#2 LendingClub Corp (NYSE:LC)
– Shares held by VY Capital (as of March 31): 4.5 million
– Value of Holding (as of March 31): $37.35 million
VY Capital boosted its holding in LendingClub Corp (NYSE:LC) by 46% during the first quarter. Shares of the online lending facilitator have been on a perpetual decline since it was listed on the New York Stock Exchange in December 2014. Though the stock jumped by over 60% to the $25 level from its IPO price of $15 around the time of its debut, it currently trades down by 47% from its IPO price and has lost 26.78% of its value this year alone. The company recently raised the lending interest rates on its platform by a weighted average total of 23 basis points, citing worsening economic conditions around the world. This is the third time that LendingClub has increased the lending rate on its platform since the Fed raised interest rates in December. For the first quarter, analysts are expecting the company to report EPS of $0.05 on revenue of $148.23 million, which would be solid growth from EPS of $0.02 on revenue of $81.04 million it reported for the same quarter of last year. David Keidan‘s Buckingham Capital Management also increased its stake in the company during the first quarter, by 85% to 933,334 shares.
#1 Activision Blizzard, Inc. (NASDAQ:ATVI)
– Shares held by VY Capital (as of March 31): 1.5 million
– Value of Holding (as of March 31): $50.76 million
Activision Blizzard, Inc. (NASDAQ:ATVI) continued to remain VY Capital’s top stock pick at the end of March, with the fund making no change to its stake in the company during the first quarter. The position amassed over 40% of the value of the fund’s public equity portfolio going into the second quarter. Activision Blizzard, Inc. (NASDAQ:ATVI) was one of the best performing stocks of 2015, rising by over 90% during that period. However, the stock has been underperforming the broader market this year, trading down by 11.4% year-to-date. One of the reasons behind the correction in the stock is the view shared by some analysts and investors that the company has been boosting EPS through share repurchases financed by cheap debt, while its growth has plateaued. Activision Blizzard is expected to report its first quarter earnings this week and analysts are expecting it to report EPS of $0.12 on revenue of $811.92 million. For the same quarter of the previous year the gaming developer and publisher reported EPS of $0.12 on revenue of $703 million. Billionaire Ken Fisher’s Fisher Asset Management sold its entire stake in the company during the first quarter, which previously consisted of 6,445 shares.