Insightful Portfolio Adjustments Reflect Scruggs' Value Investing Approach
Steven Scruggs (Trades, Portfolio), a seasoned portfolio manager at Bragg Financial Advisors, has made notable changes to his investment portfolio in the fourth quarter of 2023, as revealed by the latest N-PORT filing. With a career spanning over two decades at BFA, Scruggs has honed his expertise in value investing, drawing inspiration from the legendary Benjamin Graham. His role as the Director of Research and a key member of the Investment Committee has been pivotal in shaping the investment strategies for the FPA Queens Road Funds. Scruggs' approach is characterized by meticulous fundamental analysis, focusing on small-cap companies that present a significant discount to their intrinsic value.
Key Position Increases
Steven Scruggs (Trades, Portfolio) has bolstered his positions in a total of 9 stocks during the quarter. Noteworthy increases include:
- Arcadium Lithium PLC (ALTM, Financial), where an additional 337,552 shares were acquired, bringing the total to 1,218,658.248 shares. This move marks a substantial 199.79% increase in share count, a 0.97% impact on the current portfolio, and a total value of $9,107,010.
- Levi Strauss & Co (LEVI, Financial) saw an addition of 150,000 shares, raising the total to 503,935. This adjustment signifies a 42.38% increase in share count, with a total value of $8,335,090.
Summary of Sold Out Positions
Scruggs has completely divested from 4 holdings in the fourth quarter of 2023, including:
- MasTec Inc (MTZ, Financial), where all 116,607 shares were sold, resulting in a -1.49% impact on the portfolio.
- Chase Corp (CCF, Financial), with the liquidation of all 16,898 shares, causing a -0.38% impact on the portfolio.
Key Position Reductions
Reductions were also made in 3 stocks, with significant changes as follows:
- Fabrinet (FN, Financial) was reduced by 45,147 shares, leading to an -18.61% decrease in shares and a -1.34% impact on the portfolio. The stock traded at an average price of $171.38 during the quarter and has returned 24.04% over the past 3 months and 6.19% year-to-date.
- Owens & Minor Inc (OMI, Financial) saw a reduction of 210,656 shares, a -98.97% decrease, and a -0.6% impact on the portfolio. The stock's average trading price was $18.11 during the quarter, with returns of 34.71% over the past 3 months and 1.50% year-to-date.
Portfolio Overview
As of the fourth quarter of 2023, Steven Scruggs (Trades, Portfolio)'s portfolio comprised 50 stocks. The top holdings included 5.96% in Fabrinet (FN), 5.19% in TD Synnex Corp (SNX, Financial), 4.9% in InterDigital Inc (IDCC, Financial), 4.48% in PVH Corp (PVH, Financial), and 4.07% in Servisfirst Bancshares Inc (SFBS, Financial). The investments are predominantly spread across 10 of the 11 industries, showcasing a diverse range of sectors such as Technology, Financial Services, Industrials, and more.
Scruggs' latest portfolio adjustments reflect a strategic approach to value investing, with a clear focus on capitalizing on market opportunities and minimizing risks. His decisions to exit certain positions and increase others demonstrate a dynamic and responsive investment strategy that aligns with the ever-changing market landscape. Investors and followers of Scruggs' investment philosophy will be keenly observing how these moves play out in the coming quarters.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
