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Engaged Capital’s Latest Moves

Engaged Capital is a hedge fund that was founded in 2012 by Glenn W. Wellin, who previously sharpened his investment skills at famous Relational Investors where he was a Principal and Managing Director. The fund was launched with an initial capital of $85 million, and it has grown big since – holding $796.16 million in assets under management as of the end of October 2017. Engaged Capital looks for the public equities with market caps in the range from $300 million to $8 billion, avoiding commodity-based industries like utilities, energy and financial. In this article, we are going to take a look at the fund’s most important portfolio moves in the quarter behind us.

Glenn Welling Engaged Capital

Insider Monkey’s flagship strategy identifies the best performing 100 hedge funds at the end of each quarter and invests in their consensus stock picks. This way it is always invested in the best ideas of the best performing hedge funds and is able to generate much higher returns than the market. Since its inception in May 2014, our flagship strategy generated a cumulative return of 103%, beating the S&P 500 ETF (SPY) by nearly 38 percentage points (see the details here). Our best performing hedge funds strategy also returned 26.4% year-to-date and outperformed the S&P 500 Index by nearly 12 percentage points. We take a closer look at hedge funds like Engaged Capital in order to identify their best and worst ideas.

At the end of March 2019, Engaged Capital’s concentrated equity portfolio was valued at $712.44 million having 12 long positions. During the quarter it made only one new purchase, acquiring a position in Medifast, Inc. (NYSE:MED) that was valued $1.43 million on the account of 11,242 Medifast’s shares. It raised its stakes in The Hain Celestial Group, Inc. (NASDAQ:HAIN) and SunOpta Inc. (NASDAQ:STKL).

During the first quarter of 2019, the fund also decided to lower a couple of its holdings and to exit some. It cut stakes in Magellan Health, Inc. (NASDAQ:MGLN), Benchmark Electronics, Inc. (NYSE:BHE), and Aratana Therapeutics, Inc. (NASDAQ:PETX). As for the holdings Engaged Capital completely sold out in Q1 2019 those included Anika Therapeutics, Inc. (NASDAQ:ANIK), Groupon, Inc. (NASDAQ:GRPN), Astec Industries, Inc. (NASDAQ:ASTE), and Babcock & Wilcox Enterprises, Inc. (NYSE:BW).

Disclosure: None.

This article is originally published at Insider Monkey.

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