Roger Ibbotson’s Zebra Capital Management recently disclosed in a filing with the SEC its equity positions for the second quarter of 2014. Its equity portfolio, worth more than $259 million, is highly diversified, but has a slight focus on financial (22%), consumer discretionary (16%) and industrial (16%) stocks. Let’s take a look at the top picks of this Connecticut-based hedge fund.
Enstar Group Ltd. (NASDAQ:ESGR), a $2.62 billion market cap company, escalated from the fifth to the first position in this list. The fund boosted its exposure to Enstar Group Ltd. (NASDAQ:ESGR) by 32%, and now holds 32,399 shares, worth roughly $4.88 million. Enstaracquires and manages insurance and reinsurance companies in run-off and portfolios of insurance and reinsurance business in run-off, and provides management, consulting and other services to the insurance and reinsurance industry.
Other hedge funds betting on Enstar Group Ltd. (NASDAQ:ESGR) are Charles Akre’s Akre Capital Management, which last disclosed ownership of 498,626 shares, and Ric Dillon’s Diamond Hill Capital which declared holding 196,504 shares. Both these funds raised their stakes in the company over the first quarter of 2014.
Credit Acceptance Corp. (NASDAQ:CACC), a $2.49 billion market cap financing company, fell from the first to the second position in this list, after Zebra trimmed its stake by 4% over the second quarter. The fund now owns 34,543 shares of Credit Acceptance Corp. (NASDAQ:CACC), worth more than $4.25 million.
Although the stock is down more than 11% year-to-date, William Von Mueffling’s Cantillon Capital Management and Jim Simons’ Renaissance Technologies also seem to be fond of Credit Acceptance Corp. (NASDAQ:CACC). The funds own 457,420 shares, and 327,600 shares, respectively.
Third in line is Greenlight Capital Re, Ltd. (NASDAQ:GLRE), a $1.21 billion market cap global specialist property and casualty reinsurer. Zebra Capital more than quadrupled its stake in Greenlight Capital Re, Ltd. (NASDAQ:GLRE), and now owns 83,503 shares of the company, worth more than $2.75 million.
Also bullish about Greenlight Capital Re, Ltd. (NASDAQ:GLRE) is Chuck Royce, who last disclosed (at the end of the first quarter) having boosted his exposure to the company by 29%, to 1.18 million shares.
HSN, Inc. (NASDAQ:HSNI) also climbed in Zebra’s list, although the fund slightly trimmed its stake during the second quarter. Zebra owns 43,968 shares of this $3 billion market cap multi-channel retailer, worth $2.6 million. The stake at HSN, Inc. (NASDAQ:HSNI) accounts for 1% of the fund’s equity portfolio.
Other funds with even larger stakes in HSN, Inc. (NASDAQ:HSNI) are Harris Associates, D E Shaw and Jim Simons’ Renaissance Technologies, which last disclosed ownership of 2.67 million shares, 462,349 shares, and 312,600 shares, respectively.
Select Medical Holdings Corporation (NYSE:SEM) came in fifth. The $2 billion market cap medical care company saw Zebra almost double its exposure over the quarter. The fund now owns 151,353 shares of Select Medical Holdings Corporation (NYSE:SEM), worth about $2.36 million.
Conan Laughlin’s North Tide Capital, the largest hedge fund investor in the company, among those we track, also doubled its stake during the first quarter of 2014. The fund owns 13.95 million shares of Select Medical Holdings Corporation (NYSE:SEM), according to its last 13F filing.
Disclosure: Javier Hasse holds no position in any stocks or funds mentioned