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Hedge Fund Maverick Capital Reports Q1 Picks

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Maverick Capital is a hedge fund located in GuruFocus’s own Dallas metroplex. Led by Lee Ainslie, this fund has been in operation since its inception in 1993. The firm just reported its Q1 portfolio. As of 03/31/2011, Maverick Capital owns 72 stocks with a total value of $9.5 billion. These are the details of the buys and sells.

Lee Ainslie earned his bachelor’s degree in system engineering from The University of Virginia, and his MBA from the University of North Carolina. Ainslie was recruited at UNC to work for legendary hedge fund manager Julian Robertson in 1990. In addition to his hedge fund duties, Ainslie serves as the vice-chairman of the Robin Hood Foundation, and on the board of trustees for several organizations such as the Green Vale School.

“I was deciding whether to return to management consulting (my first career) or to go into investment banking; Julian gave me an opportunity to come to New York to work for Tiger”

Lee Ainslie worked for Julian Robertson’s Tiger Management, one of the earliest hedge funds to be founded. Utilizing a value-oriented approach to investments, his success launched the explosion of the hedge fund industry. As referenced in a previous article, many of these analysts would go on to launch their own hedge funds after training and tutorage from Robertson. These new fund managers became a generation known as “tiger-cubs”, so eloquently referring to the roots of their training. Ainslie served as a managing director for Tiger Management and as a technological analyst for 3 years.

“….Evaluating management teams (of companies you were considering investing in) is critically important.”

Maverick Capital at its very core is a long/short equities fund. They invest in companies utilizing a fundamental bottoms-up approach to analyze equities. Ainslie operates with a long term view on value, much like his mentor, and this can be seen in their capital funding requirement. For the most part, his fund is widely closed to most investors, as he prefers dedicated and sophisticated investors. They prefer capital from investors with ties and influence on corporate boards across several spectrums of industry, in order to maintain and grow their business network. Furthermore, he typically has investors commit to a three year period, in order to achieve long term maximum value. Each position comprises no more then 5-8% of the overall portfolio, and is analyzed not upon quarterly earnings, but on a large annualized view with an optimal investment holding of 1-3 years out.

In terms of shorting equities, Lee Ainslie stated that: “Our short exposure is achieved by shorting individual stocks, which I think is increasingly unusual these days. But to us, it’s critical, because we want to add value on both the long side and the short side. If you use market-related indexes to create your short exposure, by definition it’s not going to add value.”

In terms of performance, Maverick Capital returned 11.2% vs. the S&P benchmark of 15.1% in 2010. Much of this loss was attributed to their short holdings, as is stated in their 2010 shareholder letter, “nine of our ten largest losses on the year were in short investments”. Since 1995 however, Maverick Capital had an annualized return of 14% vs. the S&P 8.1%.

This is the portfolio chart of Lee Ainslie. You can click on the legend of the chart to show/hide buys, sells, or holdings. Each ball on the chart represents a position in the portfolio. You can move your mouse on the balls to see the details of each position and click to see the details of all guru trades with this position.



For the details of Lee Ainslie's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Lee+Ainslie

This is the sector weightings of his portfolio:

Technology 32.5%
Consumer Services 21.5%
Health Care 14.8%
Financials 14.5%
Industrials 4.5%
Oil & Gas 2.1%
Consumer Goods 1.7%
Telecommunications 0.4%


These are the top 5 holdings of Lee Ainslie

  1. QUALCOMM Inc. (QCOM) - 7,816,973 shares, 4.5% of the total portfolio. Shares added by 9.42%
  2. Apple Inc. (AAPL) - 1,194,025 shares, 4.37% of the total portfolio. Shares added by 3.41%
  3. PFIZER INC. (PFE) - 20,151,225 shares, 4.3% of the total portfolio. Shares added by 38.07%
  4. CORNING Inc. (GLW) - 19,533,881 shares, 4.23% of the total portfolio. Shares reduced by 0.88%
  5. Marvell Technology Group Ltd. (MRVL) - 25,919,357 shares, 4.23% of the total portfolio. Shares added by 28.31%


Added: Progressive Corp. (PGR)

Lee Ainslie added to his holdings in Progressive Corp. by 103.47%. His purchase prices were between $19.16 and $21.15, with an estimated average price of $20.23. The impact to his portfolio due to this purchase was 1.48%. His holdings were 13,153,650 shares as of 03/31/2011.

