Trends and Themes as Reflected by Funds' 13F Filings

The following is my analysis of the portfolio moves made by an eclectic group of funds. Data from Q4 2008, Q1 2009 and Q2 2009 is all presented together so that it is possible to see how these managers have navigated these treacherous markets. I kept it in Scribd format because Blogger and this many charts do not mix well. Enjoy!
Trends and Themes as Reflected by Funds' 13F Filings

Pershing Square Q2 Positions

It's that time of the quarter again. 45 days after the end of Q2 means that we get a slew of 13F filings from the top fund managers in the world. Kicking things off today is Bill Ackman of Pershing Square. (Click on the image to expand it.)

Looks like Ackman did a lot of selling in Q2 and very little buying. He completely sold off his stakes in Apartment Investment Co (AIV), Alexander's (ALX), Visa (V), Yum Brands (YUM) and Wendy's (WEN). Even more interesting however, is the fact that he apparently is completely out of General Growth (GGP)? I did a double take on that one too. I have to admit I am perpelxed. He filed a 13D on June 6th when he joined the board that indicated that he owned 23M shares of GGP. I admit I have not been following this sitaution closely so I may have missed some news but it seems strange.

In any case the only major new purchases in Q2 were of McDonald's (MCD) and Automatic Data Processing (ADP), two blue chips. I guess he decided he liked McD's more than Wendys, Pizza Hut, Taco Bell and KFC. But, other than those new stakes the only buy action was a slight increase in his shares in EMC.

This left him with a very concentrated portfolio at the end of Q2 that only consisted of 6 companies: Border's Group (BGP), EMC, Greenlight Capital (GLRE), Target (TGT), ADP and MCD. You have to give him credit for having strong convictions. I'm not sure I would sleep at night.

How did the investment gurus position themselves during Q1 2009?

Now that I have had the time to examine some of the portfolio maneuverings of the famous value investors, I thought it might be valuable to discuss some of these moves, themes evident in the portfolios and some interesting stocks that may be worth doing some more research on. I selected managers with different styles and focuses so that readers could get an idea of the diversity of strategies being employed by managers in a very difficult operating environment.

1. Pershing Square (Manager Bill Ackman): This means war!
Anyone who has been following the Pershing-Target (TGT) saga knows that Ackman has been spending a lot of his time trying to get himself and 4 other nominees on the Board of Target. On that front, I have to say he makes a pretty compelling case. In his mass email this week, my new friend Whitney Tilson of T2 Partners included the slides that Ackman used in his apparently very well attended presentation on this subject. Ackman makes the simple case that the current board is entrenched and the members have been there so long (and have other conflicts of interest that preclude them from being independent) they are not able to objectively consider changing the status quo.

There is no question that his slate of nominees has significant experience in areas in which Ackman feels the Target board is currently lacking: credit cards, real estate, and retail. He also drives home the points that the board members own an insignificant number of shares and that the number of other boards that these people also sit on has to take away from the time spent on their fiduciary duty to Target shareholders. While I understand management's contention that in the middle of a terrible recession the company does not need the distraction that Ackman's proposals have created, in the long run it might be a mistake to not get a little bit of new blood on the board.

Aside from the full frontal attack on Target, Ackman also added some significant positions in Q1. Specifically, he added Apartment Investment and Management Co. (AIV), an apartment REIT whose shares have fallen from a 52 week high of over $43 to a little under $8. He also accumulated shares of YUM Brands (YUM), owner of fast food chains such as Pizza Hut, Taco Bell and KFC. Ackman seems to betting strongly that the fast food industry will weather this storm as he also owns a significant number of Wendy's Arby's Group (WEN) shares. I think the most interesting sell in Q1 was his complete exit of Dr. Pepper Snapple (DPS) holdings. For years the sell-side argued that the confectionary business was a great business and deserved a much higher multiple than that of the bottling business. This is why Coca Cola (KO) and Pepsi (PEP) recently have not owned controlling stakes in their bottlers, as they were seen a low multiple businesses that detracted from the valuation of the confectionary business. However, with Pepsi's recent bids for two of its bottlers, maybe this conventional wisdom is being turned on its head as controlling the bottling could become an advantage. That is why this is a curious sale because DPS does control its bottling operations.

