Jeremy Grantham

Jeremy Grantham

Last Update: 11-10-2016

Number of Stocks: 510
Number of New Stocks: 60

Total Value: $21,181 Mil
Q/Q Turnover: 11%

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

Jeremy Grantham Watch

  • Mariko Gordon Adds 5 New Holdings to Portfolio

    Daruma Capital Management’s Mariko Gordon (Trades, Portfolio) acquired five new holdings in the third quarter.


    Gordon founded Daruma in 1995 in New York and currently serves as CEO. Gordon runs a concentrated portfolio of small to mid-cap stocks because she believes a concentrated portfolio is crucial to truly active management. She believes the best time to acquire a stock is when it offers good value and the factor that will propel the price higher can be identified.

      


  • 9 Companies Grantham Continues to Boost

    Jeremy Grantham (Trades, Portfolio) is the chairman of Grantham Mayo Van Otterloo, a Boston-based asset management firm. In both the second and third quarters the guru bought shares in the following stocks:


    Noble Corp. PLC (NE)

      


  • Abbott Laboratories CEO Buys Stock in Company

    Miles White (Insider Trades), CEO and chairman of Abbott Laboratories (ABT), purchased 369,950 shares in the company in five transations on Nov. 10. The per share price ranged from $40.45 to $40.67.


    Abbott Laboratories is a health care company that provides generic branded pharmaceuticals. The company has a market cap of $57.62 billion.

      


  • Hellish Choices: What’s an Asset Owner to Do? - Ben Inker Letter

    Executive Summary

      


  • Smith & Wesson to Change Name

    In an effort to be known as more than just a gunmaker, Smith & Wesson (NASDAQ:SWHC) announced Monday it will be changing its name to American Outdoor Brands Corp.


    “We believe the name 'American Outdoor Brands Corp.' will better reflect our family of brands, our broad range of product offerings and our plan to continue building upon our portfolio of strong American brands,” CEO James Debney said.

      


  • Jeremy Grantham's 3rd Quarter Commentary: Not With a Bang but a Whimper (and other stuff)

    Preamble


    Rather like a parrot I have been repeating for 10 quarters now my belief that we would not have a traditional bubble burst in the US equity market until we had reached at least 2300 on the S&P, the threshold level of major bubbles in the past, and at least until we had reached the election. Well, we are close on both counts now. My passionate hope was that I would then, perhaps 6 months after the election, recommend a major sidestep of the coming deluge that would conveniently have arrived 6 to 12 months later, allowing us then, after a 50% decline, to leap back into cheap equity markets enthusiastically, more enthusiastically, that is, than we did last time in 2009. Thus we would save many of our clients tons of money as we had (eventually) in the 2000 bust, at least for those clients who stayed with us for the ride, and in 2007. I consider myself a bubble historian and one who is eager to see one form and break: I have often said that they are the only really important events in investing.

      


  • Slow & Steady for Check Point Software

    Growth at Check Point Software Technologies Ltd. (CHPK) has slowed. But this resident of the Undervalued Predictable and Buffett-Munger screeners at GuruFocus has potential for investors who want a tech company that can consistently deliver increasing earnings.


    With current concerns about internet security and hacking, it’s probably a good time to look at companies that help us protect our computers, servers and infrastructure. Check Point has been doing that for more than twenty years.

      


  • 6 Stocks With Growing Yield and Strong Returns

    Using the GuruFocus All-In-One Screener, I want to highlight stocks that have a 5-year growing dividend yield with strong profitability and a long-term track of solid returns and growing asset value.


    Church & Dwight Co. Inc.(NYSE:CHD) has a dividend yield that has grown by 31.80% over the last five years. The yield is now 1.49% with a payout ratio of 40%. The company has a 10-year asset growth rate of 8%, supported by a current return on assets (ROA) of 10.66% that, during the last 10 years, has had a median value of 9.19%.

      


  • Warning Signs Identify Value Declining Companies

    Among U.S. companies, Leucadia National (Trades, Portfolio) Corp. (NYSE:LUK) has declining profit margins and a weakened financial outlook. As the beef-processing company shows warning signs of potential bankruptcy, several gurus look elsewhere for growth and value.


    Brief discussion about the warning signs

      


  • Airline Stocks Offer High Growth and Value

    Among companies trading on the New York Stock Exchange and the Nasdaq, airlines have high growth and value potential. Alaska Air Group Inc. (NYSE:ALK) and Allegiant Travel Co. (NASDAQ:ALGT) currently have low cash conversion cycles, which lead to effective management and increasing profit margins.


    Cash conversion cycle measures efficiency and management effectiveness

      


  • Recreational Vehicle Companies Have Soaring Returns

    Among the industries for U.S. companies, the auto industry contains several companies that have high returns on equity and high returns on assets. Two recreational vehicle companies, Polaris Industries Inc. (NYSE:PII) and Thor Industries Inc. (NYSE:THO), had historically increasing returns, suggesting that the recreational vehicle industry offers good value opportunities for investors.


    Five different return ratios

      


  • Medical Companies Offer Good Value Opportunities

    Due to the great financial crisis, most companies were undervalued based on their valuations. Based on backtesting results, the “Peter Lynch Growth with Lower Valuation” test portfolio took positions in Baxter International Inc. (NYSE:BAX) and Abbott Laboratories (NYSE:ABT), two medical companies that reached historically low price-earnings ratios. While these companies presented good value opportunities from 2007-2011, other medical companies provide better opportunities in 2016.


    Brief introduction of Peter Lynch

      


  • GMO's New 7-Year Forecast Highlights One Incredible Fact

    U.S. equities have performed incredibly well since the 2008 to 2009 financial crisis. Since those lows, the S&P 500 has gone on a tear, exploding nearly 260% in just seven years.


