Simon Sadler founded Asia based Segantii Capital in December 2007. The fund focuses on Asia-Pacific equity markets with weight on North Asia ex-Japan. The fund has a multi-startegy approach and the strategies include relative value, opportunistic events and catalyst driven long/short. In 2011, Segantii Capital drew investors’ attention when it achieved its biggest gain of 40.75%, in contrast to Eurekahedge Asian index, which fell 7.4% in the same period. However, the fund has been suffering two consecutive years of underperformance, losing 1.7% in 2013.
Mr. Sadler, the Chief Investment Officer of Segantii Capital has experience of over 15 years in a number of investment banks across Europe and Asia. Since 1999, he has worked with HSBC Securities, Deutsche Securities and Dresdner Kleinwort Wasserstein Securities in Hong Kong in the capacity of senior trading and trading management roles.
The total value of the fund’s equity portfolio is approximately $546.8 million. An analysis of Segantii Capital’s equity portfolio reveals that some of the largest investments of Mr. Sadler are backed by some of the greatest hedge funds, run by billionaires as Jim Simons, or Israel Englander, among others. With this in mind, let’s take a look at these picks.
Segantii Capital’s top holding is Taiwan Semiconductor Mfg Co Ltd (ADR) (NYSE:TSM) in which it holds 23.9 million shares valued at $423.3 million. Four billionaire hedge funds are also invested in the stock: Jim Simsons‘ Renaissance Technologies currently holds 29.1 million shares, while Ken Fisher and Israel Englander own 16.9 million shares, and around 896,500 shares. Ken Griffin is also bullish on the stock, owning 271,400 shares of the company. The manufacturer of semiconductors has a market cap of $97.5 billion and sports a Price to Earnings (P/E) ratio of 15.7. For the fourth quarter of 2013, Taiwan Semiconductor reported $4.1 billion in revenues and earnings per ADR unit of $0.29. For the current quarter, the company expects revenue between $4.49 billion and $4.55 billion.
Another important position is China Life Insurance Company Ltd (ADR) (NYSE:LFC), in which Segantii Capital holds 234,600 shares, worth about $11.0 million. Israel Englander added 19% to his position during the same period and currently holds 55,500 shares of China Life Insurance.
Next up is A U Optronics Corp (ADR) (NYSE:AUO), Segantii Capital owning 3.4 million shares, valued at roughly $11 million. Israel Englander owns around 649,500 shares of the company. Another billionaire invested in A U Optronics Corp (ADR) (NYSE:AUO) is Ken Griffin, who holds approximately 71,600 shares. The Taiwan based company announced an increase of 10.0% on the year in revenues to $13.7 billion and earnings of $0.15 per ADR for the fiscal year 2013.
In China Unicom Hong Kong Ltd (ADR) (NYSE:CHU),Segantii owns approximately 551,600 shares, worth $8.3 million. Ken Griffin and Israel Englander also hold around 758,300 shares and 60,500 shares respectively, of the investment holding company. It has a market cap of $31.6 billion and trails a P/E ratio of around 19. For 2013, China Unicom posted revenues of $47.2 billion, an increase of 18.5% year on and EPS of $0.016, annual increase of 33.3%.
Simon Sadler holds 173,540 shares, which is equivalent to $2.6 million of KT Corporation (ADR) (NYSE:KT). Other billionaires who reported ownership of shares in the South Korean company are Jim Simons, who holds 118,100 shares, Israel Englander with 39,700 shares, and Ken Griffin, with around 39,000 shares. For fiscal year 2013, the $7.0 billion company declared an annual cash dividend of $.75 per share.