Clough’s largest new stock picks have gained 5.6% since the end of 2010, vs. 4.0% gain for the S&P 500 (SPY). LCAPA has had one of the best performances in his portfolio since the end of December. Clough had $14.3 million in LCAPA shares at the end of December. LCAPA has gained 16.7% in the last 75 days, beating the SPY by 12.7 percentage points.
Tiger Global’s Chase Coleman, Daniel Loeb’s Third Point and Whitney Tilson’s T2 Partners are other investors of LCAPA as the end of December. IBM was Clough’s biggest new investment at the end of December 2010. IBM has gained 11.1% since then, outperforming the SPY’s 4.0% return. Clough has $55.6 million invested in IBM. Bill Miller also had $283 million invested in IBM. The worst performing stock among the new purchases was Weatherford International, losing 9.1% since the end of December. T. Boone Pickens and Barry Rosenstein’s Jana Partners have WFT in their portfolios.
Clough uses put options on index funds extensively to protect his portfolio from market declines. That’s why the biggest position in his portfolio is a put option on S&P 500 Index fund with a notional value of $2.06 Billion. He also has put options on First Trust NASDAQ-100 Ex-Techn (QQXT) and Oil Services Holders (OIH) totaling more than $400 Million.