David Abrams' Top Trades of ast Quarter

GuruFocus.com
0

- By Tiziano Frateschi

David Abrams (Trades, Portfolio) founded Abrams Capital Management, which oversees nearly $8 billion in assets across three funds. During the first quarter he traded the following stocks.


He exited his positions in Cleco Corp. (CNL) and Manitowoc Co. Inc. (MTW) but acquired stakes in NorthStar Asset Management Group Inc. (NSAM) and NorthStar Realty Finance Corp. (NRF).

The guru closed his stake in ClecoA with an impact of -6.74% on the portfolio.

The company is a public utility holding company that owns a vertically integrated electric utility, Cleco Power, which is engaged in the generation, transmission, distribution and sale of electricity in Louisiana.

Fourth quarter GAAP earnings were $21.9 million, or 36 cents per diluted share, up $0.6 million from the $21.3 million recorded in the fourth quarter of 2014.

GuruFocus gives the stock a profitability and growth rating of 7 out of 10 with ROE of 8.11% that is underperforming and ROA of 3.08% that is outperforming 53% of the companies in the Global Utilities - Regulated Electric industry. Financial strength has a rating of 5 out of 10 with cash to debt of 0.05 that is below the industry median of 0.28.

Mario Gabelli (Trades, Portfolio) is the company's leading shareholder among the gurus, with 0.55% of outstanding shares followed by Joel Greenblatt (Trades, Portfolio) with 0.26%, Steven Cohen (Trades, Portfolio) with 0.16%, Paul Tudor Jones (Trades, Portfolio) with 0.07% and Prem Watsa (Trades, Portfolio) with 0.02%.

The investor exited his stake in ManitowocA with an impact of -6.06% on the portfolio.

The company is a multi-industry, capital goods manufacturer. It operates in two business markets namely, Cranes and Related Products and Foodservice Equipment.

During the first quarter sales grew 5% from the same quarter of a year before and adjusted loss from continuing operations was 4 cents per diluted share versus adjusted loss from continuing operations of 21 cents per diluted share in the first quarter of 2015.

GuruFocus gives the stock a profitability and growth rating of 5 out of 10 with ROE of -16.78% and ROA of -3.95% that are underperforming 86% of the companies in the Global Farm & Construction Equipment industry. Financial strength has a rating of 7 out of 10 with cash to debt of 0.29 that is below the industry median of 0.62.

The largest shareholder among the gurus is Carl Icahn (Trades, Portfolio) with 7.72% of outstanding shares followed by Alan Fournier (Trades, Portfolio) with 0.52%, GreenblattA with 0.48%, Jim Simons (Trades, Portfolio) with 0.17%, Murray Stahl (Trades, Portfolio) with 0.12%, Pioneer Investments (Trades, Portfolio) with 0.12% and JonesA with 0.11%.

The investor acquired 7,908,145 shares in NorthStar Asset Management Group with an impact of 4.24% on the portfolio.

It is an asset management company focused on strategically managing real estate and other investment platforms in the U.S. and internationally.

GuruFocus gives the stock a profitability and growth rating of 9 out of 10 with ROE of 52.85% and ROA of 27.72% that are outperforming 98% of the companies in the Global Asset Management industry. Financial strength has a rating of 6 out of 10 with cash to debt of 0.10 that is far below the industry median of 9,999.0.

Another notable shareholder among the gurus is Michael Dell (Trades, Portfolio) with 4.07% of outstanding shares followed by SimonsA with 3.35%, CohenA with 0.41%, JonesA with 0.04%, RS Investment Management (Trades, Portfolio) with 0.01% and GreenblattA with 0.01%.

The investor bought 3,279,651 shares in NorthStar Realty FinanceA with an impact of 2.03% on the portfolio.

It is a diversified commercial real estate company. It invests in multiple asset classes across commercial real estate that it expects will generate attractive risk-adjusted returns and may take the form of acquiring real estate.

GuruFocus gives the stock a profitability and growth rating of 4 out of 10 with ROE of -10.05% and ROA of -2.18% that are underperforming 94% of the companies in the Global REIT - Retail industry. Financial strength has a rating of 3 out of 10 with cash to debt of 0.13 that is above the industry median of 0.05.

