Alok Agrawal’s Bloom Tree Partners is one of the leading global long/short equity funds. The fund manages a 13F portfolio of $668 million as of the end of 2014. The fund’s primary strategy is determining undervalued companies for its long portfolio and overvalued companies for its short portfolio by using extensive fundamental research. As of the end of last year, Bloom Tree’s favorite picks were Google Inc (NASDAQ:GOOG), FleetCor Technologies, Inc. (NYSE:FLT), Comcast Corporation (NASDAQ:CMCSA), Cheniere Energy, Inc. (NYSEMKT:LNG) and Twitter Inc (NYSE:TWTR).
We are tracking hedge funds and other investment managers like Bloom Tree Partners because we want to benefit from their intelligent investment ideas. These hedge funds have enough experience and skills to find undervalued stocks and we can discover some their stock picks from their SEC filings. However, the key of outperforming the market and even beating most equity funds is to focus on the most popular-small-cap stocks among them. Our detailed studies have shown that we can achieve better returns than most of the hedge funds by imitating their top 15 small-cap ideas. During the last 2.5 years, these top 15 small-cap ideas of hedge funds generated a cumulative return of 131.4% vs. S&P 500 ETF (SPY)’s return of 57.2% in the same time period (read the details here).
Alok Agrawal’s Bloom Tree Partners held a $51.13 million stake in Google Inc (NASDAQ:GOOG) at the end of 2014, which contained 97,100 class C shares, up by 70% on the quarter. Google Inc (NASDAQ:GOOG), one of the largest tech giants with a market cap of $364 billion has recently announced the financial results for the first quarter of 2015. The company recorded a revenue of $17.26 billion, up from $15.42 billion a year earlier and net income advanced to $3.59 billion from $3.45 billion in the same quarter of the previous year. Another shareholder of Google is Boykin Curry’s Eagle Capital Management, which held 1.12 million class C shares at the end of 2014.
Alok Agrawal’s other favorite pick is FleetCor Technologies, Inc. (NYSE:FLT). The company provides fuel and specialized payment products and services worldwide. Bloom Tree had a $41.6 million position in the company, which contained 280,100 shares, up by 67% during the last quarter of 2014. FleetCor Technologies, Inc. (NYSE:FLT) announced its first quarter financial results at the end of April. The company increased its revenues by 64% on the year to $416.2 million and its net income went up to $94.2 million from $75.1 million in the first quarter of 2014. FleetCor Technologies, Inc. (NYSE:FLT) completed acquisition of Comdata in the last quarter of 2014 and analysts are expecting the synergies obtained by this acquisition to support the company’s financial performance to reach beyond expectations in the coming quarters. Stephen Mandel’s Lone Pine Capital and Daniel Och’s Oz Management are two prominent investors in the company, among the funds we track