Chuck Royce's Strategic Moves: Spotlight on Advance Auto Parts Inc's 0.38% Portfolio Addition
Insights from the 13F Filing for Q4 2023: A Deep Dive into Royce's Investment Decisions
Charles M. Royce, a venerated figure in small-cap investing, has once again made his mark with the latest 13F filing for the fourth quarter of 2023. As the portfolio manager for Royce Pennsylvania Mutual Fund since 1972, Royce's investment acumen is grounded in his extensive experience and education, holding a bachelor's degree from Brown University and an MBA from Columbia University. His firm's focus on companies with market capitalizations up to $5 billion, and occasionally up to $10 billion, is driven by a value-oriented approach that seeks out stocks trading below their estimated enterprise value. Royce's investment philosophy is succinctly captured in his own words: "We are interested in three thingsa strong balance sheet, a record of success as a business, and the potential for a profitable future."
Summary of New Buys
Chuck Royce (Trades, Portfolio)'s portfolio saw the addition of 55 new stocks in the last quarter. Noteworthy among these are:
Advance Auto Parts Inc (NYSE:AAP), with a purchase of 670,596 shares, now represents 0.38% of the portfolio, valued at $40.93 million.
Globalstar Inc (GSAT), with 10,243,955 shares, making up 0.18% of the portfolio, valued at $19.87 million.
IDT Corp (NYSE:IDT), with 504,787 shares, accounting for 0.16% of the portfolio, valued at $17.21 million.
Key Position Increases
Chuck Royce (Trades, Portfolio) also bolstered his stakes in 331 stocks, with significant increases in:
Installed Building Products Inc (NYSE:IBP), adding 113,769 shares for a total of 156,413 shares, marking a 266.79% increase in share count and a 0.19% impact on the portfolio, valued at $28.60 million.
Ingevity Corp (NYSE:NGVT), adding 406,932 shares for a total of 660,941 shares, a 160.2% increase in share count, valued at $31.21 million.
Summary of Sold Out Positions
Exiting completely from 102 holdings, Chuck Royce (Trades, Portfolio) made the following significant sales:
Avid Technology Inc (AVID), selling all 1,170,872 shares, impacting the portfolio by -0.32%.
Heritage-Crystal Clean Inc (NASDAQ:HCCI), liquidating all 213,631 shares, with a -0.1% impact on the portfolio.
Key Position Reductions
Reductions were made in 335 stocks, with the most substantial cuts in:
Fox Factory Holding Corp (NASDAQ:FOXF), reduced by 234,661 shares, a -82.44% decrease, impacting the portfolio by -0.24%. The stock traded at an average price of $72.96 during the quarter.
Encore Wire Corp (NASDAQ:WIRE), reduced by 91,492 shares, a -23.24% reduction, impacting the portfolio by -0.17%. The stock traded at an average price of $190.39 during the quarter.
Portfolio Overview
As of the fourth quarter of 2023, Chuck Royce (Trades, Portfolio)'s portfolio comprised 861 stocks. The top holdings included 1.11% in Arcosa Inc (NYSE:ACA), 1.09% in Air Lease Corp (NYSE:AL), and 1.06% in MKS Instruments Inc (NASDAQ:MKSI). The portfolio is well-diversified across all 11 industries, with significant concentrations in Industrials, Technology, and Financial Services.
Chuck Royce (Trades, Portfolio)'s latest 13F filing reveals a strategic approach to value investing, with a keen eye for potential and a disciplined commitment to his investment philosophy. As investors and enthusiasts alike dissect these moves, the insights gleaned from Royce's decisions will undoubtedly influence the market's pulse and provide valuable lessons for those looking to emulate his success.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