    According to GMO LLCa $120 billion asset manager co-lead by Jeremy Grantham those days are over.

      


  • The Reserve: The Dollar, the Renminbi, and Status of Reserve - GMO White Paper

    Part I - The Dollar Ascendant


    When I was in elementary school, my family made regular trips to my parents’ birthplace of India. The journey would normally take us from our home in Iowa, to London, to Bombay (now Mumbai), and finally to Hyderabad. Upon arrival, we children would clamor for the local currency, rupees. These rupees were the key to making the summer trip tolerable: rupees purchased quantities of lassi, ice cream, and Indian fruit sodas. During our layover in Bombay, my father allowed us the luxury of room service. After the server made the delivery, he waited for the customary gratuity, and I realized that I had not a rupee on me. I reached into my pocket, but only found a crumpled dollar. I gave it to him with trepidation, but was relieved when he gladly accepted it. At the time, it struck me as odd that the US dollar, a foreign currency, would be accepted by a server thousands of miles away from the US. Now, many years later, that incident serves to remind me of the power and convenience of a reserve currency.

      


  • 3 More Reasons Grantham Favors Commodity Stocks

    Earlier, we highlighted three reasons to own commodity stocks, not commodities themselves. The thesis stemmed from research done by Jeremy Grantham (Trades, Portfolio) and Lucas White of GMO LLC, an asset manager with more than $120 billion in assets.


    It is worth your time to listen to Grantham. He's credited with calling the 2008-2009 housing collapse and the following credit crisis. Previously, he started one of the world's first index funds in the early 1970s, avoided investing in Japanese equities and real estate in the 1980s and recommended not investing in technology stocks during the Internet bubble in the 1990s.

      


  • Jeremy Grantham Says Own Commodity Stocks, Not Commodities

    In recent years, it has become vogue to invest directly in commodities, especially with the advent of ETFs allowing quick, cheap and easy exposure. Given the performance gap between, say, gold miners and the price of gold, many investors have been satisfied with their decision.


    But, in a recent white paper, Lucas White and Jeremy Grantham (Trades, Portfolio) present a compelling case for investing in resource equities rather than the commodities themselves. Here is what they found.

      


  • Jeremy Grantham - An Investment Only a Mother Could Love: The Case for Natural Resource Equities

    Executive Summary




  • Jeremy Grantham Trims Amazon, Baidu, Wal-Mart

    Jeremy Grantham (Trades, Portfolio) is the Chairman of the Board of Grantham Mayo Van Otterloo, a Boston based asset management firm. The following are his largest trades of the second quarter.


    The guru almost closed his stake in Amazon Inc. (AMZN), reducing it by 97.56% with an impact of -2.76% on the portfolio.

      


  • Steve Mandel Buys Shire, Axes 6 Positions in 2nd Quarter

    Steve Mandel (Trades, Portfolio), founder of Lone Pine Capital, utilizes a long-short equity strategy to create long-term capital growth. During the second quarter, the fund manager bought Shire PLC (NASDAQ:SHPG), reduced three existing positions and eliminated three stakes.


    The Lone Pine Capital manager purchased 2,529,148 shares of Shire at an average price of $180.56 and sold all 10,591,296 shares of Baxalta Inc. (NYSE:BXLT) at an average price of $42.24. In the aggregate, Mandel increased his portfolio by 0.02% with these transactions.

      


  • Tom Gayner Buys Microsoft, Amazon

    Tom Gayner (Trades, Portfolio), executive vice president and chief investment officer of Markel Corp. (NYSE:MKL) and president of Markel Gayner Asset Management Inc., Markel's investment subsidiary since December 1990, bought shares in the following stocks in the second quarter.


    The investor acquired 522,000 shares in Liberty Media Corp. (LSXMK) with an impact of 0.42% on the portfolio.

      


  • Jim Simons' Top New Holdings

    During the second quarter, Jim Simons (Trades, Portfolio) of Renaissance Technologies LLC acquired three new holdings. He purchased Nike Inc. (NYSE:NKE), The Home Depot Inc. (NYSE:HD) and Salesforce.com Inc. (NYSE:CRM).


    Nike

      


  • Richard Perry Buys St. Jude

    During the second quarter, Richard Perry (Trades, Portfolio), co-founder of Perry Capital, acquired a new holding in St. Jude Medical Inc. (NYSE:STJ).


    Perry purchased 265,000 shares at an average price of $71.31 per share. The transaction had an impact of 1.44% on his portfolio and is among his top 10 holdings for the quarter.

      


  • John Hussman Buys Infosys, Southern

    John Hussman (Trades, Portfolio) is the president and principal shareholder of Hussman Strategic Advisors, the investment advisory firm that manages the Hussman Funds. During the second quarter he bought shares in the following stocks.


    The investor raised his stake in Infosys Ltd. ADR (INFY) by 7,042.86% with an impact of 1.34% on the portfolio.

      


  • Stocks With Low Price to Sales: Barclays, Loews Corp

    According to GuruFocus' All-in-One Screener, the following are the stocks with market caps above $5 billion that are trading with low price-sales ratios.


    Canon Inc ADR. (CAJ) is trading at about $28 per share with a P/S ratio of 1.00 and an estimated forward price-earnings of 16.07. The company has a market cap of $63.8 billion and over the last 10 years, the stock has dropped by 40%. During the last 52 weeks, the price has been as high as $32.64 and as low as $26.60.

