Weitz manages his firm’s Hickory Fund (which is a great name for a fund, by the way) and Partners III Opportunity Fund. He also co-manages the Value Fund and Partners Value Fund. Like a lot of value investors, he had a rough 2008, but the Hickory Fund is up more than 23% so far in 2010.
So, what’s Wally Weitz looking at these days? Of course he continues to own Berkshire Hathaway (BRK-B), but he’s also done very well with Coinstar (CSTR) and Liberty Global (LBTYK) in 2010. In addition to those three names, here are four other large current holdings:
- Liberty Media (LINTA): This is the QVC portion of the Liberty Media Corporation conglomerate, as well as some related websites.
- Omnicare (OCR): A pharmaceuticals servicing company. This looks like a bet on computerized medical record keeping.
- Sandridge Energy (SD): An independent oil and natural gas driller.
- Redwood Trust (RWT): A REIT focusing on residential and commercial real estate loans.
He sums up his advantage as well as any value investor I’ve heard: He’s done well because of emotional arbitrage. Value investors are natural contrarians, but we don’t want to dismiss the crowd out of spite or some misplaced ego trip. Our advantage is our willingness to buy into certain securities when the negativity has temporarily driven down the price, and be able to manage our emotions and see the stock price through to normality. Weitz does it much better than most.
Disclosure: Long BRK-B