China Yuchai International Ltd (CYD), Utstarcom Holdings Corp. (UTSI), Chiquita Brands International Inc (CQB): Shah Capital Management’s Top Picks for Q2 2014

Shah Capital Management, the hedge fund founded and managed by Himanshu H. Shah, recently filed its form 13F for the second quarter of 2014, disclosing his long equity positions as of June 30. The fund continued to display a strong focus on China-based companies, especially those in the technology and industrial goods segments. So, let’s take a look at Shah Capital’s most valuable holdings in order to find out if any of them should be considered as potential investments.

Since the third quarter of 2012, China Yuchai International Limited (NYSE:CYD) has been the fund’s most valuable equity position. Over the second quarter of 2014, the fund continued to increase its exposure, to the $807 million market cap diesel engines Chinese manufacturer and assembler. After having slightly upped its stake in China Yuchai International Limited (NYSE:CYD), Shah Capital owns 2.34 million shares, worth almost $50 million. This position accounts for almost 37% of the fund’s total equity portfolio’s value.

China Yuchai International Limited

Although the stock price is up barely 3.8% year-to-date, other hedge funds, including J. Alan Reid, Jr.’s Forward Management and Jean-Marie Eveillard’s First Eagle Investment Management hold millionaire stakes in China Yuchai International Limited (NYSE:CYD). These funds own 451,548 shares and 125,000 shares of the company, respectively.

UTStarcom Holdings Corp (NASDAQ:UTSI) has also felt Shah Capital’s bullishness. Shah had intended to acquire this $115 million market cap telecom infrastructure provider, but had then withdrawn its proposal. However, it has continued to acquire the company’s stock ever since, establishing itself as the largest hedge fund shareholder at UTStarcom Holdings Corp (NASDAQ:UTSI). Its 10.245 million shares are worth more than $30 million, and account for roughly 17% of the company’s outstanding shares.

Second in line is Phil Frohlich‘s Prescott Group Capital Management, which last reported holding around 2.307 million shares of UTStarcom Holdings Corp (NASDAQ:UTSI). The stock has inched more than 7% over the second quarter of 2014.

Third in this list is Chiquita Brands International Inc (NYSE:CQB), a $491 million market cap marketer and distributor of bananas and pineapples, of which Shah owns 1.229 million shares, worth about $13.3 million.  Although Chiquita Brands International Inc (NYSE:CQB)’s stock has lost more than 10%, year-to-date, several hedge funds seem quite bullish about its future. Steven Cohen’s Sac Capital Advisors last declared having upped its stake in Chiquita Brands International Inc (NYSE:CQB) by 846%, to 2.17 million shares.

Coeur d’Alene Mines Corporation (NYSE:CDE) came in fourth, after Shah more than tripled its exposure. The fund now owns 990,615 shares of this $910 million market cap silver and gold producer, worth more than $9 million. Despite the fund’s bullishness, Coeur d’Alene Mines Corporation (NYSE:CDE) has plunged by almost 19% since the beginning of the year.

Notwithstanding, several major fund managers including Chuck Royce and Jim Simons have last declared having either started positions or increased their stakes in the company. Mr. Royce’s fund disclosed ownership of 875,000 shares of Coeur d’Alene Mines Corporation (NYSE:CDE), and Mr. Simons’ fund, ownership of 757,790 shares.

Finally, we’ve got Canadian Solar Inc. (NASDAQ:CSIQ), a $1.6 billion market cap solar power company of which Shah owns 222,781 shares, valued at approximately $6.9 million. However, other funds seem more bullish about Canadian Solar Inc. (NASDAQ:CSIQ) than Shah, which slightly trimmed its stake over Q2.

Over Q1, Donald Chiboucis’ Columbus Circle Investors more than tripled its exposure to Canadian Solar Inc. (NASDAQ:CSIQ), and now owns 2 million shares, while Daniel Benton’s Andor Capital Management maintained its position unchanged, with 1.75 million shares.

Disclosure: Javier Hasse holds no position in any stocks or funds mentioned.

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!