F13 Filings: Here’s what major funds like Berkshire Hathaway and Pershing Square Capital bought in the third quarter

It’s F13 season. What’s that, you ask? Every quarter, fund managers with at least $100M in assets under management are required to disclose their US holdings (F13 filing). Here’s what fund managers bought in the third quarter (July-September).

What’s the GOAT doing?

Berkshire Hathaway — always a gold mine of ideas. This quarter, Berkshire started a big position in Taiwan Semiconductor (NYSE:TSM), worth nearly $5B (1.4% of the portfolio).

• $TSM is the largest semiconductor chip manufacturer, down 36% this year.
• It’s an interesting purchase, given the geopolitical risks between China and Taiwan.

The rest of Warren Buffet’s portfolio has mainly remained unchanged, but he kept adding to Occidental Petroleum (NYSE:OXY).

His top five positions: Apple (41.8%), Bank of America (10.3%), Chevron (8%), Coca-Cola (7.6%) and American Express (6.9%).

Munger’s mentee

Charlie Munger is Warren Buffett’s business-partner-in-crime. Li Lu of Himalaya Capital had developed a close relationship with Munger — who also invested in Lu. Here’s what you need to know about Lu:

• Lu has become one of the lesser-known greats with a 20-30% annualized compounded return since 1998.
• He shares similar values as Buffet (invests in undervalued opportunities) and rarely makes big changes to his portfolio.

He’s highly concentrated the positions of his entire US portfolio in five companies: Micron (33%), Bank of America (25%), Alphabet (17%), Berkshire Hathaway (14%) and Apple (6%).

Other notable moves

1/ Bill Ackman’s Pershing Square Capital added to his Canadian Pacific Railway (NYSE:CP) position — bringing it from 2.8% to 13% of his portfolio.

2/ Scion Asset Management (Michael Burry of The Big Short) started a position in Qurate Retail (NASDAQ:QRTEA) — the owner of QVC, Zulily and other retail brands down 70% this year. Does he see a potential value play?

3/ Duquesne Family Office (famous fund manager Stanley Druckenmiller) added Amazon back to its portfolio (5.8% of portfolio) after selling it off in the previous quarter. It also added food processing company Lamb Weston (4.2%) and data center equipment provider Vertiv Holdings (2.7%).