Was This Investor Right about Baidu.com, Inc. (BIDU), Cisco Systems, Inc. (CSCO) & Two Other Stocks?

Platinum Asset Management is an Australia-based edge fund founded by billionaire Kerr Neilson. The fund specializes in global equities. Platinium’s equity portfolio has a total worth that stands at over $4.04 billion. Kerr Neilson. In the third quarter, the fund returned 11.94% from its 61 long positions in companies with market caps above $1.0 billion. Among the top positions that contributed to Platinum’s performance were Baidu.com, Inc. (ADR) (NASDAQ:BIDU), Paypal Holdings Inc (NASDAQ:PYPL) ,Cisco Systems, Inc. (NASDAQ:CSCO), and Carnival Corporation (NYSE:CCL). 

Our research shows that the long sides of hedge funds’ portfolios return positive gains in most of the times, unlike the overall gains which seem to be lagging the market, mainly due to hedged positions and losses from short positions. For example, a startling 95% of the total hedge funds tracked by Insider Monkey returned sterling gains in the third quarter from their long positions, much better than S&P 500 ETF’s returns of 3.3% during the quarter.

Platinum Asset Management decreased its stake in Baidu.com, Inc. (ADR) (NASDAQ:BIDU) by 3% in the second quarter, ending the period with a total of 1.69 million shares of the company whose value stood at over $279.35 million. The stock returned 10.2% during the third quarter. Heading into the third quarter of 2016, a total of 56 of the hedge funds tracked by Insider Monkey were bullish on this stock, down by 22% from the first quarter of 2016. More specifically, Scopia Capital was the largest shareholder of Baidu.com, Inc. (ADR) (NASDAQ:BIDU), with a stake worth $355 million reported as of the end of June. Trailing Scopia Capital was Cantillon Capital Management, which amassed a stake valued at $343.7 million. Hound Partners and Eminence Capital also held valuable positions in the company.

Platinum Asset Management had 7.25 million shares of Paypal Holdings Inc (NASDAQ:PYPL) at the end of the second quarter. The total value of Platinum Asset Management’s stake in the company was approximately $7.25 million. Paypal Holdings shares delivered a return of 12.2% in the third quarter. During the second quarter, the number of funds from our database long Paypal Holdings went down by three to 84. Among these funds, Icahn Capital LP held the most valuable stake in Paypal Holdings Inc (NASDAQ:PYPL), which was worth $1.24 billion at the end of the second quarter. On the second spot was Orbis Investment Management which amassed $490 million worth of shares. Moreover, Lone Pine Capital, D E Shaw, and Coatue Management were also bullish on Paypal Holdings Inc (NASDAQ:PYPL).

Platinum Asset Management had a $250.19 million stake in Cisco Systems, Inc. (NASDAQ:CSCO) heading into the third quarter as the fund held over 9.03 million shares of the company. Cisco Systems appreciated by 11.6% in the following three months. Overall, there were 61 hedge funds in our database with holdings in Cisco Systems at the end of the second quarter, versus 65 funds at the end of March. Among these funds, Yacktman Asset Management, managed by Donald Yacktman, held the most valuable position in Cisco Systems, Inc. (NASDAQ:CSCO), which was valued at $807.6 million. On Yacktman Asset Management’s heels was Robert Rodriguez and Steven Romick’s First Pacific Advisors LLC, with a $562.5 million position. Remaining hedge funds and institutional investors with similar optimism included Ken Fisher’s Fisher Asset Management, Cliff Asness’ AQR Capital Management, and Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital.

Carnival Corporation (NYSE:CCL)’s stock appreciated by 11.3% in the third quarter, Platinum Asset Management has shown a slightly bearish sentiment towards Carnival in the previous quarter by slashing 8% of its stake in the company and reporting ownership of 4.97 million shares of the company valued at $219.82 million as of the end of June. The stock returned 11.3% during the third quarter. Heading into the third quarter of 2016, 31 investors followed by our team held long positions in this stock, down by 35% from the previous quarter. Trailing Platinum Asset Management, the largest shareholder, was AQR Capital Management, which amassed a stake valued at $197.1 million. Orbis Investment Management, Edinburgh Partners, and D E Shaw also held valuable positions in the company.

Disclosure: none