Blue Ridge Capital and Yandex
Blue Ridge Capital increased its holdings in Yandex (YNDX), as disclosed in the 13F filings of the hedge fund. The total holdings in Yandex increased to 8.9 million shares in 3Q14 from 5.94 million shares in 2Q14. The total position in Yandex comprises 2.93% of the overall portfolio in Blue Ridge Capital.
Overview of Yandex
Yandex N.V. (YNDX) is one of the largest Internet companies in Europe, operating Russia’s most popular search engine. It holds more than 60% of the overall market share. As of April 2014, Yandex ranked as the fourth largest search engine worldwide, with more than 150 million searches per day.
The company’s primary aim is to simplify the Internet search process by providing answers to the site visitors’ questions. Yandex has a huge presence in Ukraine and Kazakhstan and has been rated as the most popular website in Russia.
In March 2014, Yandex acquired the Israeli geolocation startup KitLocate and in June 2014, it took over the online auto classifieds portal Auto.ru.
Why Yandex can provide high returns
The 3Q14 results show that Yandex recorded revenues of more than $331.5 million, up 28% when compared to 3Q of 2013. The income from operations stands at $114.1 million and is 39% more than the 3Q results of 2013. Plus, Yandex has an operating margin of 34.4%, an EBITDA margin of 45.2%, and a net income margin of 33.5%. These numbers are impressive, considering the other players in the industry.
This Internet search domain firm’s stock is positioned to provide good returns to investors in the short as well as the long term. Yandex has an earnings per share growth of more than 48% over the last year. The current estimates for the EPS (or earning per share) growth is 825%. The long-term growth rate stands at an impressive 16%, which suggests this stock is a good buy even in the long run.
Blue Ridge’s notable positions traded in 3Q14
In 3Q14, Blue Ridge Capital added a new position with Alibaba Group Holding (BABA) and increased its position in Yandex (YNDX), LinkedIn (LNKD), and SiriusXM. Its top sell was Citigroup (C). Top decreased positions were in American International Group (AIG), Walgreen (WAG), and Cheniere Energy (LNG).
The focus for the next stock in this series is LinkedIn.