      


  • Jeremy Grantham's GMO 2nd-Quarter Commentary: Immigration and Brexit

    Preface


    I set myself a task this quarter to give my views on why suddenly so many strange things are going on in the US and in the UK and what they might mean. We in the US can see the turmoil resulting from the Brexit vote, which seems to have been undertaken almost casually, without the normal planning for consequences. It has been likened to a dog that to its amazement catches the car – now what? The consequences for the remarkable experiment of the European Union are unknowable but potentially profound.

      


  • Ben Inker's GMO 2nd Quarter Letter: The Duration Connection

    Executive Summary


    Over the last six or seven years, most financial assets have done very well. The performance divide has not been between low-risk assets and high-risk assets or between liquid assets and illiquid assets, but between long-duration assets and short-duration assets. Long-duration assets such as stocks, bonds, real estate, and private equity have benefitted from a large fall in the discount rate associated with their cash flows, while short-duration assets have been hurt by the same fall. Investors tend to tilt their portfolios in favor of those assets that have done well, and today that pushes them to be increasing effective duration in their portfolios, just when the potential returns to those assets have dropped. What we believe would be most helpful to investors are short-duration risk assets, as they offer the potential of decent returns over time with less vulnerability to rising discount rates. These assets, generally lumped together under the “alternatives” title, are generally out of favor today given their disappointing performance since the financial crisis, but the characteristics that made them disappoint may well prove a blessing if discount rates start to rise.

      


  • Peter Lynch's Bargains

    According to GuruFocus' All-in-One Screener, several gurus are focusing on stocks whose Peter Lynch fair value is far above the current price. The following stocks are trading with wide margins of safety and at least five gurus are shareholders.


    AerCap Holdings NV (AER) is trading at about $36 per share, the Peter Lynch value gives the stock a fair price of $81.2, giving investors a margin of safety of 56%.

      


  • Retail Companies Offer Strong Investment Opportunities

    Among companies trading on the Standard & Poor’s 500 index, several retail companies like Nike Inc. (NYSE:NKE) had strong Altman Z-scores throughout their histories. With above-average Z-scores and historically strong business operations, these companies offer hot opportunities for investors.


    A brief recap on Altman Z-scores

      


  • Gurus' Stocks Trading Below Peter Lynch's Fair Value

    According to GuruFocus' All-in-One Screener, several gurus are focusing on stocks whose Peter Lynch fair value is far above the current price. The following stocks are trading with wide margins of safety and at least five gurus are shareholders.


    Lincoln National Corp. (LNC) is trading at about $39 per share, and the Peter Lynch fair value gives the stock a fair price of $62.37, giving investors a margin of safety of 37%.

      


  • Piotroski F-Score Study: Specialty Retail Companies Offer Hot Buys

    As of July, the Piotroski F-scores for Standard & Poor's 500 companies are normally distributed with a mean of 5.59 and a standard deviation of 1.44. Among specialty retail companies, Foot Locker Inc. (NYSE:FL) and AutoZone Inc. (NYSE:AZO) have the maximum F-score of 9. Since these stocks have many good signs, including high F-scores, many gurus invest major capital into specialty retail companies.


    The Piotroski score and its distribution among S&P 500 companies

      


  • Spiros Segalas Sells Amazon, Priceline, MasterCard in 1st Quarter

    Spiros Segalas (Trades, Portfolio) invests primarily in equity securities, principally common and preferred stocks of U.S. companies with market capitalizations of at least $1 billion at the time of purchase and that the subadviser considers to have above-average prospects for growth. During the first quarter the fund sold shares of the following stocks:


    The firm closed its stake in Chipotle Mexican Grill Inc. (CMG) with an impact of -1.16% on the portfolio.

      


  • This Insurance Company Is Making Money Despite Weak Investment Returns and Competition

    The Travelers Companies Inc. (NYSE:TRV) is an insurance company, even more undervalued in the past few days, as it experiences collatoral damage from the Brexit vote. But behind the currently weak share price we find a solid company with promise.


    GuruFocus TRV logo

      


  • Ray Dalio Sells Viacom and Exelon, Trims Apple and Pepsi

    Ray Dalio (Trades, Portfolio) founded Greenwich, Connecticut-based hedge fund Bridgewater Associates in 1975. Now it has more than $165 billion under management. During the first quarter he sold shares in the following stocks:


    The guru closed his stake in BCE Inc. (BCE) with an impact of -0.39% on the portfolio.

      


  • Guru Stocks With Wide Margin of Safety

    The following stocks are trading with wide margins of safety, according to the DCF calculator, and some of them have very low P/E ratios. GuruFocus' All-in-One Screener can be used to find similar stocks.


    Discover Financial Services (DFS) has a market cap of $23.21 billion and a GuruFocus business predictability of 5/5 stars. The stock has a price of $56.3 with a P/E ratio of 10.83 and according to the DCF calculator is trading with a margin of safety of 54%, since its fair value is $122.2. During the last 12 months the price of the stock has dropped by 3% and is now 5.98% below its 52-week high.

      


  • Jeremy Grantham Buys 2.5 Million Shares of JetBlue Airlines

    Guru Jeremy Grantham (Trades, Portfolio) increased his stake in JetBlue Airways Corp. (NASDAQ:JBLU) by 2,587,600 shares during the first quarter at an average price of $21.15. The purchase had a 0.21% impact on Grantham’s current portfolio.


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  • DCF Calculator: Grantham's Top 6 1st-Quarter Reductions Bring Better Than Fair Value

    Jeremy Grantham (Trades, Portfolio) of GMO LLC reduced more than 200 stakes in the first quarter. His top six reductions brought prices that exceeded their present value, according to the DCF Calculator.


