SRS Investment Management Follows Tiger Global’s Lead On Ehi Car Services Ltd (ADR) (EHIC)

The $818 million holding company provides rental vehicles through its subsidiaries eHi Rental and eHi Jiangsu, and chauffeur services through its subsidiary Shanghai Smart Brand Auto Driving Service. Ehi Car Services Ltd (ADR) (NYSE:EHIC) is China’s second-largest car rental provider according to 2013 revenues and has over 1,200 service locations throughout the country. Since its IPO in November of last year, Ehi Car Services Ltd (ADR) (NYSE:EHIC)’s stock has appreciated by about 11.37%, while a major surge has occurred this year, resulting in an appreciation of almost 60% year-to-date. In contrast, the rental and leasing services industry has slid by 1.89% so far this year. The company posted spectacular results for its first quarter, which included a 60% rise in revenues to $47.7 million on a year-over-year basis and a profit of $600,000 as compared to a loss of $2.87 million in the same quarter a year earlier.

Despite its eye-popping returns, Ehi Car Services Ltd (ADR) (NYSE:EHIC) hasn’t been able to gain much traction from the professional money managers tracked by Insider Monkey. Among over 700 hedge funds that we track, just four had investments in the company totaling about $9.66 million at the end of March, as compared to five funds with $9.09 million in shares at the end of the previous quarter. The two other investors of the company apart from SRS Management and Tiger Global are Mark Kingdon’s Kingdon Capital, and Israel Englander‘s Millennium Management with stakes of 488,100 shares and 105,900 shares respectively.

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