Cryder Capital’s Top Picks Reveal the Fund’s Rather Cautious Strategy

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Ferdinand GroosCryder Capital has revealed its equity holdings as of the end of the first quarter in a 13F form filed with the SEC. Three of the fund’s top five picks, including Westinghouse Air Brake Technologies Corp (NYSE:WAB), Alliance Data Systems Corporation (NYSE:ADS), and Roper Industries, Inc. (NYSE:ROP) are from the industrials sector, while the other two, BlackRock, Inc. (NYSE:BLK) and Monsanto Company (NYSE:MON) are financial and consumer discretionary stocks.

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Cryder Capital’s Managing Partner Ferdinand Groos founded the London-based fund in December 2010. Groos has also served as a Managing Director of Rhone Capital L.L.C. The fund filed its first 13F form for the fourth quarter of 2014 and its new 13F filing revealed a 5% cut in all holdings during the first quarter and one new stake in Thermo Fisher Scientific Inc. (NYSE:TMO). The market value of the fund’s equity portfolio stood at $142.01 million with Information Technology and Industrial sectors representing 31% and 29% of the above value respectively. The portfolio comprised of a total of 13 holdings with top five stakes amassing more than 50% of the portfolio value.

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After the sale of 9,281 shares of Westinghouse Air Brake Technologies Corp (NYSE:WAB), the size of Cryder’s largest holding stood at 165,917 shares valued at $15.76 million. The $9.25 billion provider of locomotive overhauls and fleet maintenance is up by about 13.49% year to date. The company delivered record Earnings per Share (EPS) of $0.99 in the first quarter, which were 19% on the year, while Westinghouse Air Brake Technologies Corp (NYSE:WAB)’s quarterly revenues also climbed by 18% to $819 million, primarily owing to growth in the Freight Group. Two other funds that piled up profits from Westinghouse Air Brake Technologies Corp (NYSE:WAB)’s stock appreciation this year are Mariko Gordon‘s Daruma Asset Management and Chuck Royce’s Royce & Associates, judging by their stakes in the company at the end of 2014.

Alliance Data Systems Corporation (NYSE:ADS) was Cryder’s largest holding in the fourth quarter, but a less stellar performance this year than Westinghouse Air Brake Technologies Corp (NYSE:WAB) has left it in the second place with 51,065 shares valued at $15.13 million. The provider of data-driven marketing and loyalty solutions completed its acquisition of Conversant, another digital marketing firm in December last year. Alliance Data Systems Corporation (NYSE:ADS)’s stock inched up by 7.79% year-to-date. Billionaire Ken Griffin decreased his exposure by 24% during the fourth quarter to 350,262 shares of Alliance Data Systems Corporation (NYSE:ADS) valued at $100.19 million.

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