Bernard Horn

Bernard Horn Premium Guru

Last Update: 05-23-2016

Number of Stocks: 87
Number of New Stocks: 5

Total Value: $356 Mil
Q/Q Turnover: 8%

Countries: USA ITA NOR GBR BEL FIN HKG DEU KOR FRA SWE CHE JPN CAN THA AUS
Details: Top Buys | Top Sales | Top Holdings  Embed:

Bernard Horn Watch

  • Bernard Horn's 5 New Buys All Undervalued by Lynch Earnings Line

    The Polaris Global Fund headed by Bernard Horn (Trades, Portfolio) picked up five new holdings during the first quarter although only one was an international company, according to data reported by GuruFocus' Real Time Picks.


    Polaris’ investment process includes regularly screening a database of companies to narrow down undervalued stocks. Its criteria include those related to sustainable free cash flow, financial strength and liquidity. The process has largely worked well for Polaris – the fund has outperformed the MSCI World Index over each of the three-, five- and 10-year periods. Over the past three years ended the most recent quarter end, Polaris had an average annual return of 9.48% compared with 6.82% for the benchmark.

      


  • Bernard Horn's 1st Quarter 2016 Polaris Global Value Fund

    Dear Fellow Shareholder,


    April 8, 2016

      


  • Bernard Horn Comments on Rexam

    The year was marked by volatility in commodity prices, which had a negative effect on some materials and energy companies. Better performance was noted amongst materials companies whose products ultimately sell into more defensive end markets, like German flavors and fragrance producer Symrise and beverage can supplier Rexam (LSE:REX). The stock price of Rexam also rose as it entered talks regarding a possible sale to U.S. competitor Ball Corp.

    From Bernard Horn (Trades, Portfolio)'s Global Value Fund annual letter 2015.   


  • Bernard Horn Comments on Teva Pharmaceutical

    Teva Pharmaceutical (NYSE:TEVA) achieved strong profits, noting better-than-expected Copaxone sales. The company’s strategic initiatives, including the takeover of Allergan’s Actavis generic drug business and the joint venture with Takeda in Japan, were well received. This will further cement Teva’s position as the global leader in generics and help the company negotiate with its customers.

    From Bernard Horn (Trades, Portfolio)'s Global Value Fund annual letter 2015.   


  • Bernard Horn Comments on Anthem Inc.

    M&A activity was also heating up in the health insurer industry, with the CFO of Anthem Inc. (NYSE:ANTM) suggesting the company could make a “meaningful” acquisition. Thereafter, Anthem entered negotiations to buy Cigna. In addition to this strategy, Anthem also announced strong earnings, deploying capital in the form of share buybacks and dividends.

    From Bernard Horn (Trades, Portfolio)'s Global Value Fund annual letter 2015.   


  • Bernard Horn Comments on Allergan PLC

    In healthcare, pharmaceutical maker Allergan PLC (NYSE:AGN) was expected to achieve 80% of an estimated $1.8 billion in synergies stemming from recent acquisitions by the end of the first quarter of 2016. With valuable drugs like Botox and a rich R&D pipeline, Allergan was approached by Pfizer. Pfizer held preliminary and friendly discussions to acquire Allergan, which will offer Pfizer a low tax domicile in Dublin.

    From Bernard Horn (Trades, Portfolio)'s Global Value Fund annual letter 2015.   


  • Bernard Horn Comments on REXLot Holdings Ltd.

    Chinese lottery company REXLot Holdings, Ltd. (HKSE:00555) diminished sector returns, as the trading suspension continued due to accusations of accounting irregularities. REXLot Holdings also faces bond repayment demands due to the suspension in its stock trading and reported limited ability to withdraw cash recently invested to expand its China operations.

      


  • Bernard Horn Comments on Duni AB

    Previously owned government and industrial sites have opened for sale, allowing homebuilders to purchase those sites that are more difficult to remediate and develop. Duni AB (OSTO:DUNI), a Swedish supplier of paper goods and tableware, was up on earnings news, growth in its core table top disposables, efficient operation of its paper mill and favorable exchange rates.

