Comparing Pomelo Capital LLC 13F Holdings in Q2 and Q3 2018

Pomelo Capital LLC is one of the hedge funds that manages more than $1 billion worth of assets. As a professional investor, they are required to report their holdings quarterly through a 13F filing with the SEC. Their Q2 and Q3 2018 13F filings show a mixed picture of their investment strategy.

During Q2 and Q3 2018, Pomelo Capital LLC held different stocks in their portfolio. Some of the stocks in their portfolio were both put and call options. In Q2 2018, Pomelo Capital LLC held RH, WW, HLF, TSLA, YNDX, BHC, NAV, CSIQ, MNK, REPYY, TWTR, LUMN, TSLA, CEMEX, AK STL, and NAVISTAR. Their Q3 holdings included RH, WW, HLF, TSLA, YNDX, BHC, NAV, CSIQ, MNK, REPYY, TWTR, UNIT, YANDEX, PANDORA, CRCQQ, GME, WLL, DISH, GOGO, RCII, CEMEX, THC, MSGS, PROSPECT CAPITAL, ARVINMERITOR, SKT, WEATHERFORD INTL, SOLARCITY, CYH, AVP, MAT, HTZGQ, OCN, JCPNQ, SPWR, and BHC.

Throughout this period, Pomelo Capital LLC’s top holdings were in TSLA, RH, HLF, and YNDX. They held over 2 million shares of TSLA, which accounted for 26.8% of the portfolio value in Q2 2018 before they sold almost half of them in Q3 2018. Likewise, RH, HLF, and YNDX represented 8.3%, 7.5%, and 6.0%, respectively, during Q2 2018.

Pomelo’s biggest move was with BHC (VALEANT PHARMACEUTICALS INTL), which they sold entirely in Q3 2018. They also reduced their holdings in TSLA, TWTR, NAV, YNDX, and GNCIQ. Meanwhile, they increased their holdings in WW, CSIQ, PANDORA, JCPNQ, and GNCIQ.

In summary, the hedge fund had a mix of returning and fading investments. Likewise, their investments revealed that they weren't afraid to take risks by holding put and call options. Ultimately, Pomelo's Q2 and Q3 2018 filings show their investment strategy is dynamic and not defined by a specific market but subject to the performance of individual stocks.