Added: Goodrich Corp. (GR)

Lee Ainslie added to his holdings in Goodrich Corp. by 69.07%. His purchase prices were between $80.88 and $93.09, with an estimated average price of $88.12. The impact to his portfolio due to this purchase was 1.2%. His holdings were 3,274,141 shares as of 03/31/2011.

Added: Pfizer Inc. (PFE)

Lee Ainslie added to his holdings in Pfizer Inc. by 38.07%. His purchase prices were between $17.51 and $20.38, with an estimated average price of $19.07. The impact to his portfolio due to this purchase was 1.19%. His holdings were 20,151,225 shares as of 03/31/2011.

Added: Marvell Technology Group Ltd. (MRVL)

Lee Ainslie added to his holdings in Marvell Technology Group Ltd. by 28.31%. His purchase prices were between $15.36 and $21.889, with an estimated average price of $18.39. The impact to his portfolio due to this purchase was 0.93%. His holdings were 25,919,357 shares as of 03/31/2011.

Added: Thoratec Corp. (THOR)

Lee Ainslie added to his holdings in Thoratec Corp. by 168.61%. His purchase prices were between $23.06 and $31.2, with an estimated average price of $27.05. The impact to his portfolio due to this purchase was 0.92%. His holdings were 5,353,060 shares as of 03/31/2011.

Added: Longtop Financial Technologies Ltd. (LFT)

Lee Ainslie added to his holdings in Longtop Financial Technologies Ltd. by 43.84%. His purchase prices were between $28.41 and $36.27, with an estimated average price of $32.38. The impact to his portfolio due to this purchase was 0.57%. His holdings were 5,627,751 shares as of 03/31/2011.

Added: Vanceinfo Technologies Inc (VIT)

Lee Ainslie added to his holdings in Vanceinfo Technologies Inc by 49.78%. His purchase prices were between $27.96 and $37.44, with an estimated average price of $33.18. The impact to his portfolio due to this purchase was 0.41%. His holdings were 3,738,840 shares as of 03/31/2011.

Added: Qualcomm Inc. (QCOM)

Lee Ainslie added to his holdings in Qualcomm Inc. by 9.42%. His purchase prices were between $49.49 and $59.58, with an estimated average price of $54.32. The impact to his portfolio due to this purchase was 0.39%. His holdings were 7,816,973 shares as of 03/31/2011.

Added: Google Inc. (GOOG)

Lee Ainslie added to his holdings in Google Inc. by 15.29%. His purchase prices were between $557.1 and $639.63, with an estimated average price of $603.21. The impact to his portfolio due to this purchase was 0.39%. His holdings were 478,519 shares as of 03/31/2011.

Added: Home Inns & Hotels Management Inc. (HMIN)

Lee Ainslie added to his holdings in Home Inns & Hotels Management Inc. by 22.69%. His purchase prices were between $32.55 and $40.96, with an estimated average price of $37.25. The impact to his portfolio due to this purchase was 0.28%. His holdings were 3,611,135 shares as of 03/31/2011.

Added: Blackrock Inc. (BLK)

Lee Ainslie added to his holdings in Blackrock Inc. by 8.64%. His purchase prices were between $179.77 and $207.06, with an estimated average price of $195.03. The impact to his portfolio due to this purchase was 0.24%. His holdings were 1,403,583 shares as of 03/31/2011.

Added: Camelot Information Systems Inc. (CIS)

Lee Ainslie added to his holdings in Camelot Information Systems Inc. by 33.78%. His purchase prices were between $14.99 and $26.73, with an estimated average price of $21.09. The impact to his portfolio due to this purchase was 0.19%. His holdings were 4,444,897 shares as of 03/31/2011.

Added: Time Warner Cable Inc. (TWC)

Lee Ainslie added to his holdings in Time Warner Cable Inc. by 10.2%. His purchase prices were between $64.91 and $72.48, with an estimated average price of $68.96. The impact to his portfolio due to this purchase was 0.14%. His holdings were 1,999,521 shares as of 03/31/2011.

Added: Apple Inc. (AAPL)

Lee Ainslie added to his holdings in Apple Inc. by 3.41%. His purchase prices were between $322.56 and $363.13, with an estimated average price of $345.06. The impact to his portfolio due to this purchase was 0.14%. His holdings were 1,194,025 shares as of 03/31/2011.

Added: China Lodging Group Ltd. (HTHT)

Lee Ainslie added to his holdings in China Lodging Group Ltd. by 66.24%. His purchase prices were between $16.25 and $24.35, with an estimated average price of $19.41. The impact to his portfolio due to this purchase was 0.12%. His holdings were 1,616,772 shares as of 03/31/2011.

