There were 659 hedge funds in our system whose 13F portfolios on June 30 consisted of at least five long positions in billion-dollar companies. Of those 659 funds, an impressive 627 of them delivered positive returns during the third-quarter from their long positions in those stocks, based on the size of those positions on June 30. All told, their long picks in billion-dollar companies averaged 8.3% returns for the quarter, well above the S&P 500 ETFs’ 3.3% figure. Nonetheless, hedge funds continue to disappoint their investors for the most part, as redemptions have hit the industry hard of late. That can be chalked up to their high fees and the underperformance on the short-side of their portfolios, which provide downside protection but have dragged down overall returns. Having said that, let’s take a look
In this article we are going to examine four companies that Mick Hellman‘s HMI Capital has been bullish on, including Nice Ltd (ADR) (NASDAQ:NICE), Apollo Global Management LLC (NYSE:APO), LPL Financial Holdings Inc (NASDAQ:LPLA), and Equinix Inc (NASDAQ:EQIX).
HMI Capital has an equity portfolio that was worth $600.69 million at the end of September, up from $530.56 million at the end of0 June. According to our calculations, the fund’s nine long positions in companies that were worth at least $1 billion generated a weighted average return of 14.55% in the third quarter. You may notice that this return can be different from the fund’s actual return, and this is because we don’t factor in positions in small cap companies, and some other instruments. Nonetheless, this return still indicates how good are the fund’s investment skills, and whether or not it is worth following its picks.
In Nice Ltd (ADR) (NASDAQ:NICE), HMI Capital left its stake unchanged at 774,862 shares during the third quarter. However, as the stock gained 5.1% during the same period, the value of the position advanced to $51.87 million from $49.48 million. HMI was one of 13 funds from our database long Nice at the end of June, down by 7% over the quarter. Among these funds, Rivulet Capital held the most valuable stake in Nice Ltd (ADR) (NASDAQ:NICE), which was worth $54.4 million at the end of the second quarter. Moreover, D E Shaw, Brant Point Investment Management, and Fisher Asset Management were also bullish on Nice Ltd (ADR) (NASDAQ:NICE).
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Apollo Global Management LLC (NYSE:APO)’s stock advanced by 21% during the third quarter, while HMI Capital held 5.47 million shares worth worth around $98.18 million at the end of September. The fund also left its stake unchanged over the third quarter, after having raised it by 13% during the second quarter. A total of 18 funds followed by us held shares of Apollo Global Management LLC (NYSE:APO) at the end of June, up by 13% over the quarter. One of the largest stakes in the company was reported by GMT Capital, which held $48.1 million worth of stock at the end of the second quarter. emaining professional money managers that were bullish included Jonathon Jacobson’s Highfields Capital Management, Chuck Royce’s Royce & Associates and Tom Gayner’s Markel Gayner Asset Management.