Kerrisdale Capital Management’s Return, AUM, and Holdings

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The second largest holding the fund had at the end of Q3 2018 was in a satellite telecommunications company, Intelsat SA (NYSE:I). Its position consisted of 687,295 shares that were worth $20.62 million, occupying 20.21% of the fund’s portfolio. It is interesting to note that Kerrisdale Partners actually lowered its stake in Intelsat SA by a large 92% during the third quarter. In its recent financial report for three months ended on September 30, the company disclosed revenue of $536.92 million versus revenue of $538.76 million in the third quarter of 2017, and diluted loss per share of $2.74 compared to a diluted loss per share of $0.26 in Q3 of 2017. Over the past 12 months, the company’s stock gained 476.26% and it is currently trading at $19.42. The number of hedge funds bullish on Intelsat SA increased by 14 in recent months, and at the end of the third quarter, there were 37 smart money investors long the stock. The company has a market cap of 2.68 billion.

The biggest new stake the fund initiated in Electronic Arts Inc. (NASDAQ:EA) by acquiring 58,650 shares, worth around $7.07 million. This is a video game company based in Redwood City, California, widely known for its video games such as FIFA and Madden. Electronic Arts Inc was recently in the news for its senior director being fired for making an inappropriate remark during a conference call. In the meantime, the company’s stock price was almost halved over the past six months, and it is now trading at $76.49. The hedge fund sentiment towards Electronic Arts Inc hasn’t changed in the past months, hence at the end of the third quarter, there were 79 investors with long positions in the company. The second new addition to the fund’s portfolio was an Internet company, Sea Ltd (NYSE:SE), which runs in three different sectors – E-commerce, Digital Entertainment and Digital Financial services. Kerrisdale Capital Management purchased 100,000 Sea’s shares, which were valued $1.39 million.

Out of the two positions the fund decided to completely sell out during the third quarter, the biggest one was in Habit Restaurants Inc (NASDAQ:HABT), as the fund said goodbye to 85,000 shares with a value of $850,000. The second company in which Kerrisdale Partners lost faith during the third quarter was PTC Therapeutics, Inc. (NASDAQ:PTCT), as the fund dropped 40,122 shares that were worth $1.35 million.

Disclosure: None

This article was originally published at Insider Monkey.

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