Terry Smith, Howard Marks, Seth Klarman — My Full 13F Review

Reviewing Super Investor 13F Filings

• 💡 The speaker analyzes recent 13F filings from Terry Smith, Howard Marks, and Seth Klarman to understand their investment philosophies and strategies.
• 🎯 The focus is on investors who are outspoken and transparent through books or memos, allowing for a deeper understanding of their reasoning.

Terry Smith's Portfolio & Strategy

• 📈 Terry Smith manages a fund of over $20 billion and is known for his public communication and a 10% rule limiting single company investments.
• ⚠️ Fund withdrawals can force him to sell stocks, which is distinct from a strategic portfolio adjustment.
• 💰 The speaker notes Smith's profit-taking in Philip Morris and VeriSign, and an increased position in Zoetis.
• 🛡️ Despite recent underperformance relative to stocks like Nvidia, the speaker defends Smith, arguing that many investors would underperform without those specific holdings, and Smith's strategy will likely outperform long-term.

Insights from Howard Marks' Holdings

• 🧠 Howard Marks, managing a $100 billion hedge fund, primarily invests in high-yield corporate bonds and is highly regarded for his investment memos.
• 📊 His portfolio shows low correlation with the speaker's, featuring energy companies like Torm plc and Vista Oil & Gas.
• 🌏 Marks also holds Grab Holdings, a super app company in Asian emerging markets, which the speaker finds interesting.
• 🔬 The speaker critically examines Marks' holding in MagnetChip, questioning its share buybacks given its lack of top-line growth and negative return on capital invested.

Seth Klarman's Value-Oriented Picks

• 🏆 Seth Klarman is highlighted as the speaker's favorite super investor, known for his margin of safety philosophy and recent public interviews.
• 📉 Klarman has shown interest in companies that have experienced significant price drops, such as Dollar General, Elevance Health, and Fiserv.
• 🇧🇷 He also holds PagSeguro, a Brazilian payment processor, which provides reassurance to the speaker regarding similar holdings like StoneCo and DLocal.

Personal Investment Takeaways

• ✅ The speaker uses these analyses to gain investment ideas and signals for deeper research into their own portfolio.
• 🚀 While learning from these investors, the speaker emphasizes having a different investment strategy for buying and selling, allowing for more concentrated positions and taking larger profits.
• 🔍 The speaker expresses interest in potentially opening positions in Elevance Health and Fiserv due to their recent significant price declines, viewing them as potential entry points.