This article discusses Segantii Capital’s top 10 stock holdings, the fund’s history and portfolio performance. If you are interested in knowing the top 5 stock picks of Segantii Capital at the end of the first quarter, you can skip this and go directly to Simon Sadler’s Segantii Capital is Bullish on These 5 Stocks.
Simon Sadler-led Segantii Capital has recently been in the news for the wrong reasons. The Hong Kong-based hedge fund powerhouse has always been one of the first to receive a call when a financial institution wants to trade a large block of stocks in Asia. However, as the Financial Times and Bloomberg reported on May 25, Bank of America and Citigroup have suspended equity trading with Segantii Capital. While Bank of America has suspended trading with Segantii in all financial instruments, Citigroup continues to trade with the fund in other products such as derivatives, but it has suspended its equity trading relationship with Segantii Capital.
Segantii Capital was founded in 2007 by Simon Sadler. The fund is headquartered in Hong Kong and has offices in London and New York. According to FT, Segantii Capital currently manages assets worth $6 billion. Mr. Sadler named Segantii after a pre-Roman Blackpool-based tribe. Blackpool in the United Kingdom is the hometown of Mr. Sadler. He bought the town’s football club, Blackpool FC, for £10mn in 2019 when the club was facing financing difficulties. Since then, Blackpool FC has been promoted to the Championship, the second tier of the English football league system.
Segantii Capital’s Portfolio
According to Segantii Capital’s 13F filings, the fund has increased its exposure to US stocks in the past two years. At the end of June 2020, Segantii Capital’s US holdings were worth less than $1.3 billion in aggregate. However, its Q1 filings show that the fund held US stocks and derivatives worth almost $3.5 billion at the end of the first quarter of 2022. Also, the fund either initiated a stake or increased its holdings in its top 10 stock picks. Top stock picks included names like Activision Blizzard, Inc. (NASDAQ:ATVI), TEGNA Inc. (NYSE:TGNA), and Terminix Global Holdings, Inc. (NYSE:TMX).
Our Methodology
Insider Monkey has 912 hedge funds in its database, whose portfolios we cover actively. The stocks selected for this article are based on Segantii Capital’s most recent 13F filing for the quarter ending March 31, 2022. In addition, we have ranked these stocks in increasing order of Segantii’s stake in the company.
Simon Sadler’s Segantii Capital is Bullish on These 10 Stocks
10. The Liberty SiriusXM Group (NASDAQ:LSXMA)
Segantii Capital’s Stake Value: $68,560,000
Percentage of Segantii Capital’s 13F Portfolio: 1.98%
Number of Hedge Fund Holders: 46
Segantii Capital upped its stake in The Liberty SiriusXM Group (NASDAQ:LSXMA) by 210% to almost 1.5 million shares during the first quarter. Liberty SiriusXM Group (NASDAQ:LSXMA) is one of the biggest names in the entertainment business in the United States and Canada. The company runs many shows on entertainment, comedy, talk, news, traffic and infotainment services through its proprietary satellite radio systems and streamed through applications.
The Liberty SiriusXM Group (NASDAQ:LSXMA) is part of the Liberty media empire started by billionaire John C. Malone. According to company filings, Liberty SiriusXM Group (NASDAQ:LSXMA) served approximately 34.0 million subscribers through Sirius XM and about 6.4 million subscribers through Pandora as of December 31, 2021.
9. Nielsen Holdings plc (NYSE:NLSN)
Segantii Capital’s Stake Value: $69,462,000
Percentage of Segantii Capital’s 13F Portfolio: 2%
Number of Hedge Fund Holders: 47
Nielsen Holdings plc (NYSE:NLSN) was a new entrant in Segantii Capital’s portfolio during the first quarter of 2022. Shares of the rating giant shot up by more than 50% in March this year after the Wall Street Journal reported that a private consortium including several PE giants and Paul Singer’s Elliott Management was talking with Nielsen Holdings plc (NYSE:NLSN) to take it private.
