GO
Loading...

Halftime: Top 5 Holdings Of Buffett's New Protege

Tuesday, 26 Oct 2010 | 1:38 PM ET

The desk is always fond of whale watching and on Tuesday the biggest fish on Wall Street made quite a splash.

Warren Buffett tapped a relatively unknown hedge fund manager, Todd Combs of Castle Point Capital, to run a part of Berkshire Hathaway's $100 billion portfolio.

In the past month, speculation ran high as to who would take the top job as next investment chief at Berkshire, and Combs' name was not prominently on the list of likely candidates.

Considering the intrigue generated by Mr Buffet's move we thought you’d appreciate a peak at Comb's top holdings - after all nothing say more about a money manager. Take a look:

Castle Point Capital Top Holdings
as of June 30, 2010

Castle Point Top Holdings
as of June 30, 2010

U.S. Bancorp22.8 M
Mastercard20.4 M
State Street19 M
Western Union18.2 M
CME Group14.4 M
Source: 13-F Filing

What's the takeaway?

Looking at his position in the CME it suggests he has a bullish view on the capital markets, says Joe Terranova. In fact, you don’t hold any of these names if you don’t hold that view.

Apple to Acquire Netflix?
Apple's $50B cash stockpile has led many investors to ponder its next takeover move. Brian Marshall, of Gleacher & Co., and the "Fast Money" traders discuss whether Netflix could be the next strategic opportunity for Steve Jobs.



Read More:

Todd Combs: Buffett’s Next Strategic Investment?

--------

BANK OF AMERICA BOUNCE BACK

Speaking of capital markets, Bank of America bounced back from 52-week lows on Tuesday - it was among the strongest performers in the Dow .

What should you make of it?

Financials are 20% of the S&P, reminds Brian Kelly. I hold the opinion that the market can not rally broadly without bank stocks. The turnaround in financials makes me somewhat bullish.

Looking at BofA specifically, I’m seeing strong activity in the November 12 and 13 calls, writes Jon Najarian in an e-mail message. That suggests at least some options investors hold a bullish view.

I'm on the other side of that trade; I’d think about shorting BofA around $12, says Steve Cortes. Yes the stock climbed on Tuesday but 5 weeks ago shares were trading around $14.

I like trading this space long Citi, says Joe Terrnova.

-------------

IBM $10BLN BUYBACK REVERSES MARKET

Investors were cheered by the latest moves from IBM. Big Blue led stocks higher on after it announced an additional $10 billion stock buyback; also the company declared a $0.65 a share quarterly dividend.

Fast Money Midday Market Check
The "Fast Money" traders share their market insight and midday trading advice.

What’s the trade?

I think the stock is gaining momentum and breaking out, says Joe Terranova. I think the stock goes north of $150.

I like it too, says Brian Kelly.

-------------

FORD MOTORS HIGHER

Shares of Ford popped Tuesday after the automaker said third-quarter net income rose 68 percent as it grabbed a bigger share of the U.S. auto market and buyers paid more for its highly-rated cars and trucks.

This was Ford's sixth straight quarterly profit and the company's best third-quarter performance since at least 1990.

What's the trade?

I’m constructive on the stock, says Steve Cortes.

Or look at a downstream trade such as supplier Johnson Controls, says Joe Terranova.

I’d play the space long Toyota, says Brian Kelly, but that's more of a play on the yen.

-------------

CHART OF THE DAY: OIL

On Tuesday, the traders were closely watching the action in oil after a Reuters report said “oil prices are more dependent on dollar fluctuations than at any time in the last 14 months as speculation intensifies that the U.S. Federal Reserve will embark on a fresh round of monetary stimulus to boost recovery.”

Our news partner went on to say, “the inverse correlation between U.S. crude and a gauge of the greenback's value against a basket of major currencies

.DXY on Tuesday reached its highest since August 24, 2009, data compiled by Reuters showed.”

What’s the takeaway?

I’m betting that the dollar breaks higher and crude breaks lower, says Steve Cortes.

Long-term I think oil is a better play than gold, counters Joe Terranova. I think supplies will be challenged in 2011.


______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment, but not have it published on our Web site, send those e-mails to fastmoney@cnbc.com.

Trader disclosure: On October 26th, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Terranova owns (APA), (AAPL), (AXP), (C), (GOOG), (GS), (IBM), (ISRG), (MCD), (MDT), (MMM), (NKE), (ORCL), (OXY), (PCP), (PEP), (PFE), (UPL), (VRTS), (XBI); Jon Najarian owns (AAPL); Jon Najarian owns (ADBE); Jon Najarian owns (CCL); Jon Najarian owns (COH); Jon Najarian owns (JEF); Jon Najarian owns (NFLX) call spreads; Jon Najarian owns (RIMM) call spreads; Jon Najarian owns (WMB) call spreads; Jon Najarian owns (NRTS) call spreads; Jon Najarian owns (ANF) call spreads; Cortes owns (K), (TSN); Cortes is short crude oil; Cortes is short gold; Cortes is short (RSX); Cortes is short the U.K. Pound; Cortes owns the S&P 500

For Brian Kelly
Accounts managed by Kanundrum Capital own (JEF)
Accounts managed by Kanundrum Capital own (GLD)
Accounts managed by Kanundrum Capital own (GDXJ)
Accounts managed by Kanundrum Capital own (SLV)
Accounts managed by Kanundrum Capital own (PPLT)
Accounts managed by Kanundrum Capital own (REE)
Accounts managed by Kanundrum Capital own (MCP)
Accounts managed by Kanundrum Capital own (POT)
Accounts managed by Kanundrum Capital own (ANDE)
Accounts managed by Kanundrum Capital own (JO)
Accounts managed by Kanundrum Capital own (JJG)
Accounts managed by Kanundrum Capital own (SGG)
Accounts managed by Kanundrum Capital own (NIB)
Accounts managed by Kanundrum Capital own (TIP)

For Joe Terranova:
Terranova is chief market strategist of Virtus Investment Partners, LTD.
Virtus Investment Partners own more than 1% of (ABAX)
Virtus Investment Partners own more than 1% of (ALK)
Virtus Investment Partners own more than 1% of (AMKR)
Virtus Investment Partners own more than 1% of (CASS)
Virtus Investment Partners own more than 1% of (CSVI)
Virtus Investment Partners own more than 1% of (IGE)
Virtus Investment Partners own more than 1% of (LDR)
Virtus Investment Partners own more than 1% of (LPHI)
Virtus Investment Partners own more than 1% of (MGRC)
Virtus Investment Partners own more than 1% of (NRCI)
Virtus Investment Partners own more than 1% of (DBV)
Virtus Investment Partners own more than 1% of (XLB)
Virtus Investment Partners own more than 1% of (XLP)
Virtus Investment Partners own more than 1% of (XLY)
Virtus Investment Partners own more than 1% of (XLF)
Virtus Investment Partners own more than 1% of (XLI)
Virtus Investment Partners own more than 1% of (XLU)
Virtus Investment Partners own more than 1% of (SUBK)
Virtus Investment Partners own more than 1% of (WDFC)
Virtus Investment Partners own more than 1% of (YDNT)
Virtus Investment Partners own more than 1% of (DRYS)

For Brian Marshall
***No Disclosures***





CNBC.com with wires.

  Price   Change %Change
DJIA
---
BAC
---
BRK.A
---
C
---
F
---
IBM
---
JCI
---
7203.T
---

Contact Halftime Report

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET
  • Scott Wapner is host of the "Fast Money Halftime Report," which airs weekdays from 12 p.m. to 1 p.m. ET.