#4. Bank of America Corp (NYSE:BAC)
– Number of shares held by Pelham Capital (as of March 31): 385,000
– Value of Pelham Capital’s holding (as of March 31): $5.21 Million
Mr. Turner’s London-based hedge fund increased its holding of Bank of America Corp (NYSE:BAC) by 15,000 shares during the January-to-March quarter, to 385,000 shares which were worth $5.21 million at the end of March. The shares of the second-largest U.S lender by assets have dropped by 15% year-to-date despite having gained 7% in the past month, which was attributable to the company’s first quarter financial results. Bank of America’s net income for the quarter was $2.68 billion, a decrease from $3.10 billion recorded for the same quarter of 2015. The decline in the company’s bottom-line figure was partly driven by higher provision for credit losses, which were mostly related to energy loans. Meanwhile, Bank of America’s revenue declined to $19.73 billion from $21.13 billion in the first quarter of 2015, partly due to a decline in trading activity. The shares of the bank are currently changing hands at 8.9-times expected earnings, below the forward P/E multiple of 13.8 for the financial sector. Andy Redleaf’s Whitebox Advisors acquired a new stake of 591,400 shares of Bank of America Corp (NYSE:BAC) during the March quarter.
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#3. Visa Inc. (NYSE:V)
– Number of shares held by Pelham Capital (as of March 31): 82,000
– Value of Pelham Capital’s holding (as of March 31): $6.27 Million
Mr. Turner’s long/short fund had 82,000 shares of Visa Inc. (NYSE:V) in its equity portfolio at the end of the March quarter, up by 21,000 shares or 34% quarter-over-quarter. The stake was valued at $6.27 million on March 31 and accounted for 2.32% of the value of the fund’s equity portfolio. The shares of the credit card issuer were trading near their all-time high of $81.73 ahead of the release of the company’s financial results for the second quarter of fiscal year 2016 that ended March 31. However, Visa shares have slightly retreated since that earnings release on April 21 and are now down by nearly 1% year-to-date. In November, the California-based company announced the acquisition of its European counterpart Visa Europe, but the completion of the acquisition may be extended beyond the end of the company’s fiscal third quarter, after amending the initial terms of the deal. The two companies split in 2007 ahead of Visa’s initial public offering. Visa also lowered its fiscal year 2016 top-line growth to a range of 7%-to-8% from the previous range of high single-digit to double-digit growth. Ken Fisher’s Fisher Asset Management owns 14.79 million shares of Visa Inc. (NYSE:V) as of March 31.
