Senvest Partners stumbled again in May, down 2 percent after stumbling in April but is nonetheless up 6.5 percent on the year, posting year to date returns slightly ahead of the S&P 500 (INDEXSP:.INX), which was up just 5 percent, according to a Senvest investor letter reviewed by ValueWalk. The average hedge fund is up 3.18% YTD according to Eurekahedge, with a large portion of that return coming in the month of June.
Senvest Partners returns comparison
After posting a 79 percent return in 2013 this high flying hedge fund – which posted +229 percent in 2009 and +168 percent in 2002 – is off to a comparative slow start than those banner years.
With $972 million in total AUM the fund has benefited primarily from its long portfolio. The fund’s long exposure was $780 million in the month, down from $849 million in the previous month while the short exposure increased to $209 million from $197 million the previous month.
Senvest Partners likes certain categories in this market environment, with significant long exposure in real estate, tech/media/telcom followed by strong exposure in financials, healthcare and industrials. The firm is negative consumer staples and consumer discretionary while just barely positive on the energy sector.
Senvest Partners’ exposure in S&P 500 sectors
Senvest Partners’ largest long exposure is in the tech/media/telcom sector, with 34 percent long versus only 5 percent short, a common short percentage for the fund. Real estate has 22 percent long with no shorts, while financials have 17 percent long with 5 percent short. Consumer stables is the only clear short sector, with 5 percent short vs 2 percent long. Consumer discretionary has a slightly more bullish piece of the portfolio with 11 percent long and 8 percent short.
In terms of regional exposure, 60 percent is invested in North American stocks, the largest exposure by far. The largest exposure, 43 percent, is in stocks with $300 million to $1 billion in market cap. A fair percentage of the portfolio is in larger cap stocks, with 27 percent of holdings representing stocks with more than 5 billion in market cap. The portfolio is concentrated in individual stocks more in short exposure than long. The ten largest shorts represent $181 million in exposure while the ten largest long positions account for $320 million in exposure.