2. Pabrai Funds (Manager Mohnish Pabrai): The new strategy
Before the recent stock market debacle began, Pabrai had a very concentrated portfolio. He took as scripture Buffett's idea that you should only swing at the fattest pitches and that you should not invest in your 20th best idea. Well, 2008 was a humbling year for Pabrai and forced him to seek more diversification and pay more attention to the macroeconomic environment. Accordingly, as of 3-31-09, Pabrai held 13 separate positions in 11 companies (he owned Berkshire Hathaway A and B shares as well as common shares of Argentina-based agriculture company Cresud and Cresud warrants). I think one of the more interesting moves Pabrai made was going from a mixture of BRK-A and BRK-B shares to primarily the B shares. This may have been a liquidity-induced shift as the B shares are much more liquid than A shares. Also, Pabrai seems to be betting more and more on hard assets as he added Potash (POT) in Q1 and owns large positions in Cresud, oil and gas company Harvest Natural Resources (HNR) and zinc producer Horesheard Holdings (ZINC). In his Q1 letter to investors he said "I do believe we’ll see some heavy-duty inflation in the years ahead" so it is logical to assume that this is his way of hedging against that possibility.

3. Paulson and Co. (Manager John Paulson): The gold bug
I recently saw John Paulson speak in person at a very intimate event. I have to say he is one of the most humble, unpretentious men you will ever meet. This is a guy who has made billions over the last few years (http://www.ritholtz.com/blog/2009/03/top-hedge-fund-earners/) What was remarkable to me is the simplicity of one of the investment strategies that made him so much money over the last 2 years. I foolishly didn't take my usual great notes that night but I can give you the simple gist of the thesis and implementation.

Paulson did not believe that tranches of subprime RMBS deserved the high ratings they were assigned by the rating agencies, based on his estimates that if 5% of the loans went bad certain B-rated tranches would be completely wiped out. Prior to the wonderful emergence of CDOs, the only way to make money on this thesis was to short the RMBS themselves, a task that was very difficult and did not prove to be profitable for Paulson. But when CDOs were introduced investors then could buy the CDS on the CDOs (sorry for the alphabet soup but this is the world we live in now) and take a highly asymmetric and levered bet against the underlying RMBS mortgages. Paulson committed a measly 1.5% of his capital with what he saw as very little risk based on the deterioration he anticipated in the US housing market. Due to the huge amount of leverage inherent in the CDS, he was able to make multiples of his capital investment. I often associate huge returns with a large amount of risk but in this case there was very little risk at all. The moral of the story is to keep your investment strategy simple and when you see a hanging curveball make sure you position yourself to hit a homerun if you are right.

So, now what is Paulson doing? Well, he is betting on inflation coming online as a result of the Fed's profligate use of the printing press. In his presentation he said he did not know when inflation would come but he was very concerned about dollar debasement and inflation due to the US's huge budget deficit. Sticking to his word, he added a significant amount of gold exposure in Q1 2009. He added to his Kinross Gold (TSE: K) holdings and bought shares of Anglogold Ashanti (AU), Gold Fields (GFI), Market Vectors Gold ETF (GDX) and SPDR Gold trust (GLD). It's hard to know whether or not this will be a profitable focus, but with Paulson's success over the last few years can you really bet against him?

4. Icahn Capital (Manager Carl Icahn): Betting on consolidation in the pharmaceutical and biotech sectors?
Just a quick glance at Ichan' s portfolio as of 3-31-2009 and you are struck by the concentration of companies in the medical sector. The portfolio is filled with names such as Adventrx Pharmaceuticals (ANX), Amylin Pharmaceuticals (AMLN), Enzon Pharmaceuticals (ENZN), and Cyberonics (CYBX). Icahn has also assumed an activist role in a number of these companies with an attempt to get some on his nominees on the boards. My guess is that Icahn believes larger pharmaceutical companies with dwindling pipelines will eventually be forced to acquire some of the smaller players in order to keep growing. Personally, this is a very tough space for even knowledgeable investors to dabble in. If you don't have access to MD's and PhD's you will likely be competing with investors who understand the space much better than you do. Accordingly, despite the obvious consolidation potential, I have always stayed away from the biotech and pharmaceutical sectors.

Aside from the focus on the medical space, Icahn has maintained his large positions in certain turnaround companies: Motorola (MOT), Yahoo (YHOO), and Blockbuster (BBI-A, BBI-B). We can be sure he will do his best to push the management teams of these companies to make the best of their current circumstances and find ways to unlock shareholder value. Some additional moves of note during the quarter were the addition of shares and a note of Lion's Gate Entertainment (LGF) as well as large sales of natural gas companies Anandarko Petroleum (APC) and Williams Co. (WMB). Finally, Icahn bought 24K shares of SRS, the ProShares Ultra Short REIT ETF, likely a bet that there are still many shoes to drop in the commercial real estate space (a view that I whole-heartedly agree with).

