Vinik Purchases U.S. Stock Market ETFs, Sells Emerging Markets

Jeffrey Vinik, the Boston hedge- fund manager who formerly ran the Fidelity Magellan Fund (FMAGX), bought $1.6 billion of exchange-traded funds that track U.S. stock markets, while selling emerging-market ETFs.

Vinik bought 8.6 million shares in the SPDR S&P 500 ETF Trust last quarter, valued at $973 million, according to a Form 13F filed today with the U.S. Securities and Exchange Commission. He added $412 million of shares in the iShares Russell 2000 Index Fund, and $257 million of a fund tracking the Nasdaq 100. Vinik sold off $231 million of shares in the iShares MSCI Emerging Markets Index fund last quarter.

*p from about $39 million at Dec. 31, according to the filing. These holdings, which include a $111.9 million stake in the SPDR Gold Trust and $86.7 million of shares in the Brazilian mining company Vale SA (VALE3), had declined in value by about 10 percent since March 31, based on yesterday’s closing prices.

Vinik managed Fidelity Magellan from July 1992 until May 1996, when it ranked as the world’s largest mutual fund with more than $56 billion in assets. He established JNV Overseas in 2004 to invest his own money along with cash from friends, family and a few outside investors, including billionaire George Soros, people familiar with the fund have said.

Money managers who oversee $100 million or more of equities traded on U.S. exchanges must file a Form 13F listing the holdings each quarter. The filing, which includes convertible bonds as well as funds and ETFs, is due 45 days after the quarter’s end.

To contact the reporter on this story: Christian Baumgaertel in Boston at cbaumgaertel@bloomberg.net

To contact the editor responsible for this story: Christian Baumgaertel at cbaumgaertel@bloomberg.net

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