Wallace Weitz

Wallace Weitz

Last Update: 08-14-2015

Number of Stocks: 67
Number of New Stocks: 5

Total Value: $3,532 Mil
Q/Q Turnover: 8%

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

Wallace Weitz Watch

  • Wallace Weitz's Undervalued Stocks Trading with Low P/E

    Wallace Weitz (Trades, Portfolio) is the portfolio manager of Weitz Value Fund, Weitz Hickory Fund and Weitz Partners Value Fund, which he started in 1983. Weitz's approach to value investing has evolved over the years to combine Graham's price sensitivity and insistence on a "margin of safety", with a conviction that qualitative factors allow a company to have some control over its destiny. This can be more important than statistical measurements, such as historical book value or reported earnings.


    The following are the undervalued stocks of his portfolio that are trading with a very low P/E ratio.

      


  • Correction Is An Opportunity To Buy Range Resources

    Gurus have been activity on Range Resources (NYSE:RRC) in 2015 and Ruane Cunniff (Trades, Portfolio) of Ruane, Cunniff & Goldfarb Inc currently holds 4,005,407 shares of the company. Further, Wallace Weitz (Trades, Portfolio) of Weitz Investment Management Inc holds 2,136,130 shares of the company. While investors can track Gurus action in the real time stock picks section, I will discuss in this article why Range Resources is an interesting stock to consider at this point of time.


    It is important to note here that Range Resources peaked out at $64.75 on May 1, 2015. The stock has subsequently declined by 28% as lower natural gas prices have depressed sentiments. However, the company has sound fundamentals, strong hedged positions and good hedges to ensure strong cash flows. This article will elaborate on these factors, which might also provide some insight on why Gurus find the stock interesting in the energy sector.

      


  • Value Matters - Weitz Asset Management Q2 2015

    Dear Fellow Investor,



    We are at the halfway mark in 2015 and the stock and bond markets have made very little progress so far this year. The stalemate between buyers and sellers has been going on for several quarters.
      


  • Weitz Investment Management Fourth Quarter Letter

    Overview


    Wallace Weitz the founder of Weitz Investment Management, released the fourth-quarter letter to investors. During the fourth quarter, Weitz Investment added to its investments and invest in ones Mastercard Inc. (NYSE:MA), Allison Transmission (NYSE:ALSN), Motorola Solutions Inc. (NYSE:MSI) and Twenty-First Century Fox (NASDAQ:FOXA).

      


  • An Exclusive GuruFocus Interview With Value Investor Wally Weitz

    Value investor Wally Weitz founded Wallace R. Weitz Company in 1983 where he currently manages the Partners III Opportunity Fund, and co-manages the Value, Partners Value, and Hickory funds.


    Over the past 10 years, the Partners III Opportunity Fund returned an annualized 8.76%, while the annualized return since inception is 13.4%. The fund’s top five holdings as of the first quarter are Berkshire Hathaway (NYSE:BRK.B), Liberty Global PLC (NASDAQ:LBTYK), TransDigm Group (NYSE:TDG), Liberty Media Corp (NASDAQ:LMCK), and Valeant Pharmaceuticals International (NYSE:VRX).

      


  • Locust Wood Capital Bet on Top Performer Valeant Pharmaceuticals

    Hedge fund Locust Wood Capital Advisers LLC disclosed an equity portfolio valued at some $792 million as of the end of the first quarter of 2015. The equity portfolio is mainly invested in Finance (29%), Consumer Discretionary (27%) and Health Care (17%) stocks. Two of the three main sectors are the same in which it invests Menta Capital LLC.


    Locust Wood’s last 13F filing showed that the fund raised its exposure towards health care and industrials stocks, but reduced its holdings in the financial sector. The fund replaced with other holdings in a given year, the turnover ratio was at 55.56%. The fund had 11 new purchases and additional purchases of 19 stocks. On the other hand, it sold out 14 stocks while reducing holdings in 13 stocks.

      


  • Wallace Weitz Sells Off 5 Holdings

    During the first quarter, Wallace Weitz (Trades, Portfolio) of Weitz Investment Management did not see any new opportunities and instead sold off five holdings, including acquisition target DirecTV.


