Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Nebula Capital Management’s Biggest Q1 Moves

Nebula Capital Management is a long/short equity hedge fund based in Connecticut. The fund was founded in 2008 by Aleem Mawji, who was a Senior Portfolio Manager and Managing Director in JPMorgan’s Proprietary Trading Business prior to starting Nebula Capital. According to the fund’s latest submitted Form ADV, its assets under management (AUM) as of March 24 stood at $203.65 million. The fund recently submitted its 13F filing with the SEC for the reporting period ending March 31, revealing a U.S equity portfolio worth $140.97 million, 10.6% less than what it was worth at the end of 2015. The filing also revealed that during the first quarter, Nebula Capital initiated a stake in four stocks and sold out of four stocks. In this post, we will be discussing the five most notable moves made by the fund during the first quarter.

We track prominent investors and hedge funds 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 15 most popular small-cap stocks among a select group of investors delivered a monthly alpha of 80 basis points between 1999 and 2012 (see the details here).

#5 FleetCor Technologies, Inc. (NYSE:FLT)

 – Shares held by Nebula Capital Management (as of March 31): 12,000

 – Value of Holding (as of March 31): $1.78 million

FleetCor Technologies, Inc. (NYSE:FLT) was a new addition to Nebula Capital Management’s equity portfolio during the first quarter. The financial services company’s shares started 2016 on a weak note, like the shares of most of its peers, but managed to recoup all of those losses by the end of the first quarter and are currently trading up by 7% year-to-date. Earlier this year, the company announced that it has agreed to acquire Brazilian electronic toll payment company STP for $1.05 billion. On May 4, FleetCor Technologies, Inc. (NYSE:FLT) reported its first quarter results, declaring EPS of $1.53 on revenue of $414.30 million for the period, beating analysts’ EPS expectations of $1.49, but missing revenue estimates of $417.86 million. Following the earnings release, analysts at Barclays boosted their price target on the stock to $160 from $150 on May 5, while keeping their rating on it unchanged at ‘Overweight’. Brad Dunkley and Blair Levinsky‘s Waratah Capital Advisors also initiated a stake in FleetCor Technologies, Inc. (NYSE:FLT) during the first quarter, purchasing 9,950 shares of the company.

Follow Dollar Tree Inc. (NASDAQ:DLTR)
Trade (NASDAQ:DLTR) Now!

#4 Dollar Tree, Inc. (NASDAQ:DLTR)

– Shares held by Nebula Capital Management (as of March 31): 36,845

– Value of Holding (as of March 31): $3.04 million

Nebula Capital Management reduced its stake in Dollar Tree, Inc. (NASDAQ:DLTR) by 70% during the first quarter, relegating the company to the 21st position in its portfolio, down from the third spot at the end of 2015. Dollar Tree, Inc. (NASDAQ:DLTR)’s stock has been range-bound for the last five months, though it currently boasts year-to-date gains of 4.28%. When the Dollar Tree/Family Dollar merger was completed last year, most analysts were optimistic about the prospects of the new company, but the high level of debt on its balance sheet and increasing competition in the discount retail industry has now made some analysts skeptical about the company’s growth over the long-term. Nevertheless, the majority of analysts still remain bullish on  the company. Dollar Tree currently sports an average rating of ‘Overweight’ and an average price target of $88.01 from the 25 prominent analysts and brokerage houses on the Street that cover it. Hedge funds that increased their stake in the company during the first quarter included Barry Dargan‘s Intermede Investment Partners, which brought its holding up by 41% to 467,419 shares.

Follow Dollar Tree Inc. (NASDAQ:DLTR)
Trade (NASDAQ:DLTR) Now!

Three more moves made by Nebula Capital during the first quarter are discussed on the next page.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.