Investment Guru Richard Perry of Perry Capital has published his annual 2009 review. The long-time hedge fund manager was caught off guard with the quick recovery of the US equity market. He kept 40% of his fund in cash. Even so, the return of his fund was over 25% for the year, helped by the credit holdings.
He is bullish on the Managed Health Care Sector:
GuruFocus data shows Perry had 2.65 million shares of Humana (HUM, Financial) stock or 8.59% of his long equity position at the beginning of 4Q09. Humana climbed from around $37 to over $50 per share since then.
Perry provided an update on his views on Palm Inc. (PALM, Financial):
GuruFocus data show that Perry had 5.2 million shares of Palm as of September 30, 2009. In 4Q09, the stock dropped from over $17 per share to around $10 per share.
Click here to complete reading the Richard Perry annual report.
He is bullish on the Managed Health Care Sector:
In equities, our managed care stocks were a strong contributor to Q4 performance. As concerns around a government-instituted public plan faded away, these stocks continued to rally. Even today, many of the managed care names are trading below 10x earnings. We have scaled back our positions slightly to lock in some gains, but managed care continues to be approximately 5% of our total portfolio.
GuruFocus data shows Perry had 2.65 million shares of Humana (HUM, Financial) stock or 8.59% of his long equity position at the beginning of 4Q09. Humana climbed from around $37 to over $50 per share since then.
Perry provided an update on his views on Palm Inc. (PALM, Financial):
Conversely, we were hurt by a steep decline in Palm’s stock as well as a continued rally in the broader market, which caused many of our shorts to detract from performance.
Palm was affected by the launch of the Motorola Droid at Verizon, which market observers viewed as a competitive threat. We used the selloff as an opportunity to add to our position in advance of carrier launches with Verizon and AT&T. We view Palm as a differentiated operating system that is a cut above the updated Android, as evidenced by its recently announced ability to run 3D games and multitask. Additionally, the number and quality of Palm applications is improving dramatically. The handset industry is in an arms race as the market transitions from feature phones to smartphones. Our view is that Palm has an excellent operating system and will continue to gain traction with the carriers. That being said, our fears around competitive pricing in the smartphone area led us to increase someof our hedges in this area.
GuruFocus data show that Perry had 5.2 million shares of Palm as of September 30, 2009. In 4Q09, the stock dropped from over $17 per share to around $10 per share.
Click here to complete reading the Richard Perry annual report.
