Jeff Auxier

Jeff Auxier

Last Update: 08-11-2016

Number of Stocks: 146
Number of New Stocks: 9

Total Value: $437 Mil
Q/Q Turnover: 2%

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

Jeff Auxier Watch

  • Jeff Auxier Buys Biogen, LyondellBasell and Union Pacific

    Jeff Auxier (Trades, Portfolio) is the manager of Auxier Focus Fund. He manages a portfolio composed of 146 stocks with a total value of $437 million. During the second quarter, the guru traded the following stocks.


    The guru increased his position in LyondellBasell Industries NV. (LYB) by 360.20%, with an impact of 0.64% on the portfolio.

      


  • 2017 GuruFocus Value Conference Early Bird Registration Started

    2017 GuruFocus Value Conference registration has now started. The number of seats is limited to 200. Register now before the seat runs out. Get a deep discount by registering before Oct. 31.


    You can find more information here.

      


  • Jeff Auxier's Summer 2016 Market Commentary

    June’s shocking vote by Great Britain to exit the European Union added to volatility for the second quarter. I remember like yesterday investing in the 1990s when negative headlines out of international markets were relentless. Japan’s stock market crashed off an immense bubble that peaked in 1989. Mexico suffered a severe Peso devaluation in 1994. Russia defaulted after the energy bust in 1998. East Asia faced a severe financial crisis and meltdown at the same time. Despite such alarming headlines, the superior businesses we owned endured and thrived. And investment flows returned to the US as investors increasingly valued the integrity of our markets and rule of law. These inflows ultimately contributed to bubble valuations in US blue chips in the late 1990s, when we were forced to lighten up. A classic example was Coca Cola, then trading at 50 times earnings.

      


  • Jeff Auxier Sells Precision Castparts, AT&T, Microsoft

    Jeff Auxier (Trades, Portfolio) is the manager of Auxier Focus Fund. He manages a portfolio of 143 stocks and during the first quarter sold shares in the following stocks:


    The investor closed his stake in Precision Castparts Corp. (PCP) with an impact of -1.73% on the portfolio.

      


  • Jeff Auxier's Spring 2016 Market Commentary

    After an 11% decline in the first six weeks of 2016, the benchmark Standard & Poor’s 500-stock index recovered to gain 1% for the first quarter. Stocks rebounded in the face of a sharp cutback in energy capital spending, slowing world growth and wildly volatile currency swings that weighed on export volumes. These setbacks largely offset the positive material savings from declining prices in natural gas, heating oil, diesel and gasoline. Regions with heavy in-migration like the Pacific Northwest are showing very strong economic growth, while those tied to coal and oil are suffering. Historically, sharp drops in energy inputs have led to strong growth (1986 and 1998) as our economy is 85% service oriented. Indeed, my recent visits with executives in construction trades—both housing and commercial—suggest there are serious ongoing shortages in welding, plumbing, electrical framing—you name it, especially in the West.


    The quality businesses we favor have typically enjoyed price/earnings multiple expansion in times of sharp commodity and energy crashes. Conversely, when energy prices tripled during the 1970s, price-to-earnings ratios compressed to a rock-bottom 10 times earnings or less. Today, the US is being hampered by higher domestic debt (over 300% of GDP) as US nonfinancial debt rose 3.5 times faster than GDP last year. Therefore, we have continued to seek out and hold businesses that have consistently strong demand, nominal mandatory capital spending and ample cash flow to fuel expansion. Earnings and revenue growth have been challenging as many industries are faced with supply gluts. An example: too many physical retail stores as online commerce grows. We try to closely monitor the long term supply/demand relationship in each industry before investing. We want enduring franchises with moral leadership that will survive the harshest economic challenges. Growth in free cash flow—not stated dividends—is a critical metric that allows for the financial flexibility necessary to flourish during challenging environments. If a company’s cash flow is higher ten years out, that company’s share value should track.

      


  • GuruFocus Value Conference 2016 Pictures

    We had a great success for 2016 GuruFocus Value Conference last week. More than 140 investors from 14 countries attended the conference. We had 9 great speakers and our attendees thoroughly enjoyed it. 92% of the attendees indicated that they are likely to attend GuruFocus Value Conference again in 2017.


    The videos and presentation slides will be available to those who attended. You will also gain access to those once you register for the 2017 conference.

      


  • Undervalued Stocks With Low P/S Ratio

    According to GuruFocus' All-in-One Screener, the following are the stocks that are companies with a market cap above $5 billion that are trading with a very low P/S ratio.


    FirstEnergy Corp. (FE) is trading at about $35 with a P/S ratio of 1.01 and an estimated forward P/E multiple of 12.69. The company has a market cap of $15.12 billion and over the last 10 years, the stock has dropped by 30%. During the last 52 weeks, the price has been as high as $37.05 and as low as $28.89.

      


  • Charles Brandes' Top Buys During the 4th Quarter

    Charles Brandes (Trades, Portfolio), chairman of Brandes Investment Partners, increased his stakes in many stocks in the fourth quarter.


    He raised his stake in Credit Suisse Group AG (CS) by 121.44%. The deal had an impact of 0.52% on the portfolio.

      


  • Guru Stocks With High, Growing Dividend Yields

    The following are companies with high and growing dividend yields that gurus are buying according to GuruFocus' All-in-One Screener.


    The Western Union Co. (WU) has a trailing dividend yield of 3.44% with a three-year growth rate of 13.40% and a five-year growth rate of 19.20%. The stock is now trading with a trailing 12-month P/E multiple of 11.10 and an estimated forward P/E multiple of 10.29. During the last 12 months, the stock price has dropped by 7%.

      


  • Jeff Auxier Takes Plunge in Fastenal, a Stock From Watchlist

    Jeff Auxier (Trades, Portfolio) of Auxier Asset Management picked up eight new holdings during the fourth quarter, including Fastenal (NASDAQ:FAST), an industrial stock Auxier believed to be too richly valued this past August.


    In a GuruFocus interview, Auxier said Fastenal was on the fund’s watchlist since it was trading at an expensive 25x earnings, also citing a bubble environment due to the Chinese credit boom, which fueled a run-up in commodities. Fastenal continues to trade at a high valuation, however, at 24x earnings. With a relatively small purchase of 5,100 shares, Auxier may be waiting for a better time to buy in.

      


  • Auxier Asset Management Year-End 2015 Market Commentary

    Year End 2015 Market Commentary

      


  • Jeff Auxier's Holdings Trading Below Peter Lynch Earnings Line

    Jeff Auxier (Trades, Portfolio) is the manager of the Auxier Focus Fund. The following are the stocks in his portfolio that are trading below the Peter Lynch fair value.


    Valero Energy Corp. (VLO) is trading at about $70 per share, and the Peter Lynch value gives the stock a fair price of $147, giving the stock a margin of safety of 52%.

