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).
In his first-quarter letter to investors of Greenlight Capital, David Einhorn lashed out at regulators. He claimed that the market is "fractured and possibly in the process of breaking completely." Q1 2021 hedge fund letters, conferences and more Einhorn claimed that many market participants and policymakers have effectively succeeded in "defunding the regulators." He pointed Read More
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