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Hedge Fund Passport Capital’s Top Five Purchases: YHOO, YELP, BUD, GDI …

Investor John Burbank, leader of hedge fund Passport Capital, is decisively bearish on global growth, as he expressed in a CNBC interview at the SALT conference May 9. In his expected scenario, he advises:

“You want to own primarily U.S. companies, you want to own world leaders. Those are more likely to have some growth, liquidity, top governance, dividends, good capital allocation, and they’re not beneficiaries of just global growth. U.S. companies are increasingly spreading round the world, but they don’t need the whole world to grow the way, say, commodity equities do, or even emerging market equities do. “

Burbank engaged in significant trading in the first quarter, as suggested by his 32% turnover from the previous quarter. He bought 44 new stocks, ending the three months with 121 holdings valued at $2.5 billion.

The intrepid investor has also reported having 17% of his firm’s $3.7 billion in capital invested in Saudi Arabia as of February, and has 44.9% of his equity portfolio in basic materials

Burbank’s Largest Stock Purchases of Q1

5. Yelp Inc. (YELP)

Shares purchased: 2,029,241. Average price: $22 – near a two-year high. At $29.33 per share on Thursday, Yelp shares have gained 33% from his average price. The holding represents 1.9% of his portfolio.

Yelp, the website that allows customers to give online reviews of companies they patronize, became a public company in March 2012. In that time, revenue has grown annually, while the bottom line has deteriorated:

Valuation:

P/B: 11.1
P/S: 11.6

4. Anheuser-Busch Inbev SA (BUD)

Shares purchased: 483,925. Average price: $92. The Anheuser-Bush holding, representing 1.9%, has increased 4% in price since his purchase, at $92 on Thursday – closing in on its 10-year high.

Anheuser-Bush’s 10-year revenue and net income growth history:

Valuation

P/E: 27.1
P/B: 3.70
P/S: 3.9 – close to a three-year high

Check out:

1. John Burbank’s Undervalued Stocks
2. John Burbank’s Top Growth Companies, and
3. John Burbank’s High Yield stocks
4. Stocks that John Burbank keeps buying

3. Yahoo! Inc. (YHOO)

Shares purchased: 2,228,297. Average price: $21. Yahoo is a search engine generating revenue from advertisers. This week, it announced as part of its revitalization it would acquire media network Tumblr for $1.1 billion. Yahoo’s 10-year revenue and earnings history:

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Mystic Maggie

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