Specifically, “The Investment Manager will seek to identify securities through extensive analysis and research, taking into account, among other factors, the relationship of book value to market value, cash flow and multiples of earnings,” according to the firm’s web site.
The fund also engages in activism and arbitrage, and invests in bankrupt and distressed companies.
Since inception in 2005, $1.8 billion in assets have poured in. In the first quarter, the fund, which holds 32 stocks, added one new position: Boeing Co. (NYSE:BA).
Boeing Co. (NYSE:BA)
Winters purchased 56,499 shares of aerospace company Boeing Co. at $78 in the first quarter of 2013, representing 0.3% of the portfolio and making it one of his smallest holdings.
Boeing shares have already gained 30% from his average purchase price and trade at $100.90 on Thursday, near their highest price in 10 years. Financial growth has been substantial over recent quarters as well. In its full-year 2012 results reported Jan. 30, Boeing posted record revenue of $81.7 billion, and GAAP EPS of $5.11, increased from $68.7 million, and $1.68, the previous year.
The 19% revenue increase was primarily driven by higher new airplane deliveries, and higher revenues in its Boeing Military Aircraft and Global Service & Support segments. Growth in its commercial airplanes segment driven by new airplane deliveries was almost three times higher than in 2011, when it grew 7% over 2011.
In the first quarter, reported April 24, Boeing then reported a 3% decline in revenue year over year, with earnings per share increasing 24% to $1.73, including a $0.19 research and development tax credit for 2012.
The company’s cash position declined to $11.8 billion from $13.5 billion during the quarter as it paid down maturing debt. Its backlog also grew to a record $392 billion at year-end.
Back in December, Boeing announced a 10% dividend increase to 48.5 cents per, and between $1.5 billion and $2 billion in share repurchases for 2013.
Boeing’s one-year revenue, P/E and price history:
On Thursday, Boeing has a 19 P/E ratio, 13.2 P/B ratio and 0.94 P/S ratio, near a five-year high.
Boeing is a U.S. company, though Winters’ largest holdings are more international:
1. Jardine Matheson Holdings Ltd. (SGX:J36) – Singapore
2. Swatch Group AG (XSWX:UHR) – Switzerland
3. British American Tobacco PLC (LSE:BATS) – Great Britain
4. Berkshire Hathaway (NYSE:BRK.B) – U.S.
5. Franklin Resources (NYSE:BEN)
6. Compagnie Financiere Richemont SA (XSWX:CFR)
See the rest of his long stock portfolio here. Also check out the Undervalued Stocks, Top Growth Companies and High Yield stocks of Wintergreen Fund.