Quarterly 13F filings are required to be submitted with the U.S. Securities and Exchange Commission within 45 days following the end of each fiscal quarter, so retail investors will have access to all 13Fs for the first quarter of 2016 on May 16. While most top-tier hedge fund vehicles usually file their 13Fs only a few days before the deadline, there are some funds that have already submitted their quarterly filings. WCG Management L.P., founded by Barry Wittlin in 2007, is among the hedge fund vehicles tracked by Insider Monkey that recently submitted its 13F for the first quarter of this year, which enables us to identify major moves implemented during the quarter. WCG Management is New York-based investment management firm that specializes in discretionary, Global Macro investing. Although the investment firm oversees a rather small-sized equity portfolio, which is worth only $82.83 million as of the end of March, it would be particularly interesting to find out where certain small players within the hedge fund industry see opportunities. For that reason, this article will discuss five new additions to WCG Management’s portfolio during the first quarter of 2016.
At Insider Monkey, we track around 730 hedge funds and institutional investors. Through extensive backtests, we have determined that imitating some of the stocks that these investors are collectively bullish on can help retail investors generate double digits of alpha per year. The key is to focus on the small-cap picks of these funds, which are usually less followed by the broader market and allow for larger price inefficiencies (see more details about our small-cap strategy).
VOLVO AB (OTCMKTS:VOLVF)
– Number of shares held by WCG Management as of March 31: 370,000 Class B Shares
– Value of WCG’s holding as of March 31: $4.07 Million
WCG Management L.P. acquired a new stake of 370,000 Class B shares of VOLVO AB (OTCMKTS:VOLVF), which were valued at $4.07 million on March 31. In the first quarter of 2016, net sales of the Swedish truckmaker decreased 4% year-on-year due to a slowdown in the North American truck market, as well as sustained challenges in Brazil. The Gothenburg-based auto manufacturer recently has said that the North American retail market for heavy-duty trucks slumped by 7% year-on-year in the first quarter of 2016. The so-called correction in the North American market was mainly driven by sluggish freight volumes, increased availability of competitively-priced used trucks and lower rates of fleet renewal, partially offset by a strengthening construction industry, depressed fuel prices and low interest rates. The number of Volvo’s registrations in Brazil declined 27% year-on-year in the first quarter due to the continued contraction of the economy and low business confidence. However, the European market is showing positive growth, as freight activity remained at high levels during the quarter. Despite lower first-quarter revenues, Volvo AB’s management managed to maintain profitability due to a lower cost base and increased focus on adjusting production to changes in demand.