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Leon Cooperman's Top 5 Buys of the 3rd Quarter

Leon Cooperman (Trades, Portfolio), founder and chairman of the Omega Advisors family office, disclosed this week that his top five new buys of the third quarter were Fiserv Inc. (NASDAQ:FISV), SPDR Gold Trust (GLD), Gray Television Inc. (NYSE:GTN), Gannett Co. Inc. (NYSE:GCI) and SunOpta Inc. (NASDAQ:STKL).

Cooperman, who openly denounced Senator Elizabeth Warren's wealth tax proposal in a Thursday interview on CNBC, combines his macro view and fundamental valuation in his investing strategy.

The chairman converted his hedge fund into a family office in 2018, citing in a letter that he did not wish to spend the rest of his life chasing the Standard & Poor's 500 Index. As of quarter-end, his firm's $1.68 billion equity portfolio contains 61 stocks, of which eight represent new holdings. The top three sectors in terms of weight are industrials, energy and communication services.



Cooperman purchased 2,096,663 shares of Fiserv, giving the stake 12.92% weight in the equity portfolio. Shares averaged $102.05 during the quarter.


The Brookfield, Wisconsin-based company provides core processing and complementary services, which include electronic funds transfer, payment processing and loan processing. GuruFocus ranks Fiserv's profitability 9 out of 10 on several positive indicators, which include a four-star business predictability rank, expanding profit margins and a Joel Greenblatt (Trades, Portfolio) return on capital that outperforms 94.86% of global competitors.


Despite strong profitability, Fiserv's financial strength ranks a poor 4 out of 10 on debt ratios underperforming over 85% of global competitors. GuruFocus warns that the company has increased its long-term debt over the past three years and might have manipulated its earnings results based on its Beneish M-score.


SPDR Gold Trust

Cooperman purchased 140,000 shares of SPDR Gold Trust, giving the position 1.16% weight in the equity portfolio. Shares averaged $139.03 during the quarter.


According to the SPDR website, the SPDR Gold Trust seeks to reflect the performance of gold prices less the Trust's expenses.

Gray Television

Cooperman purchased 500,000 shares of Gray Television, giving the holding 0.49% weight in the equity portfolio. Shares averaged $16.42 during the quarter.


The Atlanta-based company owns and operates over 36 stations, reaching approximately 6% of U.S. television households. GuruFocus ranks the company's profitability 7 out of 10 on several positive investing signs, which include expanding profit margins and a return on equity that outperforms over 70% of global competitors.



Cooperman purchased 700,500 shares of Gannett, giving the position 0.45% weight in the equity portfolio. Shares averaged $9.90 during the quarter.


The McLean, Virginia-based company operates as a multi-platform news and information company. GuruFocus warns that Gannett's revenue and profit margins have declined over the past five years, lowering its profitability.



Cooperman purchased 912,800 shares of SunOpta, giving the position 0.10% weight in the equity portfolio. Shares averaged $2.60 during the quarter.


The Mississauga, Ontario-based company emphasizes healthy foods, ranging from orange juice to non-genetically-modified products. According to GuruFocus, SunOpta's debt ratio of 2.73 underperforms over 90% of global competitors, suggesting low financial strength.

Disclosure: No positions.

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This article first appeared on GuruFocus.