5. Wintergreen Funds (Manager David Winters): Steady as she goes
The fantastic March 17th, 2009 edition of Outstanding Investor Digest has excerpts from Winters's comments in December regarding the equity markets and the way he was positioning his fund. In speaking about Latin American bottler Coca Cola FEMSA (COCSF), this is what Winters had to say:

"So here's a business with what we call "the trifecta"--good/improving economics, selling at a price that's low, and run by good management--which is key. It's just an incredible situation. Well, I've never seen so many trifectas in my life as I'm seeing now."

I think this quote encapsulates well the approach that Winters took in Q1 2009. He believes that the companies he owns are incredibly well positioned and was not willing to let Mr. Market and fear of an all out economic collapse force him to sell positions or materially change his investment philosophy.

"I feel a bit like a kid in a candy store with an empty stomach and a fist full of cash. So I've got to exercise discipline to figure out what sweets I want. And unlike the little kid, I want to also think about exactly which sweets should be in my stomach, hopefully, for a long time and make our shareholders a lot of money."

With these two quotes from December in mind, you would think that Winters would have taken the opportunity to add to his positions during the stock market swoon that started in January and lasted until early March. Instead, the portfolio was little changed at the end of Q1 in comparison to the end of Q4 2008. Winters sold out his positions in Mexican beverage company Fomento Economico (FMX) and casino operator Wynn resorts (WYNN) and added some shares of Coca Cola (KO). I don't know if Winters did actually buy more of his favorites such as COCSF during the quarter and then lightened up after the market bounced back sharply. If he did not, it provides a good lesson on how hard it is to be a contrarian in falling markets, regardless of how strong your convictions are and how disciplined you believe your strategy is.

Finally, I thought I would just mention some stocks that certain managers were holding that might be interesting (but obviously would require substantially more research):

1. Fomento Economico (FMX)- Even though Winters sold his shares, Cascade Investments, which includes the holdings of Bill Gates, owns over 22M shares. I think this and Coca Cola FEMSA could be interesting to look into. While both have bounced recently, according to Winters there are concerns about the impurity of water in Latin America that could provide secular tailwinds for these companies.

2. SLM Corp. (SLM): In Q1 both Glenview Capital and Lone Pine added large positions in SLM. From what I have read many of the other players in the student lending business have gone away and the bulls believe that Congress is going to have do something to make sure that students can get stable financing to go to school, a fact that will eventually benefit SLM. At under $6 a share SLM could be a real bargain if the company's market share ultimately increases as a result of the credit crisis.

3. Teradata (TDC): In Q1 both Third Point and Lone Pine sold out their entire positions in TDC. TDC is an Ohio-based enterprise data warehousing company. The stock has risen sharply (what hasn't?) off its 52 week low around $11 and now trades at about $20. It could be interesting to see if TDC is having issues that may be more permanent than temporary in nature.

4. Blank Check Companies: Third Point owns a number of these, including Triplecrown Acquisition Corp. (TCW), Trian Acquisition Corp. (TUX) and Hicks Acquisition Corp. (TOH). Are the managers of Third Point betting that these blank check companies will be able to make cheap acquisitions in this depressed environment? While these stocks are quite illiquid, it is very possible that this is the ideal environment for the managers of these companies. If I had to pick one to do some research on, I would choose TUX because of its associated with Nelson Peltz.

5. Otter Tail Corp. (OTTR): I had never even heard of this company until I saw it in the portfolio of Cascade Investments. The company has a number of diverse segments, including electrics, plastics, manufacturing, health services and food ingredient processing. The stock has fallen sharply from its 52 week high over $46 and now trades around $19. The company appears to have remained profitable over the past few quarters and may be worth digging into a bit. Knowing how close Gates and Buffett are, could this be a company that is too small for Berkshire to own but that Buffett has pitched to Gates?

Spreadheet of Fund Positions

Here is the spreadsheet I used to create all the posts on the changes in the portfolios of certain funds such as Pershing Square, Pabrai Funds, Lone Pine, Third Point and Paulson & Co to name a few. I am still digesting the data and I will provide comments soon. What I will say is that I think this may be one of the most interesting times I have in my career to examine what smart managers are doing. While the recent run up in the market since 3-31-2009 may have caused these portfolios to be very dynamic, I think it is beneficial to see how the investors I admire positioned themselves during a very difficult quarter.

