Art Samberg's Pequot Capital Management finished its final
lap around the track in 2003 with a rather surprising portfolio
mix. While you might have expected the firm to capitalize on
the technology revival, Pequot was instead exploiting a diverse
range of investments from McDonald's to adult entertainment,
discounted pet supplies and breakthrough cancer drugs.
SEC records show that, in the final quarter, the $4
billion-plus long portfolio was rebalanced to go after a
combination of high-tech and, most notably, low-tech
opportunities. Allocations to pharmaceuticals and managed
healthcare fell. Meanwhile, the size of the medical specialties
investments plunged. And where did the money go? Well, forget
the new economy and think 'recovering old economy.'
In fact, one of Pequot's largest holdings is fast food giant
McDonald's. The iconic 'golden arches' have been good to
investors of late, providing beefy returns for nine months
straight culminating most recently with a 12.2% increase...