JAT Capital Management L.P, with over $1.9 billion worth of assets under management, has reported a net performance of (9.2)% for its second quarter, which ended June 30th, 2012. The company was formed in 2007 by John A. Thaler, and has a portfolio that is dominated by long positions across various business sectors. JAT capital’s main sectors are Technology, Media and Telecoms (TMT), and Travel, Leisure and Gaming (TLG)
JAT Performance Attribution
The Electron Global Fund was up 2% for September, bringing its third-quarter return to -1.7% and its year-to-date return to 8.5%. Meanwhile, the MSCI World Utilities Index was down 7.2% for September, 1.7% for the third quarter and 3.3% year to date. The S&P 500 was down 4.8% for September, up 0.2% for the third Read More
The hedge fund firm reported a net return of (17.4)% on its long positions during the quarter, while its short potions reported a return of 8.7%. The results compounded with first quarter figures, amounted to a 1.2% return year to date (YTD) return on JAT Capital’s long positions, while the short positions returned (20.6)% for the first half, resulting to a net YTD return of (20.1)%, after other income and expenses stood at (0.5%) quarter to date (QTD) and YTD (1.1%).
Nonetheless, inception to date gross returns stand at (ITD) 23.9% for the total, with long positions pegged at a whopping 52%, while short positions are standing at (15.4%), and other income and expenses are at (12.8%), since the company was formed five years ago.
JAT Portfolio Allocation
A majority of the company’s funds are invested in the technology sector( 36.5%), and Internet sector (26.3%), while Telecom services hold 11.4% of the $1.9 billion plus fund. JAT has also put some 10.3% in the industrial sector, with the gaming sector attracting 4.6%. Finally, the company has invested 2.2% in the consumer goods sector, while 1.4% goes to various other sectors.
Despite holding the least value in the funds portfolio, the consumer goods industry declined most, recording a 6.5% loss to the fund during the quarter, or nearly 15% YTD, while the internet sector lost out 3.2% QTD. The biggest gainer was the telecom sectors at 1.8%, followed closely by the technology sector at 1.7%. The picture could have been bad, had the firm not reduced the amount invested in Consumer goods, from an overwhelming 59% to approximately 4% as of June 30th, 2012.
Nearly 85% of the company’s investments are within the the confines of the U.S and Canadian geographical market segment, while crises struck Europe holds 6.2% of the 1.9 billion fund. The most populated continent, Asia, holds 6.6%, while Latin America and the rest of the world scramble for 2.5%.
JAT Future Outlook
The company has issued a new series of shares, series C, and claims that an investor has already agreed to invest, subject to a minimum investment amount of $250million.