      


  • Top 5 Dividend Stocks Among Guru Holdings

    Even though the S&P 500 is not particularly cheap right now with an average P/E of nearly 20, there are some very juicy dividends that pop up if you screen for it. The top yielding stocks, however, are often not the most safe dividends as they are usually distressed companies.


    Investors often go shopping a little below the absolute highest dividend yielding stocks, but for this article, I decided to do something different. Instead, I compiled a list of the top yielding stocks held by the gurus. Every stock on this list is held by many of the absolute best value investors as selected by GuruFocus. I have to warn you: The list contains several energy stocks that look speculative, but at dividends from 7.56% up to 12.88%, they also look very lucrative. 

      


  • Auxier Buys New Stake in Allstate

    Value investor Jeff Auxier (Trades, Portfolio) heads Auxier Asset Management in Portland, Ore., far from the noise of Wall Street. When evaluating potential investments, Auxier and the firm look for companies that have strong or improving fundamentals, consistency in operating results and understandable products, among other attributes.


    Auxier spoke with GuruFocus in August in a wide-ranging Q&A, and discussed the advice Warren Buffett (Trades, Portfolio) gave him personally, how his strategy has evolved and even his notable investing missteps. That interview can be read here.

      


  • Jeff Auxier's Fall 2015 Market Commentary

    Major stock indices continued their correction through the third quarter of 2015. Corporate revenue gains and product pricing have been weak. Concerns over slowing global growth and currency devaluations, starting with China, have added to uncertainty. Commodity-driven emerging markets have suffered over $1 trillion in outflows, the first net exodus in 27 years. So it shouldn’t be surprising that a long overdue 10% correction took place in a week in August. The price you pay for seeking superior compounded returns is enduring the volatility of free market pricing. The key to compounding is to stick with good companies when it gets ugly and painful.


    It is also important to lighten up some during boom times. The commodities and energy sectors are suffering a huge hangover from China’s now-deflating construction bubble financed with mounting levels of debt. The Reuters/Jefferies (CRB) commodity index has now corrected 45% from the 2011 highs. Such global cyclical stocks, as a group, have trailed far behind high-quality consumer businesses, particularly those with strong brands that sell smaller ticket necessities like foods and beverages. The current market environment has some similarities to the markets in the mid-1990s. Japan in 1994 had a debt-driven boom similar to China’s today, with much of the proceeds going into construction. Mexico devalued the peso in 1994. By 1998 Russia defaulted on government bonds as oil prices crashed close to $10 a barrel, versus around $45 now. Asian countries then suffered a series of currency devaluations. These events heightened global investors’ ardor for the dollar, US assets and the perceived safety of our “rule of law” economy.

      


  • Johnson & Johnson´s Dividend Discount Model Suggests Value of $139.6 Per Share

    In this article, let´s take a look at Johnson & Johnson (NYSE:JNJ), which has reported better-than-expected earnings but a decline in revenues. The EPS for the third quarter was $1.49, beating estimates by $0.04. However, revenue of $17.1 billion misses by $350 million.


    Relative valuation and dividend yield

      


  • Jeff Auxier: 'Investors Are Confusing Volatility for Risk; Panic Is Not Knowing What You Own'

    Lake Oswego, Ore. - September 2015 - Nearly three thousand miles from the Animal House panic on Wall Street, Jeff Auxier (Trades, Portfolio) is as calm as one of the cattle grazing at his Auxier Family Farms in Oregon.


    With 32 years of cumulative investment knowledge, Auxier has earned some perspective. For the past 16 years he’s shepherded the Auxier Focus Fund through dozens of bumps and bubbles. Prior to that, Auxier was a Senior VP of Investments and Senior Portfolio Mgt. Director for Foster Marshall/Smith Barney. He served with Jamie Dimon (now head of JP Morgan) on the first board to set national policy managing client accounts, and was recipient of the Consulting Group Bob Dwyer Award honoring integrity and knowledge. He welcomes the market turmoil.

      


  • Jeff Auxier Increases Several Holdings During Second Quarter

    Jeff Auxier (Trades, Portfolio) is the manager of the Auxier Focus Fund. His portfolio is composed of 144 stocks with a total value of $479 million. The following are the largest stakes he increased during the last quarter.


    He increased by 184% his stake in Marlin Business Services Corp (MRLN) with an impact of 1.96% on his portfolio.

      


  • Monster Beverage Is Overpriced

    The Guru Jeff Auxier (Trades, Portfolio), during the last quarter, started a new position in Monster Beverage Corp (MNST). He bought 12,100 shares and is now the investor with the most weighted stake of MNST on his portfolio since the investment is about 0.34% of his total assets.


    The company

      


  • Announcement: 2016 GuruFocus Value Conference, Omaha

    Over the years we have received a lot of requests from our subscribers about a gathering, especially a gathering at the Berkshire Hathaway Annual Meeting because many of us go there anyway. In order to serve our subscribers better we decided to host an annual GuruFocus Value Conference. The next conference will be on Friday, April 29, 2016, the day before the 2016 Berkshire Hathaway annual meeting.


    These are the details of the conference:

      


  • Pfizer Nears Completion of Hospira Acquisition

    On Aug. 24 Pfizer, Inc. (NYSE:PFE) received clearance from the Federal Trade Commission for its acquisition of Hospira, Inc. (NYSE:HSP). The acquisition process has been ongoing since Feb. 5 when Pfizer first announced it would be acquiring Hospira. Given the FTC clearance the acquisition will likely be completed in September.


    The Hospira acquisition will add low cost generic versions of biotech drugs to Pfizer’s product offerings, which are currently oriented around branded products. The Hospira business overall is primarily focused on generic injectable drug product offerings. The business is expected to be immediately accretive for Pfizer, bringing approximately $1.2 billion in quarterly revenue to the Pfizer business.

      


  • GuruFocus Interview: Jeff Auxier of Auxier Asset Management

    At 11 years old, Jeff Auxier (Trades, Portfolio) began mowing the lawn of Georgia Pacific’s then-CEO Bob Pamplin Sr., who led the company to be one of the top-performing NYSE stocks of the time. After graduating college with his degree in finance and starting his career in 1982, Auxier decided to cold call Warren Buffett (Trades, Portfolio) — and got an answer.


    Whether by luck or simply taking a chance, Auxier was influenced by value investors from an early age, and this is reflected in his firm, Auxier Asset Management. The firm is based far from Wall Street on the opposite coast in Portland, Oregon, where Auxier lives on a 108-acre hazelnut farm.

