1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
gurufocus
gurufocus
Articles 

Donald Smith Buys Low P/B Companies: MHO, TNCC, MU, AAI, SANM, OSG, TSO

Donald Smith is a newly added guru who focuses on low P/B stocks. This is his Q3 portfolio update.

If you don’t know about Donald Smith, he is the CIO of Donald Smith & Co. He began his career as an analyst with Capital Research Company and subsequently worked at Capital Guardian Trust Co. In 1980, Donald be-came the CIO of Home Insurance Company, and President of Home Port-folio Advisors, Inc., which he bought in 1983 and changed the name to Donald Smith & Co., Inc.

In 2010, Donald Smith & Co. has $3.6 billion under management. Over 30 years since inception compounded annualized return has been 15.3%. Over the last 10 years our annualized return is 12.1% versus ?0.4% for the S&P 500.

Mr. Smith was awarded a B.S. in Finance and Ac-counting by the University of Illinois, an MBA by Harvard University and a J.D. from UCLA Law School and was admitted to the Bar Association of California. He volunteered for Ben Graham in UCLA to conduct a study on low P/E strategy.

Donald Smith is a deep-value manager employing a strict bottom-up approach. He invests in stocks of out-of-favor companies selling at discounts to tangible book value. He looks for companies in the bottom docile of price-to-tangible book ratios and a positive outlook for earnings potential over the next 2-4 years.

As of 09/30/2010, Donald Smith & Co. owns 98 stocks with a total value of $2.7 billion. These are the details of the buys and sells that have the impact to portfolio of more than .1%.

For the details of Donald Smith's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Donald+Smith

This is the sector weightings of his portfolio:

Financials 21.5%
Consumer Services 21.4%
Industrials 13.6%
Utilities 10.2%
Basic Materials 8.5%
Oil & Gas 8.2%
Technology 8.2%
Consumer Goods 3.8%


These are the top 5 holdings of Donald Smith

  1. Tesoro Corp. (TSO) - 12,685,564 shares, 6.18% of the total portfolio. Shares added by 7.19%
  2. Dillard's Inc. (DDS) - 6,445,322 shares, 5.56% of the total portfolio. Shares reduced by 2.49%
  3. JetBlue Airways Corp. (JBLU) - 21,796,604 shares, 5.32% of the total portfolio. Shares reduced by 2.63%
  4. Yamana Gold Inc. (AUY) - 11,127,135 shares, 4.63% of the total portfolio. Shares added by 1.83%
  5. CNA Financial Corp. (CNA) - 4,281,054 shares, 4.37% of the total portfolio. Shares reduced by 0.01%


Added: Micron Technology Inc. (NASDAQ:MU)

Donald Smith added to his holdings in Micron Technology Inc. by 53.08%. His purchase prices were between $6.4585 and $8.89, with an estimated average price of $7.5. The impact to his portfolio due to this purchase was 1.44%. His holdings were 15,821,616 shares as of 09/30/2010.

Added: Airtran Holdings Inc. (AAI)

Donald Smith added to his holdings in Airtran Holdings Inc. by 73.27%. His purchase prices were between $4.24 and $7.34, with an estimated average price of $4.78. The impact to his portfolio due to this purchase was 1.41%. His holdings were 12,410,295 shares as of 09/30/2010.

Added: Sanminasci Corp. (NASDAQ:SANM)

Donald Smith added to his holdings in Sanminasci Corp. by 461.74%. His purchase prices were between $9.04 and $15.86, with an estimated average price of $11.95. The impact to his portfolio due to this purchase was 1.34%. His holdings were 3,703,807 shares as of 09/30/2010.

Added: Overseas Shipholding Group Inc. (NYSE:OSG)

Donald Smith added to his holdings in Overseas Shipholding Group Inc. by 45.18%. His purchase prices were between $31.89 and $42.34, with an estimated average price of $35.61. The impact to his portfolio due to this purchase was 0.54%. His holdings were 1,401,802 shares as of 09/30/2010.

Added: Tesoro Corp. (NYSE:TSO)

Donald Smith added to his holdings in Tesoro Corp. by 7.19%. His purchase prices were between $10.54 and $13.24, with an estimated average price of $12.1. The impact to his portfolio due to this purchase was 0.41%. His holdings were 12,685,564 shares as of 09/30/2010.

Added: Imation Corp. (IMN)

Donald Smith added to his holdings in Imation Corp. by 405.31%. His purchase prices were between $8.53 and $10.62, with an estimated average price of $9.24. The impact to his portfolio due to this purchase was 0.21%. His holdings were 763,107 shares as of 09/30/2010.

Added: American National Insurance Company (ANAT)

Donald Smith added to his holdings in American National Insurance Company by 5.8%. His purchase prices were between $74.3 and $85.56, with an estimated average price of $78.99. The impact to his portfolio due to this purchase was 0.14%. His holdings were 949,012 shares as of 09/30/2010.

Added: Ingram Micro Inc. (IM)

Donald Smith added to his holdings in Ingram Micro Inc. by 3.99%. His purchase prices were between $14.87 and $17.05, with an estimated average price of $16.01. The impact to his portfolio due to this purchase was 0.12%. His holdings were 5,292,533 shares as of 09/30/2010.