Q1 2009 Hedge Fund Positions

Publish at Scribd or explore others: Finance Business & Law steve mandel dan loeb

Change in Holdings of BP Capital- T Boone Pickens

http://www.sec.gov/Archives/edgar/data/1218269/000136231009007581/c85596e13fvhr.txt

BP Capital		Shares Owned	Shares Owned
Position	Ticker	12/31/2008	3/31/2009	Bought(Sold)
Chesapeake Energy	CHK	100,000	200,000	100,000
Denbury Resources	DNR	100,000	0	(100,000)
Devon Energy	DVN	150,000	250,000	100,000
McMoran Exploration	MMR	200,000	200,000	0
Occidental Petroleum	OXY	100,000	200,000	100,000
Peabody Energy	BTU	100,000	0	(100,000)
Suncor Energy	SU	100,000	300,000	200,000
Transocean	RIG	300,000	450,000	150,000
Weatherford	WFT	100,000	100,000	0
Alpha Natural Resources	ANR	0	230,000	230,000
Anandarko Petroluem	APC	0	50,000	50,000
Cabot Oil and Gas	COG	0	200,000	200,000
Consol Energy	CNX	0	150,000	150,000
Fluor Corp	FLR	0	59,000	59,000
Foster Wheeler	FWLT	0	132,000	132,000
Halliburton	HAL	0	200,000	200,000
Massey Energy	MEE	0	325,000	325,000
Questar Corp	STR	0	160,000	160,000
Schlumberger	SLB	0	75,000	75,000

Change in Holdings of Cascade Investments- Bill Gates

http://www.sec.gov/Archives/edgar/data/1052192/000104746909005752/a2193083z13f-hr.txt

Cascade Investments		Shares Owned	Shares Owned
Position	Ticker	12/31/2008	3/31/2009	Bought(Sold)
Autonation	AN	11,315,688	11,365,688	50,000
Berkshire A	BRK-A	4,050	4,050	0
Canadian National Railway	CNI	34,809,544	34,809,544	0
Crocs	CROX	3,000,000	3,000,000	0
Coca Cola FEMSA	COCSF	857,128	857,128	0
Eastman Kodak	EK	7,950,000	7,950,000	0
Fisher Communications	FSCI	455,700	455,700	0
Fomento Economico	FMX	22,516,795	22,516,795	0
GAMCO Investors	GBL	90,845	90,845	0
Grupo Telavisa SA	TV	20,180,400	20,680,400	500,000
Otter Tail Corp	OTTR	3,406,499	3,406,499	0
Patriot Coal	PCX	2,408,653	2,408,653	0
Planetout	LGBT	521,739	521,739	0
PNM Res	PNM	7,019,550	7,019,550	0
Republic Services	RSG	35,467,230	55,404,169	19,936,939
Six Flags	SIXF	10,210,600	10,210,600	0
Six Flags Preferred	SIX-PB	500,000	500,000	0
Strategic Hotels	BEE	4,190,000	4,190,000	0
Western Asset Clym SEC	WIA	4,224,510	4,224,510	0
Western Asset Clym OPP	WIW	4,718,300	5,143,430	425,130

Change in Holdings of Wintergreen- David Winters

http://www.sec.gov/Archives/edgar/data/1360079/000136007909000003/form13f_0309.txt

Wintergreen		Shares Owned	Shares Owned
Position	Ticker	12/31/2008	3/31/2009	Bought(Sold)
Berkshire B	BRK-B	28,619	28,619	0
Canadian Natural Resource	CNQ	609,167	609,167	0
Chesapeake Energy	CHK	1,831,793	1,831,793	0
Coca Cola FEMSA	COCSF	169,230	169,230	0
Consolidated Tomoka Land	CTO	1,481,474	1,481,474	0
Fomento Economico	FMX	1,339,660	0	(1,339,660)
Frankin Resources	BEN	499,269	500,872	1,603
General Dynamics	GD	618,323	618,323	0
Goldman Sachs	GS	278,829	278,829	0
Leucadia National	LUK	947,169	697,169	(250,000)
Reynolds American	RAI	1,072,732	1,072,732	0
SPDR Gold	GLD	131,039	131,039	0
Wynn Resorts	WYNN	1,589,022	0	(1,589,022)
Coca Cola	KO	0	179,300	179,300

