Billionaire Rob Citrone’s Monster Q3 Buys: Kellogg, Macy’s, Activision-Blizzard, More

Rob Citrone is the founder of Connecticut based hedge fund Discovery Capital Management, which had a 13F portfolio value of $4.71 billion as per their latest 13F filing, with the top ten holdings constituting 40.86% of the total portfolio. The top holdings include Kellogg Co (NYSE:K), Ctrip Com Intl Ltd (NASDAQ:CTRP), Facebook Inc (NASDAQ:FB), Visa Inc (NYSE:V) and Broadcom Ltd (NASDAQ:AVGO). The fund’s major holdings are in Information technology, energy and consumer discretionary sectors. With that in mind, let’s take a closer look at some of the new positions initiated by the fund during the third quarter.

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Kellogg Co (NYSE:K) is the largest holding of Discovery Capital Management with the fund buying 3,289,043 shares valued at $254 million during the third quarter. The stock accounted for 5.4% of the fund’s portfolio making it one of the top buys for Discovery Capital Management. This consumer staple company recently announced its third quarter results, reporting a 41% increase in earnings per share from the prior-year quarter. However, the company also stated that their “sales were affected by trade-inventory reductions in US cereal, a challenging UK market, and portfolio transformations.” Aside from Discovery Capital Management, other hedge funds holding large positions in Kellogg Co (NYSE:K) include Josh Resnick’s Jericho Capital Asset Management and Zach Schreiber’s Point State Capital. According to recent news, Kellogg Co (NYSE:K) was a part of a group of companies which requested President elect Donald Trump to continue the Paris Climate Agreement.

Click next page to see more of Billionaire Rob Citrone’s top buys in Q3.

Petroleo Brasileiro SA Petrobras (ADR) (NYSE:PBR) was another top buy of Discovery Capital Management during third quarter. The fund initiated a position by buying 15.65 million shares worth $146 million of this stock during the quarter. The stock accounted for 3.1% of the fund’s portfolio as at September 30, 2016. Although crude prices are low and the company has a major debt load, bulls are optmistic that the state-run energy company will benefit under the new Brazilian leadership, whihc has promised to give Petrobras more freedom to make economic decisions. 23 hedge funds from our records held shares worth $537.5 million at the end of the second quarter up from $224.7 million held during the first quarter.

Activision Blizzard, Inc. (NASDAQ:ATVI) was a new position initiated by the fund, which bought more than 2.94 million shares of this stock having a value of $130 million during the third quarter. The company accounted for 2.76% of Discovery Capital Management’s total holdings by the end of the third quarter. Activision Blizzard, Inc. (NASDAQ:ATVI) announced better than expected results for its third quarter. For the period, the company reported 482 million monthly active users, and more than 10 billion play time hours. Stephen Mandel’s Lone Pine Capital, Philippe Laffont’s Coatue Management, and Daniel S. Och’s OZ Management also ranked among the company’s top shareholders at the end of September.

SPDR S&P Biotech (ETF) (NYSEARCA:XBI) accounted for 2.11% of Discovery Capital Management’s total holdings at the end of the third quarter. The fund bought 1.5 million shares of this company worth $99 million during the quarter ending September 2016. This ETF seeks to closely match the returns of the S&P Biotechnology Select Industry Index. The fund has a gross expense ratio of 0.35% and has returned more than 22% for the quarter ending September 30th. Some of the top holdings of this biotechnology ETF include Ionis Pharmaceuticals Inc, Tesaro Inc, Sarepta Therapeutics Inc. etc. As per our records, the value of hedge fund holding in this stock declined by 57% to $138 million during the second quarter.

Macy’s Inc (NYSE:M) accounted for 2% of Discovery Capital Management’s portfolio during the third quarter, with the fund purchasing 2.54 million shares of this stock valued at $94.2 million.  The company which sells a range of merchandise, cosmetics, home furnishings and other consumer goods, and reported $5.63 billion in sales during the third quarter. The company also has a dividend yield of 3.5%. While the company faces increasing headwinds from the rise of major e-commerce players like Amazon.com Inc (NASDAQ:AMZN), the stock still managed to return more than 40% in the last five years. Some of the other elite funds holding Macy’s Inc (NYSE:M) include DW Partners, Carbonado Capital, Tensile Capital, Venator Capital Management and Marcato Capital Management. Elite funds held 11% of the company’s float as at June 30th, as per our records.

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