Vinik Adds Technology Shares to Hedge Fund in 4th Quarter

Jeffrey Vinik, a former manager of Fidelity Investments’ flagship Magellan Fund who now runs a hedge fund, added several new technology holdings to his portfolio in the fourth quarter, according to government filings.

Boston-based Vinik Asset Management LP bought 2.3 million shares of Compaq Computer Corp., making it the fund’s seventh-largest holding. Vinik also bought Electronics for Imaging Inc., Rational Software Corp. and Flextronics International Ltd.

Vinik, who has been a big technology investor since his days at Fidelity, also sold or trimmed some computer-related shares. He sold all of his 711,400 shares of Advanced Micro Devices Inc. and unloaded 579,000 shares of Intel Corp., although it is still among the fund’s top 10 holdings.

“He’s done stock picking in the technology sector in the fourth quarter,” said Fred Hult, research analyst at Carson Group, a New York-based research firm that tracks holdings of institutional investors.

Vinik Asset Management has $3.9 billion in stock holdings, according to Securities and Exchange Commission filings. The filings don’t reflect any of the fund’s short positions, that is shares that Vinik borrows and immediately sells in the hope of buying them back at a lower price.

Vinik also bought some retail shares in the last three months of 1998. He purchased 643,200 shares of consumer electronics and home office retailer Best Buy Co., a new position, and added to his holding of AnnTaylor Stores Corp. His second-largest position is Abercrombie & Fitch Co., although he sold 156,700 shares in the fourth quarter.

Vinik is known as an active trader, meaning his portfolio today may not look like it did at the end of December. Mark Hostetter, Vinik’s chief operating officer, wasn’t available for comment.

At the end of December, Vinik’s biggest holdings were Maxtor Corp., Abercrombie & Fitch, Tyco International Ltd., Comverse Technology Inc. and Electronics for Imaging Inc.