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Buckingham Capital Management’s Return, AUM, and Holdings

Jelena Martinovic

Buckingham Capital Management, Inc. is a New York-based privately-held investment management firm founded in 1985 by David Keidan. He gained an extensive experience in the investment business during his 50 year-long career. After graduating from Harvard College with magna cum laude in 1966 and earning an MBA from Harvard Business School two years later, David dealt with a wide range of investment disciplines such as research, trading and asset management. Three years prior to founding Buckingham Capital Management he launched The Buckingham Research Group, Incorporated (“BRG”) and was its President for thirty-six years. Also, he was its Chief Financial Officer until 2014. Right now he is the President and Chief Investment Officer of Buckingham Capital Management, Inc. as well as a Trustee at Montefiore Health System, Inc.

David Keidan’s long-short hedge fund uses two investment strategies, both of them investing primarily in US equities. The Diversified Strategy's focus is on US companies from various sectors and industries and of all market caps, while the other, the RAF Strategy seeks to generate risk-adjusted returns by focusing on industries in the consumer sectors such as Retail, Apparel, and Footwear.

David Keidan of Buckingham Capital

Its Buckingham Partners, L.P. fund definitely had fluctuating returns through the years. In 2013 the fund returned 22.79%, followed by 9.13% in 2014. Unfortunately, 2015 was a down year for Buckingham Partners, L.P., because it lost 11.21%. In the next two years, the fund returned 8.96% and 25.41%, only to have another down year, at least according to the data from January to October 31st – this year it lost 7.4%. Buckingham Partners, L.P. had a total return of 255.05%, and a compound annual return of 6.99%. Its worst drawdown was 28.38. As of December 29th, 2017, Buckingham Capital Management manages $514.31 million of clients’ assets on a discretionary basis and $20.57 million of clients' assets on a non-discretionary basis.

Insider Monkey’s flagship strategy identifies the best performing 100 hedge funds at the end of each quarter and invests in their consensus stock picks. This way it is always invested in the best ideas of the best performing hedge funds and is able to generate much higher returns than the market. Since its inception in May 2014, our flagship strategy generated a cumulative return of 96.9%, beating the S&P 500 ETF (SPY) by over 40 percentage points (see the details here).

On September 30th, Buckingham Capital Management’s equity portfolio counted 89 positions of which 9 were added during the last quarter. During the same period 11 were dropped. In addition, at the end of the third quarter, the fund’s equity portfolio was valued at $979.24 million. Among the stocks in the fund’s portfolio are some of the 30 Stocks Billionaires Are Crazy About, such as Alibaba Group Holding Limited (NYSE:BABA), in which the fund boosted its stake by 12% in Q3 to 122,665 shares worth $20.21 million. To find out which are the biggest changes, proceed to the next page.

The largest two positions held by Buckingham Capital Management at the end of the third quarter were in Amazon Com, Inc. (NASDAQ:AMZN) and Burlington Stores, Inc. (NYSE:BURL) which occupied 3.95% and 2.94% of its portfolio, respectively. The fund reduced its stake by 5% in both companies, holding 19,349 shares of Amazon Com, Inc. (NASDAQ:AMZN) valued at $38.76 million and 177,002 shares Burlington Stores, Inc. (NYSE:BURL) worth $28.84 million. Amazon is the third most popular stock among hedge funds (see 30 most popular hedge fund stocks).

As for the new biggest positions added to the fund’s portfolio during the third quarter, the Weight Watchers International, Inc. (NASDAQ:WTW), a weight management service provider, tops the list of newcomers since the fund acquired 171,000 shares of the company valued at $12.31 million followed by a flooring manufacturer Mohawk Industries, Inc. (NYSE:MHK) and its 31,100 shares valued at $5.45 million which the fund obtained.

Meanwhile, there were significant ups and downs when it comes to positions held by the fund during Q3. The fund raised its stake in Carrizo Oil & Gas, Inc. (NASDAQ:CRZO) and American Airlines Group, Inc. (NASDAQ:AAL) by 212% to 389,500 shares and 199% to 248,000 shares, respectively. On the other side, there are companies such as Roku, Inc. (NASDAQ:ROKU) and Wideopenwest, Inc. (NYSE:WOW) in which the fund actually lowered its stake by 88% to 60,328 shares and 87% to 86,796 shares, respectively.

Finally, the biggest positions Buckingham Capital Management decided to say good buy to were in KapStone Paper & Packaging Corp (NYSE‎:KS) and Jefferies Financial Group Inc. (NYSE:JEF) whose 48,430 shares and 79,154 shares, respectively, were completely sold.

Disclosure: None. This article was originally published at Insider Monkey.