By: Manisha Sethi Oct. 03, 2018
Kerrisdale Advisers, LLC disclosed its SEC 13F filings for Q1 2018 on May 15 and reported a portfolio value of $143.74 million, with its top 10 holdings accounting for 95.24%. The technology sector forms the majority of the firm’s portfolio at 51.14%. Kerrisdale Advisers, LLC’s top holdings include Luxoft Holding Inc. (LXFT), Expedia, Inc. (EXPE), Momo Inc. (MOMO), YY Inc. (YY), and Stamps.com, Inc. (STMP). The firm’s largest holding is 734,056 shares of Luxoft Holding Co.
Kerrisdale Advisers, LLC is a New York-based investment management firm that was founded by Sahm Adrangi. They make value-oriented investments in public securities. The Company offers asset management, securities, investment strategies, financial planning, and advisory services.
Raltin, in a recent analysis, finds that about 54.37% or 56 new stock buys of Kerrisdale Advisers outperform S&P 500, whereas 45.63% or 47 new stock buys underperform (between Q1 2014 and Q1 2018). More specifically, 33 out of 103 new buys outperform the index by more than 10%. Raltin’s detailed methodology to calculate the stocks’ performance against S&P 500 can be found here. The following table shows the total number of new stock purchases and the various S&P performance categories.
|S&P outperformance category||Number of new stock purchases||Total new purchases (%)|
|10 to 20%||12||11.65|
|0 to 10%||13||12.62|
|-10 to 0%||14||13.59|
|-20 to -10%||9||8.74|
Of the 12 new stocks purchased this quarter, Expedia, Inc. (EXPE) from the consumer discretionary sector and Momo Inc. (MOMO) from the IT sector account for 9.51% and 9.13% of the portfolio. The next table elaborates on the new purchases as well as the number of shares and their holding value.
|Stocks||No. of shares||Holding value ($1,000)|
|Expedia, Inc. (EXPE)||2,43,204||26,852|
|Momo Inc. (MOMO)||6,89,335||25,767|
|YY Inc. (YY)||1,61,742||17,015|
|NetScout Systems, Inc. (NTCT)||1,23,756||3,261|
|Check Point Software Technologies Ltd. (CHKP)||20,120||1,999|
|Acuity Brands, Inc. (AYI)||10,000||1,392|
|MagnaChip Semiconductor Corp. (MX)||1,40,000||1,344|
|Renewable Energy Group, Inc. (REGI)||1,00,000||1,280|
|Realogy Holdings Corp. (RLGY)||34,294||936|
|Flexion Therapeutics, Inc. (FLXN)||31,800||713|
|Impinj, Inc. (PI)||50,000||651|
|Horizon Global Corp. (HZN)||25,000||206|
The following table presents the investor’s portfolio value from Q1 2016 to Q1 2017 and the top holdings that outperform S&P 500 in each quarter. It can be seen from the table that S&P Global Inc. (SPGI), CoreCivic, Inc. (CXW), Autohome Inc. (ATHM), and Synopsys, Inc. (SNPS) outperform S&P 500 by more than 20%.
|Period||Total portfolio value ($Mn)||Top holdings (ticker, % of IRR difference from S&P 500)|
|Q4 2016||101.44||S&P Global Inc. (SPGI, 38.28), Twitter, Inc. (TWTR, 28.01), eBay Inc. (EBAY, 7.75)|
|Q3 2016||369.84||CoreCivic, Inc. (CXW, 77.16), VMWare, Inc. (VMW, 32.83), Check Point Software Technologies Ltd. (CHKP, 30.87)|
|Q2 2016||585.98||Autohome Inc. (ATHM, 110.13), Korn/Ferry International (KFY, 51.38), Tech Data Corp. (TECD, 25.14)|
|Q1 2016||391.11||Synopsys, Inc. (SNPS, 34.2), WageWorks Inc. (WAGE, 28.15), eBay Inc. (EBAY, 25.99)|