Change in Holdings of Lone Pine- Steve Mandel

http://www.sec.gov/Archives/edgar/data/1061165/000090266409002092/p09-0973form13fhr.txt

Lone Pine		Shares Owned	Shares Owned
Position	Ticker	12/31/2008	3/31/2009	Bought(Sold)
Abercrombie and Fitch	ANF	3,364,819	0	(3,364,819)
Activision Blizzard	ATVI	20,261,910	6,511,264	(13,750,646)
America Movil	AMX	24,007,275	18,641,417	(5,365,858)
Bunge Limited	BG	550,000	0	(550,000)
Carnival Corp	CCL	7,923,647	8,494,358	570,711
Coach	COH	6,172,333	8,787,008	2,614,675
Deltek	PROJ	2,206,293	2,206,293	0
Dolby Labs	DLB	4,858,460	2,101,333	(2,757,127)
Fomento Economico	FMX	1,629,254	7,834,394	6,205,140
Google	GOOG	844,016	591,399	(252,617)
JP Morgan	JPM	12,339,623	15,599,128	3,259,505
Las Vegas Sands	LVLS	18,677,261	31,341,283	12,664,022
Lorillard	LO	3,639,511	0	(3,639,511)
Mastercard	MA	2,921,408	2,102,320	(819,088)
Monsanto	MON	4,230,159	4,356,164	126,005
MSC Indl Direct	MSM	4,923,117	3,006,797	(1,916,320)
Precison Castparts	PCP	3,639,765	2,621,911	(1,017,854)
Priceline	PCLN	3,604,068	2,599,444	(1,004,624)
Qualcomm	QCOM	20,270,480	18,719,202	(1,551,278)
Sandringe	SD	6,616,611	6,616,611	0
Charles Scwab	SCHW	7,568,466	0	(7,568,466)
Sears Holdings	SHLD	3,167,900	500,000	(2,667,900)
SPDR Gold	GLD	1,760,000	26,500,000	24,740,000
Teradata	TDC	10,007,277	0	(10,007,277)
Union Pacific	UNP	6,885,633	7,199,986	314,353
Visa	V	8,435,552	9,105,957	670,405
XTO Energy	XTO	3,973,533	2,667,833	(1,305,700)
Apollo Group	APOL	0	1,888,980	1,888,980
Coca Cola	KO	0	2,819,152	2,819,152
Ctrip Com Int'l	CTRP	0	3,547,917	3,547,917
Deckers Outdoor	DECK	0	1,093,072	1,093,072
Mead Johnson Nutrition	MJN	0	1,197,755	1,197,755
Medco Health Solutions	MHS	0	5,949,700	5,949,700
Pepsico	PEP	0	3,585,600	3,585,600
Philip Morris Int'l	PM	0	10,080,369	10,080,369
SLM Corp	SLM	0	14,050,386	14,050,386
Strayer Education	STRA	0	785,164	785,164
Urban Outfitter	URBN	0	7,598,405	7,598,405
VistaPrint Limited	VPRT	0	258,100	258,100

Change in Holdings of Icahn LP

http://www.sec.gov/Archives/edgar/data/1412093/000092847509000248/form13fhricahncapital33109.txt

Icahn Capital		Shares Owned	Shares Owned
Position	Ticker	12/31/2008	3/31/2009	Bought(Sold)
Adventrx Pharma	ANX	3,459,459	3,459,459	0
Amicus Therapeutics	FOLD	145,427	0	(145,427)
Amylin Pharma	AMLN	11,426,157	12,971,328	1,545,171
Anandarko Petroleum	APC	7,617,876	0	(7,617,876)
Biogen Idec	BIIB	12,860,205	12,860,205	0
Blockbuster CLA	BBI-A	10,523,840	10,523,840	0
Blockbuster CLB	BBI-B	4,452,905	4,452,905	0
Cyberonics	CYBX	2,008,612	2,107,972	99,360
Emisphere Technologies	EMIS	86,430	86,430	0
Endo Pharma	ENDP	1,506,080	1,129,126	(376,954)
Enzon Pharma	ENZN	2,457,683	2,816,861	359,178
Exelixis Inc	EXEL	2,357,110	2,357,110	0
Forestar Real Estate	FOR	397,720	0	(397,720)
Guaranty Finacial	GFG	14,696,320	14,696,320	0
Life Technologies	LIFE	196,507	0	(196,507)
Lions Gate	LGF	8,959,668	13,432,899	4,473,231
Medarex	MEDX	313,040	313,040	0
Motorola	MOT	119,790,447	119,790,447	0
Regeneron Pharma	REGN	2,508,001	2,508,001	0
Take Two Interactive	TTWO	541,128	2,007,445	1,466,317
Temple Inland	TIN	1,448,779	0	(1,448,779)
Wendy's Arby's	WEN	643,590	643,590	0
Williams Co	WMB	17,475,520	360,000	(17,115,520)
Yahoo	YHOO	60,452,099	60,452,099	0
Lions Gate Note		0	800,000	800,000
Proshares Ultra Short Real Estate	SRS	0	24,000	24,000