    Weitz will join GuruFocus for an exclusive interview to answer readers’ questions in the next few weeks; investing questions should be submitted by Friday for consideration.

      


  • Guru’s High Yeld Companies : Redwood Trust Inc.

    According to GuruFocus Dividends page, Redwood Trust Inc (RWT) is the company chose by Gurus with the highest dividend yeld.


    The company is held by 17 Gurus, some examples are Wallace Weitz (Trades, Portfolio) that hold 6,322,495 shares or 7.58% of outstanding shares and Jim Simons (Trades, Portfolio), that holds 692,900 shares or 0.83% of outstanding shares.

      


  • Submit Questions for Upcoming Q&A With Value Investor Wally Weitz

    Wallace Weitz (Trades, Portfolio), chief investment officer and founder of Weitz Investments, will be answering investing questions from GuruFocus readers next month in an exclusive Q&A. Have questions about Weitz’s investment philosophy or top holdings? Post them in the comments box below. Questions from Premium Members will be given higher priority.


    About Wally

      


  • Weitz Value Fund First Quarter 2015 Commentary

    Endo International (NASDAQ:ENDP) is a specialty healthcare company engaged in developing, manufacturing, marketing and distributing branded pharmaceutical and generic products as well as medical devices. In late January, management completed its previously announced $2.6 billion acquisition of Auxilium Pharmaceuticals. Auxilium strengthens Endo’s branded pharmaceutical platform, provides immediate scale in an attractive niche market (urology), and is roughly 10% accretive to our base case estimate of intrinsic value. Roughly a month later, the company agreed to sell the men’s health portion of its integrated medical systems surgical business to Boston Scientific for $1.6 billion. We anticipate the proceeds supporting future business development initiatives.


    Martin Marietta Materials (NYSE:MLM) is a producer of granite, limestone, sand, gravel and aggregates products for the construction industry. In February, management reported strong aggregates volume growth and price increases across each of its geographic markets and issued robust 2015 guidance. In addition, Martin increased its synergy target for the Texas Industries acquisition from $70 million to $100 million annually and announced a new share buyback plan. If the plan is completed it would represent approximately 30% of the company’s outstanding shares.

      


  • Weitz Funds Analyst Corner - A Perspective on Range Resources

    By Dave Perkins, CFA


    Range Resources (NYSE:RRC) is a domestic producer of natural gas and natural gas liquids (NGLs) based in Fort Worth, Texas. Range is the 14th largest natural gas producer in the continental United States, with average daily production of approximately 1.3 billion cubic feet of gas equivalent (BCFE). The company drilled its first discovery well in southwest Pennsylvania just over 10 years ago, discovering what is today North America’s most prolific natural gas field – the Marcellus shale. Range controls roughly 1.6 million acres in the Appalachian basin which include both the northeast and southwest portions of the Marcellus as well as the Upper Devonian and Utica shales in southwestern PA.

      


  • Wally Weitz's Q1 Shareholder Commentary Letter

    Wall Street has been obsessed with the actions of the Federal Reserve for at least as long as the older of us has been investing. On Thursday afternoons in the 1970’s, everyone watched the Dow Jones news wire for the money supply report that might hold clues about the Fed’s next policy move. More recently, the Fed has been extraordinarily “accommodative” in the six years since the financial crisis, and there is considerable investor anxiety about how stocks will react to a return to “normal” interest rates. It is almost comical to watch the stock market rally or swoon in response to every small bit of economic data. The logic seems to be that a sign of economic strength (good news) is “bad” because it might encourage the Fed to abandon its “zero interest rate policy” (ZIRP). Conversely, a sign of economic weakness often triggers a rally since it may discourage the Fed from tightening.

    The Fed’s (and the Treasury’s) actions immediately after the Lehman failure were important and effective. In succeeding years, though, the creation of trillions of new dollars and their use to pump up asset prices (via “quantitative easing” or “QE”) may prove to have been counter-productive. It seems likely that we have “borrowed” investment gains from the future via QE. More importantly, to the extent speculators have used cheap, short-term credit to buy (riskier) higher yielding assets (“carry trades”), they face potential trading losses if rates rise suddenly. Their scramble to exit these trades could trigger market liquidity issues.