      


  • Jeff Auxier's Summer Market Commentary

    The stock market sputtered and stalled in the first half of 2015. Standard & Poor’s 500 index of large U.S. companies rose a scant 0.28% in the second quarter and 1.23% over the six months ended June 30. Auxier Focus Fund trailed the index, declining


    0.97% for the quarter and 0.29% for the first half of 2015. One reason is that the Fund is only 70% invested in American companies (the S&P 500 is 100%). The remainder: 17% in foreign stocks, 6% in cash and 7% in so-called work-outs such as corporate spinoffs. What’s more, our lower-risk allocation has handily beaten the benchmark over time. Since inception in 1999, with an average 75%-95% equity exposure, a $10,000 investment in the Fund grew to $30,760 as of June 30, vs. $19,880 for the S&P 500.

      


  • The Stocks Jeff Auxier Keeps Buying

    Jeff Auxier (Trades, Portfolio) of Auxier Asset Management currently owns 133 positions in his $237 million portfolio. Auxier has a low quarter over quarter turnover rate of 1%. Over the past quarters, Auxier has continued to purchase shares in three positions, which include Aetna Inc (NYSE:AET), Royal Dutch Shell PLC (NYSE:RDS.A) and Unum Group (NYSE:UNM).


    Aetna Inc (NYSE:AET)

      


  • Ask Your Investment Questions to Jeff Auxier of Auxier Asset Management

    Jeff Auxier (Trades, Portfolio) of Auxier Asset Management has agreed to participate in an exclusive Q&A with GuruFocus. Please submit your questions below in the comment box and we will pick the top 20 to ask the investor.


    Auxier was first introduced to the world of investing when he mowed Robert Pamplin's lawn. The Georgia Pacific CEO taught Auxier about remaining ethical. Pamplin's ideas about how a business should be transparent and shareholders should come first were later adopted and applied to Auxier's firm.

      


  • Jeff Auxier Reduces More Than 100 Stakes in First Quarter

    As manager of Auxier Focus Fund, Jeff Auxier (Trades, Portfolio) racked up an impressive record in the first decade of the 21st century, gaining more than 75% in value compared to the S&P500’s 10% loss during the same period.


    In the first quarter of 2015, Auxier’s emphasis was on selling holdings rather than buying them. Auxier reduced more than 100 of his stakes in the first quarter, including each of his 20 most valuable stakes.

      


  • Jeff Auxier Adds DISCA to His Portfolio During 1Q2015

    Jeff Auxier (Trades, Portfolio) of Ausier Asset Management added Discovery Communications Inc (NASDAQ:DISCA) to his portfolio, according to GuruFocus Real Time Picks.


    Auxier purchased 59,149 shares of DISCA at an average price of $31.37 a share.

      


  • Jeff Auxier Spring 2015 Market Commentary

    In first quarter 2015, the economy was subdued by record low temperatures in the Northeast, a West Coast port strike, a rapidly appreciating U.S. dollar (undermining exports), and a dramatic cutback in energy capital spending. Auxier Focus Fund returned 0.68% for the first quarter 2015. The equity portion gained over 0.92%. By comparison, Standard & Poor’s 500 stock index returned 0.95%, while the Dow Jones industrials added an anemic 0.33%. At quarter end, the Fund was comprised of 9% cash and “work-outs,” 76% U.S. stocks and the balance in foreign equities. An example of a "work-out" is Hospira, a healthcare company we purchased at a distressed price of $28.21 in December 2011. Drugmaker Pfizer has offered $90 cash to acquire Hospira in the second half of 2015, resulting in its shares recently fetching a discounted $87. The implicit $3 per share gain to closing represents over a 4% annual return, so we use that as a cash substitute. As stock market levels rise we tend to have more of these "work-outs" and similar event-driven investments that are "market agnostic," meaning they are less dependent on the overall supply and demand in the markets for their returns.

      


  • Some Reasons to Reduce Holdings in Avon

    In this article, let's take a look at Avon Products Inc. (NYSE:AVP), a $3.43 billion market cap company, which is the world's leading direct marketer of cosmetics, toiletries, fashion jewelry and fragrances, with about 6 million sales representatives worldwide.


    Largest Shareholders

      


  • Jeff Auxier: Year End 2014 Commentary and 2015 Outlook

    As of December 31, 2014, Auxier Focus Fund was comprised of 77.73% U.S. equities, 13.87% foreign stocks, 0.2% fixed income, and 8.2% cash. The Fund returned 4.40% in the fourth quarter of 2014. The Fund’s stock portfolio had a corresponding 5.17% gain, versus 4.93% for Standard & Poor’s 500 Stock Index. For the year, the Fund returned 7.34% (stocks up 10%), versus the S&P 500’s 13.69%. By comparison, the Dow Jones Industrial Average rose 5.2% for the quarter and 10% for the year. Foreign stocks in developed countries generally declined 4.5% in 2014 (MSCI EAFE Index). The Thomson Reuters CRB Index showed commodities continued to correct, losing over 16%.

      


  • Auxier Asset Management - 'Hazelnuts, Cows… and Stocks'

    As of 9/30/14 the Stock Portion of the Investor Class, AUXFX, is Up 360% Since Inception, Growth of $10,000 to $29,500 Since Inception;


    Auxier Continues Eating His Own Cooking and Preaching the Power of Compounding

      


  • Jeff Auxier Buys Berkshire Hathaway in Third Quarter

    Jeff Auxier (Trades, Portfolio) founded Auxier Asset Management and has managed the Auxier Focus Fund since its inception in 1999. Since inception, the fund has had returns 114.67 percentage points higher than the S&P 500.


    In an interview with GuruFocus in 2012, Auxier told a story of when he cold-called Warren Buffett (Trades, Portfolio) in 1982, and actually received career advice from the most successful investor himself.

      


  • Jeff Auxier Fall 2014 Market Commentary

    We have been anticipating a market correction to wring out mounting excesses of margin debt, overpriced initial public offerings and widespread security issuance in the energy sector. Indeed, during the third quarter, many of the 1500 companies we follow each year began to correct. Smaller stocks as measured by the Russell 2000 index declined 7.36%. Larger companies fared better with the Standard and Poor’s 500-stock index up 1.13%. Auxier Focus Fund ended the quarter down 1.35% with our foreign stock holdings a drag in the face of a strong U.S. dollar. Generally, severe and prolonged market declines are preceded by periods of rising interest rates and/or recession. So far fundamentals and reported earnings don’t point to either in the near term.


    Welcome Return of Market Volatility

      


  • Acquisition Strategy Will Benefit ConAgra Foods

    In this article, let's take a look at ConAgra Foods, Inc. (NYSE:CAG), a $14.41 billion market cap company that is one of the larger U.S. food companies, with a number of widely known brands.


    Acquisition and divestiture strategy

      


  • Some Drivers of the World's Largest Automaker

    In this article, let's take a look at Toyota Motor Corporation (NYSE:TM), a $182.43 billion market cap company that is one of the world's largest automobile producers.


