Apple (AAPL), Amazon (AMZN) Among Brasada Capital Management’s Biggest Quarterly Moves

Mark McMeans’ Brasada Capital Administration is a Houston-based lengthy/quick fairness hedge fund based in 2008. The fund takes a conservative strategy to its investments, together with utilizing hedging and threat administration methods to attain its desired risk-adjusted returns. The fund’s belongings below administration greater than doubled between early-2017 and early-2018, and topped $542 million in the midst of 2020.

The surge in AUM is considerably stunning given the Brasada Lengthy-Quick Fairness Fund’s lukewarm returns. 2019 was one of many fund’s higher years, as returns hit 12.99%. The previous 4 years have been a misplaced trigger, with losses in 2018 and 2015 barely outpacing the single-digit positive factors posted in 2016 and 2017. Total, the fund’s compound annual return was 1.92% by means of the primary quarter of 2020.

Let’s try among the largest strikes made by Brasada Capital Administration in Q2, which included taking a lot greater stakes in Danaher Company (NYSE:DHR) and Apple Inc. (NASDAQ:AAPL).

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Danaher Company

Hedge funds have by no means been extra bullish on Danaher Company (NYSE:DHR), with possession of the inventory rising by over 50% within the final 18 months among the many funds tracked by Insider Monkey. Brasada made a a lot greater dedication to the inventory throughout Q2, greater than tripling the quantity of DHR shares it owns. Danaher shares are having a powerful 2020, gaining over 50% for the second-straight yr on the power of sturdy outcomes like double-digit income progress in Q3.

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Apple

Brasada Capital additionally added to its Apple Inc. (NASDAQ:AAPL) place, mountaineering it by 43% to just about 15,000 shares. Apple is now a number of years faraway from being hedge funds’ favourite inventory, although it did rank among the many 11 Shares Hedge Funds Are Crazy About in 2020 Q2 and possession of the tech big has risen by over 20% within the final yr among the many funds tracked by Insider Monkey. Preorders for Apple’s iPhone 12 have been very sturdy regardless of the road’s aggressive pricing, greater than doubling what the iPhone 11 fashions generated. With Apple’s shares up by over 50% in 2020, it might want to ship stellar outcomes like that for the inventory to keep away from a vacation hunch.

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Prologis

Brasada Capital greater than doubled the dimensions of its Prologis Inc (NYSE:PLD) place in Q2, taking a a lot greater stake within the industrial REIT and provide chain logistics firm, which manages the circulate of greater than $2 trillion in items yearly. Brasada Capital isn’t the one hedge fund to have a rising curiosity in PLD, as possession of the inventory among the many hedge funds tracked by Insider Monkey has jumped by 40% over the previous yr, throughout which period Prologis has continued to spice up revenue at a powerful charge whereas sustaining a rock-solid steadiness sheet.

Amazon

Amazon.com, Inc. (NASDAQ:AMZN) was one other tech big that Brasada Capital purchased extra shares of throughout Q2, boosting the dimensions of its Amazon holding by 82%. Amazon is way and away the most popular stock among hedge funds, with 30.1% of the funds tracked by Insider Monkey being Amazon shareholders. Amazon’s annual Prime Day occasion, which was pushed again from July till October this yr as a result of pandemic, shattered gross sales information, pulling in $3.5 billion in the course of the two-day occasion, a 60% year-over-year enhance.

WEC Power

Brasada Capital opened a brand new place in WEC Power Group, Inc. (NYSE:WEC) in the course of the second quarter, one in every of many funds to purchase into the inventory in 2020, as possession of it doubled in the course of the first-half of the yr among the many hedge funds tracked by Insider Monkey’s database. Steve Cohen’s Point72 Asset Administration and Paul Tudor Jones’ Tudor Funding are among the many outstanding funds to purchase WEC this yr. Shares of WEC have trended upward all through the second-half of the yr, gaining over 16%. WEC Power took an 85% stake within the below building Tatanka Ridge Wind Farm earlier this yr and is properly positioned for comparable future acquisitions.

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