    Another interesting result of aggressive central bank activity, in Europe and Japan as well as the U.S., is that a significant amount of sovereign debt (bonds issued by countries rather than companies) now carries negative interest rates. This is unprecedented. One might call it surreal. Berkshire Hathaway Vice Chairman Charlie Munger (Trades, Portfolio) admits to being “flabbergasted” by the negative yields. He says, “…of course I’m confused. Anybody who is intelligent who is not confused doesn’t understand the situation very well. If you find it puzzling, your brain is working correctly.” (Forbes, 3/26/2015) Charlie has a way with words.

      


  • A Look at Wallace Weitz and His Top Buys

    Wallace Weitz (Trades, Portfolio) of Weitz Investment Management Inc is committed to his simple philosophy when looking for stocks to invest in, This philosophy is: "own a group of strong businesses purchased at deeply discounted prices."


    Here is a look at Weitz's most recent top buys:

      


  • Weitz Funds Analyst Corner - A Perspective on Motorola Solutions Inc.

    By Barton Hooper, CFA


    Motorola Solutions (NYSE:MSI) is a global leader in the sale of public safety communication infrastructure products and services as well as commercial radio systems. The company’s public safety portfolio, which represents over 60% of sales, provides first responders with mission critical, reliable and secure communications necessary for operating during storms, fires and security events where the inability to communicate can result in disastrous consequences. MSI designs, manufactures and installs the underlying infrastructure necessary to run a network as well as the end point radios and other devices carried by local personnel. The company’s commercial radio systems are sold to a diverse set of private and public entities which need a reliable, low cost, two-way push-to-talk method of communicating with customers and employees. We believe the company is the share leader in both of its primary businesses, serving over 10,000 customers located in more than 100 countries.

      


  • Weitz Value Fund Q4 2014 Commentary

    The Value Fund’s Investor Class gained +4.0% during the fourth quarter, compared to an increase of +4.9% for both the S&P 500 and Russell 1000. For the calendar year, the Fund’s Investor Class returned +9.5% versus advances of +13.7% and +13.2% for the S&P 500 and Russell 1000, respectively. We are generally pleased with these results in light of the Fund’s conservative positioning throughout 2014. Following the sixth consecutive year of upward trending equity markets, we begin 2015 with the Fund’s estimated aggregate weighted average price-to-value (a measure of the collective discount of the stocks in our portfolios) in the mid-to-upper 80s and a more moderate residual cash position of 17% of net assets after a busy fourth quarter.



    Liberty Global (NASDAQ:LBTYA) (+18%), Liberty Interactive (NASDAQ:QVCA) (+22%) and Express Scripts (NASDAQ:ESRX) (+20%) were the largest contributors to Fund performance during the fourth quarter. Liberty Global (LGI) obtained regulatory clearance for the acquisition of Ziggo, the largest cable operator in the Netherlands, and following close expects to resume aggressively repurchasing its shares. Rumors of a potential takeover attempt by British phone company Vodafone Group also helped lift LGI’s stock beginning in late November. Liberty Interactive completed the reattribution of its Digital Commerce companies to Liberty Ventures during the quarter in exchange for stock. Its core asset, shopping network QVC, reported solid third quarter results and should be a beneficiary of improved consumer health in the U.S. Against muted investor expectations, Express Scripts’ shares benefitted from steady third quarter operating results, a better than feared 2015 selling season and gradually improving customer service levels.

      


  • Weitz Investment Management Q4 Commentary

    Dear Fellow Shareholder:



    We are pleased to report another year of positive returns in all of our funds. Our conservative portfolio positioning held us back a few percentage points, and the funds trailed their respective benchmarks, but our companies as a group performed very well and that is the key to good long-term results. The fund performance table shows returns over various holding periods since inception 31+ years ago. As usual, we suggest focusing on the longer periods.
      


  • Weekly CEO Buys Highlight: LTRPA, ENH, BH, OPK, CPTA

    According to GuruFocus Insider Data, these are the largest CEO buys during the past week. The overall trend of CEOs is illustrated in the chart below:

      


  • Is It Time to Buy Avon?