That report eventually turned out to be true. On March 29, Nielsen Holdings plc (NYSE:NLSN) announced that Elliott Management and Brookfield Asset Management have agreed to buy the rating giant for $16 billion, including debt. That amount reflects the $28 per share price that Nielsen Holdings plc’s (NYSE:NLSN) shareholders would receive once the deal closes. Prior to accepting this deal, the management of Nielsen Holdings plc (NYSE:NLSN) had rejected a $25.4 per share offer for the same consortium a week earlier.
8. PNM Resources, Inc. (NYSE:PNM)
Segantii Capital’s Stake Value: $75,080,000
Percentage of Segantii Capital’s 13F Portfolio: 2.17%
Number of Hedge Fund Holders: 37
PNM Resources, Inc. (NYSE:PNM) is an electric utility company that provides electricity and electric services in the United States. The company was founded in 1882 and is operated through two segments: Public Service Company of New Mexico (PNM) and Texas-New Mexico Power Company (TNMP).
The PNM segment of PNM Resources, Inc. (NYSE:PNM) primarily engages in generating electricity through fossil fuels and renewable energy sources, while the TNMP segment provides distribution and regulated transmission services. On October 20, 2020, PNM Resources, Inc. (NYSE:PNM) announced that it had entered into a definitive agreement to be acquired by Avangrid, Inc. (NYSE:AGR) for $50.30 per share or a total enterprise value of $8.3 billion. New Mexico’s utility regulators rejected this acquisition bid in December 2021. However, most analysts are hopeful that this acquisition will sail through after the Supreme Court gives its decision on the appeal filed by PNM Resources, Inc. (NYSE:PNM).
7. Activision Blizzard, Inc. (NASDAQ:ATVI)
Segantii Capital’s Stake Value: $87,480,000
Percentage of Segantii Capital’s 13F Portfolio: 2.52%
Number of Hedge Fund Holders: 80
Gaming giant Activision Blizzard, Inc. (NASDAQ:ATVI) was also a new entrant in Segantii Capital’s portfolio in the first quarter of 2022. At the end of that period, Activision Blizzard, Inc. (NASDAQ:ATVI) was the 45th most popular stock among the 912 hedge funds we cover. In addition, 80 hedge funds we cover held shares of the company at the end of March 2022, up from 70 at the end of 2021.
In January this year, Microsoft Corporation (NASDAQ:MSFT) announced that it would acquire Activision Blizzard, Inc. (NASDAQ:ATVI) for $95.00 per share in an all-cash transaction valued at $68.7 billion. For its most recent quarter, Activision Blizzard, Inc. (NASDAQ:ATVI) reported EPS of $0.50 on revenue of $1.48 billion. Both numbers came below analysts’ expectations of $0.74 and $1.803 billion, respectively.
6. Terminix Global Holdings, Inc. (NYSE:TMX)
Segantii Capital’s Stake Value: $88,421,000
Percentage of Segantii Capital’s 13F Portfolio: 2.55%
Number of Hedge Fund Holders: 36
Segantii Capital increased its stake in Terminix Global Holdings, Inc. (NYSE:TMX) by almost 300% during the first quarter to around 1.94 million shares. Terminix Global Holdings, Inc. (NYSE:TMX) provides residential and commercial termite and pest management services in the United States and other regions.
On June 1, 2022, Terminix Global Holdings, Inc. (NYSE:TMX) revealed that it has divested its pest management business in the UK and Norway. Norvestor VIII SCSp acquired this business, and Terminix Global Holdings, Inc. (NYSE:TMX) recorded a loss on this sale for its second quarter in the fiscal year 2022. Shares of the company have traded in the $40 to $54 range for more than a year.
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Disclosure: None. Simon Sadler’s Segantii Capital is Bullish on These 10 Stocks is originally published on Insider Monkey.