New York-Based Selz Capital’s Top Picks for Q3; High-Yielding Macquarie Infrastructure Corp (MIC) Retains Top Spot

The highly anticipated quarterly 13F filings for the second quarter of 2016 are slowing flowing in, enabling retail investors and analysts to examine the equity portfolios of various elite and smaller-scale hedge fund firms. Selz Capital LLC, a New York-based investment manager operating under the guidance and supervision of founding partner Bernard Selz, is one of the few hedge fund vehicles followed by Insider Monkey that have already submitted their 13Fs for the June quarter with the U.S. Securities and Exchange Commission.

The asset manager, founded in January of 2004, invests in public equity markets across the entire globe. Selz Capital LLC operated a U.S.-focused public portfolio valued at $351.72 million at the end of the second quarter, as compared to the $329.18 million-portfolio overseen at the end of the first quarter. Without further ado, let’s have a look at the New York-based firm’s top equity holdings as of the end of the June quarter.

At Insider Monkey, we track around 770 hedge funds and institutional investors. Through extensive backtests, we have determined that imitating some of the stocks that these investors are collectively bullish on can help retail investors generate double digits of alpha per year. The key is to focus on the small-cap picks of these funds, which are usually less followed by the broader market and allow for larger price inefficiencies (see more details).

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#5. Gilead Sciences Inc. (NASDAQ:GILD)

– Number of shares owned by Selz Capital LLC as of June 30: 190,000

– Value of Selz Capital LLC’s holding as of June 30: $15.85 Million

Selz Capital LLC upped its position in Gilead Sciences Inc. (NASDAQ:GILD) by 40,000 shares during the June quarter to 190,000 shares. The upped position was worth $15.85 million at the end of the quarter and accounted for 4.5% of the firm’s entire portfolio. The California-based drug maker has seen its market value plunge by 14% since the start of 2016. Some analysts anticipate the company’s second-quarter sales from Hepatitis C treatments to come below consensus due to sustained pricing pressure, as well as lower market share in Europe. The disappointing stock performance of Gilead Sciences thus far in 2016 has seen partially driven by investor worries around the future prospects of the company’s two hepatitis drugs, Sovaldi and Harvoni. U.S. net product sales of Harvoni in the first quarter of 2016 were $1.4 billion, down from $3.0 billion recorded a year ago. The drop was attributable to lower average net selling prices, as well as lower demand due to a reduced number of patients starting treatment. Ken Fisher’s Fisher Asset Management cut its stake in Gilead Sciences Inc. (NASDAQ:GILD) by 9% during the June quarter to 446,493 shares.