Here in the United States, some states are known for their outsized presence in certain industries. For example, California is the center of tech, New York dominates finance… and Texas knows a thing or two about oil, gas and land.   #-ad_banner-#That said, it may come as no surprise that natural resources and real estate are well represented in the portfolio of the University of Texas System, which possesses one of the largest university endowments in the United States.   Headed by the University of Texas Investment Management Co. (UTIMCO, for short), the endowment is the largest public… Read More

Here in the United States, some states are known for their outsized presence in certain industries. For example, California is the center of tech, New York dominates finance… and Texas knows a thing or two about oil, gas and land.   #-ad_banner-#That said, it may come as no surprise that natural resources and real estate are well represented in the portfolio of the University of Texas System, which possesses one of the largest university endowments in the United States.   Headed by the University of Texas Investment Management Co. (UTIMCO, for short), the endowment is the largest public one of its kind in the nation, placing third when taking private colleges into consideration (the first and second spots belong to Harvard and Yale, respectively). With over $20 billion in assets under management, UTIMCO serves 15 schools in the University of Texas System, including UT-Austin and the UT Southwestern Medical Center.   Now in its 19th year of operation, UTIMCO pools its assets into a number of funds and vehicles with varying investment horizons and risk objectives. Since the bulk of the endowment is meant to serve the underlying universities and its students for years and years to come,… Read More

Once a year, Warren Buffett and his right-hand man, Charlie Munger, take the stage of a packed arena for Berkshire Hathaway’s (NYSE: BRK-B) annual meeting in Omaha, Nebraska. #-ad_banner-#Held last Saturday, this year’s event drew a crowd of some 40,000 shareholders, financial journalists and analysts who had the chance to pick the brain of the Oracle and his vice chairman. A wide breadth of topics were covered — but what might they mean for your portfolio? Let’s start with a perennial question that has particular relevance if you’re a Berkshire stakeholder: When will Berkshire… Read More

Once a year, Warren Buffett and his right-hand man, Charlie Munger, take the stage of a packed arena for Berkshire Hathaway’s (NYSE: BRK-B) annual meeting in Omaha, Nebraska. #-ad_banner-#Held last Saturday, this year’s event drew a crowd of some 40,000 shareholders, financial journalists and analysts who had the chance to pick the brain of the Oracle and his vice chairman. A wide breadth of topics were covered — but what might they mean for your portfolio? Let’s start with a perennial question that has particular relevance if you’re a Berkshire stakeholder: When will Berkshire Hathaway pay a dividend? The company has not made a cash payout since 1967. So will 2014 be the year? “Don’t hold your breath” seems to be the collective notion from the shareholders who voted on the issue, as only 3% were in favor. There’s an overwhelming preference for excess cash reserves to be allocated for future investments, rather than making distributions. However, if you’re still craving a Berkshire-related dividend fix — and really, who isn’t? — you can look to some of its higher-yielding portfolio companies like Proctor & Gamble (NYSE: PG) or General Electric (NYSE: GE), which each… Read More

Thirteen years ago, four emerging markets were singled out by a Goldman Sachs economist as possessing a strong chance at stealing some of the G7 countries’ thunder.#-ad_banner-# Neatly packed into a four-letter acronym, the BRICs — Brazil, Russia, India and China — rose to prominence after the term was coined by Jim O’Neill. The tides have shifted, however, and O’Neill is endorsing a new slate of players in the developing world. Since the end of last year, the torch has been passed from the BRICs to the MINT countries: Mexico, Indonesia, Nigeria and Turkey. These four have emerged… Read More

Thirteen years ago, four emerging markets were singled out by a Goldman Sachs economist as possessing a strong chance at stealing some of the G7 countries’ thunder.#-ad_banner-# Neatly packed into a four-letter acronym, the BRICs — Brazil, Russia, India and China — rose to prominence after the term was coined by Jim O’Neill. The tides have shifted, however, and O’Neill is endorsing a new slate of players in the developing world. Since the end of last year, the torch has been passed from the BRICs to the MINT countries: Mexico, Indonesia, Nigeria and Turkey. These four have emerged as the next wave of rapidly growing markets soon to gain global clout, and investors are taking note.   Each economy possesses a relatively younger population and a budding middle class, both supporting attention-worthy GDP growth — but do they offer real promise as investments? Let’s take a closer look. Mexico​ Advancing infrastructure, a large domestic consumer market, and increasing exports to the U.S. and its Latin American neighbors helped land Mexico on the MINT list. Mexico’s close ties with the U.S. could help or hinder the nation, as the economic links between the two are tight, and slow growth… Read More

While ripe with actionable information, one of the primary drawbacks of SEC-required disclosures of funds’ holdings is that a delay can be present between the actual trade and the time of publishing. #-ad_banner-# Such is often the case with 13F filings, which highlight long-only equity, debt and option positions of large asset managers. The SEC requires the forms to be filed 45 days after quarter’s end, which is why choosing which funds to follow is crucial. Managers who invest on longer horizons tend to keep portfolios that better mirror the ones outlined in a 13F. However, some funds have been… Read More