    In the guru’s most significant trade of the quarter, Grantham trimmed his stake in Charter Communications Inc. (NASDAQ:CHTR), a telecommunications and mass media company based in Stamford, Connecticut, by more than 60%. The guru sold 2,844,796 shares for an average price of $198.44 per share. The deal had a -2.07% impact on Grantham’s portfolio.

      


  • Jeremy Grantham Adds to Stake in VimpelCom

    Jeremy Grantham (Trades, Portfolio) added 1,822,800 shares to his stake in VimpelCom Ltd. (NASDAQ:VIP).


    1633571193.png

      


  • Jeremy Grantham's Q1 GMO Letter: 'Part I: Always Cry Over Spilt Milk'

    Introduction

      


  • DCF Calculator To Show Undervalued Stocks

    The following stocks are trading with wide margins of safety, according to the DCF calculator, and some of them have very low P/E ratios. GuruFocus' All-in-One Screener can be used to find similar stocks.


    Ever-Glory International Group Inc. (EVK) has a market cap of $27.21 million and a business predictability of 4/5 stars. The stock has a price of $1.86 with a P/E ratio of 2.04 and, according to the DCF calculator, is trading with a margin of safety of 21.81% since its fair value is $21.81. During the last 12 months the price of the stock has dropped by 68% and is now 69.85% below its 52-week high.

      


  • Guru Stocks With High Yield and Profitability

    Thanks to GuruFocus’ All-In-One Screener, I want to highlight stocks that have a growing dividend yield with sustainable payout ratio. This sustainability is confirmed by long-term profitability and a very strong financial situation.


    CA Inc. (CA)

      


  • UnitedHealth’s Obamacare Changes to Affect Healthcare Sector

    UnitedHealth (NYSE:UNH) reported its first quarter earnings results on April 19. UnitedHealth is the Dow Jones Industrial Average’s only healthcare stock focused primarily on healthcare plans. Following its early morning earnings release, the company reported a gain for the day of 2.1%.


    Favorable market trading was led by a revenue and earnings beat for the first quarter. UnitedHealth reported revenue of $44.53 billion, beating analysts’ estimates by $570 million and reporting a year-over-year gain of 24.5%. EPS of $1.81 also beat analysts’ expectations and reported a positive gain of 17% year over year.

      


  • Oracle: The Best Value in Tech

    Last month when Oracle (NYSE:ORCL) reported its numbers, earnings per share came in at 59 cents, beating estimates. Revenue, however, declined 3.4% year over year to $9.01 billion. With the state of big tech, Oracle is definitely the best value right now.


    The state of big tech

      


  • Low PS Stocks That Are Still Expensive

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


    Progressive Corp. (PGR) is trading at about $35.48 with a P/S ratio of 1.00 and an estimated P/E multiple of 16.40. The company has a market cap of $20.73 billion and over the last 10 years, the stock has risen by 37%. During the last 52 weeks, the price has been as high as $35.50 and as low as $26.44.

      


  • Ruane Cunniff Boosts Time Warner During 4th Quarter

    Ruane Cunniff (Trades, Portfolio) is a value investor focused on the intrinsic value of business. It is a long-term investor and will buy a stock and hold it for a long time, even if sometimes the stocks seem to be overvalued. Its largest buys during the fourth quarter were:


    The investor increased its stake in Precision Castparts Corp. (PCP) by 33.93%, and the deal had an impact of 1.59% on the portfolio.

      


  • GMO's James Montier - The Stock Market as Monetary Policy Junkie: Quantifying the Fed’s Impact on the S&P 500

    White paper by GMO's James Montier and Philip Pilkington


    Executive Summary

      


  • High Quality Stocks: Chipotle Mexican Grill, Dollar Tree Stores

    According to GuruFocus’ All-in-One Screener, the following stocks have a high business predictability rating, and at least five gurus are shareholders in the companies.


    Chipotle Mexican Grill Inc. (CMG)

      


  • Guru Stocks That Are Outperforming the S&P 500

    The following are some of the stocks that outperformed the S&P 500 Index over the last 12 months and have been bought by gurus during the last quarter.


    Cablevision Systems Corp. (CVC) has a market cap of $9.1 billion, and during the last 12 months has outperformed the S&P 500 Index by 88.3%. Currently six gurus are holding the company that has returned 4% year-to-date and 35% during the last five years. It is now trading with a P/E ratio of 52.21 and according to the DCF calculator, it looks overpriced by 359%.

      


  • Why Tyson Foods Is an Undervalued Stock

    Tyson Foods Inc. (NYSE:TSN) is a $23.53 billion market cap company. Tyson is one of the world's largest suppliers of beef, chicken, pork, and prepared foods.


    The company has a great portfolio of products, and despite their lower margins in meat products, the firm is guided by commodity prices. Tyson operates in a competitive industry, and it has to manage to quickly shift products in order to maintain its position. No one can doubt that the company is a great meat processor with presence in the chicken, beef, and pork segments, which are substitute products depending on prices.

      


  • Sarah Ketterer Invests in Allstate

    In the fourth quarter, Sarah Ketterer purchased 1,541,690 shares of AllState Corp. (NYSE:ALL), a holding that some successful gurus had been reducing or selling from their portfolios.


    Allstate is an insurance company that was founded on April 17, 1931. The company is engaged in property liability insurance and life insurance. Allstate conducts business across the U.S. and Canada. It has four business segments that include: Allstate Protection, Allstate Financial, Discontinued Lines and Coverages and Corporate and Other.

      


  • Top Insider Trades of the Past Week

    The All-in-One Screener can be used to find insider buys and sales over the last week by clicking on the Insiders tab and changing the settings for All Insider Buying to “$1,000,000+” and duration to "February 2016."


