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Berkshire Hathaway New Manager Todd Combs’ Top Purchases: BR, CIT, CLDT, FFBCW, HIG, LUK

gurufocus

gurufocus

349 followers
You may have never heard of Todd Combs. Today Berkshire Hathaway announced that Warren Buffett has hired him as the new investment manager. With the news GuruFocus immediately checked into the portfolio holding of Todd Combs.

From the press release of Berkshire Hathaway: Warren E. Buffett, Berkshire’s CEO, commented “For three years Charlie Munger and I have been looking for someone of Todd’s caliber to handle a significant portion of Berkshire’s investment portfolio. We are delighted that Todd will be joining us… Todd is 39 and has been managing Castle Point Capital for the past five years.”

The latest portfolio we have for Todd Combs’ Castle Point Capital is for the quarter ended June 30, 2010. The portfolio has more than 70% in financials. The portfolio turnover is quite high, as 8 out of 27 positions in his portfolio are initiated in the second quarter.

These are the top 5 holdings of Todd Combs

  1. U.S. Bancorp (USB) - 1,020,000 shares, 8.15% of the total portfolio. Shares added by 27.5%
  2. MasterCard Inc. (MA) - 102,000 shares, 7.28% of the total portfolio. Shares added by 70%
  3. State Street Corp. (STT) - 561,000 shares, 6.78% of the total portfolio. Shares added by 60.29%
  4. The Western Union Company (WU) - 1,224,000 shares, 6.52% of the total portfolio. Shares added by 36%
  5. CME GROUP INC CL A (CME) - 51,000 shares, 5.13% of the total portfolio. Shares added by 2%

These are the new purchases in the second quarter:

New Purchase: CIT Group Inc. (CIT)

Todd Combs initiated holdings in Cit Group Inc.. His purchase prices were between $33.81 and $41.75, with an estimated average price of $37.87. The impact to his portfolio due to this purchase was 4.32%. His holdings were 357,000 shares as of 06/30/2010.

CIT Group Inc. is a bank holding company that provides financing and leasing capital for commercial companies throughout the world. Cit Group Inc. has a market cap of $8.09 billion; its shares were traded at around $40.38 with and P/S ratio of 2.03.

New Purchase: Broadridge Financial Solutions Inc. (BR)

Todd Combs initiated holdings in Broadridge Financial Solutions Inc. His purchase prices were between $18.63 and $24, with an estimated average price of $21. The impact to his portfolio due to this purchase was 3.47%. His holdings were 510,000 shares as of 06/30/2010.

Broadridge is a global provider of technology-based outsourcing solutions to the financial services industry. Broadridge Financial Solutions Inc. has a market cap of $2.75 billion; its shares were traded at around $21.66 with a P/E ratio of 13.37 and P/S ratio of 1.24. The dividend yield of Broadridge Financial Solutions Inc. stocks is 2.77%.

New Purchase: Leucadia National Corp. (LUK)

Todd Combs initiated holdings in Leucadia National Corp.. His purchase prices were between $19.78 and $28.05, with an estimated average price of $23.36. The impact to his portfolio due to this purchase was 1.78%. His holdings were 255,000 shares as of 06/30/2010.

LEUCADIA NATL is a diversified financial services holding companyprincipally engaged in personal and commercial lines of property and casualty insurance, life insurance, banking and lending and manufacturing. Leucadia National Corp. has a market cap of $6.11 billion; its shares were traded at around $25.1 with a P/E ratio of 31.77 and P/S ratio of 5.46.

New Purchase: The Hartford Financial Services Group In (HIG)

Todd Combs initiated holdings in The Hartford Financial Services Group In. His purchase prices were between $22.16 and $29.64, with an estimated average price of $26.15. The impact to his portfolio due to this purchase was 1.61%. His holdings were 204,000 shares as of 06/30/2010.

Hartford Financial Services is one of the nation's largest investment and insurance companies, offers a complete line of insurance and financial service products to customers all over the world. The Hartford Financial Services Group In has a market cap of $10.64 billion; its shares were traded at around $23.95 with a P/E ratio of 5.8 and P/S ratio of 0.43. The dividend yield of The Hartford Financial Services Group In stocks is 0.84%.

New Purchase: First Financial Bancorp. Warrant (FFBCW)

Todd Combs initiated holdings in First Financial Bancorp. Warrant. His purchase prices were between $6.3 and $7.05, with an estimated average price of $6.66. The impact to his portfolio due to this purchase was 0.76%. His holdings were 304,917 shares as of 06/30/2010.

New Purchase: Chatham Lodging Trust (CLDT)

Todd Combs initiated holdings in Chatham Lodging Trust. His purchase prices were between $17.53 and $20.06, with an estimated average price of $18.58. The impact to his portfolio due to this purchase was 0.68%. His holdings were 107,100 shares as of 06/30/2010.

Chatham Lodging Trust is a self-advised hotel REIT, formed to invest in premium-branded upscale extended-stay and select-service hotels. Chatham Lodging Trust has a market cap of $170.42 million; its shares were traded at around $18.52 . The dividend yield of Chatham Lodging Trust stocks is 0.94%.

Two other new positions in the portfolio are The PNC Financial Services Group Warrants and Wells Fargo Non-Cum preferred (WFC.PL).Just by observing the portfolio ofTodd Combs it is not clear why Warren Buffett chose Mr. Combs as one of successors. His portfolio has much high turnover than Buffett used to have. If you have any observations, please share with us.

About the author:

gurufocus
GuruFocus - Stock Picks and Market Insight of Gurus

Rating: 3.8/5 (24 votes)

Comments

batbeer2
Batbeer2 premium member - 3 years ago
A thought.....

AFAIK Li Lu does not "do" financials. Retail, Industry.... that's his thing.

Could it be that Berkshire picked Combs because he has a circle of competence that complements that of Li Lu ?
gurufocus
Gurufocus premium member - 3 years ago
Ravi posted a nice link from Alice Schroeder with monthly returns of Todd Combs. These are the annual returns since 2005:

2005 2.05%

2006 13.56%

2007 18.95%

2008 -5.68%

2009 6.23%

2010 -3.93%

The link with monthly returns:

http://aliceschroeder.com/blog/todd-combs-monthly-returns

superguru
Superguru - 3 years ago
also important to note is that Todd is not a buy n hold investor. Partly because of small size of his portfolio and partly times have changed and Buffett realizes that.

Please leave your comment:


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