Top-Ranked Pro Snaps Up Airline, Biotech And Tech Stocks After Timely Sale of Oil Holdings
Not many investment pros managed to dump their oil stocks before the price of crude started plummeting last year, but prescient investors who did obviously escaped heavy losses. The big question: Where did they invest the proceeds for greater future gains?
One top-ranked money manager, Graham Tanaka, president and senior analyst and portfolio manager at TANAKA Growth Fund (TGFRX), was one savvy investor who managed to slip out of his core oil holdings in October that not only saved him from losing a lot of money but prompted him to buy into new sectors he thought were promising but also enabled him to add to some of his holdings he believed would continue to produce mammoth gains.
Tanaka bought into airlines and added to his core holdings in technology and biotech stocks.The
TANAKA Growth Fund is no slouch in stock investing. It was ranked by Lipper yesterday (Feb. 12, 2015) as No. 1 among growth funds year-to-date, with a gain of 6.88% since Dec. 31. 2014, through Feb. 12, 2015, vs. the S&P 500’s 1.69% gain, and the 2.8% average gain of the Lipper 569-stock Multi-Cap Growth Fund.
The solid performance by TANAKA Growth Fund isn’t a surprise as the fund also ranked No. 1 in the 5-month period through May 31, 2014, with a gain of 9.1%, and also ranked as No. 1 for one-year performance on Sept. 30, 2012, through Sept. 30, 2013, when it advanced 45.6%.
Based on its own research work, Tanaka decided to dump the fund’s oil holdings, mainly Anadarko Petroleum (APC) in October at $86.65 a share which, by December had dropped to a low of $71. The TANAKA Fund had bought the stock earlier in 2014 at $75 a share.
TANAKA also sold its holdings in Carrizo Oil & Gas (CRZC) in October at $44.52 a share, which later dropped to a low of $31.70 by December. The fund purchased the Carrizo shares in 2013 at $24 a share. Both stocks have recovered some of their losses by early February as some investors have assumed that crude oil prices have bottomed.
Right after bailing out of the oils, TANAKA Fund bought shares in JetBlue Airways (JBLU) at $14.66 a share, (which has since risen to $16.74), and Alaska Air Group (ALK) at $54.68 (which has since jumped to $62). The fund also increased its exposure in biotechnology, buying into Celgene (CELG) and Amgen (AMGN), and added to its holdings in Gilead Sciences (GILD).
Graham Tanaka points out that while selling the energy stocks and buying airline shares helped boost the fund’s fourth quarter results, its huge returns were largely due to its diverse holdings in technology and healthcare. Among the big contributors: Apple (AAPL), which gained over 13.3% from Dec. 31, 2014, to Feb. 12, 2015; Valeant, up 14.8%; Synaptics (SYNA), up 14.8%; Helen of Troy (HELE), up 19.2%; Gilead, up 6.4%, and Lions Gate Entertainment (LGF), up 10.7%.
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Top-Ranked Pro Snaps Up Airline, Biotech And Tech Stocks After Timely Sale of Oil Holdings
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