The 3Q10 Letter of Lee Ainslie’s Maverick Capital is out, thanks to Jay of marketfolly.com.
Maverick enjoyed a good third quarter, the flag ship Maverick Fund returned 11.6% for 3Q10, and 8.2% for YTD. What is more remarkable is the fund averaged a 14.1% since inception of March 1, 1995. Maverick Fund beat the S&P 500 Index hands down during the prospective periods. The firm’s levered fund performed even better.
The letter contains an excellent commentary entitled “The Visible Hand” by Steve Galbraith. In Galbraith’s opinion, despite the good intention and action of the government “visible hands” in Washington DC in trying to create a constructive environment for the nation’s pillar industry, the effect has been exactly the opposite. The market has voted against the government by ascribing low valuation to the healthcare, education, financial and alternative energy sectors.
An interesting fact pointed out by Galbraith’s is that “the annual deficit being run up in the U.S. today are almost precisely equal to the sum of the combined free cash flow of Corporate Amreca and John Q. Public.”
The commentary offered a solution to the dilemma faced by the government and executives of U.S. Corporations:” If policy makers can articulate a clear, measured and gradual plan to replenish the public sector’s coffers, equities offer extremely compelling real return prospects ad I would expect much of the current paralysis we are witnessing in executive suites to fade”.
Read the full letter:
Maverick-Q3-2010-Letter -
The letter only list the sector information of its funds, GuruFocus has information drilled down to individual companies. They are due for an updating in about two weeks. Here are their top positions as of June 30, 2010:
No. 1: Qualcomm Inc. (QCOM, Financial), Weightings: 4.26% - 10,135,760 Shares
Qualcomm Inc. develops and delivers innovative digital wireless communications products and services based on the company's CDMA digital technology. Qualcomm Inc. has a market cap of $72.52 billion; its shares were traded at around $45.33 with a P/E ratio of 23 and P/S ratio of 6.9. The dividend yield of Qualcomm Inc. stocks is 1.7%. Qualcomm Inc. had an annual average earningss growth of 15.4% over the past 10 years. GuruFocus rated Qualcomm Inc. the business predictability rank of 1-star.
No. 2: Pfizer Inc (PFE, Financial), Weightings: 4.24% - 23,217,741 Shares
Pfizer Inc is a research-based, global pharmaceutical company that discovers and develops innovative, value-added products that improve the quality of life of people around the world and help them enjoy longer, healthier, and more productive lives. Pfizer Inc has a market cap of $140.67 billion; its shares were traded at around $17.62 with a P/E ratio of 7.8 and P/S ratio of 2.8. The dividend yield of Pfizer Inc stocks is 4%. Pfizer Inc had an annual average earnings growth of 1.8% over the past 10 years.
No. 3: Apple Inc. (AAPL, Financial), Weightings: 4.22% - 1,309,915 Shares
Apple Computer, Inc. designs, manufactures and markets personal computers and related personal computing and communicating solutions for sale primarily to education, creative, consumer, and business customers. Apple Inc. has a market cap of $276.65 billion; its shares were traded at around $304.18 with a P/E ratio of 19.9 and P/S ratio of 4.2. Apple Inc. had an annual average earnings growth of 83.1% over the past 5 years.
No. 4: Corning Inc. (GLW, Financial), Weightings: 4.2% - 20,338,663 Shares
Corning Incorporated creates leading-edge technologies for the fastest-growing markets of the world's economy. Corning Inc. has a market cap of $28.72 billion; its shares were traded at around $18.5 with a P/E ratio of 9.4 and P/S ratio of 5.3. The dividend yield of Corning Inc. stocks is 1.1%. Corning Inc. had an annual average earnings growth of 4.9% over the past 5 years.
No. 5: Marvell Technology Group Ltd. (MRVL, Financial), Weightings: 4.15% - 20,577,980 Shares
Marvell Technology is a designer, developer and supplier of mixed-signal and digital signal processing integrated circuit for high-speed, high-density, digital data storage and broadband digital data networking markets. Marvell Technology Group Ltd. has a market cap of $12.79 billion; its shares were traded at around $19.51 with a P/E ratio of 14.6 and P/S ratio of 4.6. Marvell Technology Group Ltd. had an annual average earnings growth of 34% over the past 10 years.
No. 6: Apollo Group Inc. (APOL, Financial), Weightings: 4.07% - 7,483,993 Shares
Apollo Group, Inc. has been providing higher education to working adults for over 25 years. Apollo Group Inc. has a market cap of $5.56 billion; its shares were traded at around $38.24 with a P/E ratio of 7 and P/S ratio of 1.1. Apollo Group Inc. had an annual average earnings growth of 26.4% over the past 10 years. GuruFocus rated Apollo Group Inc. the business predictability rank of 4-star.
