James Barrow

Last Update: 2014-11-12

Number of Stocks: 164
Number of New Stocks: 6

Total Value: $73,353 Mil
Q/Q Turnover: 4%

Countries: USA
Details: Top Buys | Top Sales | Top Holdings  Embed:

James Barrow Watch

  • A Profitable Investment for James Barrow – ITW and the P/E Valuation Method

    Being a company with only a 2-Star Business Predictability rank, such as Illinois Tool Works Inc. (ITW), might make a valuation method based on earnings difficult. Due to accounting allowances or "one time" charges, this manufacturer of industrial products and equipment might be difficult to value using the P/E ratio.


  • James Barrow Wheels and Deals in Third Quarter

    James Barrow (Trades, Portfolio), executive director of Dallas-based investment firm Barrow, Hanley, Mewhinney & Strauss, the lead portfolio manager for the Vanguard Windsor II and Selected Value Funds, was busy in the third quarter, investing in 20 stocks and selling holdings in 23 others.

    Barrow’s Vanguard Windsor II has been on an upward trajectory, showing a 42.04% return in 2013, up from its 15.25% return in 2012 and a 0.82% return in 2011.


  • James Barrow Is Proved Right, and You Should Follow in His Steps

    Rising tensions in Europe have added an extra condiment to the oil and gas market. Gas supplies have been mostly unaffected by political events throughout the last decade. Only the world economic crisis was able to have an impact on the sector. Unlike the oil sector, gas has escaped the war stories associated with the first since 2001. Nonetheless, politics manage to disturb yet another industry. That is, Russian intentions in Ukraine have the potential to disrupt current market conditions. So far, the Kremlin has assured European consumers the stability of supplies. A disruption of distribution operations, or a preferred treatment for Ukraine, will certainly have an impact on gas prices. What follows is the opening of opportunities to other gas-related companies with operations in Europe. Phillips 66 (PSX) is one important refining company, with an eye set on midstream activities.

    Adjusting Model on the Back of Success


  • Watch Out! Gurus Have a New Favorite for the Short Term

    At the beginning of March, after analyzing the settlement data published by Nasdaq, Forbes published an article by Dividend Channel that announced that DuPont (DD) had taken over Verizon (VZ) as the second most shorted stock in the market. The conclusion has been reached after a comparative between the “days to cover” metric because it considers both the total shares short and the average daily volume of shares typically traded, the paper said.

    DuPont’s stock substituted Verizon after a deterioration of the metric for the first and an important recovery by the second. According to the same source, this could mean short-sellers are using the stock to hedge a long bet elsewhere, or could also mean that short-sellers believe the price of the stock will decline.


  • Gurus Dump L-3 Communications - Should You?

    Richard Pzena (Trades, Portfolio) and James Barrow (Trades, Portfolio), the two largest shareholders of L-3 Communications (LLL), reduced their positions in excess of 30% during the December of 2013. Post facto, and with additional info, it can be concluded that in the short-term the decision was correct. After all, by the end of January 2014, earnings per share dropped by 4%. Also, during fourth quarter fiscal 2013 revenues decreased 9% year-over-year. Additionally, the secure communications systems for intelligence, surveillance and reconnaissance aircrafts segment lost 13% in revenues, and the national security solutions segment decreased another 11%. Hence, the losses in the short-term are evident. However, can L-3 Communications pay returns in the long-term?

    Filling the Picture


  • Are Gurus Divided About Defense Prospects?

    The Sequester, a policy to control budget allocations in the US, affected many defense contractors through 2013. For some, the spending cuts meant a big blow to projected performance. For others, it offered an opportunity to take buy-out some competitors. On whichever side of the equation Northrop Gumman (NOC) and General Dynamics (GD) were, these are two companies that survived the policy and continue to offer rewards to shareholders.

    Unmanned Vehicles and Top-Trading


  • John Wiley: A Profitable Academic Publisher?

    Investment gurus Joel Greenblatt (Trades, Portfolio) and James Barrow (Trades, Portfolio) recently added over 50% of John Wiley & Sons Inc. (JW.A)’s company shares to their stock portfolio, seeking to gain long term profits. And I believe this acquisition is a clever option for investors looking to benefit from a company with a wide economic moat. As a global publisher of print and electronic products, it generates half of its profits from the U.S market, through three diverse segments: the science, technology, medical, and scholarly unit (STMS) generates 60% of global revenue; the professional/trade segment, which accounts for 27% of revenue; and the higher education segment, which represents the remaining 13%.