    Quality and more

      


  • Anadarko is a Strong Player with an Interesting Mix Composition

    In this article, let's take a look at Anadarko Petroleum Corporation (NYSE:APC), a $56.08 billion market cap company, one of the largest independent exploration and production companies in the world.


    International operations

      


  • Toyota Stock Drops Following Announcement of Recalls

    Japanese automaker Toyota (NYSE:TM) – rated the world’s largest automobile manufacturer (by production) in 2012 by the Paris-based International Organization of Motor Vehicle Manufacturers (OICA) – issued three recalls last week, affecting more than 1.7 million vehicles worldwide.


    The largest of the recalls, which primarily affects vehicles sold in Japan, is intended to fix a problem with the brake systems in three models. The second-largest recall addresses an issue with the fuel delivery pipes that could cause fires. The smallest of the recalls affects vehicles that could have fuel leaks.

      


  • A High Dividend Yield, But Other Sell Recommendation

    In a recent article from MarketWatch titled “10 S&P 1500 dividend stocks with yields up to 9.14%,” it was analyzed the highest-yielding companies that have declared dividends for at least the past five full calendar years and not discontinue them in the last four years.


    So, in this article, let´s consider one of that list – AT&T, Inc. (NYSE:T) – and we will take a look at a model which is applicable to stable, mature, dividend-paying firms and try to find the intrinsic value of the stock. Although the model has a number of characteristics that make it useful and appropriate for many applications, it is by no means the be-all and end-all for valuation. The purpose is to force investors to evaluate different assumptions about growth and future prospects.

      


  • Should You Stay Away From Avon?

    In this article, let's take a look at Avon Products Inc. (NYSE:AVP), a $5.47 billion market cap company, which is the world's leading direct marketer of cosmetics, toiletries, fashion jewelry and fragrances, with about 6 million sales representatives worldwide.


    New Management

      


  • I Feel Bullish on Costco Due to its Business Model

    In this article, let's take a look at Costco Wholesale Corporation (NASDAQ:COST), a $55.22 billion market cap company, which operates about 650 membership warehouses in the U.S., and other countries such as Puerto Rico, Canada, the U.K., Taiwan, Japan, Korea, Mexico and Australia.


    Costs reduction

      


  • General Electric is Overvalued Based on DDM Analysis

    In this article, let´s consider General Electric Company (NYSE:GE), a $265 billion market cap, which has a trailing P/E ratio that indicates that the stock is relatively undervalued (PE 20.7x vs Industry Median 23.2x).


    So in this article, let's take a look at a model that is applicable to stable, mature, dividend-paying firms and try to find the intrinsic value of the stock. Although the model has a number of characteristics that make it useful and appropriate for many applications, it is by no means the be-all and end-all for valuation. The purpose is to force investors to evaluate different assumptions about growth and future prospects.

      


  • Good Outlook for ConAgra Foods

    In this article, let's take a look at ConAgra Foods, Inc. (NYSE:CAG), a $13.47 billion market cap company, which is one of the larger U.S. food companies with a number of widely known brands.


    Main risk

      


  • General Motors: A High-Yielding Stock

    In this article, let's take a look at General Motors Company (NYSE:GM), a $54.61 billion market cap company, which is the world's second-largest producer of cars and trucks.


    A market leader

      


  • Jeff Auxier Second Quarter Shareholder Letter

    Summer 2014 Market Commentary


    Auxier Focus Fund returned 3.96% for the second quarter. The Fund’s stockholdings gained 5.46%, outpacing the corresponding returns of 5.23% for Standard and Poor’s 500 Stock Index and 2.83% for the Dow Jones Industrial Average. Foreign stocks comprised about 18% of the Fund portfolio. Note that since inception in 1999, Auxier Focus’ stock exposure has averaged 72%, a much lower risk stance than the S&P 500 and Dow Jones Industrial Average (both 100% invested in stocks). Yet we nonetheless outperformed both indices for the period. A hypothetical $10,000 investment in the Fund on July 9, 1999 through June 30, 2014 would have grown to $29,954. That’s 61% more than the S&P 500’s $18,507 and 39% better than the Dow’s $21,484 for a similar investment. 

      


  • Auxier Asset Management's Auxier Report - First Quarter 2014


    Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than original cost. As stated in the current prospectus, the Fund’s Investor Class Share’s annual operating expense ratio (gross) is 1.28%. The Fund’s adviser has contractually agreed to waive a portion of its fee and/or reimburse Fund expenses to limit total annual operating expenses at 1.25%, which is in effect until October 31, 2015. Other share classes may vary. The Fund charges a 2.0% redemption fee on shares redeemed within six months of purchase. For the most recent month-end performance, please call (877)328-9437 or visit the Advisor’s website at www.auxierasset.com. The recent growth rate in the stock market has helped to produce short-term returns that are not typical and may not continue in the future.

      


  • A Strong Sell Despite a Buy Recommendation Due to Its Intrinsic Value

    Philip Morris International Inc. (NYSE:PM) manufactures and markets cigarettes outside the U.S. in 180 countries. The company´s plan is to introduce new packaging, new blends and other line extensions. A key driver of the company is the strong market share and the economies of scale. Also, the company has combated unfavorable tax regulations with price increases, showing a good price-elasticity. The firm's competitors include British American Tobacco plc (BTI) and Imperial Tobacco Group plc (ITYBY).


    Now, turning our attention to the future direction of the stock, let's take a look at the intrinsic value of this company and try to explain to investors the reasons why it is a good buy or not.

      


  • Jeff Auxier Comments on Tesco

    Fund performance has been negatively impacted by turnarounds like global supermarket operator Tesco PLC (TESO). Retailers in general, even world-class operators, are suffering from a glut of stores fostered by a rapid transformation to online and mobile shopping. While we don’t see much more downside, the execution has been disappointing—slower than expected. Over the long term this approach to buying high-quality assets during distressed times has been a winner. It is often difficult to gauge the timeline.

      


  • Jeff Auxier Comments on CVS

    Healthcare stocks in the Fund had a strong fourth quarter and year. CVS (NYSE:CVS)’s 26% performance for the quarter is reflective of the fact that 10,000 Americans turn 65 every day and will for the next 15 years. Businesses that are able to serve this growing segment with improving service, innovation, technology, product quality and value should continue to win.

      


  • Jeff Auxier’s Year-End Top-Five Stocks

    Jeff Auxier (Trades, Portfolio) is one of the favored gurus followed by GuruFocus. He is the president and chief executive officer at Auxier Asset Management and is in charge of the Auxier Focus Fund. Over the past quarter Auxier added seven new stocks to his portfolio, bringing his total holdings to 147 valued at $476 million.


    The following five companies are Auxier’s top five stock holdings as of the close of the fourth quarter.

