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Dorsal Capital Management’s Return, AUM, and Holdings (Part II)

Liliana De la Torre

Read the beginning of this article here.

As of March 31st, 2019, Dorsal Capital Management's most valuable position was also one of its newest acquisitions, Altaba Inc. (NASDAQ:AABA). The fund purchased 2.15 million shares of the publicly traded closed-end management investment company that used to be known as Yahoo! Inc. The value of the stake was $159.36 million, and it equals to 10.42% of the fund's equity portfolio value. Year-to-date, Altaba's stock gained 7.69%, and on March 24th it had a closing price of $61.91. The company has a market cap of $32.16 billion.

The second significant position Dorsal Capital Management held at the end of Q1 was in Microsoft Corp. (NASDAQ:MSFT), $967.35 billion market cap multinational technology company created by Bill Gates. During the quarter the fund raised its stake in it by 2% to 1.32 million shares which were worth $155.68 million, accounting for 10.18% of the fund's equity portfolio. Over the past six months, Microsoft's share price gained 18.57% closing at $126.24 on March 24th. The stocks is trading at a price-to-earnings ratio of 28.05. On May 6th, Credit Suisse Group restated its 'Buy' rating on the stock, with a price target of $145.00.

During this first quarter of 2019, showing an increase of investor's enthusiasm Dorsal Capital Management made some exciting additions to its portfolio, and an increase of its stakes in some of its holdings. After the purchase of a significant stake in already mentioned Altaba Inc. (NASDAQ:AABA), the fund acquired 250,000 shares of Netflix Inc. (NASDAQ:NFLX) establishing in that manner a position in the company that was worth $89.14 million. Netflix Inc. is a provider of internet entertainment services, with over 139 million paid users around the world. Since the beginning of the year, the company's stock gained 32.40% and on May 24th it had a closing price of $354.39. Netflix has a market cap of $154.95 billion, and it is trading at a price-to-earnings ratio of 126.57. On May 16th, Barclays repeated its 'Buy' rating on the stock.

The fund also added ServiceNow Inc. (NYSE:NOW) to its equity portfolio, purchasing 300,000 shares valued at $73.95 million. ServiceNow Inc. is a provider of technology services to automate and standardize business operations. It has a market cap of $49.9 billion. YTD, the stocks is up by 50.82%, and on May 24th it had a closing price of $268.95. On May 8th, Canaccord Genuity raised its price target on the stock to $300.00 from $285.00 with a 'Buy' rating on it. Additionally, the fund gave a boost of 23% to its holdings in Perspecta Inc. (NYSE:PRSP), holding in total 3.85 million shares valued at $77.85 million. Moreover, its stake in PVH Corp. (NYSE:PVH) was raised by 9%, counting 650,000 shares, which were worth $79.27 million.

Disclosure: None

This article was originally published at Insider Monkey.