By: Alex Oleinic
Michael Hintze's hedge fund CQS Cayman recently disclosed its holdings in a 13F filing with the Securities and Exchange Commission. Generally, 13Fs are filed several weeks after the end of each calendar quarter. We follow CQS Cayman, so looking into its 13F filings is one of the best ways to see which equities it holds nearest and dearest to its heart. The original 13F can be found here, and our research has shown that those who follow specific hedge fund activity can benefit greatly (discover this strategy's secrets here).
A top trio
CQS Cayman reported holding 4,184,246 shares of News Corp (NWSA) Class B stock, the value of the stake being $128.7 million. In the previous 13F, the fund disclosed a $104.7 million position, which contained 3,989,633 shares. The total revenue of News Corp advanced by 14% on the year to $9.54 billion in the first three months of 2013. Over 60 hedge funds from our database were invested in News Corp at the end of last year. The stock of News Corp sports a forward P/E of 17.3x and has a year-to-date return of above 30%.
In Liberty Global (LBTYA), the fund held a $54.7 million position, up from $34.5 million reported at the end of 2012. The number of shares owned also increased to 797,520, from 586,745. Among companies from the CATV Systems industry, Liberty Global has the fifth largest market cap, which amounts to $19.76 billion. The year-to-date return of Liberty Global's stock is slightly above 22% and it is trading at a forward P/E of 23.9x. More than 40 elite hedge funds were bullish on Liberty Global in the previous round of 13F filings, so we'll be watching closely.
The hedge fund managed by Michael Hintze also reported owning 1,307,145 shares of Ryanair Holdings (RYAAY), up from 704,661 shares disclosed as at the end of December. The value of the stake more than doubled to almost $54 million, from $24.1 million. Ryanair has the fifth-highest P/E in the regional airlines industry, its P/E amounting to 15.7x. At the same time, the year-to-date return of Ryanair's stock is above 27.5%, slightly higher than the overall return of the airlines industry of about 26.7%, according to Morningstar.
The best of the rest
In Carnival Corporation (CCL), CQS disclosed a position worth some $36.8 million, down from almost $40 millions posted at the end of December. The number of Carnival shares held by CQS also declined to 1,072,371, from 1,102,532. Trading at a forward P/E of 13.5x, the stock of Carnival has a year-to-date return of -5.70%. At the end of last year, more than 20 mega-hedge funds held shares of Carnival, our database shows. For the first three months of 2013, Carnival posted a non-GAAP net income worth $65 million, which equals to $0.08 diluted EPS. For the whole year, the company expects non-GAAP diluted EPS between $1.80 and $2.10, versus $1.88 in 2012.
Comcast (CMCSA) is the fifth most valuable equity in the 13F portfolio of CQS Cayman. The hedge fund reported holding 852,932 Class A Special shares, worth $33.8 million. CQS raised its stake in Comcast from 363,194 shares, worth $13 million. In the services sector, Comcast has the fourth-largest market cap, which amounts to $113.45 billion. Also, the company has the biggest market cap among companies from the CATV sector. The stock of Comcast sports a year-to-date return of above 15%.
The fund disclosed holding a total of 89 equity positions in its most recent 13F, six positions more than it held at the end of last year. CQS Cayman also managed to increase its equity portfolio value to $886.9 million, from $853 million in the previous quarter. Both of these developments are positive signs, and it's worth watching the fund's "fab five" moving forward.