Added: Cigna Corp. (CI)

Lee Ainslie added to his holdings in Cigna Corp. by 7.6%. His purchase prices were between $36.66 and $44.12, with an estimated average price of $41.71. The impact to his portfolio due to this purchase was 0.11%. His holdings were 3,255,927 shares as of 03/31/2011.

Added: Cognizant Technology Solutions Corp. (CTSH)

Lee Ainslie added to his holdings in Cognizant Technology Solutions Corp. by 7.04%. His purchase prices were between $71.63 and $81.65, with an estimated average price of $75.66. The impact to his portfolio due to this purchase was 0.1%. His holdings were 1,786,352 shares as of 03/31/2011.

Added: Winnebago Industries Inc. (WGO)

Lee Ainslie added to his holdings in Winnebago Industries Inc. by 67.54%. His purchase prices were between $12.9 and $16.43, with an estimated average price of $14.8. The impact to his portfolio due to this purchase was 0.1%. His holdings were 1,712,736 shares as of 03/31/2011.

Added: Berry Petroleum (BRY)

Lee Ainslie added to his holdings in Berry Petroleum by 20.33%. His purchase prices were between $43.28 and $51.99, with an estimated average price of $46.66. The impact to his portfolio due to this purchase was 0.1%. His holdings were 1,138,424 shares as of 03/31/2011.

Added: Digitalglobe Inc. (DGI)

Lee Ainslie added to his holdings in Digitalglobe Inc. by 26.28%. His purchase prices were between $28.29 and $32.5, with an estimated average price of $30.25. The impact to his portfolio due to this purchase was 0.1%. His holdings were 1,664,952 shares as of 03/31/2011.

Added: Kirkland's Inc. Commonstock (KIRK)

Lee Ainslie added to his holdings in Kirkland's Inc. Commonstock by 67.69%. His purchase prices were between $13.245 and $15.82, with an estimated average price of $14.59. The impact to his portfolio due to this purchase was 0.06%. His holdings were 849,430 shares as of 03/31/2011.

New Purchase: Wells Fargo & Co. (WFC)

Lee Ainslie initiated holdings in Wells Fargo & Co.. His purchase prices were between $30.99 and $34.1, with an estimated average price of $32.23. The impact to his portfolio due to this purchase was 2.84%. His holdings were 8,546,569 shares as of 03/31/2011.

New Purchase: Yingli Green Energy Holding Company Ltd. (YGE)

Lee Ainslie initiated holdings in Yingli Green Energy Holding Company Ltd.. His purchase prices were between $9.88 and $13.34, with an estimated average price of $11.57. The impact to his portfolio due to this purchase was 1.98%. His holdings were 14,657,842 shares as of 03/31/2011.

New Purchase: Netapp Inc. (NTAP)

Lee Ainslie initiated holdings in Netapp Inc.. His purchase prices were between $46.38 and $60.6, with an estimated average price of $53.85. The impact to his portfolio due to this purchase was 1.53%. His holdings were 3,021,145 shares as of 03/31/2011.

New Purchase: Hca Holdings Inc. (HCA)

Lee Ainslie initiated holdings in Hca Holdings Inc.. His purchase prices were between $30.91 and $34.24, with an estimated average price of $32.28. The impact to his portfolio due to this purchase was 1.5%. His holdings were 4,230,000 shares as of 03/31/2011.

New Purchase: Dollar Tree Inc. (DLTR)

Lee Ainslie initiated holdings in Dollar Tree Inc.. His purchase prices were between $49.26 and $56.55, with an estimated average price of $52.1. The impact to his portfolio due to this purchase was 1.47%. His holdings were 2,518,400 shares as of 03/31/2011.

New Purchase: Capital One Financial (COF)

Lee Ainslie initiated holdings in Capital One Financial. His purchase prices were between $42.56 and $52.76, with an estimated average price of $49.19. The impact to his portfolio due to this purchase was 1.44%. His holdings were 2,640,411 shares as of 03/31/2011.

New Purchase: The Goldman Sachs Group Inc. (GS)

Lee Ainslie initiated holdings in The Goldman Sachs Group Inc.. His purchase prices were between $154.38 and $175, with an estimated average price of $164.5. The impact to his portfolio due to this purchase was 1.36%. His holdings were 817,742 shares as of 03/31/2011.

