At Insider Monkey, we focus mainly on the 13F filings of around 730 hedge funds and other institutional investors, in order to identify trading opportunities and benefit from them. However, we also follow the day-to-day moves that the investors we track disclose in their filings with the Securities and Exchange Commission and investor letters. In this article, we are going to take a look at three new positions that have been recently initiated by Bill & Melinda Gates Foundation Trust, Broadfin Capital, and Newtyn Management.
As stated earlier, we analyze 13F filings of over 730 investors in order to identify some profitable stocks to invest in. We concentrate on a small group of small-cap equities that the funds we track are collectively the most bullish on and this approach has allowed us to consistently beat the market over the last three years and to generate returns of around 102%, which is 53 percentage points above the market (see more details here).
With this in mind, let’s start by taking a look at the new position that has been added to the equity portfolio of Bill & Melinda Gates Foundation Trust. The trust managed by Michael Larson in the role of Chief Investment Officer, usually adopts a conservative approach to its investments and has a relatively low turnover ratio, which makes its recent purchase even more noteworthy. In a new 13G filing, the Trust reported a new stake in China Fund Inc (NYSE:CHN) that contains 786,199 shares, equal to 5% of the company’s outstanding stock. China Fund is engaged in investment in companies in China. The closed-end management investment company invests in a variety of industries, such as commercial services, food products and healthcare. The economic slowdown in China has affected China Fund Inc (NYSE:CHN)’s performance, sending it 15% in the read in year-to-date terms, while the Net Asset Value of the fund has slipped by around 5%. Therefore, Michael Larson might be betting on the stock to gain ground on the back of a rebound of the economy in China and decided to profit from the stock’s decline. However, aside from the Bill & Melinda Gates Foundation Trust, none of the funds from our database have reported holding positions in China Fund Inc (NYSE:CHN).
On the next page, we are going to take a closer look at Broadfin Capital’s new stake in Nexvet Biopharma plc (NASDAQ:NVET) and Newtyn Management’s latest investment in CSW Industrials Inc (NASDAQ:CSWI).