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RS Investment's Best-Performing Assets of 2016

- By Tiziano Frateschi

Matthew H. Scanlan has been the CEO and director of San Francisco's RS Investment Management (Trades, Portfolio) since 2012. The firm provides services for pension and profit sharing plans, pooled investment vehicles, corporations and banks. The following are the best performers of the firm's investments.


Lululemon Athletica Inc. (LULU) with a market cap of $9.51 billion gained 24.3% in 2016. The firm's holding represents 0.23% of its total assets.

Lululemon is a designer and retailer of technical athletic apparel operating in North America and Australia. Its yoga-inspired apparel is marketed under the Lululemon Athletica and Ivivva Athletica brand names.

The stock is trading 15.16% below its 52-week high and 31.68% above its 52-week low. The DCF calculator gives the stock a fair value of $58.64. The Peter Lynch earnings line gives it a fair value of $30.9.

GuruFocus gives Lululemon a profitability and growth rating of 9 out of 10. The company has a positive five-year track record of profitability with an average return on equity (ROE) of 28.18% and return on assets (ROA) of 24.27%. Financial strength has a rating of 9 out of 10 with no debt.

Manning & Napier Advisors Inc. is the largest shareholder among the gurus with 4.73% of outstanding shares, followed by Steve Mandel (Trades, Portfolio) with 4.08%, Spiros Segalas (Trades, Portfolio) with 1.92%, Jim Simons (Trades, Portfolio) with 0.69% and RS Investment with 0.23%.

Companhia De Saneamento Basico Do Estado De Sao Pa. (SBS) with a market cap of $6.31 billion gained 108% in 2016. The firm's holding represents 0.23% of its total assets.

The company provides water and sewage services to residential, commercial, industrial and government customers. It also supplies water on a wholesale basis and provides related consulting services.

The stock is trading 12.51% below its 52-week high and 131.91% above its 52-week low. The DCF calculator gives the stock a fair value of $10.93. The Peter Lynch earnings line gives it a fair value of $15.3.

The company's profitability and growth rating is 8 out of 10. The company has a positive five-year track record of profitability with an average ROE of 13.65% and ROA of 5.71%. Financial strength has a rating of 5 out of 10. The cash-debt ratio of 0.12 is below the industry median of 0.23.

The largest shareholder among the gurus is Simons with 0.35% of outstanding shares followed by RS Investment with 0.06%.

Global Payments Inc. (GPN) with a market cap of $11.24 billion gained 16.9% in 2016. The firm's holding represents 0.05% of its total assets.

The company is a provider of payment solutions for merchants, value-added resellers, enterprise software providers, financial institutions, government agencies, multinational corporations and independent sales organizations.

The stock is trading 8.51% below its 52-week high and 42.58% above its 52-week low. The DCF calculator gives the stock a fair value of $28.14. The Peter Lynch earnings line gives it a fair value of $28.8.

GuruFocus gives the company a profitability and growth rating of 7 out of 10. The company has a positive five-year track record of profitability with an average ROE of 18.65% and ROA of 6.23%. Financial strength has a rating of 5 out of 10. The cash-debt ratio of 0.20 is above the industry median of 1.18.

Simons is the largest shareholder among the gurus with 0.51% of outstanding shares, followed by Columbia Wanger (Trades, Portfolio) with 0.22%, Steven Cohen (Trades, Portfolio) with 0.08% and John Hussman (Trades, Portfolio) with 0.07%.

Southern Copper Corp. (SCCO) with a market cap of $25.87 billion gained 31.1% in 2016. The company is a producer of copper, molybdenum, zinc and silver. Its segments include Peruvian operations, Mexican open-pit operations and Mexican underground mining operations.

The stock is trading 4.40% below its 52-week high and 55.31% above its 52-week low. The DCF calculator gives the stock a fair value of $9.31. The Peter Lynch earnings line gives it a fair value of $13.1.

GuruFocus gives the company a profitability and growth rating of 6 out of 10. The company has a positive five-year track record of profitability with an average ROE of 31.43% and ROA of 15.14%. Financial strength has a rating of 5 out of 10. The cash-debt ratio of 0.10 is below the industry median of 9.01.