    According to the above filters, the following are the recent buys from company insiders in the past week.

      


  • Jeremy Grantham Sells Stake in Alibaba

    Jeremy Grantham (Trades, Portfolio), chairman of the board of Boston-based Grantham Mayo Van Otterloo, bought 80 new stakes in the fourth quarter, but his largest deals involved divestitures or reductions.


    Grantham’s most noteworthy fourth-quarter transaction was the divestiture of his 15,051,767-share stake in Alibaba Group Holding Ltd. (NYSE:BABA), a Chinese ecommerce company, for an average price of $78.9 per share. The deal had a -3.08% impact on Grantham’s portfolio.

      


  • Guru Stocks With High Business Predictability

    According to GuruFocus’ All-in-One Screener, the following stocks have a high business predictability rating, and at least five gurus are shareholders of the companies.


    Gildan Activewear Inc. (GIL)

      


  • First Eagle Cuts McDonald's Stake by Half

    First Eagle Investment (Trades, Portfolio) is an independent firm that has helped clients preserve purchasing power and earn attractive returns through widely varied economic cycles. The following are the stakes that the firm reduced during the fourth quarter.


    The firm reduced its stake in McDonald's Corp. (MCD) by 50.36% with an impact of -0.73% on the portfolio.

      


  • Jeremy Grantham's GMO Ups Stake in EMC Corp.

    Jeremy Grantham (Trades, Portfolio) is the chairman and co-founder of the investment firm Grantham, Mayo, Van Otterloo & Co. LLC, which is based in Boston. The firm was founded in 1977 with a partnership between Grantham, Richard Mayo, and Eyk Van Otterloo. Initially the three partners were solely managing U.S equity portfolios. As the years rolled on, the firm expanded and became a globally diversified investment firm.


    GMO currently owns 543 stocks with a total valuation of $27.8 billion.

      


  • Charles Brandes Bets on Aaron's, Small-Cap ETF

    Charles Brandes (Trades, Portfolio) is the portfolio manager for the US Equity and Global Equity strategies at Brandes Investment Partners, the firm he founded in 1974. During the fourth quarter, he initiated new positions in 13 new stocks, according to data reported by GuruFocus Real Time Picks.

    Aaron’s Inc. (NYSE:AAN)  


  • Starbucks, Foot Locker Beat the Market Over Past Year

    The following are some of the stocks that outperformed the S&P 500 Index over the last 12 months and have been bought by gurus during the last quarter.


    Avery Dennison Corp. (AVY) has a market cap of $5.55 billion, and during the last 12 months has outperformed the S&P 500 Index by 31.3%. Currently five gurus are holding the company, which has returned 3% year-to-date and 56% during the last five years. It is now trading with a P/E ratio of 20.10 and according to the DCF calculator, it looks overpriced by 88%.

      


  • Jeremy Grantham Part II: 2015 and 2016, U.S. Equity Bubble Update, and Yet More on Oil

    Summary




  • Jeremy Grantham GMO Letter - Part I: The Real American Exceptionalism

    Introduction


    If you listen to most red-blooded Republican candidates for President, you will often hear lists of U.S. virtues that are claimed to be superior to all others. There is never any attempt to prove the assertions – they are articles of faith. And, as we saw in last quarter's letter, the claims are mostly inaccurate and by a wide margin. Indeed, in this one respect Mr. Trump is far more accurate when he suggests that the U.S. has fallen off the pace in recent decades and has done much better in the past and could perhaps do much better again.

      


  • Investment Ideas Trading With Very 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.


    Banco De Chile (BCH) is trading at about $57 with a P/S ratio of 4, a trailing 12-month P/E multiple of 12.46 and an estimated forward P/E multiple of 9.56. The company has a market cap of $9.26 billion and over the last 10 years, the stock has risen by 74%. During the last 52 weeks, the price has been as high as $71.95 and as low as $56.55.

      


  • Will the U.S. Remain Supreme Against Emerging Markets?

    With global markets being dragged down by a slowing China, many are worried about the spillover effect into other developing economies. Unfortunately for emerging market investors, the negative effects wouldn’t be the start of underperformance. For a decade, emerging market equities have lagged those of developing markets.


      


  • Jeremy Grantham's GMO Invests in Energy Company, Bank

    Jeremy Grantham (Trades, Portfolio) is the chairman and co-founder of the investment firm Grantham, Mayo, Van Otterloo & Co. LLC. The company runs one of the largest investment funds in the world with more than $104 billion in firm-wide assets under management. In the third quarter of 2015, Grantham purchased 1,553,174 shares of Valero Energy Corp. (NYSE:VLO) and 1,560,700 shares of Royal Bank of Canada (NYSE:RY).


    The graph below shows the price movement of Valero Energy Corp.

      


  • Facebook, Microsoft and Twitter Have New Positions in Caxton Associates' Portfolio

    Bruce Stanley Kovner is the founder and chairman of Caxton Associates (Trades, Portfolio), a New York-based trading and investment firm. Caxton Associates (Trades, Portfolio)' primary business is to manage client and proprietary capital through global macro hedge fund strategies


    During the third quarter 24 stocks got new positions in the portfolio, and here are the most weighted new buys.

      


  • Chase Coleman Gained From Visa But Lost From Trinet Group

    Chase Coleman (Trades, Portfolio) is the founder of Tiger Global Management which is a fundamentally oriented, global investment firm. The fund deploys capital in two businesses – private equity partnerships and public equity funds.


    During the third quarter, he closed 10 stocks, and the maximum gain he got was from Visa (NYSE:V) at 83% but lost 34% from Trinet Group (NYSE:TNET). He also had good gains of 26% and 25% from 58.com (NYSE:WUBA) and Masonite International (NYSE:DOOR).

