Mark Holder is not a new manager on Covestor. His Opportunistic Arbitrage model has been available since February. But Mark now has a new model — Opportunistic Arbitrage Long Only. The difference between the two: while Mark might short stocks in his older model, he holds long positions only in the new model. Some investors might find this a more conservative approach to investing while others might prefer the hedging opportunities or other aspects of selling short.
When choosing positions for this model, Mark focuses on macro trends—a collection of many different factors like economic events, demographics, societal changes and more. One of the top positions in the model is Terex Corp (NYSE: TEX). In February, TEX sold its mining equipment business to Bucyrus International Inc (NASDAQ: BUCY) in exchange for 5.8 million shares of BUCY. BUCY has now been bought out by Caterpillar Inc (NYSE: CAT), and Mark believes that TEX was a major beneficiary of that deal. Also helping the company’s outlook, he believes, is the potential for increased profits in 2011 as a direct result of Vale’s (NYSE: VALE) decision to increase their spending to diversify their business, which could result in increased orders for TEX.
U.S. Wealth Group is a new manager on Covestor. Their model, Russell 3000 Long Only, has Buckeye Technologies Inc (NYSE: BKI) as a top position. It was noted recently on Insider Monkey that there was a spate of insider purchasing in BKI between August and November. According to Yahoo Finance, that activity continued through December, with significant purchasing from officers and directors in mid-December. Another top position in the model is Vishay Intertechnology Inc (NYSE: VSH), whose quarter three 2010 EPS beat the expectations of analysts.
