Glaxis Capital All-In on These Two Stocks After Slashing Portfolio

Paul Holland and Matthew Miller co-founded Glaxis Capital in 2005. The fund’s equity portfolio has remained fairly concentrated since the end of March last year. While lacking in the diversification aspect, this does show the high conviction of fund managers in their stock picks, which makes it worthwhile to take a look at them. According to Glaxis’ latest filing, it had four equity positions, two of which were in exchange traded funds (ETFs). In comparison the total equity positions amounted to ten at the end of last year. Hence, in this article, we will also dig deeper into the top holdings that were ousted from Glaxis’ portfolio.

Our research determined that following the small-cap stocks, that hedge funds are collectively bullish on, can help a smaller investor beat the S&P 500 by around 95 basis points per month (see more details here).

Amgen, Inc. (NASDAQ:AMGN)

Before being wiped out entirely in the first quarter, Glaxis’ Amgen, Inc. (NASDAQ:AMGN) holding represented 7.88% of the fund’s portfolio at the end of December and comprised 11,100 shares. The decision doesn’t seem to have hurt the firm considering that the stock is down by around 5% so far this year. The Thousand Oaks, California-based biotechnology firm beat both the top and bottom line estimates in its financial results for the first quarter, which also led to the company raising its outlook for 2016. Barry Dargan‘s Intermede Investment Partners raised its Amgen, Inc. (NASDAQ:AMGN) holding by 41% to 199,800 shares during the January-March period.

 

Delta Air Lines, Inc. (NYSE:DAL)

Glaxis initiated a stake in Delta Air Lines, Inc. (NYSE:DAL) during the fourth quarter with 43,650 shares accounting for 9.65% of the firm’s portfolio value. Assuming that the firm disposed of its entire holding at the right time during the first quarter, the move could seem right, considering that shares of the $33.15 billion airline company are down by 15% year-to-date. Delta’s first quarter revenue of $9.25 billion came in $20 million short of expectations and marked a 1.5% decline on a year-over-year basis. However, the company’s EPS of $1.32 beat estimates by $0.02. Recently, Delta announced that it had ordered 75 CSeries CS100 planes from Canada’s Bombardier, which is trying to serve a niche market for 100-seat planes. Another fund bearish on Delta Air Lines, Inc. (NYSE:DAL) during the first quarter was Richard L. Haydon‘s Yield Capital Partners as it slashed its holding in the company by 85% to just 35,000 shares.

 

#3 Amazon.com, Inc. (NASDAQ:AMZN)

 At the end of December, Glaxis’ Amazon.com, Inc. (NASDAQ:AMZN) holding represented 12.75% of the fund’s equity portfolio.  The stock of Jeff Bezos’ $279 billion e-commerce giant, has gained 5% so far this year, helped by strong first-quarter results the company delivered in the first quarter. The company beat analyst expectations as far as its top and bottom lines for the first quarter were concerned. The popularity of Amazon’s own devices reached impressive levels during this period; its Fire tablets, for example, saw sales more than double as compared to the same period last year, while the $39 Fire TV Stick received over 62,000 5-star reviews. David Keidan‘s Bukingham Capital Management was betting on similar results as it raised its Amazon.com, Inc. (NASDAQ:AMZN) holding by 62% during the first trimester to 28,500 shares.

#2 Facebook Inc (NASDAQ:FB)

– Shares Owned by Glaxis Capital (as of March 31): 36,780

– Value of Holding (as of March 31): $4.20 Million

After cutting the stake by 44% during the first quarter, Facebook Inc (NASDAQ:FB) represented 35.22% of Glaxis’ equity portfolio. Ken Fisher‘s Fisher Asset Management adopted a similar stance as it also reduced its Facebook holding by 18% to 256,520 shares during the same period. The stock has gained over 13% on year-to-date basis and recently reached an all time high following the announcement of first quarter results that saw revenues jump by 52% to $1.5 billion and net income tripling to $1.5 billion as compared to the same quarter last year. In addition to beating estimates on top and bottom lines, with EPS of $0.77 on revenue of $5.38 billion, versus estimates of $0.62 and $5.26 billion, respectively, Facebook also delivered better-than-expected monthly active users and mobile monthly active users figures. .

#1 Alphabet Inc (NASDAQ:GOOGL)

 – Shares Owned by Glaxis Capital (as of March 31): 5,504

– Value of Holding (as of March 31): $4.20 Million

Glaxis raised its stake in the $477 billion tech behemoth by 14% during the first trimester. So far this year, Alphabet Inc (NASDAQ:GOOGL)’s shares are down by 7%, on the heels of top and bottom line misses that characterized its first quarter financial results. The driving force behind this being the decline in ad prices. This has also led to a number of analysts, including Oppenheimer, Morgan Stanley and SunTrust Robinson Humphrey lowering their price target on Google’s stock. However, there was a silver lining in the quarterly earnings report as well in the form of a better-than-expected EBITDA, which shows that the management has been successful in cutting both OPEX and CAPEX. Sandy Nairn‘s Edinburgh Partners trimmed its stake in  Alphabet Inc (NASDAQ:GOOGL) by 4% during the January-March period to about 74,100 shares.

 

Disclosure: None