Lorem Ipsum’s New Bets On Solar, Tankers

Lorem Ipsum Management headed by John Segrich and Michael Molnar just filed its 13-F form for the end of second quarter reporting period with the SEC. According to the data, the fund oversees a public equity portfolio valued at $155.32 million, which shows a nominal increase of $3.84 million from the previous quarter. The largest bets of the fund are concentrated in the information technology sector, where Lorem Ipsum allocated around 32% of the managed money, as well as in the energy and materials sectors, with 24% and 16% respectively. Over the second quarter Lorem Ipsum’s managers initiated nine new positions, and in this article we are going to review the three largest of these new holdings, represented by Scorpio Tankers Inc (NYSE:STNG), Solaredge Technologies Inc (NASDAQ:SEDG) and Teekay Tankers Ltd (NYSE:TNK).

Cheniere LNG Tanker Shipping Ship Liquid Natural Gas Vessel Fuel Carrier

Oleksandr Kalinichenko / Shutterstock.com

We pay attention to hedge funds’ moves because our research has shown that hedge funds are extremely talented at picking stocks on the long side of their portfolios. It is true that hedge fund investors have been underperforming the market in recent years. However, this was mainly because hedge funds’ short stock picks lost a ton of money during the bull market that started in March 2009. Hedge fund investors also paid an arm and a leg for the services that they received. We have been tracking the performance of hedge funds’ 15 most popular stock picks in real time since the end of August 2012. These stocks have returned 123.1% since then and outperformed the S&P 500 Index by around 66.5 percentage points (see more details here). That’s why we believe it is important to pay attention to hedge fund sentiment; we also don’t like paying huge fees.

John Segrich And Michael Molnar
John Segrich And Michael Molnar
Lorem Ipsum Management

The first on the list is Scorpio Tankers Inc (NYSE:STNG) in which Lorem Ipsum held exactly 800,000 shares valued at some $8.07 million as of June 30. Scorpio Tankers Inc (NYSE:STNG) is a $1.91 billion provider of seaborne transportation of refined petroleum products and crude oil to the international shipping markets. This year the stock has returned 18.53%, in addition to carrying a nice dividend yield of 4.79%. The quarterly earnings report issued on July 29 for the second quarter showed rather positive signs for Scorpio Tankers Inc (NYSE:STNG), as it beat both revenue and earnings expectations for the period, posting $188.46 million in sales, a beat  by $16.02 million, and EPS of $0.32, $0.05 ahead of the consensus estimate. In spite of that, the share price recoiled by 4% after the announcement and has not come back yet, offering a good buying opportunity for potential investors. Among the other prominent investors that we track, Chuck Royce’s Royce & Associates owns around 1.48 million shares with a market value of $14.94 million as of June 30. Compared to the end of the first quarter of 2015, the mutual fund cut its holdings by 4%.

Lorem Ipsum finished the first half of the year owning 190,000 shares of Solaredge Technologies Inc (NASDAQ:SEDG) valued at $6.91 million. The company is engaged in solar power harvesting activities, while offering photovoltaic monitoring solutions. The current P/E ratio for the stock stands at 123.5 versus 19.2 for the S&P 500. It is not surprising that Mr. Market values the future of Solaredge Technologies Inc (NASDAQ:SEDG) so highly however, given its past achievements that allowed the company to more than triple its revenue from $75 million in 2012 to $271 million in 2015. At the same time, the PEG ratio of 0.3 suggests a potential undervaluation at the moment, while simultaneously the mean 12-month analysts’ target price points at a possible 30-31% upside from the $28 per share where the stock is changing hands today. Donald Chiboucis’ Columbus Circle Investors is among the leaders in terms of Solaredge Technologies Inc (NASDAQ:SEDG) stock possession, owning 214,364 shares worth $7.79 million.

Finally, Lorem Ipsum decided to acquire a stake in Teekay Tankers Ltd (NYSE:TNK) to the tune of 475,000 shares worth $3.14 million. The $899.56 million marine transportation company has already made its investors richer by 36.17% this year, while the energy sector to which it is closely tied has dropped by 6.74%. Earlier this year the company bought 12 Suezmax-type vessels together with five Aframax vessels. The deal will enlarge Teekay Tankers Ltd (NYSE:TNK)’s fleet by 60%. The good news for the company is that this increase in fleet size comes at a most convenient time, while Suezmax spot rates show quite positive dynamics, actually the strongest over the last several years. The purchased vessels should be delivered by October of this year, allowing the company to strengthen its position in the shipping market. Matthew Tewksbury‘s Stevens Capital Management holds 17,169 shares of Teekay Tankers as of June 30, a new position for that fund as well.

Disclosure: None