LH supports Visium Asset Management. PRGO Drags
Visium Funds returns an estimated -0.19% for June 2015 - the fully hedged version returns 1.02%
Jacob Gottlieb's Visium Asset Management generated a -0.36% return on their publicly disclosed long portfolio for the month ending June 2015, underperforming the S&P500 by 20 basis points (bp). On a hedged basis, the portfolio would have returned 1.02% StockAlpha over the same period. Visium'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 Financials sector contributed the most to StockAlpha during the month.
Positive Contributors to Visium Asset Management's Returns
Visium’s position in Laboratory Corp. of America Holding Co. (LH) contributed the most to the performance of the manager’s long-portfolio during the month. Over the month of June 2015, Visium's 6.2% position in Laboratory Corp. of America Holding Co. (LH) increased in value by 2.6%, contributing 0.16% (6.2%*2.6%=0.16%) to the long portfolios overall return. Looking at Visium's portfolio through a fully hedged StockAlpha lens, the holding of Laboratory Corp. of America Holding Co. (LH) also provided the largest contribution to fully hedged returns. Laboratory Corp. of America Holding Co. (LH) returned 2.6% during the month compared to the Health sector, which returned -0.4%. As a result, after taking into account Laboratory Corp. of America Holding Co. (LH)'s beta relative to its sector, the position contributed 0.2% of StockAlpha to the Visium’s monthly performance.
Negative Contributors to Visium's Returns
Much of the drag on Visium’s long-portfolio during the month can be attributed to the holding of Perrigo Cmpn Plc (PRGO). Over the month of June 2015, the manager's 5% position in Perrigo Cmpn Plc (PRGO) returned -3.3%, contributing -0.16% (5%*-3.3%=-0.16%)to the long portfolios overall return. Looking at Visium's portfolio through a fully hedged StockAlpha lens, the holding of Perrigo Cmpn Plc (PRGO) also provided the most negative contribution to fully hedged returns. Perrigo Cmpn Plc (PRGO) returned -3.3% during the month compared to the Health sector, which returned -0.4%. As a result, the position contributed -0.1% of StockAlpha to the manager’s monthly performance. Overall, Visium's book is contrarian, with the average position held in the portfolio held by 9% of hedge funds. Use Symmetric to surface managers with unique sources of alpha and flag those that may be in trouble.