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Richard Perry’s Three New Mega Buys

August 10, 2013 | About:
Sally Jones

Sally Jones

49 followers
Perry Capital co-founder, Richard Perry, recently made three new buys that impact his concentrated portfolio in a major way, according to GuruFocus Real Time Picks. Perry Capital currently lists 24 stocks, 8 of them new, in a portfolio valued at $3.9 billion, with a quarter over quarter turnover at 60%. His portfolio is weighted with top three sectors of consumer cyclical at 15.7%, financial services at 14% and energy at 11.3%.

Guru Richard Perry traded heavily in the second quarter of 2013. Here are his most recent new buys as of June 30, 2013.



SPDR S&P 500 ETF (SPY) – Impact 16.6%


For those who need a clear definition of SPDR, Kevin Hagen explained it best: “SPDR stands for Standard & Poor's Depository Receipts, which are instruments that are traded on the stock exchange. These instruments are part of the Exchange Traded Funds that invest in baskets of stocks that reflect the composition of a stock index, such as the S&P 500, in this case. When you purchase SPDRs, you are actually buying an interest in the stocks of all the 500 companies that make up the S&P 500 index.”

Standard and Poor's Depository Receipts is up 20% over 12 months with a market cap of $127.81 billion.

The current share price is $169.31. The dividend yield is 2.00. The interest coverage is 3.1, considered low.

Richard Perry has had a long, lucrative, buy and sell relationship with SPY, beginning back in the second quarter of 2003 when he bought 1,140,547 shares at an average price of $94.17 and made a 79.8% gain. More recently, in the fourth quarter of 2012, Perry sold out 200,037 shares at an average price of $142.07 for a 19.2% gain.

As of June 30, 2012, Perry’s new buy of 4,051,200 shares at an average price of $161.20 made a gain of 5%.



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iShares Down Jones US Real Estate (IYR) – 11.9%

The ETF called iShares Down Jones US Real Estate (IYR) is up 2% over 12 months with a market cap of $4.72 billion. The current share price is $66.07. The dividend yield is 3.90.

According to GuruFocus research, there is a warning sign: the ETF’s earnings cannot cover its interest expense, meaning that if the situation continues, the company may have to issue more debt. The GuruFocus checkup also shows that not enough data is available on this ETF.

As of June 30, 2012, first-time buyer, Richard Perry’s new buy of 7,000,000 shares at an average price of $71.51 had a loss of 7.6%.

Here’s more Guru trading of IYR.

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FedEx Corporation (FDX) – 9.8%

Up 23% over 12 months, FedEx Corporation has a market cap of $34.26 billion and trades at a P/E 21.60 and a P/B of 2.00. The current share price is $108.22. The dividend yield is 0.53.

FedEx Corporation is a holding company, incorporated in 1997. The company provides strategic direction to the FedEx portfolio of companies in shipping, logistics and integrated services.

As of June 30, 2012, Richard Perry made a new buy of 3,900,000 shares at an average price of $97.08 for a gain of 11.5%. This is his first trade of FDX since 2005 when he sold out 450,000 shares at an average price of $83.10 for a gain of 30.2%.

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Check out more FDX Guru trading details.

In June, FedEx Corporation reported that international shipping has slowed, with fiscal fourth quarter financial results of revenue (adjusted non-GAAP) at $11.4 billion up from $11.0 billion in the same period a year ago. Adjusted fiscal fourth quarter earnings are up, at $2.13 per share from $1.99 a year ago same quarter.

Richard Perry’s top buys, top sales, and top holdings:



GuruFocus Real Time Picks reports the stock purchases and sales that Gurus have made within the prior 2 weeks. The report time lag can be as short as 2 days after the date of the transaction. This feature is for Premium Members only.

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About the author:

Sally Jones
Sally Jones writes about Real Time Picks. She says, "I truly enjoy watching the Gurus in realtime and telling their story."

Rating: 3.0/5 (3 votes)

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