In this piece, we will take a look at the ten stocks to sell now according to Orkun Kilic’s Berry Street Capital. If you want to skip our introduction of the hedge fund and jump ahead to the top five stocks in this list, then head on over to 5 Stocks to Sell Now According to Orkun Kilic’s Berry Street Capital.
Orkun Kilic is a Britain-based investor who is at the helm of the investment fund Berry Street Capital. Mr. Kilic set up the fund in 2019, and prior to venturing on his own in the financial world, he spent some time working in the finance industry. His hedge fund primarily manages the Berry Street Master Fund, which itself has two more funds, namely the Berry Street Fund Ltd and the Berry Street Fund L.P.
The feeder fund Berry Street Fund L.P., also known as Berry Street Capital Management LL.P., is run by Ms. Teresa Durso, and as of the second quarter of this year, the fund had 35 companies in its portfolio and managed close to $576 million in assets. The bulk of the investments in this fund is focused on U.S. companies, and it mostly targets the high growth, high return technology industry.
Mr. Kilic himself hails from Turkey, and he received his bachelor’s in business administration from the famed Koc University in 2004, making him one of the younger hedge fund executives in an industry that is flanked by investors with multiple decades of experience under their belt. He went on to do Master’s in financial engineering from Bogazici University in 2006, and immediately afterward would go on to attend the illustrious Harvard Business School for his MBA.
The hedge fund executive started his career in the finance world in Turkey, by working as an analyst for Fiba Capital. He would join Morgan Stanley as an associate in 2008. He worked at Morgan Stanley for three years before becoming a partner at Paulson & Co for eight years until 2019.
Berry Street Capital‘s latest filings with regulators reveal that the fund had $800 million in its portfolio as of the second quarter of this year, for a roughly 22% annual drop.
In this article we will take a look at some of the stocks the fund sold in the second quarter. Some notable names dumped include AT&T Inc. (NYSE:T), Netflix, Inc. (NASDAQ:NFLX), and Omnicell, Inc. (NASDAQ:OMCL).
Photo by Javier Esteban on Unsplash
Our Methodology
In order to decipher the inner workings of Mr. Kilic’s mind, we sifted through his firm’s portfolios for the first and second quarters of this year to pick out which ones did not make the cut as of the latest quarter.
Stocks to Sell Now According to Orkun Kilic’s Berry Street Capital
10. Aurinia Pharmaceuticals Inc. (NASDAQ:AUPH)
Berry Street Capital’s Stake Value In Q1 2022: $929,000
Percentage of Berry Street Capital’s 13F Portfolio In Q1 2022: 0.1%
Number of Hedge Fund Holders: 15
Aurinia Pharmaceuticals Inc. (NASDAQ:AUPH) is a Canadian biopharmaceutical company that is involved in developing treatments for diseases such as active lupus nephritis. It is headquartered in Victoria.
Berry Capital owned a small $928,000 stake in Aurinia Pharmaceuticals Inc. (NASDAQ:AUPH) as part of its Q1 2022 holdings. This came through the firm owning 75,000 shares of the company, and the stake was sold off during the second quarter of this year. 15 out of the 895 hedge funds part of Insider Monkey’s Q2 2022 survey had invested in the company.
Aurinia Pharmaceuticals Inc. (NASDAQ:AUPH)’s shares have dropped by a massive 66% year to date, proving that it was perhaps prudent for Berry Street Capital to have eliminated the firm from its investment portfolio. Following the company’s Q2 2022 results, H.C. Wainwright lowered its share price target to $26 from $30 in August 2022.
Aurinia Pharmaceuticals Inc. (NASDAQ:AUPH)’s largest investor in our database is Ken Griffin’s Citadel Investment Group which owns 869,244 shares that are worth $8.7 million.
Aurinia Pharmaceuticals Inc. (NASDAQ:AUPH), AT&T Inc. (NYSE:T), Netflix, Inc. (NASDAQ:NFLX), and Omnicell, Inc. (NASDAQ:OMCL) are some of the stocks Berry Street Capital sold during the second quarter of this year.
9. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Berry Street Capital’s Stake Value In Q1 2022: $1.3 million
Percentage of Berry Street Capital’s 13F Portfolio In Q1 2022: 0.15%
Number of Hedge Fund Holders: 87
Advanced Micro Devices, Inc. (NASDAQ:AMD) is an American semiconductor designer that is known for developing and selling a wide variety of chip products that are used for computing, rendering, gaming, and enterprise use. The firm is headquartered in Santa Clara, California.
Advanced Micro Devices, Inc. (NASDAQ:AMD) is among the few chip companies that have managed to grow their revenues during this year’s first half, even as economic slowdown and a semiconductor shortage alongside a crash in cryptocurrency prices has hammered earnings of its larger peers such as Intel Corporation (NASDAQ:INTC) and NVIDIA Corporation (NASDAQ:NVDA). Mizuho lowered the company’s share price target to $125 from $140 in September 2022, as it worried about the demand for hyperscale computing slowing down.
