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Lee Ainslie and Maverick Capital's 4Q13 positions

Lee Ainslie and Maverick Capital's 4Q13 positions (Part 1 of 7)

Assessing Maverick Capital’s fourth quarter positions

Maverick Capital

Lee Ainslie’s Maverick Capital practices a long/short equity investment philosophy with a fundamental, bottom-up approach that greatly emphasizes the quality of management teams. The fund’s portfolio increased from $7.38 billion to $7.73 billion in the fourth quarter. Maverick initiated positions in eBay (EBAY), Valeant Pharmaceuticals International, Inc. (VRX), Catamaran Corp. (CTRX), Calpine Corp. (CPN), and F5 Networks Inc. (FFIV). The fund exited a position in Express Scripts Holding Co. (ESRX).

Assessing Maverick Capital's fourth quarter positionsEnlarge Graph

The fund posted a 1.9% gain in November in Class A shares of Maverick Fund Ltd., which rose 13% in 2013, according to an investor update cited by Bloomberg in December 2013.

Assessing Maverick Capital's fourth quarter positionsEnlarge Graph

Columbia Business School’s Graham & Doddsville investment newsletter interviewed Maverick Capital’s Lee Ainslie. He said, “I believe that a successful investor must be very comfortable with a number of different valuation methodologies and have the wisdom to recognize which valuation approach is going to be the most relevant in different situations. The most commonly used valuation metric at Maverick is sustainable free cash flow in comparison to enterprise value. But we may also consider metrics such as enterprise value to revenues, book value, free cash flow yield, P/E ratio, dividend yield, and so forth. Different metrics will be more or less important in different situations.”

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