Check out Lee Ainslie’s complete long stock positions by clicking on his name.
Maverick enjoyed a good third quarter, the flag ship Maverick Fund returned 11.6% for 3Q10, and 8.2% for YTD. What is more remarkable is the fund averaged a 14.1% since inception of March 1, 1995. Maverick Fund beat the S&P 500 Index hands down during the prospective periods. The firm’s levered fund performed even better.
The letter contains an excellent commentary entitled “The Visible Hand” by Steve Galbraith. In Galbraith’s opinion, despite the good intention and action of the government “visible hands” in Washington DC in trying to create a constructive environment for the nation’s pillar industry, the effect has been exactly the opposite. The market has voted against the government by ascribing low valuation to the healthcare, education, financial and alternative energy sectors.
An interesting fact pointed out by Galbraith’s is that “the annual deficit being run up in the U.S. today are almost precisely equal to the sum of the combined free cash flow of Corporate Amreca and John Q. Public.”
The commentary offered a solution to the dilemma faced by the government and executives of U.S. Corporations:” If policy makers can articulate a clear, measured and gradual plan to replenish the public sector’s coffers, equities offer extremely compelling real return prospects ad I would expect much of the current paralysis we are witnessing in executive suites to fade”.
Read the full letter:
Maverick-Q3-2010-Letter -
The letter only list the sector information of its funds, GuruFocus has information drilled down to individual companies. They are due for an updating in about two weeks. Here are their top positions as of June 30, 2010:
No. 1: Qualcomm Inc. (QCOM, Financial), Weightings: 4.26% - 10,135,760 Shares
Qualcomm Inc. develops and delivers innovative digital wireless communications products and services based on the company's CDMA digital technology. Qualcomm Inc. has a market cap of $72.52 billion; its shares were traded at around $45.33 with a P/E ratio of 23 and P/S ratio of 6.9. The dividend yield of Qualcomm Inc. stocks is 1.7%. Qualcomm Inc. had an annual average earningss growth of 15.4% over the past 10 years. GuruFocus rated Qualcomm Inc. the business predictability rank of 1-star.
No. 2: Pfizer Inc (PFE, Financial), Weightings: 4.24% - 23,217,741 Shares
Pfizer Inc is a research-based, global pharmaceutical company that discovers and develops innovative, value-added products that improve the quality of life of people around the world and help them enjoy longer, healthier, and more productive lives. Pfizer Inc has a market cap of $140.67 billion; its shares were traded at around $17.62 with a P/E ratio of 7.8 and P/S ratio of 2.8. The dividend yield of Pfizer Inc stocks is 4%. Pfizer Inc had an annual average earnings growth of 1.8% over the past 10 years.
No. 3: Apple Inc. (AAPL, Financial), Weightings: 4.22% - 1,309,915 Shares
Apple Computer, Inc. designs, manufactures and markets personal computers and related personal computing and communicating solutions for sale primarily to education, creative, consumer, and business customers. Apple Inc. has a market cap of $276.65 billion; its shares were traded at around $304.18 with a P/E ratio of 19.9 and P/S ratio of 4.2. Apple Inc. had an annual average earnings growth of 83.1% over the past 5 years.
No. 4: Corning Inc. (GLW, Financial), Weightings: 4.2% - 20,338,663 Shares
Corning Incorporated creates leading-edge technologies for the fastest-growing markets of the world's economy. Corning Inc. has a market cap of $28.72 billion; its shares were traded at around $18.5 with a P/E ratio of 9.4 and P/S ratio of 5.3. The dividend yield of Corning Inc. stocks is 1.1%. Corning Inc. had an annual average earnings growth of 4.9% over the past 5 years.
No. 5: Marvell Technology Group Ltd. (MRVL, Financial), Weightings: 4.15% - 20,577,980 Shares
Marvell Technology is a designer, developer and supplier of mixed-signal and digital signal processing integrated circuit for high-speed, high-density, digital data storage and broadband digital data networking markets. Marvell Technology Group Ltd. has a market cap of $12.79 billion; its shares were traded at around $19.51 with a P/E ratio of 14.6 and P/S ratio of 4.6. Marvell Technology Group Ltd. had an annual average earnings growth of 34% over the past 10 years.
No. 6: Apollo Group Inc. (APOL, Financial), Weightings: 4.07% - 7,483,993 Shares
Apollo Group, Inc. has been providing higher education to working adults for over 25 years. Apollo Group Inc. has a market cap of $5.56 billion; its shares were traded at around $38.24 with a P/E ratio of 7 and P/S ratio of 1.1. Apollo Group Inc. had an annual average earnings growth of 26.4% over the past 10 years. GuruFocus rated Apollo Group Inc. the business predictability rank of 4-star.
Check out Lee Ainslie’s complete long stock positions by clicking on his name.
