SRS Investment Management Discloses eHi Car Services Stake ~ market folly

Monday, July 6, 2015

SRS Investment Management Discloses eHi Car Services Stake

Karthik Sarma's hedge fund firm SRS Investment Management has filed a 13G on shares of eHi Car Services (EHIC).  Per the filing, SRS now owns 15.3% of the company with over 8.33 million shares (inclusive of 333,334 class A shares held via 166,667 ADSs).

This is a newly disclosed position as it didn't show up in their last 13F as of the end of Q1.  The filing was made due to activity on June 30th.  As of the end of Q1, SRS had a lot of exposure to other car rental/transportation plays such as Avis Budget (CAR ~ their largest US long worth over $590 million at Q1's end) and Hertz (HTZ ~ their fifth largest US long).

Just recently, we've highlighted how Tiger Global has also increased its stake in eHi Car Services.

About SRS Investment Management

Prior to founding SRS, Karthik Sarma worked at Tiger Global.  He started SRS in 2007 and has a large focus on international markets (particularly in India, China, etc) and typically invests in technology, media and other high-growth industries.  SRS's latest 13F filing indicates they manage in excess of $2.5 billion and that doesn't include their foreign positions.

About eHi Car Services

Per Google Finance, eHi is "a China-based holding company, which provides car rentals and car services to both individual customers and corporate clients. The Company utilizes mobile and Internet platforms to provide online to offline (O2O) mobility solutions. The Company operates its car rentals business primarily through its People's Republic of China (PRC) subsidiaries, Shanghai eHi Car Rental Co., Ltd. (eHi Rental) and eHi Auto Services (Jiangsu) Co., Ltd. (eHi Jiangsu), and their subsidiaries and branches."

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