We just wrote a Profile on Vinik Asset Management. Back in 2002, the founder and portfolio manager Jeff Vinik returned money to outside investors (a whopping 4.2 billion dollars — figure the 2-20 on that…). Today, the hedge fund manages about 6 billion dollars exclusively for family and friends.
(In case you were wondering what Mr. Vinik does with all the free time he gains from not managing outside money: He advises and buys sports teams. He is the owner of NHL’s Tampa Bay Lightning, as well as the Tampa Bay Storm from the Arena Football League. He is also a minority owner of the Boston Red Sox, and serves on the board of directors for the Liverpool Football Club of the English Premier League.)
In the Profile we outline Mr. Vinik’s successful run at the Magellan Fund before founding his own hedge fund, and his gradual shift from a pure stock picker to an index player. We looked at his Q3 current holdings, and true to our thesis, almost 50% of the holdings are in index ETFs.
SPDR S&P 500 19.59%
iShares Russell 2000 Index 13.54%
PowerShares QQQ 6.24%
SPDR S&P MidCap 400 3.18%
Barrick Gold Corporation 1.62%
The rest is spread over mostly small positions of 1.5% or less. One has to keep in mind that even a 0.5% position equals a 30 million dollar stake for a fund of this size.