Temagami Capital Management was up 5 percent in Q3. The year to date performance was +10.2 percent. The maximum gain in this quarter’s returns was seen in August, with an increase of about 4 percent.¬†
Like Hoplite Capital Management, Temagami also gained in longs, but lost on its short portfolio. The long winners were, Blyth, Inc.¬†(NYSE:BTH), Secure Energy Services Inc. (TSE:SES), and Macquarie Infrastructure Company LLC¬†(NYSE:MIC). The overall performance on the long side was up 8.4 percent. Temagami has closed its long position in Blyth, Inc.¬†(NYSE:BTH), the stock has been on a losing streak since mid September, and now trades at around $24, the average selling price achieved by Temagami was $39.¬†Secure Energy Services¬†gained from $7.6 at the beginning of Q3, and finished at $10 on the Toronto stock exchange. Macquarie Infrastructure Company LLC¬†(NYSE:MIC)Infrastructure reached $41 from $33 by the end of September.
In the short portfolio, the fund detracted -1.59 percent. Interestingly, on the short side, Temagami holds a short position on Tripadvisor Inc (NASDAQ:TRIP), we have covered another hedge fund, Hoplite Capital Management, which was long TRIP. Among Temagami’s successful shorts for Q3 were, ¬†Tripadvisor Inc (NASDAQ:TRIP), Weight Watchers International, Inc.¬†(NYSE:WTW) and TreeHouse Foods Inc. (NYSE:THS).¬†Temagami covered its shorts in Weight Watchers International, Inc.¬†(NYSE:WTW). TreeHouse Foods Inc. (NYSE:THS)¬†fell some 16 percent in the third quarter whereas Tripadvisor Inc (NASDAQ:TRIP)¬†fell from $44.69 to $32.9 in Q3.. The hedge fund has reduced its shares in THS and TRIP stocks.
Temagami’s consistent winner has been Dollarama Inc (TSE:DOL), which started at around $18 in 2009, and now trades at $61. Temagami is expecting more growth from the leading dollar store operator of Canada. The fund recently reduced its holdings in DOL, and then added them back while expecting increase in earnings from new products. Temagami thinks that analyst estimates fail to reflect the company’s true power and despite that, Dollarama Inc (TSE:DOL)¬†has managed to gain multi-fold increases in its share price. The hedge fund has also added LeapFrog Enterprises, Inc. (NYSE:LF)¬†to its short portfolio during Q3.