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Silver Arrow’s Top Long Positions: Facebook Inc (FB), Celgene Corporation (CELG), Hertz Global Holdings Inc (HTZ), More

Silver Arrow Partners, L.P, a New York-based fund, reported returns of 1.04% for the second quarter of 2015 along with year-to-date returns of 0.75% in its recently released second quarter investor letter. The investment manager closed the second quarter with 14 equity investments in its portfolio and its top five positions accounted for 46.1% of its overall portfolio. The top five long investments of Silver Arrow Partners include Facebook Inc (NASDAQ:FB), Celgene Corporation (NASDAQ:CELG), Hertz Global Holdings Inc (NYSE:HTZ), Canadian Pacific Railway Limited (USA) (NYSE:CP), and Union Pacific Corporation (NYSE:UNP). The fund manager did not disclose its individual positions in these companies.

While discussing the performance of Facebook Inc (NASDAQ:FB) the investment manager discussed the growth potential of the company. According to Silver Arrow Partners, “Facebook stands out among the large capitalization Internet companies as the one with the most growth catalysts for any company in the sector”. Furthermore, the fund manager mentioned a couple of factors driving growth for the company, including the increasing dominance of the social network in terms of video volume and video advertising revenue.

Facebook Inc (NASDAQ:FB) is “at the early stage of monetizing its Instagram application” and the growth in WhatsApp’s monthly active users is phenomenal. The online messaging platform has over 900 million active users compared to 400 million monthly active users at the time of its acquisition. Last but not the least, Silver Arrow Partners added that the upcoming launch of Oculus VR in 2016 is another “meaningful revenue contributor” for Facebook Inc (NASDAQ:FB). According to our database, 129 hedge fund managers tracked at Insider Monkey were invested in Facebook as of March 31, with aggregate investments of $7.09 billion at the end of the first quarter. Stephen Mandel’s Lone Pine Capital was the largest shareholder of the company in our database with 8.11 million shares valued at $666.51 million.

Hertz HTZ

Tupungato /

Celgene Corporation (NASDAQ:CELG) is the second stock in the list of long positions of Silver Arrow Partners. It was among the three pharmaceutical stocks in the portfolio of the fund manager, along with Gilead Sciences, Inc. (NASDAQ:GILD) and Biogen Inc (NASDAQ:BIIB). The investment manager reported profits from each of its pharmaceutical positions during the second quarter. Silver Arrow Partners called Celgene “a dominant player in the treatment of cancer.” Earlier in July, Celgene Corporation (NASDAQ:CELG) and Receptos Inc (NASDAQ:RCPT) entered into a definitive merger agreement under which Celgene will acquire Receptos for $7.32 billion. At the end of the first quarter, 67 hedge fund managers reported positions in the pharmaceutical company with net investments of $1.96 billion. Orbimed Advisors, led by Samuel Isaly, was among the primary investors of the company with 3.17 million shares with a market value of $365.67 million.

Carl Icahn
Carl Icahn
Icahn Capital LP

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