Phil Hempleman’s Ardsley Partners’ Returns, AUM and Holdings

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For more than thirty years, Philip Hempleman’s Ardsley Partners has been focusing on generating attractive returns to clients, by picking the best stocks and managing portfolios designed to seek out opportunity. This Stamford, Connecticut-based, long-short equity management firm, is launched back in March 1987 by Philip Hempelman, its current Managing Partner, Chief Investment Officer, and Portfolio Manager who “oversees all investment activities.” It provides its services to high net worth individuals and corporations as well as pooled investment vehicles.

Prior to founding his own firm, Philip Hempleman managed an equity fund at Trust Company of the West, where he served as a Managing Director. Also, he worked at Oppenheimer & Co., and served as a Portfolio Manager at Oppenheimer Target and Special Strategies for four years, until 1982. In addition, the Target Fund was the mutual fund with the best performance for two consecutive years, in 1981 and 1982. He began his career as an Assistant Treasurer at Bankers Trust Company, after obtaining a B.A. degree from Indiana University and an M.B.A. degree from New York University. Later on, he worked as a Senior Analyst and Portfolio Manager in the same company.

Philip Hempleman Ardsley Partners

Being an expert in long-short equity and global macro investing, Ardsley Partners employs four investment strategies. The long-biased flagship strategy is used for investments in US-based life sciences, energy, telecom, technology, and alternative energy companies. It uses a concentrated book approach with the fund’s top core holdings which represent 40-50% of its portfolio. The second one is renewable energy-clean tech strategy utilized when investing in companies in the renewable energy sector. It seeks to identify symmetric risk-reward opportunities across all market capitalizations on a global level.
The third strategy is built around healthcare sub-sectors and related areas, and it’s a long-short equity strategy which combines bottom-up analysis with different factors that impact the industry, to gain absolute returns while maintaining low volatility. Finally, the fourth one is focused on the technology sector, and it’s a global long-short equity strategy that’s backed up with fundamental research with the goal of producing impeccable returns while retaining low volatility.
And now, let’s take a closer look at its Ardsley Partners Renewable Energy Fund’s returns over the last five years. The year 2013 was promising since the fund returned 27.67%. However, the years 2014 and 2015 brought some major setbacks, since the fund lost 0.01% and 4.40%, respectively. Luckily, it got back on track in 2016 when it returned 10.51%, followed by 2017 returns of 13.17%. Although the fund’s returns had fallen back to 7.84% from January to October 31, 2018, they remained positive. Its total return was 200.28% for a compound annual return of 9.39%, while its worst drawdown amounted to 59.34. As of March 2018, the fund had around 895 million in regulatory assets under management, managed on a discretionary basis.

Insider Monkey’s flagship strategy identifies the best performing 100 hedge funds at the end of each quarter and invests in their consensus stock picks. This way it is always invested in the best ideas of the best performing hedge funds and is able to generate much higher returns than the market. Since its inception in May 2014, our flagship strategy generated a cumulative return of 96.9%, beating the S&P 500 ETF (SPY) by over 40 percentage points (see the details here).

According to Ardsley Partners’ latest 13F filing with the SEC, the fund’s 13F portfolio was valued at around $742 million after adding 62 new positions and dumping 61 companies, pushing its total down to 151 holdings. Among the positions the fund held at the end of Q3 was the position in Microsoft Corp (MSFT), as well as the position in Adobe Inc. (ADBE) which also found a place among the 30 Stocks Billionaires Are Crazy About. And, while Philip Hempleman still isn’t the “member of the three-comma club,” at the end of Q3 his fund owned 219,000 and 34,500 of the companies’ shares worth $25.04 and $9.31 million, respectively.

You can find out more about some of the biggest changes the fund made to its portfolio in the last quarter on the next page.

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