David Nadel (Trades, Portfolio), manager of the Royce International Premier Fund, disclosed this week four new positions in his third-quarter portfolio report: TechnoPro Holdings Inc. (TSE:6028), Bossard Holding AG (XSWX:BOSN), Marlowe PLC (LSE:MRL) and Fukui Computer Holdings Inc. (TSE:9790).
Prior to joining Royce Funds, Nadel was senior portfolio manager at Neuberger Berman Inc. and senior analyst at Pequot Capital Management Inc. Nadel seeks premier non-U.S. small-cap companies with discernable competitive advantages, high returns on invested capital and sustainable franchises.
As of quarter-end, Nadel's $641 million equity portfolio contains 51 stocks with a turnover rate of 18%. The top three sectors in terms of portfolio weight are industrials, technology and materials.
Nadel purchased 160,000 shares of TechnoPro, giving the position 1.48% weight in the equity portfolio. Shares averaged 6,130.97 yen ($56.29) during the quarter.
The Tokyo-based company provides technical services, including research, development, staffing and solutions. GuruFocus ranks TechnoPro's financial strength 8 out of 10 on several positive investing signs, which include a strong Altman Z-Score of 5.54 and interest coverage and debt ratios that outperform over 64% of global competitors.
TechnoPro's profitability ranks 7 out of 10 on the heels of operating margins that have increased approximately 3.90% per year on average over the past five years and are outperforming 72.19% of global competitors.
Other gurus with holdings in TechnoPro include the Matthews Japan Fund (Trades, Portfolio) and the T. Rowe Price Japan Fund (Trades, Portfolio).
Nadel purchased 62,140 shares of Bossard, giving the holding 1.33% weight in the equity portfolio. Shares averaged 136.17 Swiss francs ($137.20) during the quarter.
The Swiss industrial distribution company's products include the Bossard ecosyn brand of fasteners such as screws, nuts, rivels and washers. GuruFocus ranks the company's profitability 8 out of 10 on several positive investing signs, which include expanding profit margins and consistent revenue growth over the past 10 years.
Nadel purchased 1,576,306 shares of Marlowe, giving the stake 1.33% weight in the equity portfolio. Shares averaged 4.3 pounds ($5.53) during the quarter.
The U.K.-based company provides consulting and outsourcing services across a wide range of service areas. GuruFocus ranks Marlowe's financial strength 6.6 out of 10: The company's Altman Z-score is a moderately strong 2.8, while its debt ratios outperform 56.54% of global competitors.
Nadel purchased 63,200 shares of Fukui, giving the position 0.22% weight in the equity portfolio. Shares averaged 2,263.31 yen during the quarter.
The Japanese application software company engages in architecture, surveying, development and sale of various types of computer-aided design software. GuruFocus ranks Fukui's profitability 10 out of 10 on several positive investing signs, which include a four-star business predictability rank, a return on assets near a 10-year high of 19.79% and operating margins that have increased approximately 11% per year on average over the past five years and are outperforming 96.73% of global competitors.
Disclosure: No positions.
Read more here:
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- Mario Gabelli's Top 5 Buys in 3rd Quarter
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This article first appeared on GuruFocus.