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

Sieni Kimalainen

Read the beginning of this article here.

Horseman Capital Management’s biggest position at the end of the first quarter of 2019 was Nutrien Ltd (NYSE:NTR). This newly established Canadian company, founded in 2017, produces agricultural and industrial crop nutrients, seeds and agricultural merchandise. The company’s market cap is $30.72 billion. As reported in the company’s financial report for the first quarter of 2019 it had diluted EPS of $0.07 (adjusted $0.20), and net earnings from continuing operations of $41 million (adjusted $118 million), compared to net loss from continuing operations of $1 million in the same quarter of 2018. The fund held 594,080 Nutrien’s shares, which were worth $31.34 million, comprising 10.78% of the fund’s portfolio. Year-to-date, the company’s stock gained 12.15%, and on June 10th it had a closing price of $51.88.

Petroleo Brasileiro Sa Petrobras (NYSE:PBR) was the second biggest position at the end of the first quarter of 2019. The company is located in Brazil, focusing its business in the fields of oil, natural gas, and energy industries. It is operating in all phases of gas and oil production, from exploration, refining, transportation, and distribution. Horseman Capital held 1.78 million shares worth $28.31 million, amassing 9.74% of the fund’s portfolio. Petroleo Brasileiro Sa Petrobras has a market cap of $92.74 billion. The company reported sales revenues for the Q1 2019 of $21.23 billion, which is around 7.5% less compared to the Q1 2018 when they were $22.96 billion. The company’s basic and diluted earnings per share were $0.08, compared to the same quarter last year when they were $0.16. On June 10th, the company’s stock price was $15.07, which is by 7.57% higher than it was at the beginning of the year.

At the third place among the most valuable positions was Mosaic Co (NYSE:MOS). This company is the largest producer of potash and phosphate fertilizers in the US, and the world’s largest supplier of the two substances. Year-to-date, the company’s stock lost 23.75%, and on June 10th it had a closing price of $22.25. The company has a market cap of $8.58 billion. Mosaic reported Q1 2019 diluted earnings per share of $0.34, compared to $0.11 same quarter last year, on the revenue of $1.9 billion. Horseman Capital held 898,500 of the company’s shares worth $24.54 million, which equals 8.44% of the fund’s portfolio.

When it comes to the new additions to Horseman Capital’s equity portfolio during Q1 2019, among the biggest ones was Nvidia Corp (NASDAQ:NVDA). This company has been one of the leading computer game companies for the last 20 years, working especially in the field of graphics. Nowadays, Nvidia Corp is involved in developing GPU deep learning. Concerning Horseman Capital, the fund purchased 18,100 Nvidia Corp’s shares worth $3.25 million, comprising 1.11% of the fund’s portfolio. Nvidia Corp had a market cap of $90.39 billion. The company’s GAAP earnings per diluted share were $0.64 in Q1 of fiscal 2020, down by 67.68% from the same quarter last fiscal year, when they were $1.98. As for its non-GAAP earnings per diluted share, they were $0.88 in Q1 of fiscal 2020, compared with $0.80 for the same quarter of fiscal 2019, and the revenue for the first fiscal quarter was $2.22 billion, which is 30.84% less compared to the same quarter last year when it was $3.21 billion. Year-to-date, the company’s stock gained 8.96%, and on June 10th it had a closing price of $148.43.

Right after Nvidia, the most valuable new fund’s purchase was Lennar Corp (NYSE:LEN), one of the largest homebuilding companies in the US for more than half a century. Its diluted earnings per share for the Q1 2019 were $0.74, compared to the same quarter last year when they were $0.53. The reported revenues from the first quarter of 2019 were $3.87 billion, up by 29.86% from the same period last year when they were $2.98 billion. The company has a market cap of $16.65 billion. Horseman Capital disclosed $1.71 million worth a stake in the company, on the account of 34,900 shares. This position amassed 0.58% of the fund’s equity portfolio. Year-to-date, Lennar’s stock gained 32.08%, and on June 10th it had a closing price of $52.78.

Disclosure: None.

This article was originally published at Insider Monkey.