CF helped Passport Capital advance 1.68% in May. VIPS did not
CF helped Passport Capital reach an estimated 1.68% return for May 2015. VIPS did not.
Passport Capital Llc generated a 1.68% return on their publicly disclosed long portfolio for the month ending May 2015, outperforming the S&P500 by 167 basis points (bp). On a hedged basis, the portfolio would have returned 1.18% StockAlpha over the same period. Passport's StockAlpha reflects the return of the net return if each security in their portfolio was hedged with a sector ETF, such that the resulting portfolio was market, beta and sector neutral. StockAlpha in the Materials sector contributed the most to StockAlpha during the month.
Positive Contributors to Passport's Returns
Passport’s position in CF Industries Holdings Inc (CF) contributed the most to the performance of the manager’s long-portfolio during the month. Over the month of May 2015, Passport's 7.5% position in CF Industries Holdings Inc (CF) increased in value by 10.6%, contributing 0.79% (7.5%*10.6%=0.79%)to the long portfolios overall return. Looking at Passport's portfolio through a fully hedged StockAlpha lens, the holding of CF Industries Holdings Inc (CF) also provided the largest contribution to fully hedged returns. CF Industries Holdings Inc (CF) returned 10.6% during the month compared to the Materials sector, which returned 0.4%. As a result, after taking into account CF Industries Holdings Inc (CF)'s beta relative to its sector, the position contributed 0.8% of StockAlpha to the Passport’s monthly performance.
Negative Contributors to Passport's Returns
Much of the drag on Passport’s long-portfolio during the month can be attributed to the holding of Vipshop Holdings Ltd (VIPS). Over the month of May 2015, the manager's 10.7% position in Vipshop Holdings Ltd (VIPS) returned -11.3%, contributing -1.21% (10.7%*-11.3%=-1.21%)to the long portfolios overall return. Looking at Passport's portfolio through a fully hedged StockAlpha lens, the holding of Vipshop Holdings Ltd (VIPS) also provided the most negative contribution to fully hedged returns. Vipshop Holdings Ltd (VIPS) returned -11.3% during the month compared to the Cons. Disc. sector, which returned 1.3%. As a result, the position contributed -1.4% of StockAlpha to the manager’s monthly performance.
Overlap with other hedge funds
Passport’s top 10 largest positions, MacDermid Inc. (MRD) is the name that is owned by most other hedge funds. 4.8% of hedge funds within Symmetric's universe had a position in MacDermid Inc. (MRD) as of March 31, 2015, making it a contrarian name relative to other stocks, even though it is the most consensus within the manager's top positions. Passport initiated its position in MacDermid Inc. (MRD) 0.75 years ago. Other hedge funds that have significant ownership stakes in MacDermid Inc. (MRD) include Dynamo Internacional Gestao De Recursos Ltda. (17.8% position initiated 0 years ago), Permian Investment Partners Lp (15.9% position initiated 0 years ago) and Slate Path Capital Lp (13.4% position initiated 0 years ago). Overall, Passport's book is neither consensus or contrarian, with the average position held in the portfolio held by 10.5% of hedge funds. So far, Passport's estimated returns for June are fifty-two basis points. which have largely been driven by Dollar General corp (DG). Screen, monitor and bechmark hedge fund managers at Symmetric.io
