Centiva Capital Portfolio: A Deep Dive into Multi-Strategy Investments and Key Holdings

HFA Padded
Predrag Shipov
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Centiva Capital Portfolio

Centiva Capital is a firm founded in 2016 by Karim Abbadi and Edward McBride. It is based in New York and focused on a multi-strategy approach aiming to deliver attractive, risk-adjusted returns results with low correlation to major markets. Centiva Capital portfolio is valued at $3.96 billion over 1,639 holdings.

Crucial stock holdings are in the bond ETFs, including iShares iBoxx $ Inv Corporate Grade Bond ETF (NYSEARCA:LQD), iShares National Muni Bond ETF (NYSEARCA:MUB), and Vanguard Long-Term Corporate Bond ETF (NASDAQ:VCLT).

Also, among their option holdings noted call positions are in Invesco QQQ Trust Series 1 (NASDAQ:QQQ), and Nvidia (NASDAQ:NVDA). Significant put options include QQQ, iShares iBoxx High Yield Corporate Bond ETF (NYSEARCA:HYG), and SPDR S&P 500 ETF trust (NYSEARCA:SPY). For more information about their current positions, strategy, and performance, stay with us.

Key Takeaways

  • Centiva Capital is a hedge fund founded in 2016 that has a multi-strategy approach that is focused on diverse asset allocation.
  • The largest holdings are in bonds and ETFs like LQD, MUB, and VCLT.
  • The current portfolio value is $3.96 billion.

Key Holdings

iShares iBoxx $ Inv Corporate Grade Bond ETF (NYSEARCA:LQD) with 15.07% of the portfolio

LQD trades were exclusively short, with the fund trading it six times in the past five years. However, the investment in 2.45 million shares is the largest one until now. The holding is valued at $267 million and the price was $109. From the trade, the price has fallen to $106.

iShares National Muni Bond ETF (NYSEARCA:MUB) with 2.02% of the portfolio

Like with LQD stock, MUB was in the past always a short-term buy. However, the fund bought 2.42 million stocks in Q3 2023 and is still holding onto 332 thousand stocks. While the average buying price was $105 in the meantime it rose slightly to $108. The total value of the holding is $35 million.

Pioneer Natural Resources Company (NYSE:PXD) with 1.02% of the portfolio

After owning 148 thousand PXD stocks in Q3 2023 Centiva Capital LP trimmed this holding to 68 thousand shares. The last sale was conducted at a price of $243, and the price continued to rise to the current $269. The value of the holding is $18 million.

Vanguard Long-Term Corporate Bond Idx Fund ETF (NASDAQ:VCLT) with 0.88% of the portfolio

Centiva Capital acquired 200 thousand VCLT stock in Q1 2024 at $79 and the complete value of the investment is $15.83 million, while its drop in stock price reduced the value of the holding to $15.65 million.

Seritage Growth Properties Class A (NYSE:SRG) with 0.82% of the portfolio

SRG stock has been a relatively steady part of the Centiva portfolio, and it currently holds 1.5 million shares. The firm has been reducing its stake in the company selling 600 thousand stock during the last quarter. Some twenty days ago the stock value plunged from $9 to $5 pulling the holding into the deep red zone.

Hollysys Automation Technologies Ltd. (NASDAQ:HOLI) with 0.73% of the portfolio

This China-based manufacturer of automation and IT services is another player from the Centiva Capital portfolio that is currently in the red. The firm has been increasing its position from 86 thousand to 508 thousand stocks in the last three quarters. The last buy was at $26 while the price dropped to $21. Centiva also has 100 thousand stock on the put option.

Bunge Global SA (NYSE:BG) with 0.65% of the portfolio

The holding of this multinational exporter of soy was significantly strengthened in the last quarter moving from 14 thousand to 112 thousand stocks. The holding is valued at $11.49 million, and since the last buy at $101, the stock price increased to $105.

United States Steel Corporation (NYSE:X) with 0.62% of the portfolio

Centiva Capital owns 267 thousand X stocks valued at $10.91 million. The stock value dropped from $48 in late 2023 to $38. The largest and latest buy was at $44 pushing this holding into red.

Rigel Resource Acquisition Corp (NYSE:RRAC) with 0.56% of the portfolio

Rigel is a regular part of Centiva’s portfolio and has been increasing its stake in the company since 2023. Currently, they own 895 thousand stocks valued at $10 million. Centiva paid $10.52 on average for RRAC stocks while its value slightly increased to $11.3.

Investcorp Europe Acquisition Corp (NASDAQ:IVCB) with 0.54% of the portfolio

Centiva hedge fund initially invested in IVCB stock in Q4 2023 buying 400 thousand stocks. A quarter later they bought an additional 442 thousand stocks, and the holding value is now at $9.5 million. The last buy was at $11.15 and the price since then increased to $11.33.

Sector Allocation

One of the key aspects of Centiva Capital's strategy is high diversification. The portfolio is diversified amongst not only assets but also sectors. The current sector allocation is:

  • Financials with 7.01% of the portfolio valued at $281 million
  • Technology with 5.15% of the portfolio valued at $203 million
  • Industrials with 3.98% of the portfolio valued at $157 million
  • Consumer Cyclical with 3.36% of the portfolio valued at $133 million
  • Healthcare with 2.69% of the portfolio valued at $106 million
  • Real Estate with 2.25% of the portfolio valued at $89 million
  • Energy with 1.81% of the portfolio valued at $71 million
  • Telecommunications with 1.53% of the portfolio valued at $60 million
  • Materials with 1.31% of the portfolio valued at $51 million
  • Consumer Defensive 1.27% of the portfolio valued at $50 million

Centiva Capital Investment Strategy

Centiva Capital is a hedge fund that utilizes a multi-strategy approach with a cornerstone set on diversification. The fund invests in stocks, bonds, currencies, and derivatives to lower the overall risk of a major market drawdown.

Centiva Capital Historical Performance

In the last three years, Centiva generated a 30% cumulative return of the top 20 weighted holdings. Top 20 unweighted holdings delivered in the same time frame 35.33%.

When the performance analysis is spread amongst the top 50 holdings the returns are a bit lower with top 50 holdings delivering 21.51%.