The largest shareholder among the gurus is Pioneer Investments (Trades, Portfolio) with 0.06% of outstanding shares, followed by Simons with 0.05% and Ray Dalio (Trades, Portfolio) with 0.03%.

Westlake Chemical Corp. (WLK) with a market cap of $7.55 billion gained 10.6% in 2016. The firm's holding represents 0.03% of its total assets.

Westlake is a manufacturer and marketer of basic chemicals, vinyls, polymers and fabricated products. The company operates in two principal business segments, Olefins and Vinyls.

The stock is trading 4.83% below its 52-week high and 48.33% above its 52-week low. The DCF calculator gives the stock a fair value of $33.6. The Peter Lynch earnings line gives it a fair value of $47.1.

Westlake's profitability and growth rating is 7 out of 10. The company has a positive five-year track record of profitability with an average ROE of 21.25% and ROA of 11.98%. Financial strength has a rating of 5 out of 10. The cash-debt ratio of 0.10 is below the industry median of 0.59.

Chuck Royce (Trades, Portfolio) is the largest shareholder among the gurus with 0.7% of outstanding shares, followed by Cohen with 0.29%, Michael Price (Trades, Portfolio) with 0.19%, T Boone Pickens (Trades, Portfolio) with 0.11%, RS Investment with 0.05% and Caxton Associates (Trades, Portfolio) with 0.04%.

Tata Motors Ltd. ADR (TTM) with a market cap of $24.12 billion gained 26.9% in 2016. The firm's holding represents 0.06% of its total assets.

The company is a manufacturer of commercial and passenger vehicles. It operates in South Africa, Europe, Africa, the Middle East, South East Asia, Ukraine and Russia.

The stock is trading 20.70% below its 52-week high and 77.60% above its 52-week low. The DCF calculator gives the stock a fair value of $24.33. The Peter Lynch earnings line gives it a fair value of $34.0.

GuruFocus gives the company a profitability and growth rating of 6 out of 10. The company has a positive five-year track record of profitability with an average ROE of 25.38% and ROA of 5.68%. Financial strength has a rating of 5 out of 10. The cash-debt ratio of 0.62 is above the industry median of 0.49.

The largest shareholder among the gurus is Ken Fisher (Trades, Portfolio) with 1.35% of outstanding shares, followed by Simons with 0.42%, Sarah Ketterer (Trades, Portfolio) with 0.25%, Ken Heebner (Trades, Portfolio) with 0.1%, Jeremy Grantham (Trades, Portfolio) with 0.1%, Louis Moore Bacon (Trades, Portfolio) with 0.03% and RS Investment with 0.02%.

Franklin Resources Inc. (BEN) with a market cap of $23.52 billion gained 16.3% in 2016. The firm's holding represents 0.14% of its total assets.

Franklin is an investment management company. Its services include fund administration, sales, distribution, marketing, shareholder servicing, trustee, custody and other fiduciary services.

The stock is trading 1.97% below its 52-week high and 35.31% above its 52-week low. The DCF calculator gives the stock a fair value of $37.63. The Peter Lynch earnings line gives it a fair value of $44.1.

GuruFocus gives Franklin a profitability and growth rating of 8 out of 10. The company has a positive five-year track record of profitability with an average ROE of 21.66% and ROA of 13.54%. Financial strength has a rating of 8 out of 10. The cash-debt ratio of 5.72 is far below the industry median of 9,999.

Richard Pzena (Trades, Portfolio) is the largest shareholder among the gurus with 1.58% of outstanding shares, followed by David Abrams (Trades, Portfolio) with 1.4%, Diamond Hill Capital (Trades, Portfolio) with 0.86%, Mason Hawkins (Trades, Portfolio) with 0.44%, John Rogers (Trades, Portfolio) with 0.32%, RS Investment with 0.07% and Robert Olstein (Trades, Portfolio) with 0.04%.

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

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This article first appeared on GuruFocus.