Editor’s Note: Related tickers: NetSuite Inc (NYSE:N), Veeco Instruments Inc. (NASDAQ:VECO), Financial Engines Inc (NASDAQ:FNGN), United Rentals, Inc. (NYSE:URI), Tesla Motors Inc (NASDAQ:TSLA)
Cupps Capital Management is a Chicago-based investment management firm serving institutional investors through separately managed accounts since 2000. Mr. Drew Cupps is President and Chief Investment Officer of the firm, and has built a fund with over $951 million in assets under management.
A top trio
Cupps Capital keeps a stake of 664,787 shares in Veeco Instruments Inc. in possession. The fund was bullish last quarter, adding a whopping 516,442 shares to the position. Veeco Instruments Inc. shares have skyrocketed in terms of value, and the position is now worth $25.534 million, good for 2.56% of the 13F portfolio’s value compared to 0.48% just three months earlier. The stock trades at the eighth highest trailing P/E ratio of 23.36 in its sector, with a forward rate almost double that at 42.86. Profit margins are relatively high at 10.41%, while diluted trailing EPS is near $1.60.
Financial Engines Inc follows up with an increase in positional value by 23.20% to $23.308 million. Despite that, the size of the stake decreased by 38,519 shares between quarters. Financial Engines Inc trades at a trailing P/E ratio of 109.05, second highest in the asset management industry, though a forward P/E of 49.81 is a bit more acceptable. The price of the stock has increased during the last 52 weeks by 92.47% and the entity has a profit margin of only 10%, twelfth lowest in its industry.
The best of the rest
United Rentals, Inc. keeps a spot in the top five despite the fact that the fund lowered its stake by 51,283 shares. The value of the total position still grew by 7.58% to $23.010 million in the first quarter, though. This stock trades at the highest trailing P/E (72.58) in its industry, though a forward P/E of 9.67 indicates that Mr. Market may be underrating this stock’s growth prospects. United Rentals, Inc.’s diluted EPS is $0.80, while the price increased by more than a third during the last year. Analysts have a mean current recommendation of 1.7 for the stock.
Tesla Motors Inc closes out the top five with a $21.540 million holding, increasing by 6.18% in comparison to the previous quarter. This happened despite the fund selling 30,430 shares, which may look like a rather foolish move considering the automaker’s massive appreciation of late. With recent earnings beating literally every expectation out there—even on the high side—investors are pushing Tesla Motors Inc near the $100 mark, though it remains to be seen if shares can break this level. It will be intriguing to see if more hedge funds move into Tesla Motors Inc as the second quarter progresses.
Final thoughts
First quarter 13F forms continue to stream in, and it’s important to understand that hedge fund piggybacking is a relevant technique for all investors; see the historical proof here. See the original 13F here.
