Soroban Capital Partners is an NYC-based hedge fund that was co-founded by Eric W. Mandelblatt, Gaurav Kapadia, and Scott Friendman in 2010 with an initial capital of $130 million. Over the years it had great returns and it has managed to raise its AUM above $11 billion in 2017. Prior to co-founding Soroban Capital Partners, Mandelblatt ran another fund he co-founded with Dinakar Singh, TPG-Axon Management. Before launching TPG-Axon Management, which in the meantime merged with Montrica Investment Management, Mandelblatt cut his teeth at Goldman Sachs as a research analyst covering power and the energy sectors. Later on, he was promoted to Chief Operating Officer of the US Principal Strategies business. He graduated with highest honors with a BS in Accounting and a Certificate of Completion of a BA in Finance from the University of Florida. Around a year ago, Soroban Capital Partners announced it is going to shut down its oldest fund and halve its assets under management in order to devote more energy on a concentrated portfolio, and also that one of its co-founders and co-managers, Gaurav Kapadia is going to leave the firm to form his own family office. In this article, we are going to highlight the fund’s most important first quarter investment moves.
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 103%, beating the S&P 500 ETF (SPY) by nearly 38 percentage points (see the details here). Our best performing hedge funds strategy also returned 26.4% year-to-date and outperformed the S&P 500 Index by nearly 12 percentage points. We take a closer look at hedge funds like Soroban Capital in order to identify their best and worst ideas.
At the end of the first quarter of 2019, Soroban Capital’s concentrated equity portfolio was valued $5.52 billion and it counted 18 long positions. Among the top new holdings were Altice USA, Inc. (NYSE:ATUS), Lam Research Corporation (NASDAQ:LRCX), Applied Materials, Inc. (NASDAQ:AMAT), and Alphabet Inc. (NASDAQ:GOOGL). And, the boosted stakes included United Technologies Corporation (NYSE:UTX), NXP Semiconductors N.V. (NASDAQ:NXPI), Qorvo, Inc. (NASDAQ:QRVO), and Marriott International, Inc. (NASDAQ:MAR).
During the first quarter in 2019, Soroban Capital sold out its entire positions in Booking Holdings Inc. (NASDAQ:BKNG), Facebook, Inc. (NASDAQ:FB), Vulcan Materials Company (NYSE:VMC), and Martin Marietta Materials, Inc. (NYSE:MLM). It also trimmed its stakes in Union Pacific Corporation (NYSE:UNP), Norfolk Southern Corporation (NYSE:NSC), and SAP SE (NYSE:SAP).
This article is originally published at Insider Monkey.