Hudson Bay Capital Management’s Return, AUM, and Holdings (Part II)

Nina Zdinjak - finance.yahoo.com Posted 2 months ago

Read the beginning of this article here.

At the end of the first quarter of 2019, Hudson Bay Capital Management held the most valuable stake in Liberty Expedia Holdings, Inc. (NASDAQ:LEXEA), an online travel company. The fund held 2.04 million Liberty Expedia’s shares with a value of $87.16 million, comprising only 1.14% of its diversified equity portfolio. This $2.5 billion market cap company offers online travel planning related services. Year-to-date, the company’s stock gained 12.73% and on June 10th, it had a closing price of $43.66. In its last financial report for Q1 2019, Liberty Expedia disclosed total revenue of $2.66 billion and diluted net loss of $1.12 per share, compared to $2.57 billion and diluted net loss per share of $0.77 for the corresponding quarter of 2018.

The second biggest stake in the fund’s 13F portfolio was in GCI Liberty, Inc. (NASDAQ:GLIBA) and after the fund had raised it during the Q1 by 213%, it counted 1.55 million shares with a value of 85.95 million. GCI Liberty, previously known as General Communication, Inc., is a $6.49 billion market cap holding company that owns interests and runs a variety of communications-related businesses.  It is the biggest communications provider in Alaska, offering wireless, data, voice and video managed services to Alaska residents. Since the beginning of the year, its stock price gained 47.04%, closing on June 10th with $61.52. For Q1 2019, GCI Liberty disclosed revenues of $213.21 million or a loss per share of $1.12, compared to revenues of $215.06 million, or a loss per share of $1.58 in the corresponding period of 2018.

The third most valuable position in Hudson Bay  Capital Management’s 13F equity portfolio was in  Discovery, Inc. (NASDAQ:DISCA), an NYC-based mass media company, most famous for its various television networks, such as Discovery Channel, Animal Planet, and Science Channel, to name a few. At the end of March 2019, the fund held 2.55 million Discovery’s shares with a value of $64.79 million, comprising 0.84% of its equity portfolio. Over the past 12 months, the company’s stock gained 3.97%, closing with a price of $28.25 per share on June 10th. Discovery has a market cap of $19.92 billion while trading at a price-to-earnings ratio of 24.04.

Among the fund’s biggest new positions in Q1 2019 were Tenet Healthcare Corporation (NYSE:THC), Celgene Corporation (NASDAQ:CELG), and The Allstate Corporation (NYSE:ALL).

Tenet Healthcare Corporation is a Dallas-based healthcare services company, which, through its subsidiaries and joint ventures, runs various healthcare facilities, such as hospitals and outpatient centers. It has a market cap of $2.22 billion. Year-to-date, its share price increased by 20.88%, and on June 10th it had a closing price of $21.48. For Q1 2019, Tenet Healthcare Corporation disclosed a net loss from continuing operations attributable to Tenet common shareholders of $27 million or $0.26 per diluted share. During Q1 2019, Hudson Bay Capital Management purchased 1.42 million Tenet’s shares, with a value of $40.83 million.

At the end of March 2019, the fund’s position in Celgene Corporation, which was a new quarterly addition, counted 417,696 shares valued at $39.41 million. This is a Summit, New Jersey-headquartered biotechnology company that works on developing various therapeutics for cancer and inflammatory disorders. Over the past 6 months, Celgene’s stocks gained 37.13%, closing on June 10th with a price of $95.29 per share. The company has a market cap of $67.2 billion while trading at a P/E ratio of 14.51. In its financial report for Q1 2019, Celgene disclosed GAAP net income of $1,545 million and diluted EPS of $2.14, versus GAAP net income of $846 million, and diluted EPS of $1.10 in the same quarter of 2018. Celgene was among the top 10 of 30 Most Popular Stocks Among Hedge Funds in Q1 of 2019.

Hudson Bay Capital Management’s third-largest addition to its 13F portfolio was The Allstate Corporation, one of the biggest insurance providers in the US, with a market cap of $33.57 billion. During Q1 2019, the fund obtained $27.21 million worth a position in the company, on the account of 288,910 shares. The company is trading at a P/E ratio of 14.65, and since the beginning of the year, its stock gained 23.46%, having a closing price on June 10th of $100.79. For the three months ended March 31st, The Allstate Corporation disclosed consolidated revenues of $10.99 billion and adjusted net income per diluted common share of $2.30, compared to consolidated revenues of $9.77 billion and adjusted net income per diluted common share of $3.08 for the same period in 2018. On May 29th, 2019, Goldman Sachs Group upgraded its rating on the stock to ‘Buy’ from ‘Neutral’ while also raising its price target to $110.00 from $106.00.

Disclosure: None This article was originally published at Insider Monkey.