E Hussman Fund Invests In Kroger And Cuts DirecTV

We highlight the most important trades that have been done by hedge funds and mutual funds according to 13F filings. A research has shown that to invest by following funds is a great way to find opportunities.

With this article, I focus on the firm Hussman Strategic Advisors, the investment advisory firm that manages the mutual fund Hussman Funds.

The top eight trades of the third quarter based on their impact on the investor’s portfolio are the following:

The largest new pick has been Dick’s Sporting Goods Inc. (NYSE:DKS), the $5.24 billion market cap sports and fitness retailer. The fund has bought 200,000 shares at prices between $46.99 and $53.41, which has had an impact of 1.26% on the portfolio. The stock is currently trading at the price of $ 44.21.

The company reported strong results for the second quarter of the year. It leveraged its omni-channel presence to generate profitable revenue growth with meaningful margin expansion and this resulted in a double-digit increase in earning, an increase of 15% for consolidated earnings per diluted share. DKA posted a 1.2% increase for consolidated store sales and for the third quarter the company anticipates same store sales to increase in the range of 1% to 3% compared to a 1.1% increase in the third quarter of 2014.

The second largest pick has been Newmont Mining Corp. (NYSE:NEM) which has had impact of 1.12% on the portfolio. It is a long-term position that has been in the portfolio since 2010. The stake had huge increases in Q1 2011 by 11900% and more than 500% in Q2 and Q4 of 2012. NEM’s stake has seen huge reductions by over 80% in Q4 2010, Q1 2011 and Q3 2012.This quarter the investment team has increased its stake by 68.75% at prices between $15.55 and $23.86 and now the stock is trading at about $18.

During the last quarter, despite lower metal prices, the Metals & Mining company posted a 16% reduction in all-in sustaining costs through a sustained focus on improving costs and efficiency. It has generated $758 million in adjusted EBITDA and $478 million in free cash flow.