MW advancing Samlyn Capital in June. KATE continues to drag
Samlyn Capital returns an estimated 0.85% for May 2015. June looks better.
Samlyn Capital Llc generated an estimated 0.85% return on their publicly disclosed long portfolio for the month ending May 2015, outperforming the S&P500 by 84 basis points (bp). On a hedged basis, the portfolio would have returned -0.41% StockAlpha over the same period. Samlyn'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 Energy sector contributed the most to StockAlpha during the month.
Positive Contributors to Samlyn Capital's Returns
Samlyn’s position in Actavis Plc (ACT) contributed the most to the performance of the manager’s long-portfolio during the month. Over the month of June 2015, Samlyn's 2.6% position in Actavis Plc (ACT) increased in value by 8%, contributing 0.21% (2.6%*8%=0.21%)to the long portfolios overall return. Looking at Samlyn's portfolio through a fully hedged StockAlpha lens, the holding of Actavis Plc (ACT) also provided the largest contribution to fully hedged returns. Actavis Plc (ACT) returned 5.3% during the month compared to the Energy sector, which returned -5.5%. As a result, after taking into account Actavis Plc (ACT)'s beta relative to its sector, the position contributed 0.3% of StockAlpha to the Samlyn’s monthly performance.
Negative Contributors to Samlyn Capital's Returns
Much of the drag on Samlyn’s long-portfolio during the month can be attributed to the holding of Kate Spade & Co. (KATE). Over the month of June 2015, the manager's 2.5% position in Kate Spade & Co. (KATE) returned -23.7%, contributing -0.59% (2.5%*-23.7%=-0.59%)to the long portfolios overall return. Looking at Samlyn's portfolio through a fully hedged StockAlpha lens, the holding of Kate Spade & Co. (KATE) also provided the most negative contribution to fully hedged returns. Kate Spade & Co. (KATE) returned -23.7% during the month compared to the Cons. Disc. sector, which returned 1.3%. As a result, the position contributed -0.6% of StockAlpha to the manager’s monthly performance.
Samlyn Capital's Overlap with other hedge funds
Among Samlyn’s top 10 largest positions, CoreLogic Inc (CLGX) is the name that is owned by most other hedge funds. 4.5% of hedge funds within Symmetric's universe had a position in CoreLogic Inc (CLGX) 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. Samlyn initiated its position in CoreLogic Inc (CLGX) 1.75 years ago. Other hedge funds that have significant ownership stakes in CoreLogic Inc (CLGX) include Ratan Capital Management Lp (16.4% position initiated 1 year ago), Sachem Head Capital Management (15.8% position initiated 0.5 years ago) and Oskie Capital Management Llc (11.5% position initiated 1 year ago). Overall, Samlyn's book is neither consensus or contrarian, with the average position held in the portfolio held by 10.7% of hedge funds.
Samlyn Capital Outlook for June
So far, Samlyn's estimated returns for June are up 191 basis points. KATE continues to be a source of weakness, but Mens Wearhouse, Inc (MW) has stepped in to contribute twenty-eight bps, month to date. Moreover, on a fully hedged basis, Samlyn's estimated returns are up 148 bps. June looks promising. Companies discussed in this post: CoreLogic Inc (CLGX); Kate Spade & Co. (KATE); Actavis Plc (ACT); Mens Wearhouse, Inc (MW) Screen, monitor and bechmark hedge fund managers for unique sources of alpha at Symmetric.io
