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Mariko Gordon Sells Hostess Brands, Trims Callaway Golf

- By Tiziano Frateschi

Daruma Capital Management was funded in 1995. During the second quarter, its founder, Mariko Gordon (Trades, Portfolio), sold shares of the following stocks.


The invester exited her Hostess Brands Inc. (TWNK) position, impacting the portfolio by -3.4%.

The packaged foods company has a market cap of $1.56 billion and an enterprise value of $2.79 billion.

GuruFocus gives the company a profitability and growth rating of 5 out of 10. The return on equity of 21.68% and return on assets of 7.89% are outperforming 74% of companies in the Global Packaged Foods industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.12 is below the industry median of 0.50.

Columbia Wanger (Trades, Portfolio) is the largest shareholder of the company among the gurus with 0.48% of outstanding shares, followed by Murray Stahl (Trades, Portfolio) with 0.02%.

The NN Inc. (NNBR) holding was reduced 88.54%. The trade had an impact of -2.5% on the portfolio.

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The manufacturer of bearings and other industrial components has a market cap of $553.2 million and an enterprise value of $1.6 billion.

GuruFocus gives the company a profitability and growth rating of 4 out of 10. The return on equity of 33.89% and return on assets of 9.61% are outperforming 84% of companies in the Global Tools and Accessories industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.02 is below the industry median of 0.89.

The largest guru shareholder of the company is PRIMECAP Management (Trades, Portfolio) with 12.72% of outstanding shares, followed by Chuck Royce (Trades, Portfolio) with 4.71%.

The Newpark Resources Inc. (NR) position was trimmed 56.99%. The transaction had an impact of -1.21% on the portfolio.

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The company provides products and services to the oil and gas exploration industry. It has a market cap of $1.01 billion and an enterprise value of $1.12 billion.

GuruFocus gives the company a profitability and growth rating of 5 out of 10. The return on equity of 2.10% and return on assets of 1.24% are outperforming 55% of companies in the Global Oil and Gas Equipment and Services industry. Its financial strength is rated 6 out of 10. The cash-debt ratio of 0.36 is below the industry median of 0.49.

Royce is the largest shareholder of the company among the gurus with 3.34% of outstanding shares, followed by Gordon with 2.01% and Jim Simons (Trades, Portfolio) with 0.5%.

Gordon curbed her Callaway Golf Co. (ELY) stake by 24.75%, impacting the portfolio by -0.95%.

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The company, which manufactures golf clubs and related accessories, has a market cap of $2.15 billion and an enterprise value of $2.21 billion.

GuruFocus gives the company a profitability and growth rating of 3 out of 10. The return on equity of 15.83% and return on assets of 10.80% are outperforming 79% of companies in the Global Leisure industry. Its financial strength is rated 7 out of 10. The cash-debt ratio of 0.54 is below the industry median of 0.71.

Another notable guru shareholder of the company is Simons with 1.07% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 1%, Royce with 0.24% and Diamond Hill Capital (Trades, Portfolio) with 0.16%.

The FCB Financial Holdings Inc. (FCB) position was reduced by 24.99%. The trade had an impact of -0.95% on the portfolio.

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The company, which provides financial services, has a market cap of $2.42 billion and an enterprise value of $2.89 billion.

GuruFocus gives the company a profitability and growth rating of 3 out of 10. The return on equity of 10.99% and return on assets of 1.23% are outperforming 68% of companies in the Global Banks - Regional - U.S. industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.38 is below the industry median of 1.22.

With 1.91% of outstanding shares, Gordon is the largest guru shareholder of the company, followed by Mario Gabelli (Trades, Portfolio) with 0.37%, Simons with 0.22% and Ken Fisher (Trades, Portfolio) with 0.13%.

The Green Plains Inc. (GPRE) holding was trimmed 26.41%, impacting the portfolio by -0.91%.

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The company manufactures and sells ethanol products. It has a market cap of $745.73 million and an enterprise value of $1.92 billion.

GuruFocus gives the company a profitability and growth rating of 4 out of 10. The return on equity of 6.12% and return on assets of 2.14% are underperforming 72% of companies in the Global Specialty Chemicals industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.18 is below the industry median of 0.72.

Gordon is the company's largest guru shareholder with 5.87% of outstanding shares, followed by Steven Cohen (Trades, Portfolio) with 1.09% and Royce with 0.35%.

Disclosure: I do not own any stocks mentioned in this article.

This article first appeared on GuruFocus.