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Magnetar Capital’s Increased Positions in 4Q14

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Magnetar Capital

Magnetar Capital was established in 2005 by Alec Litowitz and Ross Laser. Since its foundation, Magnetar Capital has grown by more than five times in terms of assets under management. Currently, the hedge fund manages assets in excess of $12 billion. It seeks to generate active returns through deploying its global event-driven, fixed income, and energy strategies across multiple asset classes.

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Top holdings

The above chart summarizes the fund’s top holdings at the end of the fourth quarter.

Magnetar’s portfolio remained highly concentrated in energy stocks—they represented over 60% of its 4Q14 US long portfolio value. Investors seeking to gain exposure to the energy sector can consider an ETF like the Energy Select SPDR Fund (XLE). Its portfolio is comprised of 44 energy and utilities stocks. They represent the energy sector of the S&P 500. Other alternatives to XLE include the iShares US Energy ETF (IYE) and the Vanguard Energy ETF (VDE). They attempt to effectively track the performance of investable US energy stocks.

Top position increases

Magnetar Capital’s US long portfolio size increased 10.1% from $4.93 billion in 3Q14 to $5.43 billion the end of the year. The fund added several new positions including Alibaba (BABA), Williams Companies (WMB), TransCanada (TRP), Plains Group Holdings LP (PAGP), Actavis (ACT), and Enbridge (ENB).

In the next part of this series, we’ll discuss Magentar’s position change in Alibaba.

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