According to a new filing with the Securities and Exchange Commission, Pasco Alfaro and Richard Tumure‘s Miura Global Management has increased its stake in restaurant operator Zoe’s Kitchen Inc (NYSE:ZOES) to 1.68 million shares or 8.67% of the company’s outstanding stock, from 960,000 shares that it owned at the end of June. In another filing, Eric Semler‘s TCS Capital Management revealed that it now owns slightly over 10.6 million shares or 7.8% of the outstanding common stock of Central European Media Enterprises Ltd. (NASDAQ:CETV), significantly above 7.08 million shares it revealed in its latest 13F filing.
At Insider Monkey, we track hedge funds and prominent investors because our research has shown that historically their stock picks delivered superior risk-adjusted returns. This is especially true in the small-cap space. The 50 most popular large-cap stocks among hedge funds had a monthly alpha of about 6 basis points per month between 1999 and 2012; however the 15 most popular small-cap stocks delivered a monthly alpha of 80 basis points during the same period. This means investors would have generated around 10 percentage points of alpha per year simply by imitating hedge funds’ top 15 small-cap ideas. We have been tracking the performance of these stocks in real time since the end of August 2012 and this strategy beat the market by 60 percentage points (118% return vs. S&P 500’s 57.6% gain) over the last 36 months (see the details here).
Miura Global Management is a New York-based long/short equity hedge fund founded by Pasco Alfaro and Richard Tumure in 2004. The fund was seeded by iconic hedge fund Tiger Management’s Julian Robertson. In July last year, the fund closed its doors to new investors, citing its goal to cap the size of the fund at $2 billion. As of June 30, its U.S. equity portfolio is worth over $1.64 billion and more than a half of it was represented by stocks from the consumer discretionary sector.
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The stock of Zoe’s Kitchen Inc (NYSE:ZOES) is up by more than 120% since it made its secondary market debut in April, 2014, at $15 per share. At the end of the last year, the Mediterranean cuisine focused restaurant chain had its presence in 15 states across the United States through three franchise restaurants and 129 company-owned outlets. However, with the opening of its latest location in Newport News, Virginia, on September 3, the company now boasts a total of 160 outlets. The company came out with better than expected second quarter results on August 27, reporting EPS of $0.05 on revenue of $54.50 million, compared to analysts’ consensus estimate of EPS of $0.04 and revenue of $53.46 million. Among the hedge funds we track, Donald Chiboucis‘ Columbus Circle Investors, with 405,851 shares, was the second-largest shareholder of Zoe’s Kitchen Inc (NYSE:ZOES) after Miura Global Management at the end of June.