Mr. Kilic’s Berry Street Capital sold 12,500 Advanced Micro Devices, Inc. (NASDAQ:AMD) shares as the second quarter of this year ended. During the first quarter, its stake in the company was worth $1.3 million and it represented 0.15% of the investment portfolio. Insider Monkey studied 895 hedge funds for their holdings during this year’s June quarter to discover that 87 had invested in the firm.
Ken Fisher’s Fisher Asset Management is Advanced Micro Devices, Inc. (NASDAQ:AMD)’s largest investor. It owns 25 million shares that are worth $1.9 billion.
8. Sohu.com Limited (NASDAQ:SOHU)
Berry Street Capital’s Stake Value In Q1 2022: $2.5 million
Percentage of Berry Street Capital’s 13F Portfolio In Q1 2022: 0.28%
Number of Hedge Fund Holders: 12
Sohu.com Limited (NASDAQ:SOHU) is a Chinese company that develops online videos, games, and other content for personal computing and mobile devices. The firm is headquartered in Beijing.
Berry Capital had held an $2.5 million stake in Sohu.com Limited (NASDAQ:SOHU) as part of its Q1 2022 holdings. This came through the firm holding 150,000 shares of the company and it represented 0.28% of its investment portfolio. By the second quarter end, the hedge fund removed it from its portfolio, but at the same time, 12 out of the total 895 funds polled by Insider Monkey had invested in Sohu.com Limited (NASDAQ:SOHU).
Sohu.com Limited (NASDAQ:SOHU)’s fair share price value is estimated to be $19.95/share, if a cost of capital (WACC) of 9% and a terminal value equal to China’s long term growth rate is applied This provides for a slight undervaluation over the current share price of $17.66.
Sohu.com Limited (NASDAQ:SOHU)’s largest investor in our database is Jim Simons’s Renaissance Technologies which owns 1.8 million shares that are worth $30 million.
7. Bally’s Corporation (NYSE:BALY)
Berry Street Capital’s Stake Value In Q1 2022: $3.8 million
Percentage of Berry Street Capital’s 13F Portfolio In Q1 2022: 0.43%
Number of Hedge Fund Holders: 27
Bally’s Corporation (NYSE:BALY) is an American gaming company headquartered in Providence, Rhode Island. The company has casinos and resorts all over the United States and it also operates an online gaming platform.
Berry Street Capital held a $3.8 million stake in Bally’s Corporation (NYSE:BALY) as part of its Q1 2022 portfolio, which was sold by the end of the second quarter. Insider Monkey’s Q2 2022 survey of 895 hedge funds revealed that 27 had held a stake in the company.
Bally’s Corporation (NYSE:BALY) is looking to open a new casino in Chicago, from which it expects to earn $800 million in targeted revenue – a figure that industry observers have described as a tad too optimistic given the strong casino ecosystem in the area. The facility is slated to have 500 rooms and 3,400 slots alongside a 3,000 seat entertainment facility and 170 table games. Cowen reduced the company’s share price target to $45 from $53 in August 2022, stating that recessionary fears will strongly affect casinos outside Las Vegas.
6. Take-Two Interactive Software, Inc. (NASDAQ:TTWO)
Berry Street Capital’s Stake Value In Q1 2022: $5.7 million
Percentage of Berry Street Capital’s 13F Portfolio In Q1 2022: 0.65%
Number of Hedge Fund Holders: 66
Take-Two Interactive Software, Inc. (NASDAQ:TTWO) is an American video game company that owns some of the largest gaming brands and titles in the world. One of its renowned brands is Rockstar Games, which is known for the video game title Grand Theft Auto. Take-Two Interactive Software, Inc. (NASDAQ:TTWO) is headquartered in New York, New York.
Berry Street Capital owned a $5.7 million stake in Take-Two Interactive Software, Inc. (NASDAQ:TTWO) as part of its Q1 2022 holdings, which came in the form of 37,500 shares. The second quarter saw the firm remove this completely from its portfolio. Insider Monkey surveyed 895 hedge funds for their Q2 2022 investments and discovered that 66 had held a stake in the company.
Take-Two Interactive Software, Inc. (NASDAQ:TTWO)’s latest quarterly results saw the firm suffer amidst a wider downturn in the video gaming market. For its full year, the company shared reduced bookings guidance of $5.8 billion, which were well below the $6.4 billion guidance expected by analysts.
Take-Two Interactive Software, Inc. (NASDAQ:TTWO)’s largest investor in our database is Andreas Halvorsen’s Viking Global which owns 1.9 million shares that are worth $245 million.
AT&T Inc. (NYSE:T), Netflix, Inc. (NASDAQ:NFLX), and Omnicell, Inc. (NASDAQ:OMCL) are joined by Take-Two Interactive Software, Inc. (NASDAQ:TTWO) on the list of stocks sold by Orkun Kilic.
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Disclosure: None. 10 Stocks to Sell Now According to Orkun Kilic’s Berry Street Capital is originally published on Insider Monkey.