Added: Flagstone Reinsurance Holdings Ltd. (FSR)

Donald Smith added to his holdings in Flagstone Reinsurance Holdings Ltd. by 21.18%. His purchase prices were between $10.02 and $11.35, with an estimated average price of $10.5. The impact to his portfolio due to this purchase was 0.12%. His holdings were 1,807,408 shares as of 09/30/2010.

New Purchase: Ishares Russell 2000 Value Index Fund (IWN)

Donald Smith initiated holdings in Ishares Russell 2000 Value Index Fund. His purchase prices were between $54.92 and $62.09, with an estimated average price of $59.13. The impact to his portfolio due to this purchase was 0.89%. His holdings were 391,659 shares as of 09/30/2010.

New Purchase: M/i Homes Inc. (NYSE:MHO)

Donald Smith initiated holdings in M/i Homes Inc.. His purchase prices were between $9.04 and $11.43, with an estimated average price of $10.18. The impact to his portfolio due to this purchase was 0.26%. His holdings were 695,712 shares as of 09/30/2010.

New Purchase: Tennessee Commerce Bancorp Inc. (TNCC)

Donald Smith initiated holdings in Tennessee Commerce Bancorp Inc.. His purchase prices were between $4 and $6.8575, with an estimated average price of $4.95. The impact to his portfolio due to this purchase was 0.16%. His holdings were 1,090,812 shares as of 09/30/2010.

Reduced: Pinnacle West Capital Corp. (PNW)

Donald Smith reduced to his holdings in Pinnacle West Capital Corp. by 65%. His sale prices were between $36.24 and $41.69, with an estimated average price of $39.61. The impact to his portfolio due to this sale was -2.73%. Donald Smith still held 978,857 shares as of 09/30/2010.

Reduced: Sycamore Networks Inc. (SCMR)

Donald Smith reduced to his holdings in Sycamore Networks Inc. by 98.15%. His sale prices were between $16.62 and $33.37, with an estimated average price of $24.04. The impact to his portfolio due to this sale was -2.12%. Donald Smith still held 36,458 shares as of 09/30/2010.

Reduced: Nv Energy, Inc. (NVE)

Donald Smith reduced to his holdings in Nv Energy, Inc. by 34.51%. His sale prices were between $11.79 and $13.21, with an estimated average price of $12.78. The impact to his portfolio due to this sale was -1.08%. Donald Smith still held 4,277,995 shares as of 09/30/2010.

Reduced: Semiconductor Manufacturing Internationa (SMI)

Donald Smith reduced to his holdings in Semiconductor Manufacturing Internationa by 30.38%. His sale prices were between $3.08 and $3.99, with an estimated average price of $3.38. The impact to his portfolio due to this sale was -0.78%. Donald Smith still held 13,724,227 shares as of 09/30/2010.

Reduced: Aspen Insurance Holdings Ltd. (AHL)

Donald Smith reduced to his holdings in Aspen Insurance Holdings Ltd. by 35.1%. His sale prices were between $24.55 and $30.1, with an estimated average price of $27.94. The impact to his portfolio due to this sale was -0.56%. Donald Smith still held 944,813 shares as of 09/30/2010.

Reduced: Cooper Tire & Rubber Company (CTB)

Donald Smith reduced to his holdings in Cooper Tire & Rubber Company by 32.08%. His sale prices were between $16.19 and $22.75, with an estimated average price of $19.63. The impact to his portfolio due to this sale was -0.4%. Donald Smith still held 1,179,030 shares as of 09/30/2010.

Reduced: Tech Data Corp. (TECD)

Donald Smith reduced to his holdings in Tech Data Corp. by 23.81%. His sale prices were between $35.5 and $40.79, with an estimated average price of $38.53. The impact to his portfolio due to this sale was -0.34%. Donald Smith still held 748,657 shares as of 09/30/2010.

Reduced: Validus Holdings Ltd (VR)

Donald Smith reduced to his holdings in Validus Holdings Ltd by 46.99%. His sale prices were between $24.46 and $26.78, with an estimated average price of $25.36. The impact to his portfolio due to this sale was -0.24%. Donald Smith still held 279,373 shares as of 09/30/2010.

Sold Out: Alaska Air Group Inc. (ALK)

Donald Smith sold out his holdings in Alaska Air Group Inc.. His sale prices were between $43.24 and $54.09, with an estimated average price of $48.69.

Sold Out: Partnerre Ltd. (PRE)

Donald Smith sold out his holdings in Partnerre Ltd.. His sale prices were between $70.12 and $79.99, with an estimated average price of $74.77.

About the author:

gurufocus
GuruFocus - Stock Picks and Market Insight of Gurus

Rating: 2.2/5 (6 votes)

Comments

Please leave your comment:


GuruFocus Mobile App


User Generated Screeners


pbarker465 values
OqulentOqulent
sean_golfCODE
pbarker46dividend stocks
daltechrao2
TFCDebt Free Div Payer
KetsinyongEV
gericomROE
gjjbrownGarrys
AlainTecran 4

Select portfolio(s):

  • Loading...

Why you are interested?

Your selection and notes will be stored in your portfolio.

Login to add portfolio
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK