Activist investor Jonathan Auerbach “Hounded” by Losses

#2 Baidu Inc (ADR) (NASDAQ:BIDU)

 – Shares Owned by Hound Partners (as of March 31): 2 million

 – Value of Holding (as of March 31): $389.09 million

Despite its stock ending the first quarter flat, Chinese search giant Baidu Inc (ADR) (NASDAQ:BIDU) jumped seven spots in Hound Partners’ portfolio during that period and became its second top stock pick at the end of March owing to the 86% increase that the fund made to its stake in the company in the first quarter. Currently, Baidu Inc (ADR) (NASDAQ:BIDU)’s stock is trading down 12.78% year-to-date, with most of those losses coming in after the company reported its fiscal 2016 first quarter results on April 28. On June 7, Bitauto Hldg Ltd (ADR) (NYSE:BITA), which provides content and marketing services to automotive companies in China, revealed that it has received $300 million in investments from a consortium of investors led by Baidu. William Von Mueffling‘s Cantillon Capital Management brought down its holding in the company by 5% to 2.13 million shares during the first quarter.

#1 Spirit AeroSystems Holdings, Inc. (NYSE:SPR)

 – Shares Owned by Hound Partners (as of March 31): 11.60 million

 – Value of Holding (as of March 31): $526.35 million

Spirit AeroSystems Holdings, Inc. (NYSE:SPR) continued to remain Hound Partners’ top stock pick at the end of first quarter, even though the fund inched down its stake in the company during that period by 4%. The fund initiated a stake in the company during the first quarter of 2014, when Spirit AeroSystems Holdings, Inc. (NYSE:SPR)’s stock used to trade near the $30 levels. While shares of the aircraft parts manufacturer have lost 6.41% of their value so far this year, they are still up around 50% since the time Hound Partners initiated a stake in the company. On June 8, the company announced that its CEO, Larry Lawson, will retire in July and Tom Gentile, who serves as the COO currently, will be taking his place. Spirit AeroSystems Holdings, Inc. (NYSE:SPR)’s stock currently sports an average rating of ‘Overweight’ and an average price target $55.88 from the 19 leading analysts on the Street who cover it. Matt Sirovich and Jeremy Mindich‘s Scopia Capital reduced its stake in the company by 14% to 14.11 million shares during the first quarter.

Disclosure: None