    In this article, let's take a look at Avon Products Inc. (NYSE:AVP), a $4.4 billion market cap company that is the world's leading direct marketer of cosmetics, toiletries, fashion jewelry and fragrances, with about 6 million sales representatives worldwide.


    Technology

      


  • Wallace Weitz Buys Discovery Communications, Sells Apple in Q3

    Wallace Weitz (Trades, Portfolio) entered the investing world at the age of 12 when he purchased his first stock. Since then, he’s made a career in what he’s called his hobby — he spent 10 years as an analyst and portfolio manager at Chiles, Heider & Co. before founding the Omaha, Nebraska-based Weitz Investment Management in 1983.


    Weitz manages four of the 10 funds at the firm and follows the value investing model. There are plenty of similarities between Weitz and his Omaha neighbor Warren Buffett (Trades, Portfolio), but Weitz has sometimes struggled to outperform the S&P 500 at a rate that justified his fees.

      


  • Graham & Doddsville Newsletter Fall 2014

    Graham and Doddville is Columbia Business School's student-led investment newsletter, co-sponsored by the Columbia Student Investment Management Association (CSIMA) and the Heilbrunn Center for Graham and Dodd Investing.


    This issue features interviews with:

      


  • Wallace Weitz Comments on Precision Castparts

    Precision Castparts (PCP) is a global, diversified manufacturer of complex metal components and products sold primarily to aerospace, power and industrial customers. CEO Mark Donegan is a first-rate operator, sound strategic thinker and highly skilled acquirer / integrator. Concerns over the health of the new commercial aircraft cycle provided us an opportunity to establish an initial position at what we believe is an attractive discount. We have been heartened by management’s more recent decisions to repurchase stock and look forward to the prospect of additional value-accretive M&A in the future.

    From Wallace Weitz (Trades, Portfolio)'s Value Fund Q3 2014 Commentary.  


  • Wallace Weitz Comments on Discovery Communications

    Discovery (DISCA) is a world-class provider of global pay-tv programming including ‘must-carry’ channels (Discovery, TLC and Animal Planet) as well as emerging and niche networks (ID, OWN and Science, among others). Non-fiction content is a wonderful business – it is cheap to produce and portable across geographies, driving excellent margins and cash flows. Discovery is especially well positioned to benefit from the long-tailed wave of increasing pay-tv adoption outside the U.S. The company generally owns the full rights to its content, providing bargaining power as the distribution ecosystem evolves. We project per-share cash flow growth in the high teens over the next several years, fueled by the international business. From today’s price, we think the stock’s return potential is adequate-to-exceptional with solid downside protection.

    From Wallace Weitz (Trades, Portfolio)'s Value Fund Q3 2014 Commentary.  


  • Wallace Weitz Comments on Microsoft

    Microsoft (MSFT) reported strong fiscal fourth quarter results in late July with attractive growth across its core franchises accompanied by sound cost discipline. Investors appear to have finally taken notice of Microsoft’s numerous strengths after several years of disproportionate focus on its flaws.

    From Wallace Weitz (Trades, Portfolio)'s Value Fund Q3 2014 Commentary.  


  • Wallace Weitz Comments on eBay Inc

    On the final day of the quarter, eBay (EBAY) announced its intention to separate into two separate publicly-traded companies – PayPal and “new” eBay – during the second half of 2015. Despite some initial excitement, investor sentiment remains lukewarm and the stock undervalued.

    From Wallace Weitz (Trades, Portfolio)'s Value Fund Q3 2014 Commentary.  


  • Wallace Weitz Comments on Berkshire Hathaway Inc

    Berkshire (BRK.B) enjoyed a relatively strong start to the year operationally with non-insurance operating earnings up 12% during the first half of 2014 despite headwinds at Burlington Northern. Buffett’s willingness to repurchase Berkshire shares at or below 120% of book value continues to provide a nice and gradually rising backstop for the stock.

    From Wallace Weitz (Trades, Portfolio)'s Value Fund Q3 2014 Commentary.  


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