4. ZIM Integrated Shipping Services Ltd. (NYSE:ZIM)
King Street Capital’s Stake Value: $62,637,000
Percentage of King Street Capital’s 13F Portfolio: 5.28%
Number of Hedge Fund Holders: 22
ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) is one of the top 20 global cargo shipping companies, headquartered in Israel. ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) posted on November 17 solid Q3 earnings. EPS in the quarter equaled $12.16, topping estimates by $2.83. The $3.14 billion revenue also outperformed estimated revenue by $374.27 million. The company announced that it would pay out almost 20% of the net quarterly income as dividends in December, which makes the dividend per common share amount to $2.50.
King Street Capital holds a $62.6 million position in ZIM Integrated Shipping Services Ltd. (NYSE:ZIM), as of the third quarter, which accounts for 5.28% of the firm’s total 13F securities.
Jim Simons’ Renaissance Technologies is the leading stakeholder in ZIM Integrated Shipping Services Ltd. (NYSE:ZIM), with 2.34 million shares valued at $118.8 million. Overall, 22 hedge funds monitored by the Q3 database of Insider Monkey were bullish on the stock, with a total stake value of $552.5 million.
Here is what Evermore Global Advisors has to say about ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) in its Q2 2021 investor letter:
“ZIM Integrated Shipping Services (ZIM) was the largest contributor to the Fund’s performance during the second quarter. With a market cap of $5.2 billion, ZIM is an Israel-based containership operator that had its initial public offering on the New York Stock Exchange this past January. As a reminder, we discussed ZIM at length in the Q1 2021 quarterly commentary as one of the new investments that we initiated during that period.
There were several notable developments during the second quarter. Given the company’s unique asset light business model and targeted, global niche approach, ZIM continued to generate exceptionally strong cash flows. ZIM ended the period with approximately $1.25 billion in cash and about $915 million in net debt. Due to the strong operational performance, the company further strengthened its balance sheet by redeeming its Series 1 and Series 2 unsecured notes due in 2023. With the early redemption of the unsecured notes, ZIM was no longer subject to certain dividend restrictions, and it declared a special dividend of $2 per share, which will be payable on Sept 15th (goes ex on August 24th). Lastly, management revised its 2021 full year EBITDA guidance from $1.4 – 1.6 billion to $2.5 – $2.7 billion, which was a sizable increase compared to the levels set last March. To that end, we continue to have high conviction in our position in ZIM.”