    From Bernard Horn (Trades, Portfolio)'s Global Value Fund annual letter 2015.   


  • Bernard Horn Comments on Greencore Group

    In consumer staples, the Irish convenience food producer Greencore Group (LSE:GNC) was up more than 15% before calendar year end. The company rebounded strongly from the third quarter, when it faced cost pressures and one-off start-up facility charges. In the U.K. market, Greencore noted sales growth amongst grocery retailers, including players such as Sainsbury’s and Marks & Spencer. In the U.S., Greencore expanded capacity to service Starbucks and 7-Eleven. Japanese dairy, confectionery and pharmaceutical manufacturer Meiji Holdings’ stock rose markedly following news of a drug licensing agreement. Optimistic market sentiment drove the stock price to the upper end of our valuation target, and we sold Meiji at a profit earlier in the year.

    From Bernard Horn (Trades, Portfolio)'s Global Value Fund annual letter 2015.   


  • Polaris Global Value Fund Annual Letter 2015

    Dear Fellow Shareholder,

      


  • Polaris Global Value Sells 3 Oil Holdings Due to Low Commodity Prices

    During the fourth quarter, the Polaris Global Value Fund led by Bernard Horn (Trades, Portfolio) purchased two new holdings and closed out four positions, including three in the oil industry.

    In the fourth quarter commentary, Horn cited the impact of commodity price declines that caused the fund to adjust its holdings and sell its stakes in Tullow Oil (LSE:TLW), Marathon Oil (NYSE:MRO) and Maurel et Prom (XPAR:MAU).  


  • Bernard Horn's Polaris Global Value Fund 4th Quarter Letter

    Dear Fellow Shareholder,


    January 7, 2016 The Polaris Global Value Fund (“the Fund”) underperformed the MSCI World Index, net benchmark in the quarter, at 4.99%, while the Index was 5.50%. Although slightly lagging the benchmark, the Fund achieved strong absolute performance and positive returns in all 10 sectors. Performance contribution was widely dispersed throughout sectors, with most notable results from consumer staples, financials and information technology.

      


  • Bernard Horn Adds to Existing Stakes in 3rd Quarter

    As is often the case, Bernard Horn (Trades, Portfolio) of Polaris Global Value Fund added to many of his existing stakes in the third quarter. What was unusual was that nearly all of his transactions were additions.


    Horn’s most significant third-quarter addition was his purchase of 42,400 shares of Wincor Nixdorf AG (XTER:WIN), a German information technology company, for an average price of €37.07 (about $39.38 in U.S. currency) per share. The deal had a 0.55% impact on Horn’s portfolio.

      


  • Bernard Horn Comments on Solvay SA

    Early in the year, global urea prices fell to multi - year lows below $260 a ton, and China continued a torrid pace of urea exports. Although Solvay SA (XBRU:SOLB) reported admirable second quarter earnings and margin improvement, the stock dropped based on weak results in the company’s Novecare business line. Three of Solvay’s four main business lines executed well for the quarter with increased sales and volumes, yet all focus surrounded Novecare. The contraction in the U.S. oil and gas industry supply chain dampened Novecare’s sales. Demand diminished for stimulation, drilling and cementing activities. In a case of inopportune timing, Solvay announced just prior to the earnings release that it had recently built a state-of-the-art oil and gas lab in Singapore intended to internationalize Novecare’s business.

    From Bernard Horn (Trades, Portfolio)'s third quarter 2015 shareholder letter.   


  • Bernard Horn Comments on Duni AB

    Duni AB (OSTO:DUNI), a Swedish supplier of paper goods and table settings, was up on earnings news. The company noted increasing net sales for the 3- and 6-month periods ending June 2015, as well as decreased net debt. Duni AB shuttered the hygiene production business, and reinvested capital to upgrade paper machines for increased capacity. The on-going initiatives contributed to better profitability of operations. Homebuilders experienced consistent sales progress in a more favorable regulatory environment than we have seen in years, which allowed the stocks to hold up in a volatile market.