    A Wide Moat Rating Via Must-Have Products


  • Choosing Stocks over Bonds

    In the search for yield, activist hedge fund managers have successfully pushed managements towards increasing dividends and buybacks. The results are clear: Many high quality companies are paying cash dividend yields that closely resemble what those companies pay for their 10 year bonds. This does not surprise me when I see 10 year US treasury yields trading at almost the exact same level as the MSCI world dividend yield index. Still, the average payout ratio of US companies is 10% off its long run median. Let's take a look at two companies. The first one not only does pay a high cash dividend yield but also should keep on increasing its current payout ratio. The second company is a highly leveraged play which pays a dividend yield that surpasses the yield US high yield bonds are currently paying.

    On the Road Toward Recovery  

  • James Barrow's BHMS 3Q BHMS Fixed Income Commentary

    3Q13 MARKET REVIEW: After the Federal Reserve 'balked' in its September 17th decision NOT to reduce quantitative easing (QE), the fixed income market enjoyed a reprieve from negative returns sparked by the 'Taper Tantrum' of May, June, and July. Armed with new evidence of stilltepid growth in both jobs and GDP, the Fed elected to maintain the current pace of its $85B per month U.S. Treasury and Agency MBS purchase program. The announcement ignited a strong bond market rally. The 10yr Treasury yield, having reached a year-to-date high of 3.00% on September 5, quickly declined and finished 3Q13 at 2.64%. Despite the late quarter rally, the 10yr yield remained 101 basis points (bps) above its 1.63% YTD low set on May 1, and 12 bps higher than the 2.52% of June 30. The 30yr Treasury also rose 19bps to close 3Q13 at 3.68%, resulting in a steeper yield curve. The other sectors of the U.S. fixed income market participated in the rally as well, with spreads narrowing across all sectors in the last two weeks of September.

    The Barclays Aggregate Index rose by 0.57% in 3Q13, having stood at a loss of -0.36% the day before the FOMC's declaration to not slow QE. Despite the bounce, the Index remains in negative territory YTD and for the trailing 12-months at -1.77% and -1.68%, respectively. In stark contrast to 2Q13, Investment Grade (IG) corporate spreads tightened 10bps during 3Q13, producing a positive nominal return of 0.82% and an excess return of 0.92%. The respective YTD total returns in IG remain a disappointing -2.62%, but excess returns are still positive at 0.61% YTD. The 1-Yr results for IG Credit now fall to a nominal -1.58%, but 1.79% in excess of Treasuries.  

  • Guru James Barrow's Third Quarter Top Five

    James Barrow, the manager of Vanguard Windsor II and Selected Value Funds reported his second quarter portfolio. As usual, his portfolio has extremely low turnovers. As of Sept. 30, Barrow, Hanley, Mewhinney & Strauss own 163 stocks with a total value of $62.55 billion.

    The fund purchased 4 new stocks over the duration of the third quarter. The following five companies represent the top five stocks in Barrow, Hanley, Mewhinney & Strauss’s third quarter portfolio.  

  • James Barrow Chops Holding of GE, ITT, More

    Changes in the third quarter portfolio of Barrow, Hanley, Mewhinney & Strauss, led by Guru James Barrow, include 24 reductions and sells combined, including high-impact decreases of his positions in General Electric Co. (GE), ITT Corp. (ITT) and the selling of Spectra Energy Corp. (SE), among many others. James Barrow’s updated portfolio lists 163 stocks, four of them new, and a total value at $62.5 billion. The quarter-over-quarter turnover is 6%. Barrow’s portfolio is weighted with financial services at 23.7%, health care at 17.8% and technology at 15.7%. He is averaging a return of 19.17% over 12 months.

    Here’s a look at Barrow’s third quarter selling highlights and the latest company earnings.  

  • Employee Dismissals Hide Opportunities in the Aerospace Industry

    Defense contractors have been sailing turbulent waters since the initiation of the sequester and the following government shutdown. Some have fared the storm better than others thanks to the characteristic of their products, rising civil applications or the priority given by the Department of Defense. Lockheed Martin (LMT) and General Dynamics (GD) are two of the most important defense contractors, but merchandise differences portray very different outlooks for each of them.