Change in Holdings of Glenview Capital

http://www.sec.gov/Archives/edgar/data/1138995/000090514809002088/efc9-0529_13fhr.txt

Glenview Capital		Shares Owned	Shares Owned
Position	Ticker	12/31/2008	3/31/2009	Bought(Sold)
Advent Software	ADVS	15,174	15,174	0
Aetna	AET	8,596,022	8,513,612	(82,410)
Amdocs	DOX	4,349,247	3,474,869	(874,378)
American Tower	AMT	799,120	0	(799,120)
Americsourcebergen	ABC	5,354,389	4,214,071	(1,140,318)
Arvinmeritor	ARM	3,187,212	4,919,770	1,732,558
Blockbuster	BBI-B	2,071,400	1,213,170	(858,230)
Burlington Nothern Santa Fe	BNI	60,700	0	(60,700)
Cigna	CI	7,084,504	10,889,716	3,805,212
CSX Corp	CSX	234,500	0	(234,500)
CVS Caremark	CVS	4,775,440	6,862,340	2,086,900
RR Donnelley	RRD	3,899,441	6,431,784	2,532,343
eBay	EBAY	8,265,115	8,096,974	(168,141)
Electronic Arts	ERTS	1,000,000	500,000	(500,000)
Fibertower Corp Note	FTWR	19,000,000	0	(19,000,000)
Fidelity National Information	FIS	10,644,675	7,085,245	(3,559,430)
First American Corp	FAF	1,224,739	454,313	(770,426)
Fiserve	FISV	408,783	3,088,142	2,679,359
Lender Processing Services	LPS	758,969	0	(758,969)
Life Technologies	LIFE	453,718	2,220,813	1,767,095
Macrovision	MVSN	5,949,033	2,689,134	(3,259,899)
McKesson*	MCK	5,003,990	2,670,838	(2,333,152)
Nalco	NLC	3,216,489	0	(3,216,489)
Norfolk Southern	SNSC	99,000	0	(99,000)
NRG Energy	NRG	2,847,760	0	(2,847,760)
Omnicare	OCR	8,989,488	7,182,155	(1,807,333)
Primdedia	PRM	2,497,052	2,497,052	0
Reliant Energy	RRI	9,033,082	6,200,855	(2,832,227)
Terrestar Corp	TSTR	905,926	905,926	0
Thermo Fisher Scientific	TMO	4,237,773	3,760,373	(477,400)
Tyco International	TYC	1,564,710	2,235,000	670,290
Union Pacific	UNP	96,000	0	(96,000)
United Health	UNH	9,184,545	7,933,299	(1,251,246)
Verisign	VRSN	3,351,755	1,981,236	(1,370,519)
Virgin Media	VMED	4,000,000	0	(4,000,000)
Wellpoint	WLP	6,534,090	6,643,794	109,704
Willis Group	WSH	8,082,595	7,441,722	(640,873)
B&G Foods	BGS	0	59,714	59,714
Bank of America	BAC	0	2,020,134	2,020,134
Federal Home Loan Mortgage	FRE-W	0	1,500,000	1,500,000
Federal National Mortgage	FNM-P	0	1,500,000	1,500,000
Fifth Third Bancorp	FITB	0	2,007,321	2,007,321
Flextronics	FLEX	0	5,481,297	5,481,297
Genworth Financial	GNW	0	8,838,445	8,838,445
Hewlett Packard	HPQ	0	905,400	905,400
Oracle	ORCL	0	2,637,652	2,637,652
Pfizer	PFE	0	3,984,133	3,984,133
SLM Corp	SLM	0	2,500,000	2,500,000
Walgreen	WAG	0	828,600	828,600
Wyeth	WYE	0	144,500	144,500
*McKesson includes call options
that were sold as of 3/31