John H. Burbank’s Passport Capital Llc filed its second quarter 13F Form with the Securities and Exchange Commission today. The hedge fund showed confidence in emerging markets. Passport Capital said in the filing that it added 65 new stocks to its portfolio and exited 62 stocks. The investment firm cut holdings in 38 stocks and boosted stake in 22 stocks during the quarter ending June 30. See more information from Passport Capital’s second quarter letter.
Passport Capital’s market value increased from $2.52 billion to $3.03 billion during the quarter. The top ten holdings of John H. Burbank-led investment firm account for 49.02% of its portfolio. It indicates that Passport Capital has a highly concentrated portfolio, which include 193 stocks in total.
Passport Capital’s major new positions
iShares MSCI Emerging Markets Index (ETF) (NYSEARCA:EEM) is the latest and biggest addition to Passport Capital’s portfolio. The hedge fund purchased 15,720,000 shares of the ETF, that had a market value of about $605 million at the end of the second quarter. It accounted for 19.93% of Passport Capital’s portfolio. The next big new purchase was Chinese Internet firm Baidu.com, Inc. (NASDAQ:BIDU), of which Passport Capital owns 894,290 shares. As of June 30, the Baidu.com, Inc. (NASDAQ:BIDU) stake is worth about $84.6 million.
Passport Capital has also purchased 1,000,000 CALL options on UnitedHealth Group Inc. (NYSE:UNH). It accounts for 2.16% of Passport Capital’s portfolio. Another big new addition was Dollar General Corp. (NYSE:DG). Passport Capital bought 943,024 shares of the retailer that have a market value of $47.55 million. It accounts for 1.57% of the hedge fund’s portfolio.
Passport Capital sold its entire stake in Huntsman Corporation (NYSE:HUN) which accounted for 6.28% of its portfolio prior to the quarter. The hedge fund sold 8,529,842 shares of the company in the second quarter. It also exited PennyMac Mortgage Investment Trust (NYSE:PMT). Passport Capital had 2,045,880 shares in the company, accounting for 2.1% of its portfolio prior to the quarter.
The third biggest position closed during the quarter was Eastman Chemical Company (NYSE:EMN). At the beginning of the second quarter, the chemical company accounted for 1.74% of its portfolio with 629,493 shares. Passport Capital also sold its entire holding of 988,824 shares in The Dow Chemical Company (NYSE:DOW).
The new addition iShares MSCI Emerging Markets Indx (ETF) (NYSEARCA:EEM) is undoubtedly the largest holdings of the hedge fund. The second largest holding is Cytec Industries Inc (NYSE:CYT) which accounts for 6.18% of its portfolio. Passport Capital owns 2,564,323 shares of Cytec Industries Inc (NYSE:CYT) that had a market value of $187.8 million as of June 30. The next big position was VIVUS, Inc. (NASDAQ:VVUS) of which the investment firm owned 8,505,148 shares. It accounted for 3.52% of Passport Capital’s portfolio with a market value of $106.99 million.