is an investor noted for his 23% annualized returns since
founding his hedge fund, $17 billion Passport Capital, in 2000.
his second-quarter letter
, He said that he was "very bearish today on much of the world."
Nevertheless, he bought 73 new stocks, a significant turnover for
his portfolio of 152 stocks. Of these, the largest are: Kinder
), HollyFrontier (
), Alcatel Lucent (
), Lockheed Martin (
) and Goodrich Corp. (
Kinder Morgan (
Burbank bought 2,061,070 shares of Kinder Morgan (
) at an average price of $35.50 in the second quarter of 2012.
Burbank's top two buys are involved in oil, something he
mentioned in his letter: "While the price of surplus of global
labor and domestic housing presents no near-term U.S. inflation
risks, oil is rapidly rising to defeat the printing-press
strategy for overleveraged sovereigns and increase deflationary
concerns." He is also long Brent Crude.
Kinder Morgan is the third-largest energy company by enterprise
value in North America with 75,000 miles of pipeline and 180
Kinder Morgan Inc has a market cap of $27.84 billion; its shares
were traded at around $34.81 with a P/E ratio of 36.5 and P/S
ratio of 3.4. The dividend yield of Kinder Morgan Inc. stocks is
Burbank bought 1,222,900 shares of HollyFrontier (
) at an average price of $31 in the second quarter. The price has
risen 32% since then to a new 52-week high of
HollyFrontier is engaged in refining petroleum. HollyFrontier has
a market cap of $7.96 billion; its shares were traded at around
$40.42 with a P/E ratio of 5.4 and P/S ratio of 0.5. The dividend
yield of HollyFrontier stocks is 1.6%. HollyFrontier had an
annual average earnings growth of 22.5% over the past 10 years.
GuruFocus rated HollyFrontier
the business predictability rank of 3-star
HollyFrontier's second-quarter profit more than doubled, and
revenue rose 62%. The growth was largely due to expanded
Alcatel Lucent (
Burbank bought 18,864,400 shares of Alcatel Lucent (
) at an average price of $1.68 in the second quarter. The stock's
price has dropped 32% to trade for $1.15 per share on Tuesday,
less than half of book value. The stock is down almost 90% from
its price five years ago.
Alcatel builds next generation networks, delivering integrated
end-to-end voice and data communications solutions to established
and new carriers, as well as enterprises and consumers worldwide.
Alcatel Lucent SA (ADR) has a market cap of $2.76 billion; its
shares were traded at around $1.16 with a P/E ratio of 7.6 and
P/S ratio of 0.1.
Alcatel's revenue per share has been declining at a rate of 6.7%
annually over the last ten years. The company is facing a
deteriorating macros environment and competitive pricing
environment in certain regions, it said.
Lockheed Martin (
Burbank bought 274,600 shares of Lockheed Martin at an average
price of $86 in the second quarter of 2012. It has increased 6%
Lockheed Martin is a global enterprise principally engaged in the
research, design, development, manufacture and integration of
advanced-technology systems, products and services. Lockheed
Martin has a market cap of $29.55 billion; its shares were traded
at around $91.3 with a P/E ratio of 10.1 and P/S ratio of 0.6.
The dividend yield of Lockheed Martin stocks is 4.4%. Lockheed
Martin had an annual average earnings growth of 13.5% over the
past 10 years. GuruFocus rated Lockheed Martin
the business predictability rank of 4.5-star
Goodrich Corp. (
Burbank bought 165,300 shares of Goodrich (
) at an average price of $126 in the second quarter. Goodrich
Corporation is a global supplier of systems and services to
aerospace, defense and homeland security markets. It was acquired
by United Technologies (
) on July 26, 2012, for $127.50 per share, or $16.5 billion in
See the rest of John Burbank's buys and sells and other holdings
in his portfolio here. Also check out the Undervalued Stocks, Top
Growth Companies and High Yield stocks of John Burbank.About
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