Here’s Why Hayden Capital Added New Oriental Education & Technology Group (EDU) to its Portfolio
Hayden Capital, a value-oriented investment firm, released its second quarter 2023 investor letter. A copy of the same can be downloaded here. The fund returned -4.8% net in Q2 compared to an 8.7% return for the S&P 500 Index and a 6.3% return for the MSCI World Index. Year-to-date, the fund delivered 15.7% compared to 16.9% and 14.2%, respectively, for the indexes. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Hayden Capital highlighted stocks like New Oriental Education & Technology Group Inc. (NYSE:EDU) in the second quarter 2023 investor letter. Headquartered in Beijing, the People's Republic of China, New Oriental Education & Technology Group Inc. (NYSE:EDU) offers private educational services under the New Oriental brand. On September 1, 2023, New Oriental Education & Technology Group Inc. (NYSE:EDU) stock closed at $58.16 per share. One-month return of New Oriental Education & Technology Group Inc. (NYSE:EDU) was 1.25%, and its shares gained 115.17% of their value over the last 52 weeks. New Oriental Education & Technology Group Inc. (NYSE:EDU) has a market capitalization of $9.897 billion.
Hayden Capital made the following comment about New Oriental Education & Technology Group Inc. (NYSE:EDU) in its second quarter 2023 investor letter:
"New Oriental Education & Technology Group Inc. (NYSE:EDU): We made a new investment in New Oriental last fall. Outside of one-on-one discussions with some partners, I’ve never discussed the investment in-depth before. The reason for this is that I simply because thought there wasn’t much to say.
The thesis at the time was extremely simple – the company was trading below the net cash value on its balance sheet, while I believed the on-going operations would soon return to profitable growth. As such, I believed the market was being overly pessimistic about the company’s future prospects, and the shares would re-value once the on-going education business returned to a surer financial footing.
Partners will notice that unlike a typical Hayden investment, this is more emblematic of a “special-situations” / event-driven thesis. Our thesis is dependent upon a specific catalyst & subsequent change in the market’s perception, more so than the longer-term attractiveness of the company’s operations. I expect our holding period will be shorter than our typical investments, for this reason…” (Click here to read the full text)
Photo by Jerry Wang on Unsplash
New Oriental Education & Technology Group Inc. (NYSE:EDU) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 26 hedge fund portfolios held New Oriental Education & Technology Group Inc. (NYSE:EDU) at the end of second quarter which was 31 in the previous quarter.
We discussed New Oriental Education & Technology Group Inc. (NYSE:EDU) in another article and shared the high growth value stocks to buy according to Seth Klarman. In addition, please check out our hedge fund investor letters Q2 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
