#$vips

[alphaattribution]

The Top Three Hedge Fund Stocks on the Rise

Yesterday's market rout left most investors feeling helpless -- hedge funds, included. Three names, however, appear to have come to the rescue, today. Symmetric.io looked at its index of high-hedge-fund-ownership names to assess which company-moves had the greatest impact on hedge fund managers. The Symmetric Hedge Fund Concentration index tracks a basket of companies in which hedge funds hold the highest percentage of the publicly traded equity. Market movement among these companies will disproportionately impact hedge fund investors, over and above other institutions. Spirit AeroSystems Holdings, Inc. (SPR)

Up 4.9% as of this morning

Key hedge fund owner: Scopia Management

Vipshop Holdings Limited (VIPS)

Up 4.5% as of this morning

Key hedge fund owner: Kylin Management

Valeant Pharmaceuticals International, Inc. (VRX)

Up 3.6% as of this morning

Key hedge fund owner: Brave Warrior Advisors

     For in-depth hedge fund reports on these and other managers, go to Symmetric.io    

[alphaattribution]

CYT helped drive Passport Capital in July. VIPS dragged

Passport Capital returns an estimated 1.01% for July 2015 - the fully hedged version returns 0.35%

John Burbank's Passport Capital generated a 1.01% return on their publicly disclosed long portfolio for the month ending July 2015, outperforming the S&P500 by 100 basis points (bp). On a hedged basis, the portfolio would have returned 0.35% StockAlpha over the same period. Passport Capital's StockAlpha reflects the return of 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 Materials sector contributed the most to StockAlpha during the month.

Positive Contributors to Passport Capital's Returns

Passport Capital’s position in Cytec Industries Inc. (CYT) contributed the most to the performance of the manager’s long-portfolio during the month. Over the month of July 2015, Passport's 3.8% position in Cytec Industries Inc. (CYT) increased in value by 25.4%, contributing 0.97% (3.8%*25.4%=0.97%)to the long portfolios overall return. Looking at Passport's portfolio through a fully hedged StockAlpha lens, the holding of Cytec Industries Inc. (CYT) also provided the largest contribution to fully hedged returns. Cytec Industries Inc. (CYT) returned 25.4% during the month compared to the Materials sector, which returned -5%. As a result, after taking into account Cytec Industries Inc. (CYT)'s beta relative to its sector, the position contributed 1.1% of StockAlpha to the Passport’s monthly performance.

Negative Contributors to Passport Capital's Returns

Much of the drag on Passport Capital’s long-portfolio during the month can be attributed to the holding of Vipshop Holdings Ltd (VIPS). Over the month of July 2015, the manager's 10.7% position in Vipshop Holdings Ltd (VIPS) returned -9.4%, contributing -1.01% (10.7%*-9.4%=-1.01%)to the long portfolios overall return. Looking at Passport's portfolio on a fully hedged basis, one can isolate the StockAlpha. The holding of Vipshop Holdings Ltd (VIPS) also provided the most negative contribution to fully hedged returns. Vipshop Holdings Ltd (VIPS) returned -9.4% during the month compared to the Cons. Disc. sector, which returned 5%. As a result, the position contributed -1.7% of StockAlpha to the manager’s monthly performance.

Overlap with other hedge funds

Among Passport’s top 10 largest positions, Kraft Foods Group Inc. (KRFT) is the name that is owned by most other hedge funds. 16.1% of hedge funds within Symmetric's universe had a position in Kraft Foods Group Inc. (KRFT) as of March 31, 2015, making it neither a consensus nor contrarian. Passport initiated its position in Kraft Foods Group Inc. (KRFT) 0 years ago. Other hedge funds that have significant ownership stakes in Kraft Foods Group Inc. (KRFT) include Dynamo Internacional Gestao De Recursos Ltda. (17.8% position initiated 0 years ago), Permian Investment Partners Lp (15.9% position initiated 0 years ago) and Slate Path Capital Lp (13.4% position initiated 0 years ago). Overall, Passport's book is neither consensus or contrarian, with the average position held in the portfolio held by 10.5% of hedge funds. Use Symmetric to surface managers with unique sources of alpha and flag those that may be in trouble.

[alphaattribution]

CF helped Passport Capital advance 1.68% in May. VIPS did not

CF helped Passport Capital reach an estimated 1.68% return for May 2015. VIPS did not.

Passport Capital Llc generated a 1.68% return on their publicly disclosed long portfolio for the month ending May 2015, outperforming the S&P500 by 167 basis points (bp). On a hedged basis, the portfolio would have returned 1.18% StockAlpha over the same period. Passport's StockAlpha reflects the return of 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 Materials sector contributed the most to StockAlpha during the month.

