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

Nina Zdinjak

Read the beginning of this article here.

The most valuable position in Hawk Ridge Capital Management’s 13F portfolio was in frontdoor, inc. (NASDAQ:FTDR) worth $31.04 million, counting 901,855 shares, amassing 6.54% of its equity portfolio. Frontdoor is one of the biggest US providers of home service plans with a large network of pre-qualified contractors. It has a market cap of $3.78 million, while trading at a P/E ratio of 30.26. Year-to-date, its stock gained 66.84%, having a closing price on July 3rd, of $44.18. In its last financial report for Q1 2019, the company reported revenue of $271 million and diluted EPS of $0.15, compared to revenue of $247 million and diluted EPS of $0.16 in the first quarter of 2018.

Etsy, Inc. (NASDAQ:ETSY) was the fund’s second biggest holding at the end of March, worth $30.95 million, on the basis of 460,389 shares, comprising 6.52% of its 13F portfolio. Etsy is a world popular e-commerce website that sells a variety of vintage and/or handmade items and craft supplies, such as home décor, jewelry, and bags, for example. It has a market cap of $7.73 billion, and it is trading at a P/E ratio 85.71. For Q1 2019, Etsy reported revenue of $169.34 million and diluted EPS of $0.24, compared to revenue of $120.91 million and diluted EPS of $0.10 in the same quarter of 2018. Over the last 12 months, Etsy’s stock gained 43.77%, and on July 3rd it had a closing price of $64.28. On July 1st, Needham & Company LLC initiated overage on the stock placing a price target of $75.00 with a ‘Buy’ rating.

The third largest Hawk Ridge Capital Management’s position at the end of March was in MicroStrategy Incorporated (NASDAQ:MSTR), and it was valued $29.95 million, on the account of 207,619 shares outstanding.

Out of 13 new additions to the fund’s portfolio during Q1 2019, the most valuable one was in the only completely integrated biopharmaceutical solutions company, Syneos Health, Inc. (NASDAQ:SYNH). The company has a market cap of $5.27 billion, while trading at a P/E ratio of 277.54. Over the past six months, its stock has gained 23.00%, and on July 3rd it closed with a price of $50.79 per share. Hawk Ridge Capital Management held 381,191 Syneos Health’s shares, which were valued $19.73 million, accounting for 4.15% of its 13F portfolio.

The fund also found Spectrum Brands Holdings, Inc. (NYSE:SPB) an attractive investment opportunity during Q1, purchasing 251,510 of its shares, which carried a value of $13.78 million. This is a global consumer products company and a member of the Russel 1000 Index. Since the beginning of the year, Spectrum Brands Holdings’ shares have gained 23.35%, closing on July 3rd with a price of $53.56. The company has a market cap of $2.61 billion, and it is trading at a P/E ratio of 2.78.

The third largest addition to its portfolio was Garrett Motion Inc. (NYSE:GTX), in which the fund established $12.56 million worth a position, by purchasing 852,480 shares outstanding. Garret Motion is a $1.13 billion market cap company that produces turbochargers and similar forced induction systems for a variety of ground vehicles. Year-to-date, its stock is up by 19.84%, having a closing price on July 3rd of $15.16.

 

Disclosure: None

This article was originally published at Insider Monkey.