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This Fund Dumped Apple, Replaced It With Skechers USA, Lantheus Holdings, and More

Lucus Advisors runs three different funds for meeting the requirements of different clients. It mainly invests using event-driven philosophy. Its funds are well diversified and hold interests in a wide range of industries. 32% of its portfolio is invested in Healthcare sector stocks while Consumer Discretionary sector accounts for 14% of the portfolio.

In this article, we will discuss the fund’s approach towards some prominent stocks. The fund liquidated its position in Apple Inc. (NASDAQ:AAPL) during the September quarter. At the very same time, it opened positions in diversified range of stocks such as Skechers USA Inc. (NYSE:SKX), Lantheus Holdings Inc. (NASDAQ:LNTH), OMNOVA Solutions Inc. (NYSE:OMN) and Community Health Systems (NYSE:CYH).

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Apple Inc. (NASDAQ:AAPL) stock gained 1.42% this year so far. However, the stock also offers healthy dividend yield of 2.09%. It accounted for 0.28% of the portfolio of Lucus Advisors for June quarter. For the quarter ended on 30th September, 2016, the investment fund liquidated its holding of the stock by selling 3,632 shares. Apple shares gained 18.9% during the third quarter and Lucus Advisors must have thought the shares reached their fair value or they saw better value elsewhere.

Of the hedge funds in our database, 116 funds currently hold $10.67 billion worth of Apple shares in their portfolio at the end of the June quarter, which equals to 2% of the outstanding shares. Apple recently announced its quarter earnings at $1.67 per share, beating consensus estimate of $1.66 per share. However, it also reported revenue decline on year over year basis for the third straight quarter. Apple’s revenue stood at $46.9 billion, marginally behind of expectations of $46.94 billion. For knowing more about VR headsets compatible with Apple, read our guide here.

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Skechers USA Inc. (NYSE:SKX) stock declined 35% in this year so far. However, Lucus Advisors initiated the position in the stock by buying 20,000 shares during the quarter ended on 30th September, 2016. The fund held $458,000 worth of Skechers USA stock at the end of the quarter, forming 0.39% of its portfolio. Among the funds we track, 27 funds held $424 million worth of Skechers USA’s stock in aggregate at the end of June, having amassed 9% of its outstanding stock. Skechers USA stock recently received initial rating of Neutral from wedbush. The target price for the stock has been set at $23. The analyst said that despite stagnating sales in the domestic market, the company is seeing increase in its overseas revenue.

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Lantheus Holdings Inc. (NASDAQ:LNTH) stock forms 0.35% of Lucus Advisors’ portfolio at the end of September quarter. The fund held 49,651 shares of the company with the market value of $411,000.  The number of funds from our hedge fund database long Lantheus Holdings was at four in the quarter ending June. The total value of their holdings stood at $5.894 million, in comparison to $4.291 million held by two funds at the end of previous quarter. Lantheus Holdings reported $0.15 per share in adjusted net income for the third quarter. The company’s revenue for the same time period stood at $73.1 million, surpassing guidance of revenue in the range of $68 million to $70 million.

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OMNOVA Solutions Inc. (NYSE:OMN) stock gained 19% this year so far. Lucus Advisors bought 48,664 shares of the company during the September quarter. The market value of the holding stands at $411,000 million and forms 0.35% of Lucus Advisors’ portfolio. 10 hedge funds from our database have positions in OMNOVA Solutions, with total holdings of about $33 million as on the end of June quarter, amounting to about 10.10% of the company’s outstanding stock. The company today announced the departure of its CEO Kevin M. McMullen. He also held the positions of chairman, president and board membership. He will be succeeded by Anne P. Noonan as the company’s President and Chief Executive Officer, with effect from December 1.

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Community Health Systems (NYSE:CYH) stock declined 77% this year as it also saw Lucus Advisors initiating the position in the company stock. The investment firm held 35,166 shares of Community Health worth $406,000 as on the end of September quarter. 33 hedge funds we track hold about $280 million of Community Health stock as on the end of June quarter, in comparison to 42 funds holding stock worth $493 million the previous quarter. The company recently reported its third quarter loss at $0.35 per share, in line with consensus estimates. The company’s net operating revenue at $4.38 billion surpassed street expectation of $4.27 billion. Camber Capital recently disclosed a large position in the stock though CYH shares plunged following Donald Trump’s election surprise.

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DISCLOSURE – NONE

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