Citadel Advisors Llc Portfolio Analysis
Ken Griffin’s Citadel Advisors Llc just filed its Q3 2015 13F. Dated 08/02/2016, the SEC filing shows the hedge fund has a portfolio value of $1.50 billion, representing a decrease of $112.59 billion from the previous quarter when it was $114.09 billion. Note: This filling reprents only assets that which are listed in the US. Does such a noteworthy change means that the investment professionals at Citadel Advisors Llc are getting more bearish on the stock market or just the opportunity on the short side is constrained?
|Previous Mkt Value:||$114,094,824,000|
|Chg Mkt Value %:||-98.68 %|
|Turnover %:||95.31 %|
|Top 10 Holdings %:||100.01%|
|Top 5 New Buys|
|Cytec Industries Inc Cmn Stk||3.33%|
|13F Sector Allocation|
|Information Technology||36 %|
|Consumer Discretionary||22 %|
Based on this SEC filing the hedge fund raised its stakes in Time Warner Cable Inc Common Stock (TWC) by 62% to $336.71 million, Cigna Corp (CI) by 40% to $52.40 million, Broadcom Corp Cmn Stk (BRCM) by 699% to $271.02 million, Perrigo Company Plc (PRGO) by 260% to $65.02 million and Altera Corp Cmn Stk (ALTR) by 8925% to $166.73 million. Citadel Advisors Llc also acquired smaller stakes in Chubb Corp Common Stock (CB) by 3661.93% to $136.14 million and Freescale Semiconductor Ltd (FSL) by 161182.75% to $99.17 million. Building positions gradually is normal trading practice for many institutional investors.
Ken Griffin’s fund sold out its stakes in Spdr S&P 500 Etf Trust (Put), Spdr S&P 500 Etf Trust (Call), Ishares Msci Eafe Etf (Put), Netflix.Com Inc Common Stk (Put) and Ishares Msci Eafe Etf (Call). These stocks constituted 5.44 %, 2.32 %, 1.12 %, 0.85 % and 0.82 % of the manager’s portfolio, respectively. We can only speculate about the reasons for the selling but we believe it has to do with either value, momentum or a better place for Citadel Advisors Llc’s capital.
The fund also decreased its postitons in Baker Hughes Common Stock Bhi (BHI) by -1.03% and Precision Castparts Corp Cmn Stk (PCP) by -26.83%.
Top 5 Positions
Time Warner Cable Inc Common Stock (TWC), Broadcom Corp Cmn Stk (BRCM) and Baker Hughes Common Stock Bhi (BHI) made up the majority of Citadel Advisors Llc’s total US long portfolio in Q3 2015. These positions were top 3 and constitute 52.16% of Citadel Advisors Llc’s US-listed securities. The top 10 positions make approximately 100.01% of the reported fund’s portfolio.
It seems Ken Griffin ‘s Citadel Advisors Llc holds concentrated portfolio. We wonder do they believe, same as legendary trader Stanley Druckenmiller, that diversification is losing trading strategy? The image above provides a snapshot of Citadel Advisors Llc’s top 10 US-listed holdings in Q3 2015.
Sector Allocation And Analysis
Citadel Advisors Llc raised the information technology sector from 8 % to 36 %. According to the SEC filing, the fund also has securities for 22 % in the consumer discretionary sector. The energy sector is 12 % of Citadel Advisors Llc’s 13f reported assets. The fund decreased the Finance sector positions by 9 %.
So these are Q3 2015 fund’s sector weights now: information technology 36 % for $540.96 million, consumer discretionary 22 % for $330.58 million, energy 12 % for $180.32 million, industrials 10 % for $150.27 million, finance 9 % for $135.24 million, health care 8 % for $120.21 million and materials 3 % for $45.08 million.
Important Position Changes
Top 10 Q3 2015 New Positions: Cytec Industries Inc Cmn Stk (CYT).
Top 10 Q3 2015 Sold Out Completely: Spdr S&P 500 Etf Trust (Put), Spdr S&P 500 Etf Trust (Call), Ishares Msci Eafe Etf (Put), Netflix.Com Inc Common Stk (Put), Ishares Msci Eafe Etf (Call), Priceline Group Inc/The (Call), Netflix.Com Inc Common Stk (Call), Priceline Group Inc/The (Put), Apple Inc (Put) and Ppg Inds Inc (PPG).
Fund New Purchases
In this quarter, Ken Griffin’s Citadel Advisors Llc started new position in Cytec Industries Inc Cmn Stk (CYT) for $50.08 million. 1 is the only new position.
Citadel Advisors Llc – website
13F Filing Link: 000095012316013517
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