Cheyne Capital is Europe’s leading alternative asset and investment management company. It launched its first fund in 2000 and specializes in number of asset classes such as real estate debt, social property impact, corporate credit, convertible bonds and event driven investing. Its current portfolio has a 25% allocation to healthcare and 29% to technology. The top holdings of Cheyne are Alere Inc (NYSE:ALR), LinkedIn Corp (NYSE:LNKD), Monsanto Co. (NYSE:MON) and BHP Billiton (NYSE:BHP). The fund has total assets of $157 million with positions in 30 securities as of September 2016. During Q3, Cheyne Capital initiated new positions in different companies engaged in gardening, pets, bedding and web products. Let’s take a look at these intriguing additions.
At Insider Monkey, we track around 730 hedge funds and institutional investors. Through extensive backtests, we have determined that imitating some of the stocks that these investors are collectively bullish on can help retail investors generate double digits of alpha per year. The key is to focus on the small-cap picks of these funds, which are usually less followed by the broader market and allow for larger price inefficiencies (see more details about our small-cap strategy).
Central Garden & Pet Co (NASDAQ:CENT) is engaged in the business of manufacturing and supplying product to the garden and pet industries. The company was founded in 1980 as a distribution company and has come a long way to become an owner of leading brands through successful acquisitions. Recently, the company acquired Segrest which is a large wholesaler of aquarium fish for a cash price of $60 million. Cheyne Capital holds shares worth $3.4 million in this stock. In its most recent second quarter, CENT announced its highest quarterly revenues ($541 million) and highest quarterly earnings in the last decade. The company’s terrific operation performance has reflected in its stock performance with the stock up more than 60% year to date. About 2% of the shares are held by 17 hedge funds that we track. The value of their holdings as at the end of June quarter was $115 million.