Was Magnolia Capital Fund Right to Bet on Rush Enterprises, Inc. (RUSHA), Alliance Resource Partners, L.P. (ARLP) & Two Other Stocks?

After having initiated a stake in Wells Fargo & Co (NYSE:WFC) during the second quarter, the fund further boosted it by 135% to 1.30 million shares worth $57.56 million during the third quarter. The stock inched down by 5.7% between July and September. Overall, the number of funds followed by us long Wells Fargo declined by 2% to 88 during the second quarter. Among these funds, Berkshire Hathaway, managed by Warren Buffett, held the biggest stake in Wells Fargo & Co (NYSE:WFC), which was worth $22.70 billion at the end of June. Coming in second was Fisher Asset Management, managed by Ken Fisher, which held a $911.4 million position. Remaining professional money managers that held long positions included Tom Russo’s Gardner Russo & Gardner, Patrick Degorce’s Theleme Partners and Phill Gross and Robert Atchinson’s Adage Capital Management.

In Alliance Holdings GP, L.P. (NASDAQ:AHGP), the fund had reduced its stake by by 46% to 330,449 shares worth $6.95 million during the second quarter and in the following three months, as the stock returned 26.6%, the fund sold its entire position. At the end of June, seven investors from our database were bullish on Alliance Holdings GP, unchanged over the quarter. One of the largest stakes in Alliance Holdings GP, L.P. (NASDAQ:AHGP) was reported by Selz Capital, which held a $5.4 million position. Other investors bullish on the company included Mountain Lake Investment Management, Renaissance Technologies, and Clinton Group.

Disclosure: None