      


  • Louis Moore Bacon Cuts Stakes in Amazon, Facebook Well Above Purchase Prices

    Louis Moore Bacon (Trades, Portfolio) was born in 1956 and is an American hedge fund manager and trader who uses a global macro strategy to invest in the markets. Bacon has been in the top 20 of the top 100 money earners since the 1990s.


    The following are the stakes that Bacon reduced in the third quarter.

      


  • Stocks in Sarah Ketterer's Portfolio With High Dividends

    Sarah Ketterer has been the chief executive officer of Causeway Capital Management since June 2001. She focuses on global equities: International, global, and emerging market. Ketterer and her team begin with a screen of both large and mid-sized companies in the developed international markets.


    Mobile TeleSystems PJSC (MBT)

      


  • United Technologies and IBM Have New Positions in James Barrow's Portfolio

    James Barrow (Trades, Portfolio) 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. Barrow Hanley currently serves as a sub-adviser to more than 45 equity and fixed income mutual funds.


    During the third quarter 26 stocks got new positions in Barrow’s portfolio, and here are his most weighted new buys.

      


  • Jeremy Grantham: 'Give Me Only Good News!' GMO 3rd Quarter Letter

    It ain’t what you don’t know that gets you into trouble. It’s what you know for sure that just ain’t so.


    (Attributed to Mark Twain)

      


  • Watch Those Insider Buys at Barnes & Noble

    Money talks. Actions speak louder than words. Therefore, actions involving money speak especially loudly.


    That’s why it pays to keep an eye on what top corporate executives do with their own money. If they invest in their own company’s shares, rather than buying (another) vacation home, that can be a meaningful bullish sign.

      


  • Legendary Manager David Dreman's Top New Buys of 3rd Quarter

    David Dreman (Trades, Portfolio) is the founder and chairman of Dreman Value Management LLC, a leading contrarian value investment management firm. He also serves as the firm's chief investment officer.


    During the third quarter 84 stocks got new positions in Dreman's portfolio, and here are his most weighted new buys.

      


  • Shares of Thor Industries Jump After Impressive Quarter Results

    Thor Industries Inc. (NYSE:THO) designs, manufactures and sells a range of recreational vehicles and related parts and accessories primarily in the U.S. and Canada. Shares of the company have jumped more than 3.5% on Monday's trading after reporting better-than-expected earnings for its first quarter of fiscal 2016.


    Q1 results

      


  • Julian Robertson Trims JD.com, Santander Consumer, NVIDIA

    Julian Robertson (Trades, Portfolio) is the father of hedge fund Tiger Management. He launched his firm in 1980 with $8 million. He manages a portfolio composed of 51 stocks with total value of $748 million, and the following are his largest sales during the third quarter.


    His largest sale is about JD.com Inc. (JD). He reduced his stake by 18.72%, and the deal had an impact of -2.83% on the portfolio.

      


  • Jeremy Grantham's Holdings Trading Below Peter Lynch Earnings Line

    Jeremy Grantham (Trades, Portfolio) is the chairman of the board of Grantham Mayo Van Otterloo, a Boston-based asset management firm whose portfolio is composed of 570 stocks, and the following are a few of his holdings that are trading with a very wide margin of safety, according to the Peter Lynch earnings line.


    Atwood Oceanics Inc. (ATW) is trading at about $15 per share while the Peter Lynch earnings line gives the stock a fair price of $95.3, giving it a margin of safety of 83%.

      


  • Jeremy Grantham's GMO 3rd Quarter Performance

    GMO’s quarterly performance update for the third quarter ended Sept. 30.


    GMO Benchmark-Free Allocation Strategy

      


  • Jeremy Grantham Adds to Stakes in Pharmaceutical Stocks

    Jeremy Grantham (Trades, Portfolio) has built a reputation over the years by identifying speculative “bubbles” as they were happening and guiding clients away from them. His third-quarter transactions suggest that the reverse may be happening in pharmaceuticals.


    Grantham’s most significant transaction in the third quarter was the addition of 6,467,840 shares to his stake in Valeant Pharmaceuticals International Inc. (NYSE:VRX), a Canadian pharmaceutical company, for an average price of $233.19 per share. The transaction had a 4.01% impact on Grantham’s portfolio.

      


  • Home Depot Continues to Beat Wall Street's Expectations

    Shares of The Home Depot Inc. (NYSE:HD) are moving almost 4% following Thursday morning's session after the company reported better-than-expected earnings for Q3.


    The company reported earnings per share of $1.35, which are higher than the $1.15 per share obtained in the same quarter a year ago and are higher than estimates by 3 cents. Further, revenue increased by 6.4% and reached $21.8 billion in line with analyst’s estimates. Comparable store sales for the quarter were positive 5.1%, and comp sales for U.S. stores were positive 7.3%.

      


  • Alibaba Bets on Middle Class and Opens Offices Worldwide

    Alibaba Group Holding Ltd. (BABA) is a holding company and conducts its businesses through its subsidiaries. Alibaba is engaged in online and mobile commerce through products, services and technology that enable businesses to operate efficiently and extend their reach to sell to consumers and businesses in the People's Republic of China and internationally.


    Recently Alibaba’s founder urged small and medium-sized Western companies to enter the country's markets since China’s middle class is expanding. 

      


  • Time to Take Profits on NASDAQ

    NASDAQ Inc. (NASDAQ:NDAQ) is one of the world’s largest providers of trading, clearing, exchange technology, regulatory, securities listing and information and public company services. NASDAQ operates in four business segments: market services, listing services, information services and technology solutions.


