Sea Otter Advisors LLC (Trades, Portfolio), a New York-based investment firm, recently made a significant move in the stock market by acquiring a new stake in HH&L Acquisition Co. (HHLA.U, Financial) This article provides an in-depth analysis of the transaction, the profiles of the guru and the traded company, and the potential implications for value investors.
Details of the Transaction
On August 4, 2023, Sea Otter Advisors LLC (Trades, Portfolio) purchased 500,000 shares of HH&L Acquisition Co at a price of $10.55 per share. This transaction had a 2.63% impact on the firm's portfolio, increasing its total holdings in the company to 500,000 shares. The firm now holds an 8.02% stake in HH&L Acquisition Co, making it a significant part of its investment portfolio.
Profile of the Firm: Sea Otter Advisors LLC (Trades, Portfolio)
Sea Otter Advisors LLC (Trades, Portfolio) is an investment firm located at 107 Grand Street, New York. The firm manages a portfolio of 259 stocks, with a total equity of $196 million. Its top holdings include Tesla Inc, Occidental Petroleum Corp, OCA Acquisition Corp, Talon 1 Acquisition Corp, and Investcorp Europe Acquisition Corp I. The firm primarily invests in the Financial Services and Energy sectors. 
Overview of the Traded Stock: HH&L Acquisition Co
HH&L Acquisition Co is a Hong Kong-based blank check company. The company's stock is currently priced at $10.55, with a PE percentage of 56.51. However, due to insufficient data, the GF Valuation of the stock cannot be evaluated. The company's GF-Score is 22/100, indicating poor future performance potential.
Performance of the Traded Stock
Since its IPO on February 5, 2021, HH&L Acquisition Co's stock has seen a decrease of 0.47%. However, the stock has gained 4.46% year-to-date. The company's Financial Strength and Profitability Rank 8/10 and 2/10; however, the stock's Growth Rank is not available.
Analysis of the Traded Stock's Financial Health
HH&L Acquisition Co's cash to debt ratio is 0.09, ranking 571st in the Diversified Financial Services industry. The company's ROE and ROA are 2.78 and 2.64 respectively, ranking 175th and 144th. However, the company does not have enough data to compute a gross margin growth and Operating Margin growth.
Momentum and Predictability of the Traded Stock
The company's RSI 5 Day, RSI 9 Day, and RSI 14 Day are 99.36, 94.18, and 86.43 respectively. The company's momentum index 6 - 1 month and 12 - 1 month are 2.52 and 5.63 respectively. However, the company's predictability rank is not available due to insufficient data.
Conclusion
In conclusion, Sea Otter Advisors LLC (Trades, Portfolio)'s recent acquisition of 500,000 shares in HH&L Acquisition Co represents a significant addition to its portfolio. While the company's financial health and performance indicators suggest potential challenges, the firm's investment could yield positive returns depending on market trends and the company's future performance. This transaction provides valuable insights for value investors looking to understand the strategies of successful investment firms.
