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
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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.