Segantii Capital’s Top Investment Ideas Heading Into Q4

#3 Houghton Mifflin Harcourt Co (NASDAQ:HMHC)

Shares held (as of September 30): 1.09 million

Total Value (as of September 30): $22.15 million

Percent of Portfolio (as of September 30): 5.06%

The stock price of the $2.55 billion global learning company has slid by over 8% since the start of this year. The company’s third quarter EPS of $0.94 was $0.13 lower than analyst forecasts, while revenues of $575.51 million also missed the mark by $78.5 million. This month the company’s Board approved repurchase of an additional $500 million worth of shares taking the total to $1 billion. The program is to be executed through the end of 2018. Anchorage Advisors, which is led by Kevin Michael Ulrich and Anthony Davis tops our list of Houghton Mifflin Harcourt Co (NASDAQ:HMHC)’s stockholders as it held more than 20 million shares of the company at the end of June.

 

#2 Tata Motors Limited (ADR) (NYSE:TTM)

Shares held (as of September 30): 1.12 million

Total Value (as of September 30): $25.54 million

Percent of Portfolio (as of September 30): 5.84%

Segantii initiated a position in Tata Motors Limited (ADR) (NYSE:TTM) during the second quarter and significantly boosted it during the third by adding some 946,000 shares. Although the stock price hit a multi-year low recently, it has been appreciating steadily since October. The company has been feeling the adverse effects from a slowing Chinese automobile market. It incurred a net loss of 4.3 billion rupees ($64 million) in the September quarter, which was worse than what analysts expected. Fisher Asset Management, led by billionaire Ken Fisher, held about 8.12 million shares of Tata Motors Limited (ADR) (NYSE:TTM) at the end of the third quarter.

 

#1 HSBC Holdings plc (ADR) (NYSE:HSBC)

Shares held (as of September 30): 1.42 million

Total Value (as of September 30): $52.99 million

Percent of Portfolio (as of September 30): 12.12%

The $154.74 billion banking and financial services company is another one of Segantii’s holding that has been sliding so far this year, but the fund perceived this as a buying opportunity and added some 1.14 million shares of HSBC Holdings plc (ADR) (NYSE:HSBC) during the July-September quarter. The Europe’s largest lender beat pre-tax profit forecasts for the third quarter by $6.1 billion on that front, an increase of $0.9 billion from estimates and also marked a 32% jump from the same quarter last year. Revenues of $14 billion were, however, 4% lower than a year ago, primarily due to lower wealth management sales in Hong Kong in light of the correction in the Chinese stock market. Fisher Asset Management held nearly 11.46 million shares of HSBC Holdings plc (ADR) (NYSE:HSBC) at June end.

 

Disclosure: None