    High Priority and Growing Backlog  

  • Is Autumn the Right Season to Buy European Energy Stocks?

    With the summer already behind, the stock exchange began to move again. And, as the Northern Hemisphere approaches the winter season, energy companies get ready for the yearly seasonal high demand. Europe, specifically, will face particular challenges due to the unfavorable macroeconomic environment. The question that remains is: which energy companies do gurus see as safe investments? Here, I will take a look at the two largest European energy companies, Royal Dutch Shell (RDS.A) and BP (BP).

    Legal claims, restructuring, and declining stock price  

  • Profits Are Good, Cures Are Better: The Pharmaceutical Industry

    Pharmaceutical companies require a well-oiled research and development pipeline to stay in business. And a healthy cash flow is needed to feed the pipeline. Some invested liquidity will go to waste as some products die at the lab, and others do not reach the shelves. Even when successful, licenses eventually expire, pressuring R&D to develop replacements. AstraZeneca (AZN) and Pfizer (PFE) are two companies continuously striving to stay alive through research.

    Fluid Pipeline  

  • Why You Should Invest in This Auto Parts Supplier

    As the U.S. automobile industry recovers, auto parts suppliers are expecting to see increasing sales volumes. Particularly firms such as Delphi Automotive (DLPH) and Stoneridge Inc. (SRI), which specialize in electronic components, expect to make large profits. Increasingly electrified vehicles, higher demand for hybrid and electric powertrain vehicles and stricter governmental emissions regulations should drive revenue growth for these firms in coming years.

    A Narrow-Moat Auto Parts Supplier  

  • James Barrow’s Mutual Fund Top Picks and Performance

    The current portfolio of James Barrow, executive director of Barrow, Hanley, Mewhinney & Strauss of Dallas, Texas, lists 159 stocks, 7 of them new, with a total value of $5.55 billion and a quarter-over-quarter turnover of 6%. The firm currently manages $70 billion in assets.

    With 51 years of investment experience, Guru James Barrow also manages his firm’s Large Cap Value & Mid Cap Value Equity portfolio. Here’s a top holdings update:  

  • Deep Value Investor James Barrow Unloads Six

    In the recent portfolio update of Guru James Barrow, executive director of Barrow, Hanley, Mewhinney & Strauss of Dallas, Texas, GuruFocus research shows 159 stocks, seven of them new, with a total value of $5.55 billion and a quarter-over-quarter turnover of 6%. GuruFocus research also shows that James Barrow sold out large holdings in six companies in the first quarter of 2013.

    All trade details are as of March 31, 2013:   

  • Vanguard Windsor Fund Manager James Barrow Portfolio Update

    James Barrow, the manager of Vanguard Windsor II and Selected Value Funds reported his second quarter portfolio. As usual, his portfolio has extremely low turnovers. As of 03/31/2012, Barrow, Hanley, Mewhinney & Strauss owns 158 stocks with a total value of $50.8 billion.

    James Barrow has built excellent track record over the past decade. His Vanguard Select Value Fund outperformed the S&P 500 eight out of last ten years with a cumulative gain of 104%, while the S&P500 gained 34.9%.  

  • The Stocks James Barrow Is Selling

    James Barrow is executive director of Dallas-based investment firm Barrow, Hanley, Mewhinney & Strauss, the lead portfolio manager for the Vanguard Windsor II and Selected Value Funds.

    Jim Barrow has a preference when buying companies. He chooses those firms with below-market P/E and P/B ratios and above-market dividend yields, whatever their market conditions may be.  

  • James Barrow Q2 Update: Buys TGT, MDT, T, JNJ, Sells HPQ, BMY, XRX

    James Barrow is Executive Director of Dallas based investment firm Barrow, Hanley, Mewhinney & Strauss, the lead portfolio manager for the Vanguard Windsor II and Selected Value Funds. He graduated from the University of South Carolina with a BS. During the last 10 years, the fund only underperformed the S&P500 in 1 year, which is 2007.

    Jim Barrow likes to buy companies that exhibit below-market price-to-earnings ratios, below-market price-to-book ratios, and above-market dividend yields, regardless of market conditions.  

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