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David Nadel Buys 4 Stocks in 3rd Quarter

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.

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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.

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TechnoPro

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.

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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.

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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.

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Other gurus with holdings in TechnoPro include the Matthews Japan Fund (Trades, Portfolio) and the T. Rowe Price Japan Fund (Trades, Portfolio).

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Bossard

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.

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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.

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Marlowe

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.

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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.

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Fukui

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.

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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.

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Disclosure: No positions.

Read more here:

  • Yacktman Asset Management's 3rd-Quarter Buys
  • Matthews China Fund Starts 2 Positions in 3rd Quarter
  • Mario Gabelli's Top 5 Buys in 3rd Quarter



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This article first appeared on GuruFocus.