    NASDAQ’s market services include equity and derivative trading and clearing, cash equity trading, fixed income, currency and commodities trading and clearing, and broker services. Its transaction-based platforms provide market participants with the ability to access, process, display and integrate orders and quotes.

      


  • 5 Stocks Growing Book Value but Getting Cheaper

    Sometimes companies can exhibit a prowess for building book value, but for any number of reasons the market could either not recognize it or discount the company due to a temporary, negative situation.


    Recognizing these types of companies is central to the investing process for Martin Whitman (Trades, Portfolio) and Third Avenue Management (Trades, Portfolio), as well as many value investors.

      


  • GMO Second Quarter Shareholder Letter - Part 3

    GMO Second Quarter Letter - Part 3


    All in all I am still very confident, unfortunately, that the old regime of irregularly falling commodity prices is gone forever.

      


  • GMO Second Quarter Shareholder Letter - Part 2

    Risk parity


    Another group of price-insensitive investors are managers of risk parity portfolios. These portfolios make allocations to asset classes not with regard to pricing of assets, but rather their volatility and correlation characteristics. Their price-insensitivity comes out in a couple of ways. First, as money flows into the strategies, they are levered buyers of bonds and inflation-linked bonds in particular. Like most strategies, if the money flows out, they are forced sellers of a slice of their portfolio. Second, unlike many other investors, they will also tend to buy and sell based on changes in volatility. As the volatility of an asset falls, these strategies will tend to lever it up further, and as the volatility rises they will sell. Given that low volatility tends to be associated with rising markets and high volatility with falling markets, this gives their buy and sell decisions a certain momentum flavor. If bond prices are moving up in a steady fashion, they will tend to buy more and more as volatility falls, and in a disorderly sell-off that sees yields and expected returns rise along with rising volatility, they will sell the assets due to their higher “risk.” In fact, rising volatility in bond markets could cause a general delevering of risk parity portfolios, causing them to sell assets unrelated to bonds in order to keep their estimated volatility stable. With hundreds of billions of dollars under management in risk parity strategies and large holdings in some of the less deeply liquid areas of the financial markets such as inflation-linked bonds and commodity futures, it is easy to imagine their selling in unsettling markets under certain circumstances, such as a repeat of 2013’s “Taper Tantrum.”

      


  • GMO Second Quarter Letter to Partners Part 1

    Jermeny Grantham's GMO has released its second quarter letter to its partners. The letter is broken up into two parts, one written by Grantham titled, "Ten Quick Topics To Ruin Your Summer," and the other, "Price-Insensitive Sellers," by Ben Inker.


    GMO's second quarter letter

      


  • Anheuser-Busch InBev and SABMiller PLC to Potentially Merge

    In a potential deal that would bring together the world’s two largest beer makers Anheuser-Busch InBev (NYSE:BUD) has approached the board of directors of SABMiller PLC (SBMRY) to discuss a merger of the two companies. It is unclear as to when discussions first began; however, on Sept. 16, both companies publicly acknowledged the possible deal through website and media announcements.


    On Sept.16 SABMiller reported in a release that it has been approached by Anheuser-Busch InBev about an acquisition deal and noted that the firm would be submitting a proposal to the board that would include more details, specifically the terms and valuation of the deal. In a response release from Anheuser-Busch InBev also on Sept. 16, the company acknowledged its intention to propose an offer of acquisition.

      


  • Perigon Wealth Management's Largest Buys in Second Quarter

    The hedge fund Perigon Wealth Management in its last quarterly 13F reported a total value of its portfolio of $379 million, with an increase of 4.19% since the previous quarter. During Q2 2015, the firm bought eight new stocks and increased 100 of its existing stakes. The following are the most heavily weighted buys during the quarter.


    It bought shares of Allergan PLC (AGN) with an impact of 1.63% on its portfolio. The company is engaged in development, manufacturing, marketing, sale and distribution of generic, branded generic, brand name, biosimilar and over-the-counter pharmaceutical products. It also develops and out-license generic pharmaceutical products in Europe through its Medis third-party business. It operates in three segments: Pharma, Specialty Brands and Anda Distribution.

      


  • Ashmore Group Buys Alibaba and Infosys

    The hedge fund Ashmore Group in its last quarterly 13F reported a total value of its portfolio of $310 million, with a decrease of 36.77% since the previous quarter. During Q2 2015, the firm bought 16 new stocks and increased eight of its existing stakes. The following are the most heavily weighted buys during the quarter.


    It bought shares of Silicon Motion Technology Corp. (SIMO) with an impact of 4.75% on its portfolio. It is a fabless semiconductor company that designs, develops and markets, high-performance, low-power semiconductor solutions to original equipment manufacturers (OEMs) and other customers in the mobile storage and mobile communications markets. The company's products are used in smartphones, tablets, notebooks, desktop PCs and industrial and commercial applications.

      


  • 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. (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.

      


  • Jeremy Grantham Reduces More Than 250 Stakes in Second Quarter

    Jeremy Grantham (Trades, Portfolio), chairman of the board of Boston-based asset management firm Grantham Mayo Van Otterloo, is known for his ability to identify speculative market “bubbles” and using that knowledge to lead clients away from financial disasters.


    Like most of the gurus we follow, Grantham bought some stakes, sold some stakes and added to some others in the second quarter. But, by far, most of his activity involved reducing existing stakes – more than 250 of them.

      


  • Jeremy Grantham Q2 2015 Letter – Ten Quick Topics To Ruin Your Summer



  • Grantham, High Yield, and The Cyclical Bear In Gold – CMG Capital Management

    “If you’re young, take the whack [and] if you’re old, pray for the Fed to keep going.” – Jeremy Grantham (Trades, Portfolio)


    Grantham was the opening keynote at the Morningstar Investment Conference in late June. There were several notable insights I share with you this week. The intro quote above pretty well sums up his outlook. All about that (bass) Fed, about that (bass) Fed. The jingle continues to ring in my mind.