      


  • Farming Investor Jeff Auxier Buys 7 New Stocks in Q4

    Jeff Auxier (Trades, Portfolio) is a value investor who stays away from the chaos of Wall Street by farming in Oregon in addition to managing portfolios for over 30 years. Auxier Asset Management currently has $400 million in assets under management.


    In the fourth quarter, Auxier purchased seven new stocks, for a total of 147 in his portfolio, and 3% quarter-over-quarter turnover. Most is weighted in the consumer defensive sector, at 27% of the portfolio, followed by health care at 21.9% and financial services at 16.8%.

      


  • Jeff Auxier's Auxier Report Fourth Quarter 2013


    Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than original cost. As stated in the current prospectus, the Fund’s Investor Class Share’s annual operating expense ratio (gross) is 1.28%. The Fund’s adviser has contractually agreed to waive a portion of its fee and/or reimburse Fund expenses to limit total annual operating expenses to 1.25%, which is in effect until October 31, 2015. Other share classes may vary. The Fund charges a 2.0% redemption fee on shares redeemed within six months of purchase. For the most recent month-end performance, please call (877)328-9437 or visit the Advisor’s website at www.auxierasset.com. The recent growth rate in the stock market has helped to produce short-term returns that are not typical and may not continue in the future.

      


  • "I'm far from the greed and emotion of Wall Street" - A Look at the Patience and Success of Guru Jeff Auxier

    I’m far from the greed and emotion of Wall Street and able to conduct the kind of independent thinking that keeps us ahead of the pack, not chasing it.  I love my job and consider it a stewardship of other people’s hard-earned money.  I want to do this the rest of my life.


    -Jeff Auxier (Trades, Portfolio)

      


  • De-dopaminize Your Investment Process

    During 2013 I’ve had the honor and luck to meet a few great investors, and one of the questions I always ask is, “How do you suppress your urge to act?”


    The reason I ask that question is because my experiences have taught me that fewer but wiser bets will likely lead to better performance. All of us have heard of Buffett’s “20 punch cards” advice to investors, but how many of us have acted accordingly? Human nature pushes us to get active, not inactive. When our brain recognizes an opportunity for financial reward, it releases dopamine, which tells the rest of the brain to pay attention to that opportunity and get our greedy little hands on it before we miss it. Worse yet, our rewards system gets much more excited about a possible big win so it will motivate us to do whatever provides the chance to win.

      


  • Jeff Auxier on Where He Will Make Exceptions to His Dislike of Investing in Technology Companies

    Jeff Auxier doesn't particularly like investing in technology companies simply because of the speed at which these companies change.

    He has made exceptions however for companies like Microsoft and Intel where cash flow is more predictable and valuations not factoring in much growth.  


  • Third Quarter Auxier Report from Auxier Asset Management



    Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than original cost. As stated in the current prospectus, the Fund’s Investor Class Share’s annual operating expense ratio (gross) is 1.29%. The Fund’s adviser has contractually agreed to reduce a portion of its fee and reimburse Fund expenses to limit total annual operating expenses at 1.25%, which is in effect until October 31, 2015. Other share classes may vary. The Fund charges a 2.0% redemption fee on shares redeemed within six months of purchase. For the most recent month-end performance, please call (877)328-9437 or visit the Fund’s website at
    www.auxierasset.com. The recent growth rate in the stock market has helped to produce short-term returns that are not typical and may not continue in the future.  


  • Auxier Focus Fund Update - Telecom Cuts, H&R, Home Depot and Others

    Guru Jeff Auxier, president and CEO of Auxier Asset Management and the Auxier Focus Fund, has said: “As U.S. financier and Presidential advisor, Bernard Baruch used to say, facts are facts even in the height of emotion. Often in these periods what is perceived to be risky is far safer than normal. Like John Train, author of ‘The Money Masters’ has said, “The safe time to invest is when investors are discouraged and desperate.” Conversely, the time to be cautious is when everyone is excited, news is good, and initial public offerings are flowing.”

    The updated portfolio of Auxier Focus Fund lists 144 stocks, 6 of them new, a total value at $414 million, and a quarter-over-quarter turnover of 3%. The portfolio is currently weighted with top three sectors: consumer defensive at 28.8%, healthcare at 22.9% and financial services at 15.9%.  


  • Auxier Report Summer 2013

    * Fund inception: July 9, 1999

    Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. As stated in the current prospectus, the Fund’s Investor Class Share’s annual operating expense ratio (gross) is 1.29%. The Fund’s adviser has contractually agreed to reduce a portion of its fee and reimburse Fund expenses to limit total annual operating expenses at 1.25%, which is in effect until October 31, 2015. Other share classes may vary. The Fund charges a 2.0% redemption fee on shares redeemed within six months of purchase. For the most recent month-end performance, please call (877)328-9437 or visit the Fund’s website at www.auxierasset.com. The recent growth rate in the stock market has helped to produce short-term returns that are not typical and may not continue in the future.  


  • Auxier Focus Fund Performance Update March 31, 2013



    Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than original cost. As stated in the current prospectus, the Fund’s Investor Class Share’s annual operating expense ratio (gross) is 1.29%. The Fund’s adviser has contractually agreed to reduce a portion of its fee and reimburse Fund expenses to limit total annual operating expenses at 1.25%, which is in effect until October 31, 2015. Other share classes may vary. The Fund charges a 2.0% redemption fee on shares redeemed within six months of purchase. For the most recent month-end performance, please call (877)328-9437 or visit the Fund’s website at
    www.auxierasset.com[i].  


  • Dr. Pepper - The Booster for One's Portfolio

    It is no secret that I find Dr. Pepper (NYSE:DPS) an attractive stock. I originally valued Dr.Pepper at $63.82 on Dec. 31, 2012. The stock price opened at $43.80 that day, and just recently touched a high of $50.29, a 15% gain. In a moment of honesty, I have to admit that I don't find Dr. Pepper as a refreshing drink personally, but it's not what I think that is important, but what Mr. Market, or in this case, beverage drinkers of the world think. Based upon first quarter of 2013's result, I wish to affirm that Dr. Pepper is just the right booster for one's portfolio.

    Bottom-line earnings increased to $0.51 from $0.48 year over year, while net sales increased by approximately 1% for the same period. Analysts expected earnings of $0.46 per share, rendering a 10.8% upside surprise. This upside surprise stemmed mostly from a stronger price/mix, LIFO provision of $7 million, and continuous RCI savings. Currently, Dr. Pepper is trading at approximately 16x earnings with a dividend yield of 3.08%, at $0.38 per share. Segment operating profit increased by $19 million and free cash flow totaled $31 million for the quarter.  


