McKinley Capital Management, LLC is a fund headquartered in Anchorage with more than $7 billion in assets under management. Robert B. Gillam, a graduate of the University of California with an MBA Finance, founded the McKinley in 1990. The fund employs a long/short strategy and as of the end of March, it has more than $2.49 billion in equity portfolio. Robert B. Gillam’s fund has a diversified portfolio with 20% invested in the technology sector, 17% in consumer discretionary, 14% in health care, and 11% in finance, while its largest holdings are represented by Apple, Inc. (NASDAQ:AAPL), Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), Magna International Inc. (NYSE:MGA), and Facebook, Inc. (NASDAQ:FB).
The reason we analyze the 13F filings of over 700 other prominent investors is because we determined that their equity portfolio can still provide some investment opportunities, despite a delay of 45 days after the end of a calendar quarter. The key of our system is to focus on most popular small-cap picks among these investors. During the last three years, our strategy returned 28.2% in 2014, 53.2% in 2013, and 33.3% in 2012, compared to the S&P 500 ETF (SPY)’s 13.5% gain in 2014, 32.3% in 2013, and 16% in 2012 (read more details here).
According to the recent 13F filing, McKinley Capital Management has added 121,258 shares to its stake in Apple, Inc. (NASDAQ:AAPL). The fund disclosed a position of 795,594 shares, valued at almost $99 million. Apple, Inc. reported earnings of $2.33 per share on a revenue of $58 billion for the second quarter on Monday, topping the expectations of $2.16 and $56.08 billion. Carl Icahn’s Icahn Capital is the top shareholder of Apple, Inc. (NASDAQ:AAPL). Despite the stock gaining almost 50% in the last 52 weeks alone, the billionaire investor still considers the stock undervalued, as he said in a recent interview and thinks that it should currently be trading at at least $216 per share.
Robert B. Gillam boosted his fund’s stake in Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) by 456,144 shares to 2.42 million shares worth $56.80 million. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)’s stock gained around 9% year-to-date amid a series of downgrades, which lowered its consensus rating to ‘Hold’. Among the latest analyst updates, JPMorgan Chase & Co., HSBC and Citigroup downgraded it to ‘Buy’, ‘Hold’ and ‘Neutral’ respectively. The stock’s consensus price target amounts to around $26.00 per share. Another investor betting on Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is billionaire Ken Fisher’s Fisher Asset Management, which raised its stake by 2.33 million shares to 24.68 million shares during the first quarter.
As of the end of the first quarter of 2015, McKinley Capital Management reported a slight increase of 1,600 shares in its Magna International Inc. (NYSE:MGA) stake. The position contains 1.03 million shares, valued at $55.30 million. After selling its battery pack business to Samsung last year, the company has agreed to a joint venture with China-based Chongqing Xingqiaorui this month. Apparently, these moves helped Magna International Inc. (NYSE:MGA) to focus more on business areas and opened new markets. Even though the company’s report for the second quarter of fiscal 2015 revealed a decrease in sales of 7%, because of currency fluctuations, a rise of 18% in net income has been recorded. The higher profits indicate the small but sound way up to outperforming the market indicators. AQR Capital Management, run by Cliff Asness, is another shareholder of Magna International, among the funds we track.
In its latest 13F filing, McKinley Capital Management disclosed holding 650,387 shares of Facebook, Inc. (NASDAQ:FB), valued at $53.47 million. The company’s latest financial results showed a 42% increase in revenues up to $3.54 billion for the first quarter of 2015, despite the fact that the social network company has to face a stronger US dollar along with the constantly increasing expenses. As of the end of 2014, Stephen Mandel‘s Lone Pine Capital had the largest position in Facebook Inc (NASDAQ:FB) among the funds we track with 13.50 million shares, followed by Coatue Management and Citadel Investment Group.
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