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Asian Century Quest Capital, LLC is a U.S. registered investment adviser that has offices in New York, and Tokyo. The firm manages private investment funds with a primary focus on Asian equity markets. There is not much information available about the company. The website shows pictures of Himalaya Mountains, Great China Wall, as well as a map of central Japan. According to some anonymous posts, the company pays an average of $170,000 for a senior analyst positions. The firm took my attention, because its 13F holdings show the most radical portfolio I have analyzed so far. The filing shows that Asian Century oversees a U.S.-equity portfolio worth $704 million that is invested in only 15 stocks. Baidu (NASDAQ:BIDU), Sirius XM (Siri), and Youku (Yoku) are the most well-known companies in the portfolio. The following table shows the holdings as of January (data from Edgar Online).

Company Name

Ticker

$ Market Value

% Change Shares

% of Portfolio

YTD Return

COGNIZANT

CTSH

196,150,000

112.77

27.84

7.05%

BAIDU INC

BIDU

182,266,336

83.06

25.87

47.35%

NEW ORIENTAL

EDU

126,000,000

162.5

17.89

14.04%

SIRIUS XM

SIRI

119,850,000

27.5

17.01

44.17%

LAS VEGAS S.

LVS

43,200,000

-20

6.13

-5.98%

ROYAL C.

RCL

22,203,500

NEW!!!

3.15

-14.11%

YOUKU COM

YOKU

4,107,750

NEW!!!

0.58

56.44%

VANCEINFO

VIT

3,174,000

-9.09

0.45

-8.11%

MAKEMYTRIP

MMYT

2,464,000

128.57

0.35

13.95%

YOUNG INNOV.

YDNT

2,289,750

NEW!!!

0.33

-4.50%

TAL ED

XRS

1,680,000

NEW!!!

0.24

-25.47%

KOREA E.

KEP

459,340

-74.81

0.07

0.00%

KT CORP

KT

410,850

395

0.06

-0.24%

TURKCELL

TKC

137,280

1.05

0.02

-16.52%

ALLIANCE R. P.

ARLP

74,810

NEW!!!

0.01

16.49%

Average/Total

704,467

100

15.8%

As one can see from the table above the portfolio has a low-diversified list of highly volatile stocks. However the year-to-date (ytd) returns of many holdings were stunningly high so far. Youku returned 56.44%, Baidu returned 47%, and Sirius XM returned 44.17%. Even more interesting is the fact that the firm significantly increased its shares in top performers. Compared with S&P 500 (SPY) ytd return of 8.51%, Asian Century’s performance of 15.8% was outstanding. Here, is a brief summary of the top 8 equities:

Sirius XM Radio Inc. (NASDAQ:SIRI) is a provider of paid commercial-free entertainment channels. The number of subscribers reached more than 20 million and is still growing. Sirius XM stocks are among the most active NASDAQ stocks with almost 10 million shares traded daily. The company has a market cap of $8.75 billion. Forward P/E ratio is 37. Sirius XM Radio Inc. has a tremendous annualized EPS growth of 104.49% this year. For the next 5 years EPS is expected to grow around 63.20%. Trailing twelve month gross margin is 61.50%, but operating margin falls to 17.5%. Sirius CEO, Mel Karmazin is extremely bullish on the future
. May 3rd, Karmazin stated “We are raising our free cash flow guidance for the year and see it approaching $350 million, up 66% from $210 million in 2010. This growing free cash flow performance will lead to increased financial flexibility in the future and more options for us to return cash to investors.” Sirius XM has the most loyal shareholder interest in the market. However, the stock is not for the faint-hearted.

