The AlwaysOn X Fund portfolio finished the week up 0.5%, the NASDAQ was off 1.8%, and the S&P 500 was down 1.5%. Year to date, the AO X Fund is down 1.4%, the NASDAQ is up 9.5%, and the S&P 500 is up 8.1%.
Our largest position, Michael Kors, reported better than expected Q3 results with accelerating revenue growth of 74%, EPS growth of 123%, and same stores sales growth of 45.1%. Most impressively, Europe sales were up 97%. Management noted that travel retail at airports is progressing exceptionally well.
During the quarter, KORS opened 66 new stores and ended the quarter with a total of 349 stores (269 of which are company owned). Looking forward, KORS expects same-stores sales to grow in the mid 20s% in Q4 and to be up ~30% for the fiscal year 2013. KORS finished the week more or less flat at -0.1%.
Contrary to conventional wisdom, Facebook shares shot up 12.6% after its massive lockup expired on Wednesday. Roughly 800 million shares are now eligible for trading, significantly adding to the existing 921 million float. For the week, the social network jumped up 22.8%.
We sold some more of our Apple position and hold now a small 0.9% position in the iPhone maker.
Michael Moe is an AlwaysOn contributing editor and a former co-founder of ThinkEquity.