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Why Investors Are Clamoring for Xenia Hotels & Resorts Inc (XHR), New Senior Investment Group Inc (SNR), Cresud S.A.C.I.F. y A. (CRESY), and KKR & Co. L.P. (KKR)

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683 Capital Partners is an employee-owned hedge fund sponsor managed by Ari Zweiman, which reported holding a public equity portfolio worth $627.17 million as of the end of June. As per our calculations, 683 Capital Partners’ 15 long positions in stocks that were valued at at least $1 billion at the end of the June delivered a positive return of 16.27% in the third quarter. Out of those 15, we are going to discuss four later on in this article – Xenia Hotels & Resorts Inc (NYSE:XHR),  New Senior Investment Group Inc (NYSE:SNR), Cresud S.A.C.I.F. y A. (ADR) (NASDAQ:CRESY), and KKR & Co. L.P. (NYSE:KKR).

It is worth mentioning that our way of measuring average weighted returns doesn’t include holdings in small-cap companies, short positions, and similar instruments, so those returns may differ from the fund’s actual returns. Nevertheless, analyzing long positions in $1 billion dollar companies has proved to be a successful guide for assessing the fund’s investment skills. Having said that, let’s examine the Q3 performances of the aforementioned companies.

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Let’s begin with Xenia Hotels & Resorts Inc (NYSE:XHR), a company that, despite the fund’ strong stock picking performance during the third quarter, delivered a negative return of 7.9% during that time. At the end of June, 683 Capital Partners held 712,000 shares of the company, which were valued at $11.95 million, and amassed 1.90% of its equity portfolio’s value. Since the beginning of the year, the company’s shares have gained 5.54%,

At the end of the second quarter, 11 hedge funds that we track were bullish on this stock, an 8% decline from one quarter earlier. According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, one of the largest positions in Xenia Hotels & Resorts Inc (NYSE:XHR) was held by PAR Capital Management, managed by Paul Reeder and Edward Shapiro, which held an $8 million position. Remaining peers that were bullish contained Richard Rubin’s Hawkeye Capital, Charles Davidson’s Wexford Capital, and Seth Fischer’s Oasis Management.

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The second stock we are going to examine, New Senior Investment Group Inc (NYSE:SNR), brought a positive return of 10.4% in the third quarter. Seeing its positive return, we can say that 683 Capital Partners made a mistake during the June quarter when it lowered its stake in the company by 15%, reporting a position that was valued at $16.34 million, comprising 2.60% of its portfolio.

Heading into the third quarter of 2016, a total of 15 of the hedge funds in our system were long this stock, a 7% rise from the previous quarter. More specifically, Omega Advisors was the largest shareholder of New Senior Investment Group Inc (NYSE:SNR), with a stake worth $45.5 million reported as of the end of June. Trailing Omega Advisors was Levin Capital Strategies, which amassed a stake valued at $43.3 million. Citadel Investment Group and Millennium Management also held valuable positions in the company.

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We’ll check out two more of the fund’s stock picks on the next page.

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