Pelham Capital’s Top Q1 Picks Dominated by Fast-Growing GrubHub Inc. (GRUB)

#2. Liberty Global plc (NASDAQ:LBTYA)

 – Number of shares held by Pelham Capital (as of March 31)1: 769,356 Class A and 1.92 Million Class C Ordinary Shares

 – Value of Pelham Capital’s holding (as of March 31): $29.62 Million and $72.05 Million

Pelham Capital owned 769,356 Class A ordinary shares of Liberty Global plc (NASDAQ:LBTYA) and 1.92 million Class C ordinary shares, which are traded under the ticker “LBTYK”, at the end of March. The London-based hedge fund did not make any adjustments to its investments in the European operator of cable systems during the March quarter. In November 2015, the international provider of video, broadband internet, fixed-line telephony and mobile services announced plans to acquire Cable & Wireless Communications plc, which offers integrated telecommunications-based services in more than 40 countries, mainly in Latin America and The Caribbean. The cable-TV company has seen its Class A ordinary shares sink by 11% in value since the beginning of 2016. Warren Buffett’s Berkshire Hathaway owned 12.54 million Class A ordinary shares of Liberty Global plc (NASDAQ:LBTYA) at the end of December, as well as 7.35 million Class C shares of the company.

#1. GrubHub Inc. (NYSE:GRUB)

 – Number of shares held by Pelham Capital (as of March 31): 5.77 Million

 – Value of Pelham Capital’s holding (as of March 31): $144.89 Million

Pelham Capital lifted its position in GrubHub Inc. (NYSE:GRUB) by 30% during the first quarter of 2016, ending the three-month period with 5.77 million shares. The upped stake was valued at $144.89 million at the end of March and was worth roughly 54% of the value of Pelham’s equity portfolio. The shares of the leading online and mobile food delivery company are down by 7% in the past five trading sessions, after the company disclosed its first quarter financial results. While GrubHub’s bottom-line results were in-line with analysts’ estimates and top-line results were ahead of expectations, the comments made by the company’s CEO during the conference call might have alarmed some investors. Precisely, CEO Matt Maloney said that “Uber and Amazon are the new boogiemen in the market”, acknowledging that the competition in the online food delivery space has been intensifying lately. Uber recently launched a food delivery app named UberEATS, while Amazon’s PrimeNow food-delivery service adds to the already-tough competition. GrubHub shares are down by 38% in the past 12 months. In a fresh 13G filing, Steadfast Capital Management LP, managed by Robert S. Pitts Jr., disclosed ownership of 4.31 million shares of GrubHub Inc. (NYSE:GRUB).

Disclosure: None