According to a 13G filed with the SEC, Steve Mandel’s Lone Pine Capital has acquired a 8.4% stake in Pactera Technology International Ltd. The famous Tiger Cub hedge fund now owns 7,617,690 shares in the China based company; this transaction makes Lone Pine the largest shareholder. This appears to be a new stake for Lone Pine (more on that below).
On 11/15, PACT (formerly hiSoft Technology International (HSFT); merged with Vanceinfo Technologies (VIT) on 11/9) provided hiSoft Technology International/VIT 3Q12 results and PACT 4Q12 guidance, which included former HSFT’s full 4Q but only 52 days of VIT’s 4Q.
Lone Pine had 17.6% stake in Vanceinfo Technologies, which is probably the reason for the 13G filing.
Ongoing uncertainty surrounding Chinese economic growth creates a sentiment headwind for the Chinese IT Service companies, which derive a significant portion of their revenues from the domestic China market (HSFT’s Western/China revenue mix was 77%/23%, while VIT’s was 52%/48%).
Pactera Technology is a leading China-based provider of outsourced IT and research and development services, primarily for companies inthe U.S., Japan, and China. Pactera Technology Intl Ltd (NASDAQ:PACT)’s primary service offerings consist of application development and maintenance, as well as research and development (R&D) services.
For the six months ended 30 June 2012, Pactera Technology Intl Ltd (NASDAQ:PACT) (ADR) revenues increased 44% to $137.3M. Net income increased 86% to $12.4M. Revenues reflect Greater China segment increase from $16M to $32.2M, United States segment increase of 32% to $63.2M. Net income benefited from Other income increase of 69% to $2.1M (income). Basic Earnings per Share excluding Extraordinary Items increased from $0.01 to $0.02.
Disclosure: No position