  • Blum on a Roll to Reduce - CECO's New CEO Named

    As Career Education Corporation (CECO)'s cash flow problems and decreased enrollment issues continue in an atmosphere of controversy, its largest stakeholder is on a roll of reducing his ownership stake. Investor Guru Richard Blum, Blum Capital Partners, still holds 14.81% of CECO shares outstanding after this week’s reduction in the education company. At the same time, veteran educator Scott Steffey comes on board as the new president and CEO of Career Education Corporation.

    Steffey said, “We will meet our challenges head-on and view them as an opportunity to continue to build respect and trust among all stakeholders. Career Education has the clear opportunity to achieve sustainable long-term growth by providing outstanding experiences and outcomes for our students and rewarding opportunities for our employees.”  


  • Richard Pzena Reduces APOL as Phoenix Rises for Others

    Richard Pzena of Pzena Investment Management LLC reduced his Apollo Group Inc. (NASDAQ:APOL) shares by 23.54% on Feb. 28, 2013. His current APOL shares are at 5,463,455, bought at $16.95, with a change from average of 1%. The current APOL price per share is $17.06. Apollo Group Inc. was incorporated in Arizona in 1981. Perhaps best known for its subsidiary, The University of Phoenix Inc., the education company offers both online and on-campus educational programs at the undergraduate and graduate levels. Apollo Group Inc. has a market cap of $1.92 billion; with a P/E ratio of 4.9 and P/S ratio of 0.5. GuruFocus rated Apollo Group Inc. the business predictability rank of 4.5-star.

    Apollo Group’s revenue growth over 10 years is 19.6%.  


  • Auxier Asset Management Q4 Report

    Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than original cost. As stated in the current prospectus, the Fund's Investor Class Share's annual operating expense ratio (gross) is 1.29%. The Fund's adviser has contractually agreed to reduce a portion of its fee and reimburse Fund expenses to limit total annual operating expenses at 1.25%, which is in effect until October 31, 2015. Other share classes may vary. The Fund charges a 2.0% redemption fee on shares redeemed within six months of purchase. For the most recent month-end performance, please call (877)328-9437 or visit the Fund's website at www.auxierasset.com.

      


  • Auxier Report - Fall 2012

    Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. As stated in the current prospectus, the Fund’s Investor Class Share’s annual operating expense ratio (gross) is 1.32%. The Fund’s adviser has contractually agreed to reduce a portion of its fee and reimburse Fund expenses to limit total annual operating expenses at 1.25%, which is in effect until October 31, 2015. Other share classes may vary. The Fund charges a 2.0% redemption fee on shares redeemed within six months of purchase. For the most recent month-end performance, please call (877)328-9437 or visit the Fund’s website at www.auxierasset.com.

    Fall 2012 Market Commentary  


  • Jeff Auxier GuruFocus Interview: Part 2

    Jeff Auxier is president and CEO of Auxier Asset Management and GuruFocus guru who recently took reader questions for an interview. This is the second half of the interview (the first half is published here):

    GuruFocus: You’re buying a lot of global brands, and they all had in common emerging market growth, like Proctor and Gamble (NYSE:PG), Pepsi (NYSE:PEP), Philip Morris (NYSE:PM), Johnson and Johnson (NYSE:JNJ). Is that was a conscious investment theme or is that a coincidence?  


  • Jeff Auxier Interview with GuruFocus

    Jeff Auxier is the president and chief executive officer of Auxier Asset Management. He is a value-oriented money manager whose Auxier Focus Fund has outperformed the market 125.53% to 23.15% on a cumulative basis since inception in 1999.

    Jeff recently spoke with GuruFocus to answer readers' questions and some of our own. The interview is below:  


  • Jeff Auxier Explains Why He Dislikes Tech But Owns Tech Stocks

    Jeff Auxier, manager at Auxier Asset Management, spoke with GuruFocus this morning about topics ranging from emerging markets and the European crisis, to his individual investments. One sector Auxier said he disliked is technology.

    “In 1983 we had 30 to 40 new IPOs in personal computers alone,” he says, “and now we’re down to one and a half or whatever. In technology it’s really tough to determine supply and demand. The big thing in a value trap is supply and demand.”  


  • Jeff Auxier of Auxier Asset Management Is Taking GuruFocus Readers Questions

    GuruFocus welcomes Jeff Auxier, president and CEO of Auxier Asset Management, an investment advisor firm with about $524 million in assets under management, to answer our readers' questions about investing. To ask your question, post it in the comments section below.

    Jeff has been managing the Auxier Focus Fund since 1999, achieving a cumulative 127.71% return versus 26.64% for the S&P 500, and an annualized return of 6.68% versus 1.87% for the S&P, since inception.  


  • Jeff Auxier's 2012 Spring Commentary: Fund Returns 6.66 Percent

    Spring 2012 Market Commentary: First quarter 2012 was bittersweet for Auxier Focus Fund. Our investors earned a sweet, three-month return of 6.66%. But this feat soured by comparison with the 12.59% advance in Standard & Poor's 500 Stock Index (S&P 500), the broad market's best first quarter since 1998. The Fund's stockholdings (71% of assets for the period) also trailed the S&P 500, returning 9.55%. Our steadfastly low-risk portfolio just couldn't keep pace with a runaway stock rally stoked by the continuing monetary stimulus of the Federal Reserve and other central banks around the globe. In a liquidity aided, momentum market where technology stocks and a plethora of initial public offerings (IPOs) are the craze, we surely will not be the top performer. During the quarter Apple shares soared an amazing 48% to become the world's biggest company by market value and 4% of the S&P 500's capitalization. The potential for the portfolio "torpedo" that results when a high expectation popular stock disappoints then crashes leads us to be more cautious as excitement builds.

      


  • Top Manager Jeff Auxier Buys 10 New Stocks and Sells Zero in First Quarter

    Value-oriented money manager Jeff Auxier, who oversees the Auxier Focus Fund, is seeing significant opportunity in the markets right now. In the first quarter, he bought 10 new stocks for his portfolio, which now contains 140 companies, and did not sell out of any positions. The fund had been harboring more cash than usual, believing “recoveries following balance sheet recessions historically are more susceptible to outside shocks,” both as a precaution and to be ready to spend at the right time.

    Exceptional stock picking has contributed to Auxier’s market-beating returns. In 2011, he returned 5.57%, more than twice the S&P’s 2.11% gain, and has returned 113.49% since inception in 1999, compared to 12.58% for the S&P.  


  • Auxier Focus Fund Buys PepsiCo, Procter & Gamble, Avon, Baxter, Carnival Corp

    Value investor Jeff Auxier just reported his first quarter portfolio. Mr. Auxier has displayed good risk control capability in the market crash of 2008. His Auxier Focus fund gained 76.9% cumulaively over the past 10 years, while the S&P500 gained 34.9%.

