Netflix (NFLX), Michael Kors (KORS), Yelp (YELP): Apex Capital’s Top Q2 Stock Picks

MicroStrategy Incorporated (NASDAQ:MSTR) remains in third position in Apex’s equity portfolio, with the fund holding a $53.62 million position consisting of 316,900 shares, which was a decrease of 19% from the previous filing. MicroStrategy Incorporated (NASDAQ:MSTR) is a stock which has frustrated Apex in the past, as over a year ago, the fund sent a letter to the company’s board, expressing concerns over its corporate governance and communication with shareholders, to which the company never responded. Regardless, Apex clearly still believes in the prospects of the business software producer, which it first invested in back in 2012. Ricky Sandler’s Eminence Capital is also a believer in MicroStrategy Incorporated (NASDAQ:MSTR), owning the largest position in our database as of the end of 2014. Shares of MicroStrategy were up by 4.18% during the first quarter.

Actavis plc (NYSE:ACT) moves up to fourth position in Apex’s portfolio and the fund also maintains a large position of call options (its eighth-most valuable position overall). The fund’s long position consisted of 175,000 shares valued at $52.08 million, a 12% increase from the previous quarter. Shares of Actavis plc (NYSE:ACT) appreciated by over 15% during Q1, but have dipped by 5% thus far in Q2. Previously the top healthcare stock among funds we track, it will be interesting to see the fund reaction to the stock now that its deal to purchase Allergan has closed. Among the big shareholders of the pharmaceutical giant are Andreas Halvorsen, Dan Loeb, and Daniel Och.

Apex’s top new position is in Yelp Inc (NYSE:YELP), the online platform for connecting businesses and customers. The fund opened a new position of 1.06 million shares during Q1, valued at $50.31 million. While we can only speculate as to when exactly during Q1 the shares were bought, it’s possible the stock’s big dip in early February made in an attractive investment for Apex. That dip was predicated on sliding user numbers, with unique users falling on both desktop and mobile devices (the latter being the more worrisome figure). While Yelp Inc (NYSE:YELP) shares had made up more than half of those losses leading into its latest earnings report, released yesterday, it gave them all back following earnings and revenue that missed estimates, as well as future guidance that fell short of estimates. That will come as bad news to Eashwar Krishnan’s Tybourne Capital Management, which had nearly 12% exposure to Yelp Inc (NYSE:YELP), which was its top pick heading into 2015.

Disclosure: None