Over the past few days, hedge funds have been filing their form 13-F, which is a quarterly report of equity holdings by filed institutional investment managers with at least $100 million in equity assets under management, as required by the United States Securities and Exchange Commission (SEC). In this article, let´s concentrate in one particular hedge fund and try to see the principal holdings in its portfolio. I will look into Shah Capital Management LLC.
Recently the fund reported its equity portfolio, as of the end of March. The total value of the portfolio amounted to $114.61 million, down from $116.05 million disclosed at the end of the previous quarter. The filing revealed that at the end of March, the fund has not added any new position to its equity portfolio, but sold out 6 positions. The top ten portfolio holdings as of the end of the quarter represented 100%. The largest changes from previous 13-F´s fillings are in the industrials and material sectors.
In this article, we have selected three companies, in which the fund holds the largest stakes, in terms of market value.
The first on the list is China Yuchai International Limited (CYD, Financial), in which the fund disclosed a $49.62 million stake with over 2.51 million shares. This stock represents 43.3% of the portfolio.
The company engages in the manufacture, assembly, and sale of a wide variety of light-, medium- and heavy-duty engines for trucks, buses, passenger vehicles, construction equipment, marine and agriculture applications in China. This Singapore-based company reported profit of $39.4 million in its fourth quarter. Revenues has fallen by 14.46% and earnings per share decreased in the fourth quarter compared to the same quarter a year ago ($1.00 vs $1.14). During the past fiscal year, the company increased its bottom line. It earned $3.12 versus $3.10 in the prior year. For the next year, Wall Street is expecting a contraction of 16.2% in earnings ($2.60 versus $3.12).
China Yuchai shares have increased roughly 1.37% since the beginning of the year. The stock has fallen 3% in the last 12 months. Acadian Asset Management LLC held 825,853 shares, valued at $16.31 million as of the end of March. From its website, we know that Acadian specializes in active global and international equity strategies, employing sophisticated analytical models for active stock selection.
UTStarcom Holdings Corp. (UTSI, Financial) comes in next, the fund owning over 10.70 million shares, worth $28.36 million. The firm is a telecom infrastructure provider, which offers broadband technologies that enable high-speed voice, video and data access and transport over IP-based networks. This second holding represents 24.75% of the total portfolio.
The company recently announced a 3-year contract extension to support a major network enhancement for Bharat Sanchar Nigam Ltd. (BSNL), the largest national wireline carrier in India.
The stock was down by more than 6% in the three months period. Among the hedge funds that sold out the stock, we found Creative Planning and Tompkins Financial Corp.
In Coeur Mining Inc. (CDE, Financial) the fund disclosed ownership of over 1.46 million shares, worth $6.89 million. This company is a primary silver producer with growing gold production. It has assets located in important countries such as the U.S., Mexico, Bolivia, Argentina and Australia.
The stock is up more than 14% since the beginning of April. Virginia Retirement Systems ET AL held 113,000 shares, valued at $532 million as of the end of March.
Disclosure: Omar Venerio holds no position in any stocks or funds mentioned.