    As of 03/31/2012, Auxier Focus Fund owns 140 stocks with a total value of $311 million. These are the details of the buys and sells. He was heavily buying new stocks during the first quarter, and did not sell much. Interesting, many of his stocks are also in the portfolio of Don Yacktman.  


  • Jeff Auxier's Top Dividend Equities: TEF, T, NOK, RIG

    When one considers popular financial hubs, Lake Oswego, Ore., hardly fits the profile. After all, this sleepy resemblance of a town has a population of merely 40,000, and almost nothing to place it on the national map. Like finding a needle in the haystack, in this relatively unknown location lies Auxier Asset Management, a full-fledged investment management firm with over $261 million in equities under management.

    Founded in July 1998 by namesake founder Jeff Auxier, this firm has certainly flown under the radar when compared against the bigger and more “prestigious” operations. Boasting over 25 years of experience, Auxier’s style of leadership was heavily influenced by a certain client known as Robert Pamplin Sr., former CEO of Georgia Pacific, at the tender age of 11. While mowing lawns for Pamplin, he was taught the value of ethical leadership and transparent operations. Furthermore, he was taught that the “language of business is accounting,” and as such, graduated from the University of Oregon with a degree in finance and emphasis in accounting. From this humble beginning, he launched a career at what is now known at Smith Barney, and has worked with or received advice from legendary finance gurus such as Warren Buffett and Jamie Dimon of JP Morgan. Earning coveted rewards such as the Consulting Group Bow Dwyer Award and All-Star Broker back to back in 1997/1998 by Money Magazine, Auxier’s future was all but set in stone. However, rather then continue along the yellow brick road at Smith Barney, Auxier sought more, an environment in which his successes or failures were directly aligned with those of his clients. As such, Auxier took the biggest risk of his career and launched what is now the modern day Auxier Asset Management.  


  • Jeff Auxier Fourth Quarter Commentary

    Year End 2011 Results: Auxier Focus Fund returned 8.65% in fourth quarter 2011, trailing a corresponding 11.82% rebound in Standard & Poor’s 500 stock index (S&P). For the year, however, the Fund’s 5.57% return more than doubled the S&P’s 2.11% gain. The average U.S. stock fund lost 2.9% (Lipper).

    Hedge funds tanked even more, dropping 5.38% on average based on Barclay’s Hedge Fund Index.  


  • Auxier Focus Fund keeps buying undervalued MSFT shares

    Jeff Auxier manages Auxier Focus Fund, which, in the 10- year period ended 2009 gained more than 75%. Jeff Auxier, unlike other fund managers with very little experience in the industry, offers more than 25 of good performance. He is also very passionate for research and is devoted to “eating his own cooking”.

    Before Auxier Focus Fund, Auxier worked for Smith Barney and has earned national awards and recognitions for performance and “integrity, knowledge and commitment.” Much of his success can be attributed to being tutored by Mr. Robert Pamplin, CEO of Georgia Pacific. As Jeff puts it, “Mr. Pamplin always put his shareholders first and believed business should be transparent. He said the language of business is accounting, and that if you can’t speak the language, you can’t make money.”  


  • Auxier Asset Management Third Quarter Report

    Stock markets around the globe have slumped on fears that Greece would default on its debt and trigger a financial contagion. The proliferation of short-term trading vehicles like leveraged ETF’s (Exchange Traded Funds) has further stoked volatility and uncertainty. Instead of trying to divine the outcome of a crisis, we have found it better to focus on the credit analysis of individual securities. We concentrate on businesses and managements that can survive the most challenging of economic circumstances. Today, it is especially important to be positioned in investments that can thrive through a potentially long and painful period of deleveraging. The process of restructuring debt-laden companies can result in exciting undervalued situations for serious, long-term investors. This is a favorable backdrop in which to buy first-rate companies at price levels that can eventually lead to double or triple-play returns. Given the extraordinary levels of government debt in many developed countries, investors can’t rely on a rebounding economy to bail them out of poor investment selections. Eighteen months ago, for example, we were able to buy an extremely undervalued Weight Watchers stock at 26, a mere nine times earnings, on perceptions that profit growth faced several lean years ahead. Management, led by David Kirchhoff, proved the skeptics were wrong, and the stock tripled to 79 this past quarter. Investing is fundamentally the craft of the specific. Too few truly understand what they own, why they own it or what it is worth.

    I have owned or followed many of our top holdings for over 20 years. Most are trading at steep discounts to their average valuations over the past ten years. We particularly like far reaching distribution arms that tap into aspiring populations in emerging markets. We seek energetic management that is on a mission to create a great product or service, as opposed to using financial engineering to generate returns. Most of our businesses are self-funding. They typically have high free cash flow yields, high returns on invested capital, strong balance sheets and the ability to grow dividends. Despite all these strengths, opportunities for material misappraisals still abound in these times of crisis when the future is unclear and the consensus is, “this is no time to invest.”  


  • Auxier Fund Q3 update: Buys PEP, UN, MDT, MHS, TEF, NWL, TAP, BMY, JNS

    Auxier Asset Management is an investment management firm established in Tualatin, Ore. Founded in July 1998 by namesake founder Jeff Auxier, the firm currently manages over $400 million in assets. Auxier is a graduate of The University of Oregon, earning a degree in finance with an emphasis in accounting. His professional experience stems from what would become Salomon Smith Barney, earning numerous accolades such as the Consulting Group Bow Dwyer Award. Throughout his storied career, he has worked and consulted with legendary CEOS and investors such as Jamie Dimon of JP Morgan and Warren Buffet. The flagship fund of Auxier Management is the Auxier Focus Fund (AUXFX). This is the portfolio update of Auxier Asset Management for the quarter ended on Sept. 30, 2011.

    “The best way to make money is to buy outstanding companies at a time when market pessimism is driving them to prices that represent compelling value.” Said Jeff Auxier. To learn more about him, please read: Q&A with Jeff Auxier of The Auxier Focus Fund.  


  • New Features We Added to GuruFocus Recently

    At GuruFocus, we are continuously improving the features we have and developing new features. As a subscriber, you just need to let us know what you want, and we will deliver it to you. This is a summary of the features we recently added.

    1. Insider Trends Are Added to Insider Trades Page   


  • Jeff Auxier's Auxier Asset Management and His Top Holdings

    Auxier Asset Management is an investment management firm established in Tualatin, Ore. Founded in July 1998 by namesake founder Jeff Auxier, the firm currently manages over $400 million in assets. Auxier is a graduate of The University of Oregon, earning a degree in finance with an emphasis in accounting. His professional experience stems from what would become Salomon Smith Barney, earning numerous accolades such as the Consulting Group Bow Dwyer Award. Throughout his storied career, he has worked and consulted with legendary CEOS and investors such as Jamie Dimon of JP Morgan and Warren Buffet. The flagship fund of Auxier Management is the Auxier Focus Fund (AUXFX).

