This article discusses Segantii Capital’s top 5 stock picks at the end of March 2022. If you are interested in knowing about the fund’s history, recent news and its top 10 picks, please also see Simon Sadler’s Segantii Capital is Bullish on These 10 Stocks.
5. Zai Lab Limited (NASDAQ:ZLAB)
Segantii Capital’s Stake Value: $99,055,000
Percentage of Segantii Capital’s 13F Portfolio: 2.86%
Number of Hedge Fund Holders: 27
Zai Lab Limited (NASDAQ:ZLAB) has been a part of Segantii Capital’s portfolio since the third quarter of 2017. Between the third quarter of 2017 and early 2021, shares of Zai Lab Limited (NASDAQ:ZLAB) recorded a six-fold increase. However, the stock has fallen by more than 70% in the last year.
Shanghai-based Zai Lab Limited (NASDAQ:ZLAB) is one of the companies that the SEC has said could be delisted from exchanges in the United States. On June 2, 2022, China’s National Medical Products Administration has granted two breakthrough therapy designations to Zai Lab Limited’s (NASDAQ:ZLAB) repotrectinib to treat certain patients with non-small cell lung cancer (NSCLC).
4. TEGNA Inc. (NYSE:TGNA)
Segantii Capital’s Stake Value: $99,086,000
Percentage of Segantii Capital’s 13F Portfolio: 2.86%
Number of Hedge Fund Holders: 44
Apart from The Liberty SiriusXM Group (NASDAQ:LSXMA), TEGNA Inc. (NYSE:TGNA) was another media company in which Segantii Capital held a stake during the first quarter. TEGNA Inc. (NYSE:TGNA) runs multicast networks under the names True Crime Network, Quest, and Twist that offer on-demand episodes of shows. TEGNA Inc. (NYSE:TGNA) also operates the VAULT Studios.
Bucking the overall downward trend in the stock market, TEGNA Inc.’s (NYSE:TGNA) stock has increased by over 18% year to date. In February, the management of TEGNA Inc. (NYSE:TGNA) revealed that it had agreed to sell the company to Standard General and Apollo Global Management, Inc. (NYSE:APO) for $24/share in cash. In May, the FCC extended a deadline for those opposing this deal to file petitions to deny the deal.
3. AT&T Inc. (NYSE:T)
Segantii Capital’s Stake Value: $194,948,000
Percentage of Segantii Capital’s 13F Portfolio: 5.63%
Number of Hedge Fund Holders: 74
Telecom giant AT&T Inc. (NYSE:T) became the third biggest holding of Segantii Capital at the end of the first quarter after the fund increased its stake in the company by 32 times during that period. Out of the 912 funds we monitor, 74 reported a stake in AT&T Inc. (NYSE:T) during the first quarter, up from 70 that reported a stake in the company at the end of 2021.
On July 22, Barclays analyst Kannan Venkateshwar downgraded AT&T (T) to ‘Equal Weight’ from ‘Overweight’ and lowered his stock price target to $20 from $22. In his note on AT&T Inc. (NYSE:T), Mr Venkateshwar said that though the company posted strong subscriber numbers for the second quarter of 2022, but:
“…the higher these numbers are, the more difficult it becomes to extrapolate, and higher the chances become of a steep reversal at some point due to industry saturation.”
2. Zynga Inc. (NASDAQ:ZNGA)
Segantii Capital’s Stake Value: $208,152,000
Percentage of Segantii Capital’s 13F Portfolio: 6.01%
Number of Hedge Fund Holders: 63
During the first quarter, Zynga Inc. (NASDAQ:ZNGA) was another new addition to Segantii Capital’s portfolio. However, in all probability, the company wouldn’t be in the fund’s portfolio in the future because Take-Two Interactive Software, Inc. (NASDAQ:TTWO) recently completed its acquisition of Zynga Inc. (NASDAQ:ZNGA).
In January, Take-Two Interactive Software, Inc. (NASDAQ:TTWO) had announced that it would be acquiring Zynga Inc. (NASDAQ:ZNGA) in a deal that valued the latter at $12.7 billion. The regulators approved this deal, and on May 23, 2022, Take-Two Interactive Software, Inc. (NASDAQ:TTWO) announced that it had completed its acquisition of Zynga Inc. (NASDAQ:ZNGA).
1. First Horizon Corporation (NYSE:FHN)
Segantii Capital’s Stake Value: $253,190,000
Percentage of Segantii Capital’s 13F Portfolio: 7.31%
Number of Hedge Fund Holders: 44
First Horizon Corporation (NYSE:FHN) was Segantii Capital’s top stock pick at the end of the first quarter. Shares of First Horizon Corporation (NYSE:FHN) shot up in late February after the company announced that it would get acquired by The Toronto-Dominion Bank (NYSE:TD) in a deal that valued the company at $13.4 billion.
On May 31, 2022, shareholders of First Horizon Corporation (NYSE:FHN) approved this deal, and analysts expect this acquisition to get completed soon. For its most recent quarter, First Horizon Corporation (NYSE:FHN) reported an adjusted EPS of $0.34, which was slightly lower than analysts’ estimate of $0.35 and also lower than the $0.38 that the company reported in the first quarter and $0.58 that it reported for the same quarter last year.
During the first quarter of 2022, shares of First Horizon Corporation (NYSE:FHN) were held by 44 hedge funds out of the 912 Insider Monkey tracks, up from 24 hedge funds that reported a holding in the company at the end of 2021.
You can also look at the 6 Favorite Stock Picks of Munir Javeri’s 3G Sahana Capital Management and Billionaire Daniel Sundheim’s D1 Capital Portfolio: Top 10 Stock Picks.