      


  • Zenit Asset Management Ab's Sells Amazon in Q2 2015

    At the end of the second quarter of 2015, the hedge fund Zenit Asset Management Ab reported a total value of its portfolio of $647.56 million, with an increase of 7.46% since the previous quarter.


    During the Q2 2015, the hedge fund bought 13 new stocks and increased 12 stakes. In my previous article, I listed the top 5 buys, and here I want to list the top stakes the fund sold out.

      


  • BTIM Corp's Top Sales in Q2 2015

    At the end of the second quarter of 2015, the hedge fund BTIM Corp reported a total value of its portfolio of $6.56 billion, with a decrease of 2.65% since the previous quarter. During the same quarter, the fund bought 18 new stocks and increased 112 stakes as I previously reported; it also sold out 11 stocks and decreased its stake in 192 stocks. Listed below are the most heavily-weighted sales.



      


  • Zenit Asset Management Ab's Top Buys in Q2 2015

    At the end of the second quarter of 2015, the hedge fund Zenit Asset Management Ab reported a total value of its portfolio of $647.56 million, with an increase of 7.46% since the previous quarter.


    During the Q2 2015, the hedge fund bought 13 new stocks and increased 12 stakes, and the following are the most heavily-weighted US companies it bought.

      


  • What Do High-Yield Maturities Tell Us About Timing the Credit Cycle? Another Take on the Wall

    Everybody involved in the credit markets wants to know when the cycle will turn. On the one hand, it feels like we are in the later stages of the current cycle and investors are afraid to overstay their welcome. On the other hand, credit spreads are close to historical averages while many competing asset classes seem overvalued. For those who are currently invested in high-yield bonds and leveraged loans, accurately timing the cycle will be the difference between safely clipping coupons and realizing painful losses. And for those of us who specialize in distressed debt investing, the turn of the cycle should create the next great opportunity. Most investors base their high-yield outlook on expected defaults.


    Credit strategists and portfolio managers frequently point to the timing of debt maturities – the so-called “maturity wall” – as a major determinant of near-term default rates. Presumably, with fewer debt maturities, there will be fewer defaults, and therefore higher returns. This assumption makes intuitive sense. After all, the inability to pay debts as they come due is a classic definition of insolvency. The more time companies have until their debts mature, the greater the chances they can find a way to refinance. Today, many credit strategists point to the relative lack of near-term high-yield maturities as a reason for investors to be constructive on credit.

      


  • Why Jeremy Grantham Believes We’re Not In a Bubble...Yet

    With the Shiller P/E ratio nearing all-time highs, many famous investors have expressed concerns that we are in a new stock market bubble.


    For those who need a primer, Robert Shiller of Yale University invented the Shiller P/E to measure the market's valuation. His valuation metric is believed to be a more reasonable market valuation indicator than the P/E ratio because it eliminates fluctuation of the ratio caused by the variation of profit margins during business cycles.

      


  • Predictable and Undervalued Companies - Part IV

    With these articles, I want to highlight all the companies that according to GuruFocus have a predictable business and are undervalued according to the Price/DCF (Average). I also apply another filter to those results to give you only the companies that have a significant EPS growth rate.


    When a company is undervalued but earnings are growing, we can believe that sooner or later Mr. Market will take care of the price.

      


  • Most performing Utilities on 2015

    With these articles I highlight the companies in the Utilities industry whose price rose more than the others since the beginning of the year (on a Year-To-Date basis)


    Ormat Technologies Inc (ORA)

      


  • A Bullish Outlook For Affiliated Managers Group

    In this article, let's take a look at Affiliated Managers Group Inc. (NYSE:AMG), a $11.99 billion market cap company, which is an asset management company with equity investments in a group of boutique investment management firms, or Affiliates.


    Ups and Downs

      


  • IGT Shares Have Low Expectations Priced In

    After an incredible run of over 100% in less than two years, shares of International Game Technology (IGT) recently hit a three-year low.


    On a variety of valuation metrics, IGT has never looked cheaper in comparison to historical levels. On a P/E, P/B, P/FCF and EV/EBIT basis, IGT’s valuation is hitting all-time lows.

      


  • Jeremy Grantham's 10 Current Obsessions

    GMO chief investment strategist Jeremy Grantham (Trades, Portfolio) took a moment to tick off the top 10 issues on his mind today.


    "In my current role, I'm totally free to obsess about important issues that interest me," he said. And here they are, fleshed out a bit with some quotes from Grantham's commentaries:

      


  • Why Ray Dalio Has 60% of His Portfolio in Emerging Market ETFs

    Ray Dalio (Trades, Portfolio) is the founder of the largest hedge fund on the planet, Bridgewater Associates. With over $160 billion in assets under management, his investment company has some of the best performance statistics of any manager over the long term. His Pure Alpha Fund (the largest) has lost money only three times in 20 years, producing a near 20% annual compound return before fees.


    While you need an initial investment of $100 million and at least $5 billion in total investable assets to buy into his funds, individual investors can glean some of Dalio’s best ideas from his SEC filings every quarter. Two major holdings stick out.

      


  • Four Stocks With Growing EPS Near Their 52-Week Lows

    With these articles, thanks to GuruFocus All-In-One Screener, I want to highlight stocks that got a strong price correction, and that are trading near their 52 weeks low but that can be good for investors, since they have growing earnings over the last years.


    HCP Inc (HCP)

      


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