    From Bernard Horn (Trades, Portfolio)'s third quarter 2015 shareholder letter.   


  • Bernard Horn Comments on Deutsche Telekom

    Deutsche Telekom (XTER:DTE)’s stock price ticked up, after reporting double-digit growth for the second quarter of 2015. Net revenues rose by more than 15% and free cash flow improved to nearly $1.6 billion. Deutsche Telekom’s retail broadband customers increased in Germany and subsidiary T-Mobile U.S. continued to outpace peers in capturing new subscribers.

    From Bernard Horn (Trades, Portfolio)'s third quarter 2015 shareholder letter.   


  • Bernard Horn Comments on Infosys Ltd.

    Information technology company Infosys, Ltd. (NYSE:INFY) was among the top contributors for the quarter, as it announced stellar quarterly results and notable growth rates. Issues that previously plagued Infosys, Ltd. dissipated. Attrition declined due to targeted measures by management to provide employees with better training and salaries. Legal battles over the visa program concluded, with no findings of misuse by Infosys, Ltd. The stock price responded, up approximately 20% during the quarter.

    From Bernard Horn (Trades, Portfolio)'s third quarter 2015 shareholder letter.   


  • Bernard Horn Comments on Guangdong Investment Ltd.

    Hong Kong water utility Guangdong Investment, Ltd. (HKSE:00270) intends to deploy capital to acquire further earning assets from its parent company, including toll roads and water treatment facilities. Investors were excited about the prospects for the water treatment plant, which is a burgeoning theme in water-constrained China.

    From Bernard Horn (Trades, Portfolio)'s third quarter 2015 shareholder letter.   


  • Bernard Horn's Polaris Global Value Fund Q3 Letter

    The Polaris Global Value Fund (“the Fund”) underperformed the MSCI World Index, net benchmark in the quarter, at -8.80%, while the Index dropped -8.45%. The quarter was marked by volatility in commodity prices, which had a negative short-term effect on some materials and energy companies. Ultimately, we believe lower oil prices will have a positive effect on consumer purchasing power worldwide; however, we must first weather this current spate of volatility.


    A number of U.S. financials, including The Chubb Corp., Astoria Financial Corp., Ameris Bancorp and BNC Bancorp contributed positively to the Fund’s performance. Banks were buoyed by the expected Federal Reserve rate hike in September. The Fed’s decision to postpone the increase left banks lower at the end of the quarter. India’s IT company, Infosys, Ltd., had double digit gains after announcing impressive quarterly results and projected growth that triggered revised upward guidance. A more recent portfolio addition, Kia Motors Corp., benefited from new car model launches and top safety ratings from J.D. Powers and Associates. These gains could not offset losses elsewhere in the portfolio, including energy stocks WorleyParsons, Ltd., Marathon Oil Corp. and Maurel et Prom. Perennial outperformer, Canada’s Methanex Corp., saw methanol prices drop more than 30% due to lower commodity prices. Lower prices of coal used to produce methanol in China also impacted the stock. One of the Fund’s largest holdings, Greencore Group, was down modestly this quarter due to labor cost pressures in the U.K. and one-off start-up charges for its U.S. facilities.

      


  • Bernard Horn Sells Stake in Japanese Confectionary Company

    Bernard Horn (Trades, Portfolio)’s Polaris Global Value Fund looks for undervalued stocks in which to invest. The Fund has been pretty good at it, too, producing returns of nearly 37% in 2013 and 21% the year before.


    Horn’s most noteworthy transaction of the second quarter was his sale of his 49,916-share stake in Meiji Holdings Co. Ltd. (TSE:2269), a Tokyo-based confectionary company, for an average price of ¥123.67 (about $1.03 in U.S. currency) per share. The sale had a -2.08% impact on Horn’s portfolio.

      


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