Upslope Capital Management, a Denver-based alternative investment management firm, recently released its 2019 Q3 Investor Letter – download a copy here.
The investment management company had a good quarter, returning 6.8% for the quarter, bringing its year-to-date return to 26.4%. During the same quarter, the S&P Midcap 400 ETF (MDY) and HFRX Equity Hedge Index respectively returned -0.2% and 1.8%.
The investor provided commentary on a number of positions in its portfolio. Upslope Capital Management exited three positions in the quarter, Evercore Inc (NYSE: EVR), FLIR Systems (NASDAQ: FLIR) and Just Eat (LON:JE).
Evercore Inc. is a global independent investment banking advisory firm founded in 1995 by Roger Altman, David Offensend, and Austin Beutner. Since 1995, the firm has advised on more than $3 trillion of merger, acquisition, recapitalization, and restructuring transactions.
EVR was in 26 hedge funds’ portfolios at the end of June. There were 25 hedge funds in our database with EVR positions at the end of the previous quarter. Evercore Inc (NYSE: EVR) shares haven't seen a lot of action during the second quarter. Our calculations also showed that VSEC isn't among the 30 most popular stocks among hedge funds (see the video below). Video: Click the image to watch our video about the top 5 most popular hedge fund stocks.
Upslope Capital had the following to say on EVR in the quarterly investment letter:
"Evercore is a leading independent investment bank. We added EVR during the Q4 market meltdown last year. The business remains well-positioned for the long-run and has had a solid year, fundamentally. But, it is no doubt (highly) cyclical. Given this mixed background, we see greater opportunities on the long side elsewhere."
The firm also offered its thoughts on FLIR in the letter as well:
"FLIR is a leading developer and producer of infrared sensors, cameras, and systems. Sometimes we (I) make mistakes. That was the case with FLIR, which was added just last quarter. There is nothing “wrong” with FLIR, per se. But, I changed my mind about the underlying quality of the business and the opportunity after additional consideration."
During the quarter, the firm also offered its thoughts on Gartner Inc (NYSE: IT) - the company a global research and advisory firm providing information, advice, and tools for businesses in IT, finance, HR, customer service and support, legal and compliance, marketing, sales, and supply chain functions.
The investment letter had the following to say on the stock:
"Gartner is a leading research and consulting company (commonly known for its “Magic Quadrant” charts – example below in Exhibit 4), serving more than 15,000 organizations globally. In 2017, Gartner acquired the DC-based Corporate Executive Board (“CEB”) for $2.6 billion. The transaction combined Gartner’s historic strength in IT and Supply Chain research with CEB’s broader focus on HR, Sales, Finance and Legal function best practices research. While the industrial logic of the transaction was sound, in our view, execution has frustrated investors (slower growth, higher required “investment” spend). The frustration came to a head with Q2 earnings, when the stock fell almost 20% in one day."
IT was in 17 hedge funds’ portfolios at the end of the second quarter of 2019. There were 15 hedge funds in our database with IT positions at the end of the previous quarter. Our calculations also showed that IT isn’t among the 30 most popular stocks among hedge funds.
Insider Monkey follows corporate insiders and hedge funds to identify profitable investment ideas in advance. In addition to following the biggest hedge funds for investment ideas, we also share stock pitches from conferences, investor letters and other sources like this one where the fund manager is talking about two under the radar 1000% return potential stocks: first one in internet infrastructure and the second in the heart of advertising market. We also compile lists like companies that don’t do drug tests, biggest makeup companies that test on animals, and highest suicidal states in America to broaden our horizon and identify emerging trends in advance.
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