Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Don’t Miss What Segantii Just Bought During Its Crazy Stock Buying Spree

Simon Sadler‘s Segantii Capital Management Ltd. was established in 2007 and is based out of Hong Kong. The fund, which mainly invests in Asia-Pacific equities, uses a multi-strategy investment approach to pinpoint high-potential stocks. A former trader at both Dresdner Kleinwort Benson and Deutsche Bank, Sadler’s own firm has been highly successful since inception, returning 17% annually through March 2016.

As the fund’s assets have swollen thanks to its success, it made a strong push into the U.S market in the third quarter, with the value of its 13F portfolio more than quadrupling during the quarter to $367.81 million. The fund added 60 positions to its 13F portfolio during the quarter, while only unloading 11 holdings. In this article, we’ll take a look at some of the stocks and ETFs that the successful fund was buying in Q3, which included Yahoo Inc. (NASDAQ:YHOO), the Financial Select Sector SPDR Fund (NYSEARCA:XLF), Ryanair Holdings Plc (NASDAQ:RYAAY),  Mobil’nye Telesistemy PAO (ADR) (NYSE:MBT), and the SPDR S&P 500 EFT Trust (NYSEARCA:SPY).

We follow over 700 hedge funds and other institutional investors and by analyzing their quarterly 13F filings, we identify stocks that they are collectively bullish on and develop investment strategies based on this data. One strategy that outperformed the market over the last year involves selecting the 100 best-performing funds and identifying the 30 mid-cap stocks that they are collectively the most bullish on. Over the past year, this strategy generated returns of 18%, topping the 8% gain registered by S&P 500 ETFs.

Yahoo! Inc. (NASDAQ:YHOO), Yahoo! Sign, Corporate Headquarters, Buliding, Logo, Symbol, Letters,

Ken Wolter /

Let’s start with Yahoo Inc. (NASDAQ:YHOO), which Segantii initiated a position in during the third quarter, adding 406,752 shares of the company to its portfolio, valued at $17.31 million on September 30. Verizon appears intent on completing its purchase of Yahoo despite the latter’s disclosure of a massive data breach after the fact. AOL CEO Tim Armstrong recently stated that the deal is more likely to happen than not. Of the hedge funds in our database, 90 funds held $8.27 billion worth of Yahoo shares in their portfolios at the end of the September quarter, equaling 19% of the stock’s float.

Follow Altaba Inc. (NASDAQ:AABA)
Trade (NASDAQ:AABA) Now!

Segantii Capital Management also initiated a position in the Financial Select Sector SPDR Fund (NYSEARCA:XLF) during the third quarter. The fund held 530,000 of the ETF’s shares at the end of the quarter, worth $10.09 million, with the position accounting for 2.74% of its 13F portfolio’s value. The ETF invests in financial sector stocks, as its name implies, and Sadler and his team are likely bullish on it at the prospect of it performing better in the future as interest rates rise. Berkshire Hathaway and JP Morgan each account for more than 10% of the ETF’s weighting as of December 6. Among the funds we track, 26 funds held $582.96 million worth of the ETF’s stock in aggregate at the end of September, up from a mere $205.96 million in holdings on June 30.

We’ll check out three more of the fund’s bullish Q3 moves on the next page.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.