RYL supports Impala Asset Management in June. NXPI drags
Impala Asset Management returns an estimated -0.4% for June 2015 - the fully hedged version returns 0.94%
Impala Asset Management generated a -0.4% return on their publicly disclosed hedge fund portfolio for the month ending June 2015, underperforming the S&P500 by 41 basis points (bp). On a hedged basis, the portfolio would have returned 0.94% StockAlpha over the same period. Impala'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 Cons. Disc. sector contributed the most to StockAlpha during the month.
Positive Contributors to Impala's Returns
Impala’s position in Ryland Group Inc. (RYL) contributed the most to the performance of the manager’s long-portfolio during the month. Over the month of June 2015, Impala's 7.8% position in Ryland Group Inc. (RYL) increased in value by 8.8%, contributing 0.69% (7.8%*8.8%=0.69%)to the long portfolios overall return. Looking at Impala's portfolio through a fully hedged StockAlpha lens, the holding of Ryland Group Inc. (RYL) also provided the largest contribution to fully hedged returns. Ryland Group Inc. (RYL) returned 8.8% during the month compared to the Cons. Disc. sector, which returned 0.6%. As a result, after taking into account Ryland Group Inc. (RYL)'s beta relative to its sector, the position contributed 0.6% of StockAlpha to the Impala’s monthly performance.
Negative Contributors to Impala's Returns
Much of the drag on Impala’s long-portfolio during the month can be attributed to the holding of NXP Semiconductors NV (NXPI). Over the month of June 2015, the manager's 2.2% position in NXP Semiconductors NV (NXPI) returned -14%, contributing -0.31% (2.2%*-14%=-0.31%)to the long portfolios overall return. Looking at Impala's portfolio through a fully hedged StockAlpha lens, the holding of NVR Inc (NVR) provided the most negative contribution to fully hedged returns. NVR Inc (NVR) returned -1.6% during the month compared to the Cons. Disc. sector, which returned 0.6%. As a result, the position contributed -0.3% of StockAlpha to the manager’s monthly performance.
Overlap with other hedge funds
Among Impala’s top 10 largest positions, Apple Inc (AAPL) is the name that is owned by most other hedge funds. 36.3% of hedge funds within Symmetric's universe had a position in Apple Inc (AAPL) as of March 31, 2015, making it a consensus name relative to other stocks. Impala initiated its position in Apple Inc (AAPL) 0.5 years ago. Other hedge funds that have significant ownership stakes in Apple Inc (AAPL) include Capstone Investment Advisors (27.9% position initiated 0.5 years ago). Overall, Impala's book is neither consensus or contrarian, with the average position held in the portfolio held by 10.5% of hedge funds.
July Forecast
Impala's estimated July performance has improved dramatically on the long-side. The estimated long-performance for July is up 1.85%. The fully hedged version, however, is pacing -.73%. The top two positive contributors on the long side have been Take-Two Interactive Software Inc (TTWO) and NVR Inc (NVR). Use Symmetric to surface managers with unique sources of alpha and flag those that may be in trouble.
