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Canadian Guru Francis Chou Buys Bank of America Warrants, Citigroup, Sears

gurufocus

gurufocus

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Value investor Francis Chou had a difficult year in 2011. His Chou Associates Fund was down 18.8%. The loss was mainly from the financials he owns. He owns many financial stocks that Bruce Berkowitz owns, too. But apparently Francis Chou does not have the redemption problem that Bruce Berkowitz has. He took the opportunity and added more to the positions that he has conviction in.

If you are not familiar with Francis Chou, you should be. He came to Canada at a young age, never went to college, and worked as a telephone technician. But he found out about value investing. Since then he has built an amazing track record and manages more than $1 billion. For more about him, please read: Francis Chou – The Investment Guru That You Never Heard Of.

Regarding his purchases of Bank of America Warrants, Mr. Chou thinks that it is a better way of investing in banks. He wrote about it in detail here: An Interesting Way to Invest in Banks.

Francis Chou buys Bank Of America Warrants A, Citigroup Inc., Sears Holdings Corp., Radioshack Corp., Qiao Xing Mobile Communication Co. Ltd., sells Mannkind Corp., Gannett Co. Inc., Cryptologic Ltd. during the three months ended 12/31/2011, according to the most recent filings of his investment company, Chou Associates Management. As of 12/31/2011, Chou Associates Management owns 29 stocks with a total value of $306 million. These are the details of the buys and sells.

This is the portfolio chart of Francis Chou. 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.



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

These are the sector weightings of his portfolio:

Financials 36.8%
Consumer Services 21.5%
Health Care 19.3%
Not Assigned 12.2%
Telecom 8.9%
Technology 1.1%
Oil & Gas 0.1%
Industrials 0.1%


These are the top five holdings of Francis Chou

  1. AbitibiBowater Inc (ABH) - 2,658,821 shares, 12.6% of the total portfolio. Shares reduced by 1.29%
  2. Watson Pharmaceuticals Inc. (WPI) - 635,400 shares, 12.5% of the total portfolio.
  3. Berkshire Hathaway Inc. (BRK.A) - 300 shares, 11.2% of the total portfolio.
  4. Sears Holdings Corp. (SHLD) - 583,700 shares, 6.1% of the total portfolio. Shares added by 20.67%
  5. BANK OF AMERICA WARRANTS (BAC.WS.A) - 8,950,400 shares, 5.9% of the total portfolio. Shares added by 39.85%


Added: Bank Of America Warrants (BAC.WS.A)

Francis Chou added to his holdings in Bank Of America Warrants by 39.85%. His purchase prices were between $2 and $3.51, with an estimated average price of $2.7. The impact to his portfolio due to this purchase was 1.68%. His holdings were 8,950,400 shares as of 12/31/2011.

Added: Citigroup Inc. (C)

Francis Chou added to his holdings in Citigroup Inc. by 90.53%. His purchase prices were between $23.11 and $34.17, with an estimated average price of $27.82. The impact to his portfolio due to this purchase was 1.66%. His holdings were 410,000 shares as of 12/31/2011.

Added: Sears Holdings Corp. (SHLD)

Francis Chou added to his holdings in Sears Holdings Corp. by 20.67%. His purchase prices were between $31.78 and $82.43, with an estimated average price of $63.74. The impact to his portfolio due to this purchase was 1.04%. His holdings were 583,700 shares as of 12/31/2011.

Added: Radioshack Corp. (RSH)

Francis Chou added to his holdings in Radioshack Corp. by 29.41%. His purchase prices were between $9.23 and $13.69, with an estimated average price of $11.68. The impact to his portfolio due to this purchase was 0.93%. His holdings were 1,294,071 shares as of 12/31/2011.

Added: Qiao Xing Mobile Communication Co. Ltd. (QXM)

Francis Chou added to his holdings in Qiao Xing Mobile Communication Co. Ltd. by 116.26%. His purchase prices were between $0.85 and $1.15, with an estimated average price of $0.99. The impact to his portfolio due to this purchase was 0.28%. His holdings were 1,584,397 shares as of 12/31/2011.

Sold Out: Mannkind Corp. (MNKD)

Francis Chou sold out his holdings in Mannkind Corp. His sale prices were between $2.5 and $3.7, with an estimated average price of $3.06.

Sold Out: Gannett Co. Inc. (GCI)

Francis Chou sold out his holdings in Gannett Co. Inc. His sale prices were between $9.16 and $13.55, with an estimated average price of $11.6.

Sold Out: Cryptologic Ltd. (CRYP)

Francis Chou sold out his holdings in Cryptologic Ltd. His sale prices were between $1.11 and $2.39, with an estimated average price of $1.47.

Here is the complete portfolio of Francis Chou. Also check out the Undervalued Stocks, Top Growth Companies, and High Yield stocks of Francis Chou.

About the author:

gurufocus
GuruFocus - Stock Picks and Market Insight of Gurus

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