New Purchase: Trina Solar Ltd. (TSL)

Lee Ainslie initiated holdings in Trina Solar Ltd.. His purchase prices were between $23.31 and $30.4, with an estimated average price of $27.08. The impact to his portfolio due to this purchase was 1.03%. His holdings were 3,264,865 shares as of 03/31/2011.

New Purchase: Nii Holdings Inc (NIHD)

Lee Ainslie initiated holdings in Nii Holdings Inc. His purchase prices were between $37.16 and $44.66, with an estimated average price of $41.09. The impact to his portfolio due to this purchase was 0.39%. His holdings were 894,988 shares as of 03/31/2011.

New Purchase: Wet Seal Inc. (WTSLA)

Lee Ainslie initiated holdings in Wet Seal Inc.. His purchase prices were between $3.41 and $4.18, with an estimated average price of $3.76. The impact to his portfolio due to this purchase was 0.14%. His holdings were 3,163,823 shares as of 03/31/2011.

New Purchase: Medley Capital Corp. (MCC)

Lee Ainslie initiated holdings in Medley Capital Corp.. His purchase prices were between $11.73 and $12.19, with an estimated average price of $11.97. The impact to his portfolio due to this purchase was 0.09%. His holdings were 729,157 shares as of 03/31/2011.

New Purchase: Royal Bank Of Scotland Group Plc (RBS.PM)

Lee Ainslie initiated holdings in Royal Bank Of Scotland Group Plc. His purchase prices were between $14.695 and $17.8201, with an estimated average price of $16.56. The impact to his portfolio due to this purchase was 0.06%. His holdings were 312,000 shares as of 03/31/2011.

Reduced: Stanley Works (SWK)

Lee Ainslie reduced to his holdings in Stanley Works by 52.1%. His sale prices were between $65.5 and $77.22, with an estimated average price of $72.38. The impact to his portfolio due to this sale was -1.6%. Lee Ainslie still held 1,828,139 shares as of 03/31/2011.

Reduced: Avago Technologies Ltd. (AVGO)

Lee Ainslie reduced to his holdings in Avago Technologies Ltd. by 98.01%. His sale prices were between $27.7 and $34.38, with an estimated average price of $30.53. The impact to his portfolio due to this sale was -1.48%. Lee Ainslie still held 86,087 shares as of 03/31/2011.

Reduced: Whiting Petroleum Corp. (WLL)

Lee Ainslie reduced to his holdings in Whiting Petroleum Corp. by 48.51%. His sale prices were between $56.36 and $123.91, with an estimated average price of $64.1. The impact to his portfolio due to this sale was -1.44%. Lee Ainslie still held 1,984,028 shares as of 03/31/2011.

Reduced: Jp Morgan Chase (JPM)

Lee Ainslie reduced to his holdings in Jp Morgan Chase by 30.17%. His sale prices were between $42.42 and $48, with an estimated average price of $45.34. The impact to his portfolio due to this sale was -1.25%. Lee Ainslie still held 5,980,977 shares as of 03/31/2011.

Reduced: Teva Pharmaceutical Industries Ltd. (TEVA)

Lee Ainslie reduced to his holdings in Teva Pharmaceutical Industries Ltd. by 47.24%. His sale prices were between $47.37 and $56.29, with an estimated average price of $51.8. The impact to his portfolio due to this sale was -1.19%. Lee Ainslie still held 2,524,807 shares as of 03/31/2011.

Reduced: Comcast Corp. (CMCSA)

Lee Ainslie reduced to his holdings in Comcast Corp. by 41.67%. His sale prices were between $21.97 and $25.77, with an estimated average price of $23.93. The impact to his portfolio due to this sale was -0.88%. Lee Ainslie still held 4,726,051 shares as of 03/31/2011.

Reduced: Life Technologies Corp. (LIFE)

Lee Ainslie reduced to his holdings in Life Technologies Corp. by 33.83%. His sale prices were between $49.34 and $56.73, with an estimated average price of $53.41. The impact to his portfolio due to this sale was -0.8%. Lee Ainslie still held 2,833,460 shares as of 03/31/2011.

Reduced: Signet Jewelers Ltd. (SIG)

Lee Ainslie reduced to his holdings in Signet Jewelers Ltd. by 24.9%. His sale prices were between $41.13 and $45.76, with an estimated average price of $43.35. The impact to his portfolio due to this sale was -0.12%. Lee Ainslie still held 725,721 shares as of 03/31/2011.

Reduced: Medidata Solutions Inc. (MDSO)

Lee Ainslie reduced to his holdings in Medidata Solutions Inc. by 44.59%. His sale prices were between $22.98 and $27.11, with an estimated average price of $25.37. The impact to his portfolio due to this sale was -0.1%. Lee Ainslie still held 485,479 shares as of 03/31/2011.

