Kahn Brothers (Trades, Portfolio) Group, an investment firm with a rich history dating back to 1978, recently disclosed its portfolio for the second quarter of 2023. The firm, founded by the late Irving Kahn, Thomas Graham Kahn, and Alan Kahn, has a deep-rooted legacy in value investing. Irving Kahn, the firm's founding chairman, began his career just before the stock market crash of 1929 and later served as Benjamin Graham's teaching assistant at Columbia Business School. Today, Kahn Brothers (Trades, Portfolio) Group continues to serve institutional and high-net-worth clients, offering investment management through Kahn Brothers (Trades, Portfolio) Advisors LLC and brokerage services through Kahn Brothers (Trades, Portfolio) LLC.
Portfolio Overview
As of June 30, 2023, Kahn Brothers (Trades, Portfolio)' portfolio contained 43 stocks with a total value of $682 million. The firm's top holdings were MRK (10.97%), NYCB (10.47%), and BP (9.53%).
Key Trades of the Quarter
The firm made significant adjustments to its holdings in Assured Guaranty Ltd (AGO, Financial), BP PLC (BP, Financial), and Patterson-UTI Energy Inc (PTEN, Financial). These trades had notable impacts on the equity portfolio.
Assured Guaranty Ltd (AGO, Financial)
Kahn Brothers (Trades, Portfolio) reduced their investment in AGO by 105,219 shares, impacting the equity portfolio by 0.76%. The stock traded at an average price of $53.1 during the quarter. As of August 15, 2023, AGO had a market cap of $3.46 billion and a stock price of $59.08. The stock has returned 8.96% over the past year. GuruFocus gives AGO a financial strength rating of 4 out of 10 and a profitability rating of 6 out of 10. The company's valuation ratios include a price-earnings ratio of 11.58, a price-book ratio of 0.66, a EV-to-Ebitda ratio of 11.82, and a price-sales ratio of 3.91.
BP PLC (BP, Financial)
The firm also reduced its investment in BP by 117,466 shares, impacting the equity portfolio by 0.64%. The stock traded at an average price of $37.02 during the quarter. As of August 15, 2023, BP had a market cap of $104.33 billion and a stock price of $36.24. The stock has returned 21.87% over the past year. GuruFocus gives BP a financial strength rating of 6 out of 10 and a profitability rating of 6 out of 10. The company's valuation ratios include a price-earnings ratio of 5.92, a price-book ratio of 1.49, a EV-to-Ebitda ratio of 2.61, and a price-sales ratio of 0.46.
Patterson-UTI Energy Inc (PTEN, Financial)
Kahn Brothers (Trades, Portfolio) reduced their investment in PTEN by 217,820 shares, impacting the equity portfolio by 0.37%. The stock traded at an average price of $11.29 during the quarter. As of August 15, 2023, PTEN had a market cap of $3.03 billion and a stock price of $14.57. The stock has returned 2.55% over the past year. GuruFocus gives PTEN a financial strength rating of 7 out of 10 and a profitability rating of 4 out of 10. The company's valuation ratios include a price-earnings ratio of 9.11, a price-book ratio of 1.76, a EV-to-Ebitda ratio of 4.09, and a price-sales ratio of 1.05.
In conclusion, Kahn Brothers (Trades, Portfolio)' Q2 2023 portfolio update reveals a strategic approach to value investing, with significant adjustments made to key holdings. The firm's long-standing experience and deep-rooted investment philosophy continue to guide its portfolio management decisions.
