Blue Ridge Capital, Tiger cub John Griffin’s hedge fund, revealed a short position in Gemalto NV (EPA:GTO) yesterday. Gemalto NV (EPA:GTO) is a French manufacturer of microprocessor devices and it is basically involved in making secure identification solutions. The company has been the target of bearish bets from several famous investors, including Steve Mandel and Jim Chanos. Now John Griffin has jumped in with a bet of his own. His fund is currently holding 1.13 percent of Gemalto’s shares short, which would amount to $77 million. The position was taken on May 7th, and since then GTO was up 3.3 percent until yesterday’s close. See all European short positions here.
Interestingly the smart card maker is trending up today, and shares have already advanced 5.5 percent. The only reason we can find for this sudden exuberance is an optimistic report released by Research & Markets, titled Forecast of Smart Card Industry in China, 2013-2017. The report notes that the smart card industry is expected to grow as demand from emerging markets and developing economies surges in the next few years. The report also notes that growth in the Chinese telecommunications sector will be pivotal in boosting sales for major players of the smart card industry, like Gemalto NV (EPA:GTO), ST, Infineon Technologies AG (ETR:IFXA) (FRA:IFXA) and NXP Semiconductors NV (NASDAQ:NXPI).
Blue Ridge Shorts
For now Blue Ridge’s short looks off target. If the positive outlook around Gemalto NV (EPA:GTO) maintains, other Tiger cubs like Lee Ainsile’s Maverick Capital, Steve Mandel’s Lone Pine and grandcub Robert Pitts’ Steadfast Capital will lose in their respective short bets as well.
In other disclosures, Blue Ridge has been covering its shorts in The Weir Group PLC (LON:WEIR), the U.K. based equipment manufacturer in the oil and gas sector. Blue Ridge took a 0.8 percent short in The Weir Group PLC (LON:WEIR) in early April, and by May 15th had covered it to below 0.3 percent. During this period, WEIR gained 6 percent, however there were days when shares fell so we cannot estimate if the short detracted or profited for Blue Ridge.
Blue Ridge also has shorts in Danish companies PANDORA A/S (CPH:PNDORA) and Vestas Wind Systems A/S (CPH:VWS). Vestas is up in excess of 170 percent since the short was disclosed whereas PANDORA A/S (CPH:PNDORA), a jewelry designer, is up 37 percent. So except for Blue Ridge’s short in Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V), it is bad news all over for the fund.
Take a look at Blue Ridge’s long portfolio here.