Youku.com Inc (NYSE:YOKU)
is an internet television company, which enables people to search, view and share video content quickly and easily. Youku.com has partnerships with nearly 500 brand advertisers such as P&G (NYSE:PG), Coca-Cola (NYSE:KO), General Motors (NYSE:GM), Apple (NASDAQ:AAPL), Lenovo (OTCPK:LNVGF), Samsung, and China Mobile (NYSE:CHL). Youku.com Inc is one of the top internet information providers. Market cap of the company is $5.64 billion. Net profit margin is -42.96%. Basically there is no profit yet. Similar to the purchase of YouTube, once BIDU creates enough cash-flow, YOKU could be strong take-over candidate. Maxim Group has a target price of $30.

Baidu Inc. (BIDU) is a Chinese web services company, which incorporated on January 18, 2000, in China. The company has a market capitalization of $49.23 billion. While the company has a current P/E ratio of 78.04, the forward P/E ratio declines to 36.41. Baidu shareholders also enjoyed a tremendous annualized EPS growth of 132.51% in the last 5 years. EPS is expected to increase by 55.81% in the next five years. Net profit margin is 45.43%. Recently Baidu’s chief financial officer, Jennifer Li; commented that top and bottom line results grew strongly in the first quarter and they will continue to support the long-term growth of the company.

Cognizant Technology Solutions Corp. (NASDAQ:CTSH) provides information technology outsourcing opportunities. The company has team members from North America, Europe, and Asia. The market cap of CTSH is 23.35 billion, and P/E ratio is 32.39. Its forward P/E ratio is 23.33. The company had a nifty annualized EPS growth of 33.56% in last 5 years. The stock is up by 30%, from $65 to $85 since December 2010.

New Oriental Education & Technology Group (NYSE:EDU) is the largest provider of private educational services in China. The company has a network with over 6.5 million registered users. Besides Chinese, their educational programs, services and products include English and other foreign languages. The market cap of the company is $49.23 billion. While the company has a P/E ratio of 55.20, the forward P/E ratio declines to 37.49. EPS is expected to be around 28% for the next 5 years. Net profit margin is 18.04%. Oppenheimer & Co analyst Ella Ji is extremely bullish on the future of the company:

Education is the number one in discretionary spending. Given all the economic improvements and rising domestic consumption power, Chinese people will continue to spend on education.

Las Vegas Sands Corp. (NYSE:LVS): Las Vegas Sands Corp. is a developer of multi-use integrated resorts worldwide. The company owns and operates several casinos, hotels and resorts. The company has a market capitalization of 31.45 billion. Although it has an extremely high P/E ratio of 57.72, its forward P/E ratio decline to 19.68. Next five-year expected EPS growth rate is 66.20%. The net profit margin is 14.39%. The company is in a highly cyclical business. Investing in this company is similar to going to one of the casinos. Sometimes the stock goes hyperbolic, and then pulls back in vicious cycles.

Royal Carribbean Cruises Ltd. (NYSE:RCL) is the world’s second largest cruise company after The Carnival Corporation. It operates the Royal Caribbean International, Celebrity Cruises, Pullmantur, Azamara Club Cruises and CDF Croisieres de France brands. Market cap of Royal Carribbean Cruises Ltd is $8.69 billion. The company has a P/E ratio of $15.96 and a forward P/E ratio of $10.54. EPS is expected to increase by 20.56% in the next five years. Net profit margin of the company is 7.95%. ROA and ROE ratios are 2.92% and 7.01%, respectively. As we are recovering from the crises, the demand for cruise holiday will explode this summer. It might be the right time to make reservations, before it is too late.

VanceInfo Technologies Inc. (NYSE:VIT) provides IT consulting and solution. VanceInfo Technologies Inc. leads offshore software development companies primarily in China, the United States, Europe and Japan since 1995. The company has a market cap of 1.40 billion. The P/E ratio is 46.00 and forward P/E ratio is 26.02. The company had a 39.57% EPS growth during the last five years. Net profit margin is 14.04%. ROA is 10.68%, while ROE is 13.04%. Given the increasingly popular subcontracting trend in high-tech companies, VIT has a pretty good market position.

Source: Asian Century Quest Capital's Extraordinary Stock Picks