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Ascend Capital Increased Its Position in Ingram Micro

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Ascend Capital and Ingram Micro Inc.

Ascend Capital increased its position in Ingram Micro Inc. (IM) by over $20 million in the stock. It represented 2.20% of the total portfolio in 4Q14—up from 1.10% in the third quarter.

Ingram Micro has 0.23% exposure to the iShares Core S&P Mid-Cap ETF (IJH) and 0.04% to the iShares Russell 1000 Value ETF (IWD). IJH tracks the performance of 400 publicly listed companies in the “growth” sector. IWD tracks the performance of 700 publicly listed companies in the “value” category.

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About Ingram Micro

Ingram Micro is a US-based electronics and information technology distributor company. It was founded in 1979. It’s headquartered in California. Ingram Micro distributes and markets a large variety of electronics that it sources from manufacturers like Apple (AAPL), IBM, Microsoft (MSFT), and others.

Strong 4Q14 results

In February 2015, Ingram Micro declared its 4Q14 results. It reported revenue of $14 billion. This was an impressive 17% increase compared to revenue of $11.8 billion in 4Q13. For the period, the operating income also increased 17% to $201 million—compared to $173 in 4Q13. As a result, the net income increased from $112 million in 4Q13 to $119 million in 4Q14.

Ingram Micro’s strong results were due to growth. The growth was driven globally across all of the regions. It was also due to the “addition of a 14th week in the 2014 fourth quarter benefited worldwide sales by approximately 7 percentage points when compared to last year.”

Favorable foreign currency fluctuations also positively impacted the revenue by more than 4%.

Acquires Tech Data’s Peruvian and Chilean businesses

Earlier this month, Ingram Micro announced its acquisition of Tech Data’s Peruvian and Chilean businesses. The acquisition was completed on March 16, 2015. It’s expected to add more than $270 million annually to the firm’s revenue.

The acquisition “complements” the company’s “existing operations in Latin America” that’s also one of its “top performing regions.”

In the next part of this series, we’ll discuss Ascend Capital’s position in Bank of America.

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