#3 Taiwan Semiconductor Mfg. Co. Ltd. (ADR) (NYSE:TSM)
– Shares Owned by Keywise Capital Management (as of March 31): 1.14 million
– Value of Holding (as of March 31): $30 million
Moving on, Keywise Capital Management increased its stake in Taiwan Semiconductor Mfg. Co. Ltd. (ADR) (NYSE:TSM) by 1,749% during the second quarter, pushing the holding to the third most valuable in its equity portfolio on June 30. Shares of the semiconductor giant have been rallying since May and are currently trading at their all-time highs, with year-to-date gains of over 20%. On July 14, Taiwan Semiconductor Mfg. Co. Ltd. (ADR) (NYSE:TSM) reported its second quarter results, declaring EPS of $0.083 on revenue of $6.84 billion, narrowly missing analysts’ expectations of EPS of $0.087 on revenue of $6.73 billion. Several analysts appear to have predicted the misses, having downgraded Taiwan Semiconductor just before its earnings release, including analysts at JPMorgan Chase & Co. who lowered their rating on the stock to ‘Neutral’ from ‘Overweight’ on July 12. Fisher Asset Management also increased its stake in Taiwan Semiconductor during the second quarter, by 5% to 29.24 million shares.
#2 Universal Display Corporation (NASDAQ:OLED)
– Shares Owned by Keywise Capital Management (as of March 31): 521,200
– Value of Holding (as of March 31): $35.34 million
Universal Display Corporation (NASDAQ:OLED) was a new entrant into Keywise Capital’s equity portfolio during the second quarter. Shares of the flat panel display manufacturer spiked in late-May after one of its largest customers, Applied Materials, Inc. (NASDAQ:AMAT), reported its earnings. Goldman Sachs’ analyst Brian Lee upgraded the stock to ‘Buy’ from ‘Neutral’ shortly after and hiked his price target on it to $76 from $55. Universal Display Corporation (NASDAQ:OLED)’s stock is trading up by 24.14% year-to-date and very close to its lifetime high, which it made recently. Analysts are expecting the company to report EPS of $0.50 on revenue of $68.68 million for the second quarter compared to EPS of $0.41 on revenue of $58.09 million a year earlier. Joel Greenblatt‘s Gotham Asset Management was the only hedge fund among those covered by Insider Monkey that sold off its stake in the company during the first quarter.
#1 NVIDIA Corporation (NASDAQ:NVDA)
– Shares Owned by Keywise Capital Management (as of March 31): 1.15 million
– Value of Holding (as of March 31): $53.83 million
NVIDIA Corporation (NASDAQ:NVDA) continued to remain Keywise Capital Management’s top equity pick as of the end of the second quarter. The fund initiated its stake in the visual computing company in the first quarter and increased it by 7% during the second quarter. Barring stocks that are from the energy or precious metals space, NVIDIA Corporation (NASDAQ:NVDA) has been one of the best performing large-cap stocks this year, having appreciated by 62.58% year-to-date. However, this rally has lowered the stock’s annual dividend yield significantly, down to 0.85%. One of the main reasons for the stock having performed so well this year has been the company’s Pascal architecture GPU’s, which are selling like hotcakes. Owing to the phenomenal sales, analysts are projecting the company to report EPS of $0.37 on revenue of $1.35 billion for its second quarter of fiscal year 2017, significantly above the EPS of $0.05 on revenue of $1.15 billion that it had pulled in for the same quarter of the previous fiscal year. Sander Gerber‘s Hudson Bay Capital Management initiated a large stake in NVIDIA Corporation during the first quarter and was the largest shareholder of the company in our system on March 31, owning nearly 80 million shares.