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Bernard Horn Buys 4 Stocks in the 4th Quarter

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GuruFocus.com
·3 min read
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Bernard Horn (Trades, Portfolio), manager of the Polaris Global Value Fund, disclosed this week he established four new positions during the fourth quarter of 2019: Standard Chartered PLC (LSE:STAN), Daicel Corp. (TSE:4202), Cambridge Bancorp (NASDAQ:CATC) and Sparebanken Vest AS (OSL:SVEG).


Managing a portfolio of 84 stocks, Horn selects investments based on the belief that country and industry factors are important determinants of security prices and that global market fluctuations produce mispriced stocks.

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As of quarter-end, the $468 million equity portfolio has a turnover ratio of 2%. The top three sectors in terms of portfolio weight are financial services, materials and consumer cyclical, with weights of 30.09%, 12.54% and 12.40%.

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Standard Chartered

Horn purchased 393,437 shares of Standard Chartered, giving the position 0.79% weight in the equity portfolio. Shares averaged 6.94 pounds ($8.93) during the quarter.

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The U.K.-based bank provides trade finance banking services around the globe. According to GuruFocus, the bank's equity-to-asset ratio and debt-to-equity ratio underperform over 76% of global competitors, warning signs of low financial strength.

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Bestinfond (Trades, Portfolio) and Tweedy Browne (Trades, Portfolio) Global Value also have holdings in Standard Chartered.

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Daicel

Horn purchased 351,000 shares of Daicel, giving the holding 0.72% weight in the equity portfolio. Shares averaged 1,036.43 yen ($9.65) during the quarter.

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The Osaka, Japan-based company sells chemical-based products across four business categories: plastics, cellulosic derivatives, organic chemicals and pyrotechnic devices. GuruFocus ranks Daicel's financial strength 7 out of 10: Cash-to-debt, debt-to-equity and interest coverage ratios are outperforming over 64% of global competitors despite a low Piotroski F-score of 2.

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Cambridge

Horn purchased 14,800 shares of Cambridge Bancorp, giving the position 0.25% weight in the equity portfolio. Shares averaged $78.01 during the quarter.

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The Massachusetts-based bank offers a wide range of commercial and consumer banking services. GuruFocus ranks the regional bank's financial strength 3 out of 10: Cash-to-debt ratios are underperforming 75.66% of global banks despite debt ratios outperforming 51% of global competitors.

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Mario Gabelli (Trades, Portfolio) also has a holding in Cambridge Bancorp.

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Sparebanken Vest

Horn purchased 140,940 shares of Sparebanken, giving the holding 0.22% weight in the equity portfolio. Shares averaged 58.41 Norwegian krone ($6.31) during the quarter.

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The Norwegian financial services company provides estate agency and home mortgage services to private and corporate sectors. According to GuruFocus, Sparebanken's debt ratios underperform over 90% of global competitors, suggesting low financial strength. Despite this, net margins are outperforming 94.33% of global banks.

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Disclosure: No positions.

Read more here:

  • John Paulson Gains ViacomCBS, Buys 5 Stocks in the 4th Quarter

  • Larry Robbins' Top 6 4th-Quarter Buys in Health Care

  • Bruce Berkowitz Leaves 3 Holdings, Axes Buffett's Kraft Heinz



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This article first appeared on GuruFocus.