Monday, February 11, 2013

Here’s What This $9 Billion Contrarian Has Been Buying and Selling

Every quarter, many money managers have to disclose what they've bought and sold, via "13F" filings. Their latest moves can shine a bright light on smart stock picks.

Today, let's look at Tocqueville Asset Management, which is a portfolio manager with a contrarian bent, believing that "the best investment results over time are achieved outside the mainstream consensus" and seeking "undervalued companies that possess long-term earnings power."

The company's reportable stock portfolio totaled $8.9 billion in value as of Dec. 31, 2012.

Interesting developments
So what does Tocqueville's latest quarterly 13F filing tell us? Here are a few interesting details:

The biggest new holdings are FedEx�and Canadian miner Ivanplats. Other new holdings of interest include Halcon Resources (NYSE: HK  ) and Sarepta Therapeutics (NASDAQ: SRPT  ) . Oil and gas company Halcon has been growing by acquiring assets such as shale-field properties and is expected to grow by 30% annually in the next few years. Sarepta, a biotech developing the promising Duchenne muscular dystrophy drug eteplirsen, nearly tripled in a single day recently and some expect further growth. There's little certainty, though, until or unless the drug receives FDA approval.

Among holdings in which Tocqueville increased its stake was rare-earth elements producer�Molycorp (NYSE: MCP  ) , which has been struggling in a tough environment and recently worried investors with a bigger-than-many-expected share offering and debt issuance. (Some worry about further capital needs�in the near future.) The stock is down a whopping 75% over the past year,

Tocqueville reduced its stake in lots of companies, including General Electric (NYSE: GE  ) . The company's recent fourth-quarter report featured a growing backlog of orders (hitting $210 billion), and it has been expanding in areas such as mining and natural gas infrastructure. In a recent Motley Fool Money Roundtable, our analysts discussed another huge GE asset:�its financial arm.

Finally, Tocqueville's biggest closed positions included Barrick Gold�and Kaiser Aluminum. Other closed positions of interest include Amarin (NASDAQ: AMRN  ) , a late-stage cardiovascular-focused biotech company with a promising drug to lower triglycerides. Some bulls see its newly approved drug, Vascepa, as underappreciated�while others are waiting to see how successful its launch is. There's speculation that the company will be acquired�by a big pharmaceutical company, too.

We should never blindly copy any investor's moves, no matter how talented the investor. But it can be useful to keep an eye on what smart folks are doing. 13-F forms can be great places to find intriguing candidates for our portfolios.

More Expert Advice from The Motley Fool

The biotech space can make or break investors over-night, and while Amarin might not disappear into thin air, the success of its new triglyceride lowering drug is key to the company's future success or failure. The company has huge potential, but don't invest a dollar before reading everything you need to know about Amarin. You can start now with top Fool.com analyst Max Macaluso's premium research report. Click here now to keep reading.

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