Nice Ltd (ADR) (NICE), Apollo Global Management LLC (APO) & More: Should You Follow HMI Capital Into Its Stock Picks?

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.

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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.

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LPL Financial Holdings Inc (NASDAQ:LPLA) is another company in which HMI Capital left its stake unchanged at 2.78 million shares during the third quarter. However, amid a 34% jump registered by the stock, the value of the holding went up to $83.15 million from $62.63 million. During the second quarter, the number of funds from our database long LPL Financial Holdings Inc (NASDAQ:LPLA) fell by 38% to 13. Among these funds, FPR Partners held the largest stake, which was worth $269.7 million at the end of June. It was followed by SPO Advisory Corp with a $194.5 million position. Other investors bullish on the company included First Pacific Advisors LLC, and Stockbridge Partners.

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In Equinix Inc (NASDAQ:EQIX), the fund amassed 141,739 shares worth $51.06 million at the end of September. During the third quarter, amid a 6.6% fall of the company’s shares, the fund increased its position by 5%. There were 41 funds in our database long Equinix Inc (NASDAQ:EQIX) heading into the third quarter, down by 5% over the quarter. Among these funds, Lone Pine Capital held the most valuable stake in Equinix Inc (NASDAQ:EQIX), which was worth $830.1 million at the end of the second quarter. On the second spot was Coatue Management which amassed $359.1 million worth of shares. Moreover, SPO Advisory Corp, Fir Tree, and Citadel Investment Group were also bullish on Equinix Inc (NASDAQ:EQIX).

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Disclosure: None