While ripe with actionable information, one of the primary drawbacks of SEC-required disclosures of funds’ holdings is that a delay can be present between the actual trade and the time of publishing. #-ad_banner-# Such is often the case with 13F filings, which highlight long-only equity, debt and option positions of large asset managers. The SEC requires the forms to be filed 45 days after quarter’s end, which is why choosing which funds to follow is crucial. Managers who invest on longer horizons tend to keep portfolios that better mirror the ones outlined in a 13F. However, some funds have been known to file early, which in effect gives investors a more accurate look at their snapshot portfolios with much less lag. It is not uncommon to see an asset manager load up on a stock a quarter prior as well, ahead of a merger closing or stock-moving news. Keeping in time with these portfolio plays could be the difference between a big win or missing the boat entirely (or worse, buying in after).   ​     YouTube/Fisher Investments     With a net worth of $2.4 billion, Fisher and his team of analysts have a… Read More

Despite new market highs and a rebound in corporate profits, post-recession job growth has been uneven at best. Falling unemployment numbers don’t accurately depict the whole picture — or even how dire the circumstances are for some families affected by joblessness.  #-ad_banner-#Discount retailers have stepped up to meet the demands of consumers who might not be so well-to-do but still need to fill their cupboards… without breaking the bank.  National chains such as Family Dollar (NYSE: FDO), Dollar General (NYSE: DG) and Dollar Tree (Nasdaq: DLTR) have been aggressively expanding their presence across the country since 2008, looking to steal… Read More

Despite new market highs and a rebound in corporate profits, post-recession job growth has been uneven at best. Falling unemployment numbers don’t accurately depict the whole picture — or even how dire the circumstances are for some families affected by joblessness.  #-ad_banner-#Discount retailers have stepped up to meet the demands of consumers who might not be so well-to-do but still need to fill their cupboards… without breaking the bank.  National chains such as Family Dollar (NYSE: FDO), Dollar General (NYSE: DG) and Dollar Tree (Nasdaq: DLTR) have been aggressively expanding their presence across the country since 2008, looking to steal market share from the granddaddy of all discount stores, Wal-Mart (NYSE: WMT). Shopping at Wal-Mart has long been a comprehensive experience, supplying consumers with everything under one roof. However, discount retailers are now following suit, lining their shelves with an ever-growing catalogue of new offerings, the most promising being perishables (staples such as eggs and milk) and tobacco. It remains to be seen whether these consumables will help dollar stores become true one-stop shops and edge out future trips to their larger counterparts. Rising consumer confidence has kept the stock prices of this sector low.  Are they at attractive levels… Read More

Whoever said drinking, smoking and gambling were habits of poor men got it all wrong. #-ad_banner-#So-called sin stocks have long been known to give investors reprieve in both good times and bad, flourishing in bull markets and offering consolation during downturns. Alcohol, tobacco, gambling and certain other categories of entertainment (ahem) are all considered sin (or vice) stocks, with some funds and analysts grouping defense stocks into the mix as well. In this article, I’ll focus on my favorite makers of alcoholic drinks.  As is often the case with alcohol, spending doesn’t drop drastically (and may actually increase,… Read More

Whoever said drinking, smoking and gambling were habits of poor men got it all wrong. #-ad_banner-#So-called sin stocks have long been known to give investors reprieve in both good times and bad, flourishing in bull markets and offering consolation during downturns. Alcohol, tobacco, gambling and certain other categories of entertainment (ahem) are all considered sin (or vice) stocks, with some funds and analysts grouping defense stocks into the mix as well. In this article, I’ll focus on my favorite makers of alcoholic drinks.  As is often the case with alcohol, spending doesn’t drop drastically (and may actually increase, in some cases) when the economy stumbles. And what is frequently the reaction when the market recovers and makes new highs? Why, pop the bubbly, break out that nice bottle of wine, or buy a few rounds at the bar, of course! The name of the game for alcohol producers in 2013 was fighting weak foreign demand, solidifying domestic brewers as the standout winners. Will 2014 continue this trend, or can we expect the mega-breweries and distillers to gain their footing again? With a market cap of $175 billion, Anheuser-Busch InBev (NYSE: BUD) is far and away the largest brewer… Read More

As we enter earnings season for the first quarter of 2014, we are also seeing a number of 13F filings roll out ahead of the May 15 deadline as well. #-ad_banner-#These SEC forms outline a fund’s long-only equity positions (as well as some debt and option trades) but omit short and international positions. However, we’re still often able to get a good idea of a fund’s portfolio depending on its investing methodology. The California Public Employees Retirement System is one such asset manager whose 13F can provide a fair amount of clarity to retail investors.  … Read More

