluted share, which was lower than the net income of $453.6 million quarter over quarter. Centerbridge Partners, Canyon Capital Advisors, and Fir Tree are among the shareholders of Ambac Financial Group, Inc. (NASDAQ:AMBC) whom we track.

Childrens Investment Fund Management is just one of more than 700 hedge funds that we have in our database, whose equity portfolios we collate quarterly as part of our small-cap strategy. Even though most smaller investors believe that tracking 13F filings is a fruitless endeavor because they are filed with a delay of a maximum of 45 days after the end of a calendar quarter, the results of our research prove that is not the case. To be on the safe side, we used a delay of 60 days in our backtests that involved the 13F filings of funds between 1999 and 2012 and we still managed to gain an annual alpha in the double digits. Moreover, since the official launch of our strategy in August 2012, our small-cap strategy has obtained returns of more than 137%, beating the S&P 500 Total Return Index by 82 percentage points (see the details).

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