Luxor Capital’s Under-the-Radar Picks: AMC Networks Inc (AMCX), Madison Square Garden Co (MSG)

In third place we have Tripadvisor Inc (NASDAQ:TRIP). Tripadvisor has been a particularly volatile stock in recent weeks, but over the long run, it is up nearly 50% in the past year and 70% over the past five years. Luxor more than doubled its stake in the online travel company in the third quarter—its last 13F filing with the SEC.

Generally speaking, the industry that Tripadvisor operates in is uncertain at best, as consolidation and Google’s ITA software gives it the ability to continually lurk in any travel site’s backyard. Obviously, that’s never a long-term positive, but most analysts still expect double-digit EPS growth over the next few years. Additionally, at 24 times forward earnings, the valuation is still decent.

Luxor Capital’s fourth largest small-cap holding is American Capital Ltd. (NASDAQ:ACAS), the business development corporation (BDC) that invests in a wide range of businesses. On the whole, this BDC has struggled since the recession, but most analysts expect earnings growth to average out in the mid-teens through 2017, and the metrics are cheap. American Capital may look like a value trap, but if it can continue at least meeting the Street’s forecasts—it has done so for the past two quarters—we should see solid appreciation.

Lastly, Deckers Outdoor Corp (NASDAQ:DECK) is the hedge fund’s fifth largest small-cap holding, sitting at No. 9 overall in its 13F portfolio. Deckers has lost more than half of its value in the past 12 months, driven by 2011’s unseasonably warm winter, which hurt sales of the company’s UGG and Teva footwear lines. Still, it is the strength of these brands that can ultimately boost Deckers again, but we have to wait until next month to see how the company did this past holiday quarter.

Wall Street is expecting Deckers to report a Q4 EPS of $2.64, down 17% from one year earlier. Shares seem to be in a holding pattern at the moment, as most shareholders are likely waiting until the Q4 report before making any rash investment decisions. In terms of its valuation, a PEG near 0.6 indicates that there is some value here, but Deckers will need to beat consensus to have a chance at padding investors’ pockets.

For more related coverage, continue reading here:

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Disclosure: I have no positions in any of the stocks mentioned in this article