Eric Bannasch’s Cadian Capital has filed its 13F with the SEC for the reporting period of June 30, 2015. The hedge fund has more than $5.59 billion worth of assets under management and its recent 13F exposes a public equity portfolio containing $3.40 billion in equities. Prior to starting Cadian Capital in 2007, Bannasch worked as a portfolio manager for the tech, media, and telecommunications fund of Perry Capital. The investment manager employs a longer term value approach while investing in small- and mid-cap companies. Its current equity portfolio is dominated by information technology stocks, which account for more than 59% of its overall portfolio value. Cadian Capital also has 53.82% of its equity portfolio dedicated towards its top ten stock investments. In this post, we will analyze the new technology stock picks of the hedge fund including LinkedIn Corp (NYSE:LNKD), Ambarella Inc (NASDAQ:AMBA), and PROS Holdings, Inc. (NYSE:PRO).
Why are we interested in the 13F filings of a select group of hedge funds? We use these filings to determine the top 15 small-cap stocks held by these elite funds based on 16 years of research that showed their top small-cap picks are much more profitable than both their large-cap stocks and the broader market as a whole. These small-cap stocks beat the S&P 500 Total Return Index by an average of nearly one percentage point per month in our backtests, which were conducted over the period of 1999 to 2012. Moreover, since the beginning of forward testing from August 2012, the strategy worked just as our research predicted, outperforming the market every year and returning 118% over the last 35 months, which is more than 60 percentage points higher than the returns of the S&P 500 ETF (SPY) (see more details).
LinkedIn Corp (NYSE:LNKD) ranks at the top in terms of the new technology stock picks of Eric Bannasch. The hedge fund manager initiated a new position in the online professional network consisting of 571,000 shares valued at $117.99 million. Despite stronger second quarter 2015 results, the shares of the professional network are down by 16.52% since their announcement on July 30 and by 18.5% year-to-date. LinkedIn Corp (NYSE:LNKD) was able to beat the revenue and earnings expectations by a huge margin with reported revenue of $712 million and earnings per share (EPS) of $0.55 against market expectations of $679.80 million and $0.33 EPS, respectively. According to experts, the company released a sub-par outlook for the next quarter and the full financial year however. LinkedIn Corp (NYSE:LNKD) is expecting revenues of $745 million to $750 million for the third quarter with EPS of $0.43, along with divulging guidance of $2.94 billion and adjusted EPS of $2.19 for the 2015 fiscal year. Lansdowne Partners, led by Paul Ruddock and Steve Heinz, is one of the primary investors of LinkedIn Corp to have filed its 13F for the second quarter. The investment firm had 1.06 million shares of LinkedIn Corp in its portfolio with a market value of $219.87 million.