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Harvest Capital Strategies Buys Ambarella

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Aug 26, 2015
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At the end of the second quarter of 2015, hedge fund Harvest Capital Strategies LLC reported a total value of its portfolio of $775 million, with a decrease of 31.84% since the previous quarter. During the quarter, it bought 44 new stocks and increased 42 of its stakes. The following are the most heavily weighted buys during the quarter.


It bought shares of Ambarella Inc. (AMBA) with an impact of 1.72% on its portfolio. The company is a developer of semiconductor processing solutions for video that enable high-definition (HD), video capture, sharing and display.

It has a profitability and growth rating of 7 out of 10 with great returns (ROE 30.21%, ROA 25.36%) that are outperforming 95% of the Global Semiconductor Equipment & Materials industry. Financial strength has a rating of 8 out of 10 and the company is out of debts.

The price of the stock has risen by 1,407% during the last five years, by 77% year to date and by 174% during the last 12 months. The current price is -29.45% from its 52-week high and +190.53% from its 52-week low.

Revenue for the first quarter of fiscal 2015 was up 21% from the same period in fiscal 2014. During the first quarter it achieved a gross margin which was up 62.5%, compared to the same period in fiscal 2014.

Paul Tudor Jones (Trades, Portfolio) is the main shareholder of the company with an easy stake of 0.02% of outstanding shares of the company, that is 0.02% of his total assets.


It bought shares of Aaron's Inc. (AAN) with an impact of 1.56% on its portfolio. The company is a specialty retailer of consumer electronics, computers, residential furniture, household appliances and accessories. It engages in the lease ownership, lease and retail sale of products such as widescreen and LCD televisions, computers, living room, dining room and bedroom furniture, washers, dryers and refrigerators.

Aaron has a profitability and growth rating of 8 out of 10 with positive returns (ROE 9.76%, ROA 5.10%) that are underperforming 58% of the Global Rental & Leasing Services industry. Financial strength has a rating of 8 out of 10 even so the company doesn’t have enough cash to pay its debts, with a cash-to-debt ratio of 0.23 that is far lower than the industry median of 0.65.

The price of the stock has risen by 123% during the last five years, by 22% year to date and by 46% during the last 12 months. The current price is -6.17% from its 52-week high and +60.17% from its 52-week low.

For the second quarter of 2015, revenues increased 16.1% compared to the same quarter of a year before that demonstrated the organization's ability to grow revenues and increase EBITDA at double-digit rates. EBITDA was 14.0% for the second quarter and 12.7% for the first six months of 2015.

The main hedge fund holding shares of the company is

First Pacific Advisors (Trades, Portfolio) with 2.47% of outstanding shares, followed by Diamond Hill Capital (Trades, Portfolio) with 1.95% and Mario Gabelli (Trades, Portfolio) with 1.63%.


It bought shares of Green Plains Inc. (GPRE)with an impact of 1.55% on its portfolio. The company is a producer, marketer and distributor of ethanol. The ethanol it produces is fuel grade and is an alcohol produced principally from the starch extracted from corn. The Company has four separate operating segments: Ethanol Production; Corn Oil Production; Agribusiness and Marketing and Distribution.

GreenPlains has a profitability and growth rating of 6 out of 10 with positive returns (ROE 11.40%, ROA 5.12%) that are outperforming 61% of the Global Specialty Chemicals industry. Financial strength has a rating of 7 out of 10 with a very high interest coverage of 7.17, and a cash-to-debt of 0.61 that is at average level if compared to the industry median of 0.59.

The price of the stock, which has risen by 99% during the last five years, has dropped by 29% since the beginning of the year and by 58% during the last 12 months. The current price is -60.00% from its 52-week high and +8.06% from its 52-week low.

During the second quarter of 2015, Green Plains Processing LLC, a wholly owned subsidiary of Green Plains, amended its senior secured credit facility to increase the outstanding borrowings.

The main shareholder holding shares of the company is

Steven Cohen (Trades, Portfolio) who holds 1.41% of outstanding shares, followed by Jim Simons (Trades, Portfolio) with 0.28% and Chuck Royce (Trades, Portfolio) with 0.15%.


It bought shares of AAC Holdings Inc. (AAC) with an impact of 1.04% on its portfolio. The company is a behavioral healthcare provider focused on addiction treatment and rehabilitation.

AAC Holdings has a profitability and growth rating of 5 out of 10 with good returns (ROE 17.75%, ROA 9.50%) that are outperforming 78% of the Global Medical Care industry. Financial strength has a rating of 8 out of 10 with an interest coverage of 6.17, and a cash to debt of 0.59; the performance of these ratios is at the same level of the average competitor’s ratios.

The price of the stock has risen by 21% during the last five years, has dropped by 26% year to date and has risen by 21% during the last 12 months. The current price is -50.73% from its 52-week high and +52.15% from its 52-week low.

Revenue for the second quarter of 2015 had an 85% increase from the second quarter of 2014 and up 26% from the first quarter of 2015. Adjusted EBITDA was 26% of revenue while it was 15% of revenue in the prior year. This increase in EBITDA margin was because of increased admissions across the platform and achieving the operating leverage and increased outpatient visits; and benefit of increased lab output related to higher overall census and the addition of California testing. Adjusted earnings per share has risen by $0.18 from the first quarter.

The main guru holding shares of the company is

Chuck Royce (Trades, Portfolio) with 0.86% of outstanding shares, followed by Steven Cohen (Trades, Portfolio) with 0.45% and Ron Baron (Trades, Portfolio) with 0.14%.

Increased stakes

The hedge fund also increased seven of its stakes, and the most important are the following: American Eagle Outfitters (

AEO, Financial) by 17%, CF Industries Holdings Inc. (CF, Financial) by 106%, Homeaway Inc. (AWAY, Financial) by 20%, ServiceSource International LLC (SREV, Financial) by 25%, Cogent Communications Hldgs. (CCOI, Financial) by 78%, Glu Mobile Inc. (GLUU, Financial) by 16.13%, Cirrus Logic Inc. (CRUS, Financial) by 33.27% and Hecla Mining Co. (HL) by 10.00%

Harvest Capital Strategies Top Buys Q2 2015

Ticker

Value (x1000)

Impact %

Trade

AMBA

13,350

1.72%

New Buy

AAN

12,130

1.56%

New Buy

GPRE

11,984

1.55%

New Buy

AAC

8,059

1.04%

New Buy

As of the latest quarter, the hedge fund has its portfolio divided by the following sectors:

Main Sectors

Finance

36%

Information Technology

23%

Consumer Discretionary

17%

Other

8%

Industrials

4%

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