Kerr Neilson, the founder and manager of Platinum Asset Management, is bullish on Qunar Cayman Islands Ltd (NASDAQ:QUNR). According to a recent filing with the Securities and Exchange Commission, the billionaire investor has initiated a new position for his fund through the acquisition of 1.57 million shares, which represent 12.3% of the company’s common stock.
Qunar Cayman Islands Ltd (NASDAQ:QUNR) operates an online travel platform for clients in the Peoples Republic of China. The company has a market cap of $3.28 billion and does not pay a dividend. The company reported revenues of $41.5 million, a 74.2% year-over-year increase, and a loss of $0.18 per share for the fourth quarter of 2013. Analysts estimate revenues of $50.66 million and a loss of $0.13 per share for the first quarter of this year.
According to a recent report from Bloomberg, Qunar is engaged in merger talks with Ctrip.com International, Ltd. (ADR)(NASDAQ:CTRP), although talks are at an initial stage and there is no certainty of a deal. Both parties are exploring a wider range of options, from a partnership to a full-blown merger.
Qunar Cayman Islands Ltd (NASDAQ:QUNR) is 55% owned by Baidu Inc (ADR) (NASDAQ:BIDU) who has acquired the majority stake in 2011 for approximately $306 million. The company went public in November 2013, in an IPO priced at $15.00 with 11.1 million shares being offered.
During the fourth quarter of 2013, Neilson has adjusted most of his fund’s top equity position, one of them being Baidu Inc (ADR)(NASDAQ:BIDU). Platinum has decreased its holding of the stock by 23% to 1.96 million shares valued at $348 million. Neilson has increased his fund’s stake in Intel Corporation (NASDAQ:INTC), taking it to a little over 13 million shares reportedly worth $338 million. He has also upped Platinum’s stake in Carnival Corporation (NYSE:CCL) by 19% to 6.11 million shares valued at $245 million.