Janchor Partners, a Hong Kong-based hedge fund which was an early backer of Chinese online marketplace Alibaba, has taken a significant holding in troubled infant formula maker Bellamy’s.
Bellamy’s shares rose on the news. A short time ago, they were up 4.5% to $4.40 but still well down on the year high of $15.38.
A notice to the ASX today shows Janchor bought 5.2 million shares or 5.4% of the Tasmanian-based organic infant formula maker.
Janchor, founded by Australian-educated John Ho in 2009, has been been investing in other ASX-listed companies, including Medibank Private.
Bellamy’s spectacular growth via China suddenly stalled late last year following regulatory changes.
The fallout claimed the scalp of CEO Laura McBain, stripped millions of dollars from the market capitalisation and sparked a shareholder revolt which ended with a change in the board of directors.
The company in February posted a 47% drop in first half profit to $7.236 million following problems with sales of its organic infant formula in China.
Bellamy’s now expects full year revenue to be in the range of $220 million to $240 million, at best flat on 2015 and well below previous analyst expectations of about $330 million.