Top 5 Stock Picks of Himanshu Shah’s Shah Capital

1. New Oriental Education & Technology Group Inc. (NYSE:EDU)

Shah Capital’s Stake Value: $61 million

Percentage of Shah Capital’s 13F Portfolio: 15.84%

Number of Hedge Fund Holders: 22

New Oriental Education & Technology Group Inc. (NYSE:EDU) is a Chinese private educational services firm which is based in Beijing, the People’s Republic of China. It provides test preparation services for a variety of exams held in China and in the U.S.

By the end of this year’s second quarter, Shah Capital had held a $61 million stake in New Oriental Education & Technology Group Inc. (NYSE:EDU). This came through the hedge fund owning 3 million shares of the company and it represented 15.84% of its investment portfolio. During the same time period, 22 of the 895 hedge funds surveyed by Insider Monk had invested in the company.

Management and investors of New Oriental Education & Technology Group Inc. (NYSE:EDU) were dealt with a shock last year when the Chinese government announced a crackdown on private tuition services. Despite this, the company’s shares have rallied by 16% on the market year to date. However, management proved to be agile, as it quickly suspended those programs that would become the target of stringent regulations, and instead chose to focus on services that would generate revenue instead. New Oriental Education & Technology Group Inc. (NYSE:EDU) also has $1 billion in cash and $1.2 billion in short term investments.

New Oriental Education & Technology Group Inc. (NYSE:EDU)’s largest investor in our database is Seth Klarman’s Baupost Group which owns 8 million shares that are worth $162 million.

Disclosure: None. You can also take a look at 10 Best Sugar Stocks To Buy and 11 Best Pharma and Biotech Stocks to Buy.

Follow Insider Monkey on Twitter