A notable shareholder among the gurus is Louis Moore Bacon (Trades, Portfolio) with 0.43% of outstanding shares followed by CohenA with 0.33%, Manning & Napier Advisors Inc. with 0.25%,A Arnold Schneider (Trades, Portfolio) with 0.14% and Leon Cooperman (Trades, Portfolio) with 0.03%.

The guru raised the number of his shares in Franklin Resources Inc. (BEN) by 50.60% with an impact of 4.93% on the portfolio.

It is an investment management company. The company's services include fund administration, sales, distribution, marketing, shareholder servicing, trustee, custody and other fiduciary services.

Second quarter operating revenues decreased 8% from a quarter before and 20% from the same quarter of a year before. Operating income had an 18% decrease from a quarter before but had an increase of 29% from the second quarter of 2015.

GuruFocus gives the stock a profitability and growth rating of 9 out of 10 with ROE of 14.00% and ROA of 10.24% that are outperforming 84% of the companies in the Global Asset Management industry. Financial strength has a rating of 9 out of 10 with cash to debt of 5.34 that is far below the industry median of 9,999.0.

Richard Pzena (Trades, Portfolio) is the other notable shareholder of the company among the gurus, with 1.81% of outstanding shares followed by Diamond Hill Capital (Trades, Portfolio) with 1%, Bill Nygren (Trades, Portfolio) with 0.91%, Mason Hawkins (Trades, Portfolio) with 0.37%, John Rogers (Trades, Portfolio) with 0.32% and RS Investment Management (Trades, Portfolio) with 0.1%.

The guru raised his shares in Manitowoc Foodservice Inc. (MFS) by 55.77% with an impact of 2.81% on the portfolio.

The company is the global leader in professional foodservice equipment and systems. It works as a collaborative team, passionately pursuing excellence with integrity.

Net sales in the first quarter had a 5.8% decrease and net earnings in the quarter were $18.1 million and diluted earnings per share were 13 cents, compared to $14.0 million and 10 cents per share on a carve-out basis in the first quarter of 2015.

GuruFocus gives the stock a profitability and growth rating of 4 out of 10 with ROE of 21.29% and ROA of 6.57% that are outperforming 75% of the companies in the Global Diversified Industrials industry. Financial strength has a rating of 6 out of 10 with cash to debt of 0.04 that is below the industry median of 1.31.

Icahn is a notable shareholder among the gurus with 8.21% of outstanding shares followed by FournierA with 4.79%, Ron Baron (Trades, Portfolio) with 0.22%, StahlA with 0.06% and JonesA with 0.05%.

The guru raised his shares in Barnes & Noble Inc. (BKS) by 40.44% with an impact of 1.75% on the portfolio.

It is a bookseller and a content, commerce and technology company providing customers access to trade books, textbooks, magazines, newspapers and other content across its multichannel distribution platform.

Sales for the third quarter decreased 1.8% as compared to a year ago, but EBITDA increased 1.6% as compared to a year ago. Net earnings from continuing operations were $1.04 per share, compared to 45 cents per share in the prior year.

GuruFocus gives the stock a profitability and growth rating of 4 out of 10 with ROE of -2.85% and ROA of -0.43% that are underperforming 74% of the companies in the Global Specialty Retail industry. Financial strength has a rating of 8 out of 10 with no debt.

Simons is a notable shareholder among the gurus with 0.58% of outstanding shares followed by GreenblattA with 0.35%, First Pacific Advisors (Trades, Portfolio) with 0.2%, Chuck Royce (Trades, Portfolio) with 0.14%, GabelliA with 0.06% and JonesA with 0.01%.

The investor increased his shares in Barnes & Noble Education Inc. (BNED) by 6.58% with an impact of 0.25% on the portfolio.

The company operates its stores under multiyear management service agreements granting the right to operate the official bookstore on campus.

GuruFocus gives the stock a profitability and growth rating of 3 out of 10 with ROE of 1.24% and ROA of 0.18% that are underperforming 71% of the companies in the Global Specialty Retail industry. Financial strength has a rating of 6 out of 10 with no debt.

The largest shareholder among the gurus is JonesA with 0.26% of outstanding shares followed by GreenblattA with 0.13%, GabelliA with 0.05% and Michael Price (Trades, Portfolio) with 0.01%.

Start aA free seven-day trial A of Premium Membership to GuruFocus.

This article first appeared on GuruFocus.


Advertisement

Recommended Stories