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Steven Romick's Top 3rd Quarter Buys

- By Tiziano Frateschi

Steven Romick (Trades, Portfolio) is the portfolio manager of FPA Crescent Fund and the following are the guru's top-performing stocks for the third quarter.


Ally Financial Inc. (ALLY)

The investor acquired 9,942,850 shares in Ally Financial during the third quarter. Since then, the price of the stock has increased by 3%.

The company has a market cap of $9.3 billion and an enterprise value of $70.57 billion. It offers financial products and services to automotive dealers and their customers. It is engaged in Dealer Financial Services and Mortgage, Corporate and Other business.

The price of the stock has dropped by 26% during the last five years, but has risen by 3% since the beginning of the year and had a 7% decrease during the last 12 months. The stock is now 8.56% below his 52-week high and 32.16% above his 52-week low.

GuruFocus gives the stock a profitability and growth rating of 5 out of 10. Its return on equity (ROE) of -1.02% and return on assets (ROA) of 0.73% are underperforming 93% of the companies in the Global Specialty Finance industry.

The largest shareholder among the gurus is Richard Perry (Trades, Portfolio) with 3.26% of outstanding shares, followed by Bill Nygren (Trades, Portfolio) with 3.24%, First Pacific Advisors (Trades, Portfolio) with 2.23%, Howard Marks (Trades, Portfolio) with 2.15%, Steven Romick (Trades, Portfolio) with 2.06% and Jeremy Grantham (Trades, Portfolio) with 0.54%.

Baidu Inc. ADR (BIDU)

The guru increased his stake in Baidu by 146.11% during the third quarter and now holds 714,862 shares. Since then, the price of the stock has risen by 3%.

The company has a market cap of $60.52 billion and an enterprise value of $55.75 billion. It is a Chinese language internet search provider. The company offers a Chinese-language search platform on its website, Baidu.com

The price of the stock has risen by 29% during the last five years, but has dropped 5% since the beginning of the year and had a 16% increase during the last 12 months. The stock is now 19.89% below his 52-week high and 25.07% above his 52-week low.

GuruFocus gives the stock a profitability and growth rating of 8 out of 10. Its ROE of 43.81% and ROA of 22.61% are outperforming 94% of the companies in the Global Internet Content & Information industry.

Frank Sands (Trades, Portfolio) is the largest shareholder among the gurus with 2.15% of outstanding shares, followed by Dodge & Cox with 1.58%, Sarah Ketterer (Trades, Portfolio) with 0.79%, Ruane Cunniff (Trades, Portfolio) with 0.75%, David Herro (Trades, Portfolio) with 0.75%, Ken Fisher (Trades, Portfolio) with 0.34% and Manning & Napier Advisors Inc. with 0.34%.

CIT Group Inc. (CIT)

The guru increased his stake in CIT Group by 1.64% during the third quarter and now holds 12,004,408 shares. Since then, the price of the stock has risen by 3%.

The company has a market cap of $7.25 billion and an enterprise value of $17.41billion. It is a banking company that provides financing, leasing and advisory services principally to middle market companies in industries primarily in North America, and equipment financing and leasing solutions to the transportation industry worldwide.

The price of the stock has risen by 11% during the last five years, but dropped 9% since the beginning of the year and by 13% during the last 12 months. The stock is now 22.86% below his 52-week high and 42.44% above his 52-week low.

GuruFocus gives the stock a profitability and growth rating of 7 out of 10. Its ROE of 9.45% and ROA of 1.58% are outperforming 58% of the companies in the Global Banks - Regional - U.S. industry.

The largest shareholder among the gurus is First Pacific Advisors (Trades, Portfolio) with 7.02% of outstanding shares, followed by Steven Romick (Trades, Portfolio) with 5.94%, NWQ Managers (Trades, Portfolio) with 1.87%, HOTCHKIS & WILEY with 1.11%, George Soros (Trades, Portfolio) with 0.59% and Michael Price (Trades, Portfolio) with 0.26%.

Alphabet Inc. Class A (GOOGL)

The guru increased his stake in Alphabet by 0.27% during the third quarter and now holds 220,881 shares. Since then, the price of the stock has risen by 3%.

The company has a market cap of $552.62 billion and an enterprise value of $480.71 billion. Through its subsidiary, Google Inc., it is engaged in improving the ways people connect with information and products, including Search, Android, YouTube, Apps, Maps and Ads. It also produces internet-connected home devices and provides internet services.

The price of the stock has risen by 176% during the last 5 years, by 6% since the beginning of the year and by 16% during the last 12 months. The stock is now 1.92% below his 52-week high and 19.89% above his 52-week low.

GuruFocus gives the stock a profitability and growth rating of 9 out of 10. Its ROE of 14.99% and ROA of 12.24% are outperforming 70% of the companies in the Global Internet Content & Information industry.

The largest shareholder among the gurus is PRIMECAP Management (Trades, Portfolio) with 0.37% of outstanding shares, followed by Frank Sands (Trades, Portfolio) with 0.27%, Andreas Halvorsen (Trades, Portfolio) with 0.26%, Ken Fisher (Trades, Portfolio) with 0.14%, Chris Davis (Trades, Portfolio) with 0.13%, Spiros Segalas (Trades, Portfolio) with 0.12% and Jeremy Grantham (Trades, Portfolio) with 0.09%.

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

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This article first appeared on GuruFocus.