February 14, 2012 / 5:58 PM / 6 years ago

Duquesne alumni reveal holdings at Point State

BOSTON (Reuters) - Point State Capital, one of last year’s most celebrated new hedge funds, for the first time has revealed what it owns, showing a taste for some industry favorites like Apple (AAPL.O) and some recent winners like drug company Gilead (GILD.O).

Point State was founded by Sean Cullinan and a handful of colleagues who left Duquesne Capital Management when industry titan Stanley Druckenmiller announced in August 2010 that he would close his famed, decades-old fund.

Cullinan said in a regulatory filing on Tuesday that Point State owned 102 stocks at the end of 2011. One of his biggest positions was in Apple — 241,900 shares. If he held on to that position in the first weeks of 2012, it paid off handsomely. Apple has shot up 24 percent this year.

The fund also owned 7,000 shares in fertilizer maker CF Industries Holdings (CF.N), which has risen 25.75 percent this year. And his 125,000 shares in Gilead also paid off if he held them this year; the pharmaceutical company is up 34.14 percent.

Investment managers who oversee more than $100 million are required to file their quarterly stock holdings with the U.S. Securities and Exchange Commission, which makes them public 45 days after the end of the quarter.

Point State’s biggest position, 8.7 million shares of drug company Elan ELN.I, has not been a winner this year. The shares have dropped 8.12 percent.

    Point State became the talk of the $2 trillion hedge fund industry last year because it managed to raise billions in bleak times as more managers were chasing investment dollars, allowing investors to be choosier than ever with their allocations.

    Cullinan, whose resume includes a stint with George Soros’s fund, was able to raise so much thanks largely to Druckenmiller, who is said to have contributed $1 billion himself. Some of Druckenmiller’s former clients also invested.

    Indeed, the names of Cullinan’s new fund and Druckenmiller’s old fund share a common origin. Point State Park is located in Pittsburgh and includes the site of the 18th century French military post Fort Duquesne. Druckenmiller was born in Pittsburgh.

    Reporting By Svea Herbst-Bayliss

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