2/19/2013

After reviewing hundreds of the quarterly filings from some of the world’s biggest and best Billionaire hedge funds this weekend, a few investment trends have emerged.

1) Be Cautious of owning Gold- Both George Soros and Billionaire Louis Bacon of Moore Capital substantially reduced their holdings in the Gold ETF (GLD). Moore Capital sold off their entire position in GLD and George Soros reduced his position in GLD by 55%, signaling that a lot of the smart money is moving out of Gold.

2) The Majority of Billionaire Hedge Fund sold their position in Apple (AAPL) this is not surprising as the stock has dropped more than 30% from its peak last quarter. I still think based on Billionaire Smart Money Flows that Apple (AAPL) still has more room to fall, so be caution on Apple as well.

3) Three top Billionaire Hedge Funds, Lone Pine Capital, Farrallon Capital and Tiger Consumer all took major positions in the “Dollar Stores”, both Family Dollar (FDO) and Dollar Tree (DLTR). This to me is the most significant move I found as both stocks Family Dollar and Dollar tree are near their 52 week lows. Furthermore as I have explained before it is very bullish, based on my backtesting and research, when Billionaire Hedge Fund Managers acquire or add to their stakes in companies that have declined or are near a 52 week low, and that is the case here with both DLTR and FDO.

Will Meade
Editor of The Billioniares Portfolio