A Look at Top 13F Picks of One of the Best-Performing Hedge Funds of 2015

#3 HSBC Holdings plc (ADR) (NYSE:HSBC)

– Shares Owned by Segantii Capital (as of December 31): 1.74 million

– Value of Holding (as of December 31): $69.60 million

Amid a 4.2% rise in HSBC Holdings plc (ADR) (NYSE:HSBC)’s stock during the fourth quarter, Segantii Capital increased its stake in the bank holding company by 22%. This year HSBC Holdings plc (ADR) (NYSE:HSBC)’s stock has been on a gradual decline, losing over 18% of its value thus far. However, this decline has also helped in raising the stock’s annual dividend yield to nearly 8% currently. Though some investors are concerned whether HSBC can afford to continue paying dividends when most large banks have stopped paying dividends altogether to conserve capital, analysts think that the current dividend payout by the bank is sustainable at least in the medium-term. Due to the slowdown in Asia, HSBC Holdings recently has reported a loss of $1.3 billion for its fiscal fourth quarter versus a profit of $511 million it delivered in the same quarter of the previous year. However, despite a weak performance, the bank’s management said that it would maintain its dividend. Billionaire Ken Fisher‘s Fisher Asset Management trimmed its stake in HSBC by 1% to 11.4 million shares during the fourth quarter.

#2 ICICI Bank Ltd (ADR) (NYSE:IBN)

– Shares Owned by Segantii Capital (as of December 31): 8.87 million

– Value of Holding (as of December 31): $70.10 million

Moving on, Segantii Capital made an over fourfold increase in its stake in ICICI Bank Ltd (ADR) (NYSE:IBN) during the fourth quarter. One of the largest private sector banks in India, ICICI Bank Ltd (ADR) (NYSE:IBN)’s stock has lost more than half of value over the last 52 weeks amid concerns about the rising level of bad loans on its books. However, analysts who track the stock point out that, though these concerns are valid, investors’ have overreacted to the news, which is why the stock has suffered such a steep decline. The bank is expected to provide a detailed account of the bad loans it has identified when it reports results for its fiscal quarter ending March 31 and analysts believe it will help in dispelling some of the fears regarding the bad loans on its books. Joshua Friedman and Mitchell Julis‘ Canyon Capital Advisors reduced its stake in ICICI Bank Ltd by 19% to nearly 5.84 million shares during the fourth quarter.

#1 BHP Billiton Limited (ADR) (NYSE:BHP)

– Shares Owned by Segantii Capital (as of December 31): 2.8 million

– Value of Holding (as of December 31): $73.19 million

Despite its stock declining by 18.5% during the October-December period, Australian mining giant BHP Billiton Limited (ADR) (NYSE:BHP) became Segantii Capital’s top stock pick at the end of December after the fund made a sixfold increase in its stake during the fourth quarter. The slump in commodity prices continues to weigh heavily on BHP Billiton Limited (ADR) (NYSE:BHP)’s stock as it trades down over 12% year-to-date. The company recently has reported its first half-year loss in more than 16 years and along with it also announced a reduction of 74% in its interim dividend. Through cutting its dividend the company expects to save $6 billion this year, which, along with the $3.5 billion it intends to save by reducing its CAPEX and the $1 billion savings BHP will incur from reduced costs, will help it in having an additional $10 billion at its disposal by July 2017. The company intends to use this $10 billion for future M&A deals, which, according to the company’s management, are its top priority currently over internal projects. Billionaire Ray Dalio‘s Bridgewater Associates also increased its stake in BHP Billiton Limited by 31% to 417,111 shares during the fourth quarter.

Disclosure: None