Reduced: Interactive Brokers Group Inc. (IBKR)

Lee Ainslie reduced to his holdings in Interactive Brokers Group Inc. by 37.59%. His sale prices were between $15.3975 and $18.2, with an estimated average price of $16.37. The impact to his portfolio due to this sale was -0.07%. Lee Ainslie still held 632,079 shares as of 03/31/2011.

Reduced: Isoftstone Holdings Ltd. (ISS)

Lee Ainslie reduced to his holdings in Isoftstone Holdings Ltd. by 22.86%. His sale prices were between $16.96 and $20.66, with an estimated average price of $19.27. The impact to his portfolio due to this sale was -0.02%. Lee Ainslie still held 344,941 shares as of 03/31/2011.

Sold Out: Citigroup Inc. (C)

Lee Ainslie sold out his holdings in Citigroup Inc.. His sale prices were between $43.9 and $51.3, with an estimated average price of $47.29.

Sold Out: Dell Inc. (DELL)

Lee Ainslie sold out his holdings in Dell Inc.. His sale prices were between $13.15 and $15.83, with an estimated average price of $14.44.

Sold Out: Bed Bath & Beyond Inc. (BBBY)

Lee Ainslie sold out his holdings in Bed Bath & Beyond Inc.. His sale prices were between $45.07 and $50.82, with an estimated average price of $48.2.

Sold Out: Abercrombie & Fitch Co. (ANF)

Lee Ainslie sold out his holdings in Abercrombie & Fitch Co.. His sale prices were between $48.36 and $59.12, with an estimated average price of $54.26.

Sold Out: Finisar Corp. (FNSR)

Lee Ainslie sold out his holdings in Finisar Corp.. His sale prices were between $21.14 and $43.23, with an estimated average price of $32.6.

Sold Out: Bank Of America Corp. (BAC)

Lee Ainslie sold out his holdings in Bank Of America Corp.. His sale prices were between $13.34 and $15.25, with an estimated average price of $14.2.

Sold Out: Skyworks Solutions Inc. (SWKS)

Lee Ainslie sold out his holdings in Skyworks Solutions Inc.. His sale prices were between $28.63 and $36.98, with an estimated average price of $32.68.

Sold Out: Citrix Systems Inc. (CTXS)

Lee Ainslie sold out his holdings in Citrix Systems Inc.. His sale prices were between $61.95 and $72.8, with an estimated average price of $68.38.

Sold Out: Huntington Bancshares Inc. (HBAN)

Lee Ainslie sold out his holdings in Huntington Bancshares Inc.. His sale prices were between $6.46 and $7.58, with an estimated average price of $6.98.

Sold Out: Devry Inc. (DV)

Lee Ainslie sold out his holdings in Devry Inc.. His sale prices were between $42.81 and $55.18, with an estimated average price of $51.47.

Sold Out: Stillwater Mining Company (SWC)

Lee Ainslie sold out his holdings in Stillwater Mining Company. His sale prices were between $19.95 and $25.51, with an estimated average price of $22.54.

Sold Out: Citigroup Inc. (C.PH)

Lee Ainslie sold out his holdings in Citigroup Inc.. His sale prices were between $125.95 and $145.7, with an estimated average price of $135.15.

Sold Out: Children's Place Retail Stores Inc. (PLCE)

Lee Ainslie sold out his holdings in Children's Place Retail Stores Inc.. His sale prices were between $40.89 and $50.48, with an estimated average price of $45.68.

Sold Out: Itron Inc. (ITRI)

Lee Ainslie sold out his holdings in Itron Inc.. His sale prices were between $51.03 and $64.14, with an estimated average price of $56.91.

Sold Out: Artio Global Investors Inc. (ART)

Lee Ainslie sold out his holdings in Artio Global Investors Inc.. His sale prices were between $14.33 and $16.48, with an estimated average price of $15.27.

Sold Out: Youku.com (YOKU)

Lee Ainslie sold out his holdings in Youku.com. His sale prices were between $29.55 and $51.26, with an estimated average price of $38.29.

Sold Out: China Nuokang Biopharmaceutical Inc. Ads (NKBP)

Lee Ainslie sold out his holdings in China Nuokang Biopharmaceutical Inc. Ads. His sale prices were between $3.54 and $4.6, with an estimated average price of $3.9.


Rating: 3.7/5 (7 votes)

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