By: Manisha Sethi Aug. 07, 2018
Shanda Asset Management Holdings Ltd. disclosed its SEC 13F filings for Q1 2018 on May 15 and reported a portfolio value of $609.51 million, with its top holding accounting for 93.79% of the portfolio. Its largest holding is 97,814,405 of LendingClub Corp. (LC). The firm invests across various sectors, among which the financial sector accounts for the highest share (65.57%). Shanda is a privately owned, global investment group based out of Tortola and was founded in 1999 by Tianqiao Chen, a Chinese online entertainment pioneer, and his family. The Company invests in venture capital, private equity, public securities, and real estate. They primarily focus on financial services as well as the technology and healthcare sectors and cater to customers across the world. They are currently the single largest shareholder of two U.S. listed companies: Lending Club (LC) and Community Health Systems (CYH).
According to a Raltin study, 52.20% of Shanda Asset Management Holdings’ new purchases outperform S&P 500. More specifically, 28.17% or about 20 new stock purchases (between Q1 2014 and Q1 2018) outperform S&P 500 by more than 20%, while 15 out of 71 new purchases underperform the index by more than 20%. A detailed description of Raltin’s methodology can be found here. The following table mentions the number of new purchases relative to the S&P 500 performance categories.
|S&P outperformance category||Number of new stock purchases||Total new purchases (%)|
|10 to 20%||8||11.27|
|0 to 10%||9||12.68|
|-10 to 0%||13||18.31|
|-20 to -10%||6||8.45|
In Q1 2018, the firm purchased six new stocks across various sectors. The table below elaborates on the new purchases as well as the number of shares and their holding value.
|Stocks||Number of shares||Holding value ($1,000)|
|Alarm.com Holdings, Inc. (ALRM)||47,028||1,775|
|Ares Capital Corp. (ARCC)||98,479||1,563|
|AvalonBay Communities, Inc. (AVB)||6,256||1,029|
|Tractor Supply Co. (TSCO)||15,384||969|
|WisdomTree Investments, Inc. (WETF)||100,000||917|
|Vornado Realty Trust (VNO)||10,000||673|
The next table presents the portfolio value of the investor for past 5 quarters, starting from Q1 2017 to Q1 2016 and the top holdings that outperform the S&P 500 IRR in each quarter. Several new picks such as Whiting Petroleum Corp. (WLL), Pernix Therapeutics Holdings, Inc. (PTX), and Marinus Pharmaceuticals, Inc. (MRNS) outperform S&P 500 by more than 200%.
|Period||Total portfolio value ($Mn)||Top holdings (ticker, % of IRR difference from S&P 500)|
|Q1 2017||685.51||Whiting Petroleum Corp. (WLL, 247.31), Etsy, Inc. (ETSY, 153.01), Price (T.) Rowe Group, Inc. (TROW, 46.97)|
|Q4 2016||558.51||Alphabet Inc. (GOOGL, 13.59)|
|Q3 2016||641.89||Pernix Therapeutics Holdings, Inc. (PTX, 394.14), Marinus Pharmaceuticals, Inc. (MRNS, 207.37), Zogenix, Inc. (ZGNX, 191.4)|
|Q1 2016||914.76||Targa Resources Corp. (TRGP, 85.9), Time Warner, Inc. (TWX, 19.98), EOG Resources, Inc. (EOG, 19.7)|