Positive Contributors to Passport's Returns

Passport’s position in CF Industries Holdings Inc (CF) contributed the most to the performance of the manager’s long-portfolio during the month. Over the month of May 2015, Passport's 7.5% position in CF Industries Holdings Inc (CF) increased in value by 10.6%, contributing 0.79% (7.5%*10.6%=0.79%)to the long portfolios overall return. Looking at Passport's portfolio through a fully hedged StockAlpha lens, the holding of CF Industries Holdings Inc (CF) also provided the largest contribution to fully hedged returns. CF Industries Holdings Inc (CF) returned 10.6% during the month compared to the Materials sector, which returned 0.4%. As a result, after taking into account CF Industries Holdings Inc (CF)'s beta relative to its sector, the position contributed 0.8% of StockAlpha to the Passport’s monthly performance.

Negative Contributors to Passport's Returns

Much of the drag on Passport’s long-portfolio during the month can be attributed to the holding of Vipshop Holdings Ltd (VIPS). Over the month of May 2015, the manager's 10.7% position in Vipshop Holdings Ltd (VIPS) returned -11.3%, contributing -1.21% (10.7%*-11.3%=-1.21%)to the long portfolios overall return. Looking at Passport's portfolio through a fully hedged StockAlpha lens, the holding of Vipshop Holdings Ltd (VIPS) also provided the most negative contribution to fully hedged returns. Vipshop Holdings Ltd (VIPS) returned -11.3% during the month compared to the Cons. Disc. sector, which returned 1.3%. As a result, the position contributed -1.4% of StockAlpha to the manager’s monthly performance.

Overlap with other hedge funds

Passport’s top 10 largest positions, MacDermid Inc. (MRD) is the name that is owned by most other hedge funds. 4.8% of hedge funds within Symmetric's universe had a position in MacDermid Inc. (MRD) 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. Passport initiated its position in MacDermid Inc. (MRD) 0.75 years ago. Other hedge funds that have significant ownership stakes in MacDermid Inc. (MRD) include Dynamo Internacional Gestao De Recursos Ltda. (17.8% position initiated 0 years ago), Permian Investment Partners Lp (15.9% position initiated 0 years ago) and Slate Path Capital Lp (13.4% position initiated 0 years ago). Overall, Passport's book is neither consensus or contrarian, with the average position held in the portfolio held by 10.5% of hedge funds. So far, Passport's estimated returns for June are fifty-two basis points. which have largely been driven by Dollar General corp (DG). Screen, monitor and bechmark hedge fund managers at Symmetric.io

[jamielissettehammerstone]

The S&P failed to extend its 4-day winning streak following headlines out of the Fed

Equity markets end mixed to little changed, falling early on no specific news, rebounded shortly into the 2:00 FOMC Minutes (DJIA turned positive briefly), but gave up gains following the headlines out of the Fed (see below), as the S&P failed to extend its 4-day winning streaks. Healthcare, Transports, and Energy lagged, while retail earnings were better (TGT, LOW, SPLS), lifting Consumer Discretionary. The NASDAQ (high beta tech fell) and Russell 200 Index underperformed, while the Dow Industrials were little changed. Commodity and currency markets were volatile.

HammerstoneReport Closing ReCap 11/19/14

[adamhgrimes]

Four Trading Ideas

Our trading ideas, “setups”, if you will, must change with market conditions. Certain types of trades are more relevant at certain times. For instance, if the market is dramatically overextended, maybe we look for Antis, trend termination trades, or points to fade overextended individual names. If the market is strongly trending, maybe we look for pullbacks in strong stocks in strong sectors. One pattern that might be a bit more timeless–applying in a wider range of market conditions–is to look for stocks that are consolidating near price extremes. (This is one of the stock screens we publish in my research with Waverly Advisors. If you think you might find a list like this useful, why not give our research a free trial?)

Here are some individual stocks that are showing tight consolidations near recent highs (or, for the short idea, recent lows). How do you actually execute these? Well, there are many possibilities: perhaps you could simply buy them (or, for the short, short) at current prices with reasonable stocks under the consolidation area. Another possibility would be to wait for an upside breakout (or, for the short, a downside breakdown) and enter with the momentum of the market. The second choice sacrifices trade location for confirmation–perhaps a reasonable trade off, but one that must be understood. If you trade options, there are other possibilities: Patterns like this are ideal because implieds often crater when stocks consolidate like this, so simply buying calls (or puts) can be more attractive. Call spreads are a good idea for longs, and put spreads (made particularly attractive by higher skew) are also a reasonable alternative.

These are interesting patterns that combine several technical factors: pullbacks or consolidations, relative strength, and volatility compression. The end result is a set of patterns that have a statistical edge, and may point out stocks that are ready to somewhat “disengage” from broad market direction. Here are four ideas for your consideration:

Long idea: Digital Reality Trust (NYSE: DLR)

Long idea: Royal Gold Inc (NASDAQ: RGLD)

Long idea: Vipshop Hldg Ltd (NYSE: VIPS)

Short idea: Finisar Corporation (Nasdaq: FNSR)

  Four Trading Ideas was originally published on Adam H Grimes