AMCC Helped Move Kingdom Ridge up an estimated 12.3% for May
AMCC Helped Move Kingdom Ridge up an estimated 12.3% for May 2015 - the fully hedged version returns 9.75%
Kingdom Ridge Capital Llc generated a 12.32% return on their publicly disclosed long portfolio for the month ending May 2015, outperforming the S&P500 by 1231 basis points (bps). On a hedged basis, the portfolio would have returned 9.75% StockAlpha over the same period. Kingdom's StockAlpha reflects the net return if each security in their portfolio was hedged with a sector ETF, such that the resulting portfolio was market, beta and sector neutral. StockAlpha in the Tech sector contributed the most to StockAlpha during the month.
Positive Contributors to Kingdom's Returns
Kingdom’s position in Applied Micro Circuits Inc. (AMCC) contributed the most to the performance of the manager’s long-portfolio during the month. Over the month of May 2015, Kingdom's 44.7% position in Applied Micro Circuits Inc. (AMCC) increased in value by 20%, contributing 8.94% (44.7%*20%=8.94%)to the long portfolios overall return. Looking at Kingdom's portfolio through a fully hedged StockAlpha lens, the holding of Applied Micro Circuits Inc. (AMCC) also provided the largest contribution to fully hedged returns. Applied Micro Circuits Inc. (AMCC) returned 20% during the month compared to the Tech sector, which returned 1.9%. As a result, after taking into account Applied Micro Circuits Inc. (AMCC)'s beta relative to its sector, the position contributed 7.7% of StockAlpha to the Kingdom’s monthly performance.
Negative Contributors to Kingdom's Returns
Much of the drag on Kingdom’s long-portfolio during the month can be attributed to the holding of Allot Communications Ltd (ALLT). Over the month of May 2015, the manager's 2.3% position in Allot Communications Ltd (ALLT) returned -13.3%, contributing -0.3% (2.3%*-13.3%=-0.3%)to the long portfolios overall return. Looking at Kingdom's portfolio through a fully hedged StockAlpha lens, the holding of Allot Communications Ltd (ALLT) also provided the most negative contribution to fully hedged returns. Allot Communications Ltd (ALLT) returned -13.3% during the month compared to the Tech sector, which returned 1.9%. As a result, the position contributed -0.4% of StockAlpha to the manager’s monthly performance.
Overlap with other hedge funds
of Kingdom’s top 10 largest positions, Applied Micro Circuits Inc. (AMCC) is the name that is owned by most other hedge funds. 2.2% of hedge funds within Symmetric's universe had a position in Applied Micro Circuits Inc. (AMCC) as of March 31, 2015, making it a contrarian name relative to other stocks, even though it is the most consensus within the manager's top positions. Kingdom initiated its position in Applied Micro Circuits Inc. (AMCC) 6.25 years ago. Other hedge funds that have significant ownership stakes in Applied Micro Circuits Inc. (AMCC) include Andor Capital Management Llc (19.9% position initiated 1.3 years ago), Empire Capital Management Llc (11.2% position initiated 0 years ago) and Jat Capital Management Lp (10.4% position initiated 1 year ago). Overall, Kingdom's book is contrarian, with the average position held in the portfolio held by 4.2% of hedge funds. Screen, monitor and bechmark hedge fund managers at Symmetric.io