As we enter earnings season for the first quarter of 2014, we are also seeing a number of 13F filings roll out ahead of the May 15 deadline as well. #-ad_banner-#These SEC forms outline a fund’s long-only equity positions (as well as some debt and option trades) but omit short and international positions. However, we’re still often able to get a good idea of a fund’s portfolio depending on its investing methodology. The California Public Employees Retirement System is one such asset manager whose 13F can provide a fair amount of clarity to retail investors.   CalPERS is the largest public pension fund in the U.S., carrying a staggering market value of $288 billion as of this month. Capital is divided across strategies emphasizing growth, income, liquidity and real assets, among others. Its equity holdings posted a gain of 25.6% last year, with total assets gaining 16% in 2013, the largest appreciation in 11 years. Why are retirement funds good vehicles to emulate? Particularly in a post-recession world, public pension funds take a more risk-averse stance than other volatile investment vehicles. While hedge funds may take more speculative positions with a larger percentage of their capital,… Read More

Market regulations are making it easier for the investing public to scrutinize and learn from the moves of some of the world’s greatest investors. #-ad_banner-#Stellar sources of information can be found in forms known as Schedule 13Ds and 13Gs, which are SEC filings that outline when a party has accumulated more than 5% of a stock’s publicly traded shares. Such positions are considered significant investments, often amounting to millions of dollars.   They speak volumes about an investor’s confidence in the direction of a company. We often see these forms filed in stocks with smaller market caps, in which investing… Read More

Market regulations are making it easier for the investing public to scrutinize and learn from the moves of some of the world’s greatest investors. #-ad_banner-#Stellar sources of information can be found in forms known as Schedule 13Ds and 13Gs, which are SEC filings that outline when a party has accumulated more than 5% of a stock’s publicly traded shares. Such positions are considered significant investments, often amounting to millions of dollars.   They speak volumes about an investor’s confidence in the direction of a company. We often see these forms filed in stocks with smaller market caps, in which investing “whales” (think fund managers) can quickly accumulate a sizable stake in a company through a smaller investment. One of the most successful investors in this space is Mario Gabelli, founder and CEO of GAMCO Investors. He started the firm in 1977 at age 34 and has seen it grow to over $47 billion in assets under management. With a net worth around $1.6 billion, Gabelli is no stranger to making successful calls over his long career, many of them in stocks with smaller capitalizations. According to the SEC, GAMCO Investors has been quite busy recently, making a number of portfolio… Read More

Every now and again, an opportunity comes along that turns unsuspecting, normal people into overnight millionaires. #-ad_banner-#Such as are the promises being made with the Cline Shale, located in the Permian Basin in West Texas. It has become one of the most talked-about and buzzworthy energy plays in the last century, let alone the past few years. Covering an area of over 1 million acres, the Cline Shale could be the largest North American oil play of all time, with the potential to pull 30 billion barrels of oil out of the ground.  For perspective, the… Read More

Every now and again, an opportunity comes along that turns unsuspecting, normal people into overnight millionaires. #-ad_banner-#Such as are the promises being made with the Cline Shale, located in the Permian Basin in West Texas. It has become one of the most talked-about and buzzworthy energy plays in the last century, let alone the past few years. Covering an area of over 1 million acres, the Cline Shale could be the largest North American oil play of all time, with the potential to pull 30 billion barrels of oil out of the ground.  For perspective, the Bakken Shale in North Dakota and Montana and the Eagle Ford in South Texas are estimated to contain 4.3 billion and 3 billion barrels of oil, respectively. The Cline is bigger than both combined — several times over. The proliferation of methods like fracking has made drilling for commodity reserves much more feasible in the past decade, and there is no shortage of exploration and production companies rushing to the area to stake their claim. I have had a unique geographical advantage in that I spent the past year and a half in West Texas, feeling firsthand where the Cline… Read More

They say there is power in numbers, and when it comes to investing like the pros, that sentiment is right on the money. #-ad_banner-#One of my favorite analytical methods is to find stocks that possess as many professional “endorsements” as possible. These stocks not only have impressively high yields, but they are also well-represented in the portfolios of the world’s investing elite. The beauty of today’s hedge fund regulations mean that managers are required to disclose their long positions every quarter, allowing investors of all sizes access to detailed insight into what a manager is holding.  Some of… Read More

They say there is power in numbers, and when it comes to investing like the pros, that sentiment is right on the money. #-ad_banner-#One of my favorite analytical methods is to find stocks that possess as many professional “endorsements” as possible. These stocks not only have impressively high yields, but they are also well-represented in the portfolios of the world’s investing elite. The beauty of today’s hedge fund regulations mean that managers are required to disclose their long positions every quarter, allowing investors of all sizes access to detailed insight into what a manager is holding.  Some of the disclosures are intentionally vague or “padded” to decrease transparency, but there are ways to glean actionable info from these filings, known as 13Fs. (My StreetAuthority colleagues and I have written about 13F’s on several occasions already this year.) One of my favorite investment strategies is to collect the filings of a number of successful managers (read: billionaires) and see where their investing methodologies intersect. Long-term investors like Warren Buffett have reaped the benefits of high-paying dividend stocks for years, and those securities should be favorites in the portfolios of those with a greater time horizon in mind. That said,… Read More