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.

Fidelity National Information Services (FIS), Inphi Corporation (IPHI) & Two More: Did Maplelane Capital’s Picks Live Up to the Hype?

There were 659 hedge funds in our system whose 13F portfolios on June 30 consisted of at least five long positions in billion-dollar companies. Of those 659 funds, an impressive 627 of them delivered positive returns during the third-quarter from their long positions in those stocks, based on the size of those positions on June 30. All told, their long picks in billion-dollar companies averaged 8.3% returns for the quarter, well above the S&P 500 ETFs’ 3.3% figure. Nonetheless, hedge funds continue to disappoint their investors for the most part, as redemptions have hit the industry hard of late. That can be chalked up to their high fees and the underperformance on the short-side of their portfolios, which provide downside protection but have dragged down overall returns. In this article we are going to examine four companies that were in Maplelane Capital‘s portfolio at the end of the June quarter, including Fidelity National Information Services (NYSE:FIS), Inphi Corporation (NYSE:IPHI),  Take-Two Interactive Software, Inc. (NASDAQ:TTWO), and MicroStrategy Incorporated (NASDAQ:MSTR). 

Leon Shaulov‘s Maplelane Capital has an equity portfolio whose value climbed to $3.79 billion as of the end of September, from $2.35 billion at the end of June. The fund’s 52 long positions in companies that were worth $1 billion or more on June 30 delivered a weighted average return of 14.84% in the third quarter. Even though these returns differ from the fund’s actual returns, because they don’t include short positions, holdings in micro-cap companies, and some other instruments, they still offer good insight into the fund’s investment expertise on the long side of its portfolio. Therefore, we’ll take a closer look at the fund’s positions in the aforementioned companies, and see what kind of return they delivered in the third quarter.

stocks, analysis, market, numbers, business, ticker, trade, money, price, investment, index, chart


We’ll start with Fidelity National Information Services (NYSE:FIS), a financial services technology company, in which Maplelane Capital raised its stake by 50% in the June quarter, to 900,000 shares. In the following three months, the stock advanced by 4.9%, but by the end of September, the fund trimmed its stake by 55%, to 400,000 shares, which were worth $30.81 million.

At Q2’s end, a total of 47 of the hedge funds that we follow were bullish on this stock, a dip of 4% from the first quarter of 2016. More specifically, Cantillon Capital Management was the largest shareholder of Fidelity National Information Services (NYSE:FIS) in our system, with a stake worth $555.9 million reported as of the end of June. Trailing Cantillon Capital Management was Citadel Investment Group, which amassed a stake valued at $386.8 million. Eagle Capital Management, OZ Management, and D E Shaw also held valuable positions in the company.

Follow Fidelity National Information Services Inc. (NYSE:FIS)
Trade (NYSE:FIS) Now!

During the June quarter, Maplelane Capital boosted its stake in Inphi Corporation (NYSE:IPHI) by 88%, creating a position that was valued at $36.92 million. The boosting of the stake was a good investment move, seeing as the stock returned 35.8% in the third quarter. By the end of September, the fund further raised its stake by 30%, reporting a position that was valued at $65.21 million, counting 1.5 million shares, and comprising 1.72% of its portfolio’s value.

At the end of the second quarter, a total of 25 of the hedge funds in our system held long positions in this stock, a 17% fall from the first quarter of 2016. One of the largest stakes in Inphi Corporation (NYSE:IPHI) was reported by Columbus Circle Investors, which amassed a stake valued at $17.6 million. Renaissance Technologies, Shellback Capital, and Driehaus Capital also held valuable positions in the company.

Follow Inphi Corp (NYSE:IPHI)
Trade (NYSE:IPHI) Now!

We’ll check out two more of the fund’s stock picks 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.