Lone Pine Capital Owns a 8.4% Stake in Pactera Technology



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).


What Value Investors Can Learn From Walter Schloss And Ben Graham Today

Walter SchlossWalter Schloss isn’t a name many investors will have heard today. Schloss was one of the great value investors who trained under Benjamin Graham and specialized in finding cheap stocks. His track record was outstanding. In Warren Buffett’s 1984 essay, the Super Investors of Graham-and-Doddsville, he noted that between 1956 and 1984, Schloss’s firm returned 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

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