At Insider Monkey, we focus mainly on the 13F filings of around 730 hedge funds and other institutional investors, in order to identify trading opportunities and benefit from them. However, we also follow the day-to-day moves that the investors we track disclose in their filings with the Securities and Exchange Commission and investor letters. In this article, we are going to take a look at three new positions that have been recently initiated by Bill & Melinda Gates Foundation Trust, Broadfin Capital, and Newtyn Management.
As stated earlier, we analyze 13F filings of over 730 investors in order to identify some profitable stocks to invest in. We concentrate on a small group of small-cap equities that the funds we track are collectively the most bullish on and this approach has allowed us to consistently beat the market over the last three years and to generate returns of around 102%, which is 53 percentage points above the market (see more details here).
With this in mind, let’s start by taking a look at the new position that has been added to the equity portfolio of Bill & Melinda Gates Foundation Trust. The trust managed by Michael Larson in the role of Chief Investment Officer, usually adopts a conservative approach to its investments and has a relatively low turnover ratio, which makes its recent purchase even more noteworthy. In a new 13G filing, the Trust reported a new stake in China Fund Inc (NYSE:CHN) that contains 786,199 shares, equal to 5% of the company’s outstanding stock. China Fund is engaged in investment in companies in China. The closed-end management investment company invests in a variety of industries, such as commercial services, food products and healthcare. The economic slowdown in China has affected China Fund Inc (NYSE:CHN)’s performance, sending it 15% in the read in year-to-date terms, while the Net Asset Value of the fund has slipped by around 5%. Therefore, Michael Larson might be betting on the stock to gain ground on the back of a rebound of the economy in China and decided to profit from the stock’s decline. However, aside from the Bill & Melinda Gates Foundation Trust, none of the funds from our database have reported holding positions in China Fund Inc (NYSE:CHN).
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On the next page, we are going to take a closer look at Broadfin Capital’s new stake in Nexvet Biopharma plc (NASDAQ:NVET) and Newtyn Management’s latest investment in CSW Industrials Inc (NASDAQ:CSWI).
In another filing, Kevin Kotler‘s Broadfin Capital reported a 6.11% stake in Nexvet Biopharma plc (NASDAQ:NVET), which contains 700,000 shares. Nexvet is a $46 million clinical-stage biopharmaceutical company that develops therapies for pets. The stock is down by 56% since it started trading on NASDAQ at the beginning of February. The company has recently announced a successful pivotal safety and efficacy study of its NV-01, which is a monoclonal antibody therapy for the control of pain from osteoarthritis in dogs. The study met is primary endpoint and Nexvet Biopharma plc (NASDAQ:NVET) plans to use the data in submissions for marketing authorizations in Europe and the US. Aside from Broadfin, three other funds among those we follow reported long positions in Nexvet as of the end of September. One of the company’s largest shareholders is Farallon Capital Management, which reported ownership of some 2.50 million shares in its latest 13F.
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Finally, Noah Levy and Eugene Dozortsev‘s Newtyn Management have disclosed a new position in CSW Industrials Inc (NASDAQ:CSWI), a $580 million diversified industrial company that is engaged in the manufacturing and sale of coatings, sealants, and specialty chemicals. According to the recently-filed 13G, Newtyn owns nearly 1.18 million shares of CSW Industrials Inc (NASDAQ:CSWI), which represent 7.6% of the company’s outstanding stock. CSW Industrials was spun off from Capital Southwest in September and shareholders have received shares following the distribution. Newtyn owned 282,477 shares of Capital Southwest at the end of September, alongside 10 other funds from our database that held shares of the company. The shares of CSW Industrials Inc (NASDAQ:CSWI) have appreciated by around 23% since they started trading and are currently trading at around 17.8 times earnings, slightly below the S&P 500 average.
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Disclosure: none