    “The best way to make money is to buy outstanding companies at a time when market pessimism is driving them to prices that represent compelling value.”  


  • Jeff Auxier Adds BNY Mellon, Merck, Medtronic; Buys Aflac

    Jeff Auxier is the manager of Auxier Focus Fund. Auxier typically screens companies for good value, low risk, and the potential for strong returns. He prefers companies with strong or improving fundamentals, including consistent operating results, substantial free cash flow, strong balance sheets, and high rates of return on capital. He also looks for shareholder-oriented management that allocates capital well and companies with substantial competitive advantages and understandable products. The Auxier Focus Fund has a earned a ten-year cumulative return of 88.8%, outperforming the S&P 500's 16.4% return over the same timeframe. In his second quarter portfolio update, Auxier added Bank of New York Mellon (BK), Merck (MRK), and Medtronic (MDT) and bought Aflac (AFL).

    Bank of New York Mellon Corporation (NYSE:BK)  


  • Auxier Fund Q2 Update: Buys AFL, TEF, AIG, SFG, JWN, QCOM, BK, MRK, MDT

    Jeff Auxier at Auxier Fund just reported his Q2 portfolio. He made plenty of new purchases, and sold just a few. Auxier Focus Fund returned 1.79% in the second quarter 2011, while Standard & Poor's 500 stock Index (S&P) gained 0.10%. For the first six months the Fund was up 8.44%, briskly outpacing the S&P's 6.02%. The Fund also has outperformed the market by 102 percentage points cumulatively since inception in July 1999. As of 06/30/2011, Auxier Focus Fund owns 132 stocks with a total value of $252 million. These are the details of the buys and sells. In his latest shareholder letter, Jeff Auxier warned of the commodity and discussed about his focus on risk management.

    This is the portfolio chart of Jeff Auxier. You can click on the legend of the chart to show/hide buys, sells, or holdings. Each ball on the chart represents a position in the portfolio. You can move your mouse on the balls to see the details of each position and click to see the details of all guru trades with this position.  


  • Auxier Funds Quarterly Shareholder Letter

    Summer 2011

    Market Commentary
      


  • Microsoft Q3 2011: Priced for Failure

    Well, that was an interesting five days for Microsoft (MSFT). Through the first four days of the week, the stock was on a nice run, moving nearly 5% higher. Then, after releasing what appeared to be strong earnings, the stock got plummeted, and was down more than 5% for part of the day (closed down 3%). This morning, the stock has once again opened lower, leaving us, when all is said and done, nearly flat with where we started on April 25. The question is, when we step back from the noise, what did the earnings report tell us about Microsoft the business? Most importantly, is there any indication from the quarterly report that the bears might be right and that Microsoft is a value trap?

    To start with, let’s look at the quarterly results: Revenue, operating cash flow, net income and earnings per share increased 13%, 17%, 31% and 36%, respectively, in the third quarter (compared to last year’s results). Regardless, the stock was beaten down to a dip in sales in Windows & Windows Live Division. The average analyst estimate for 2011 EPS is $2.56, a nearly 22% increase in earnings from 2010; this is for a stock that is currently trading at 10x forward EPS and has roughly $40 billion in net cash on the balance sheet.  


  • Match Bull Markets while Outperforming Bearish Ones; Auxier Fund’s Large Cap Holdings: PM, WMT, KO, WTW, TRV, APOL

    Jeff Auxier of Auxier Focus Fund reported his fourth quarter portfolio. For the year 2010 his fund returned 10.1% compared with 15.06% for the S&P. Since inception in 1999, his fund has outperformed the market by 92% cumulatively. The goal of Jeff Auxier is to match bull markets while dramatically outperforming bearish ones.

    Indeed, if we look into the performance of Auxier Focus Fund in the down years of the last decade, it did better than the market by 24.5% in 2001, when the market declined by 12%; it outperformed again in 2002 by 15%, and 12% in 2008.  


  • Q&A with Jeff Auxier of The Auxier Focus Fund

    1. How many positions are there in the fund usually? I don’t think it’s very concentrated by looking at the % invested in the top 10 holdings?

    The Auxier Focus Fund has a number of "tracking" positions that I like to follow before taking a larger commitment. Therefore the number of positions is a little overstated. Generally, position sizes are a function of the compelling nature of the investment and the margin of safety. Given the easy money Fed policies over the past eleven years and the competitive nature of the global economy, it has been harder to find impregnable franchises. In the early 1980’s it was much easier to find strong businesses at bargain prices and therefore easier to justify larger position sizes. If we get to bear market washout prices, I would be more comfortable buying bigger positions. When the corporate bond market hit depression lows I was much more aggressive in that space, taking larger positions in senior debt securities. When a highly predictable business with superior management goes on sale, I will go higher in the weighting, but it has to be compelling. The “easy money" backdrop has meant the market has not been allowed to clear to price points that provide an adequate margin of safety. Due to the potential “torpedo effect” of large positions on the portfolio, the macro conditions have made it more risky. Compounding is our focus and to win we must first not lose.  


  • Auxier Focus Fund Buys BP P.l.c., Glaxosmithkline Plc, H&R Block Inc., Sells Cisco Systems Inc., Petroleo Brasileiro, Amgen Inc.

    Jeff Auxier of Auxier Focus Fund just reported his Q2 portfolio holdings. The fund did not initiate new positions in Q2, added to existing positions, and exited from a number of positions.

    GuruFocus is hosting a Q&A with Jeff Auxier. If you have questions, please feel free to ask.  


  • Q&A with Jeff Auxier of Auxier Focus Fund, Please Ask

    Jeff Auxier of Auxier Focus Fund has agreed to take questions from our users. Please reply this article with your questions to Jeff Auxier.

    Jeff Auxier may not be a household name of mutual fund managers, but he has achieved a track record that many house name mutual fund managers would love to have. Over the past 10 years ended 2009, his fund has a cumulative return of 86.5%, while the S&P 500 lost 8.1%. In 2008, the market was down 37%, his fund lost 24.5%, a lot less than the market. In this year until June 30, his fund was down 3.99%, while the market lost 6.65%.  


  • Jeff Auxier Buys H&R Block Inc., Bridgepoint Education Inc, Amgen Inc., Career Education Corp., Amgen Inc., Cisco Systems Inc., Sells Universal Technical Institute Inc.

    Jeff Auxier is probably not a well known mutual fund manager. But he is one of the most respected investors of Don Yacktman. This tells us something. We have just added Mr. Auxier into our list of Premium Gurus.

    Jeff Auxier is the manager of Auxier Focus Fund. For the 10-year period ended on Dec. 31, 2009, his fund gained 78.4% cumulatively, while the S&P500 lost 8.1%. Jeff Auxier tries to find compelling, undervalued companies that ideally exhibit the following attributes:  


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