Shah Capital’s Top Global Picks For First Quarter

UTStarcom Holdings Corp (NASDAQ:UTSI)‘s holding of 10.70 million shares valued at $28.36 million represents about 24.75% of Shah Capital’s portfolio value. The provider of packet optical transport and broadband access solutions to the telecommunications carriers is down about 9.9% year to date. The company’s past is marred by disappointments quarter after quarter. However, a new management team in 2012 headed by CEO William Wong and also the appointment of Himanshu Shah as director in November 2013 has been taking several initiatives, including divestment in Next Generation Network equipment business, to transform the company. Another investor in UTStarcom Holdings Corp (NASDAQ:UTSI) is Chuck Royce’s Royce & Associates, which held about 1.52 million shares valued at $4.29 million at the end of the fourth quarter.

The corruption scandal seems to be losing its hold on Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR), which represents Shah Capital’s fifth largest holding, as the stock has appreciated by more than 50% in the last three weeks. The Brazilian company’s recently released financial statements, the first in the last eight months, are seen as a sign that the company is finally getting out of the murky waters that it swam in for a while. Shah Capital increased its stake in Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) by a significant 46% during the first quarter to 913,110 shares valued at $5.49 million. Howard Marks‘ Oaktree Capital Management held about 6.55 million shares valued at $47.81 million at the end of the fourth quarter.

VimpelCom Ltd (ADR) (NASDAQ:VIP) is another one of Shah Capital’s holding that has performed well this year, and is up by nearly 37.7% year to date. With a bulk of its operations being in Russia, Vimpelcom’s stock was fueled by positive news about the country’s economic recovery in the last several months. Shah Capital’s stake in VimpelCom Ltd (ADR) (NASDAQ:VIP) amounted to 1.30 million shares valued at $6.79 million. In addition, John Resnick’s Jericho Capital Asset Management held 6.7 million shares valued at $28.14 million at the end of last year.

Disclosure: None