Chris Davis’ Davis New York Venture Fund has beaten the market since inception, which it attributes to buying durable, well-managed companies at a discount to intrinsic value and holding for the long term. But it is currently in a spot of underperformance. Year to date, the fund trails the S&P500 10.07% to 18.9%.
The underperformance has precedent though, and in each similar period in the past, the fund came back strong when the gap between price and value in its holdings closed. “The gap between ‘price and value’ in our portfolio today is as large as we have ever seen,” David wrote in a June letter.
Davis announced the fund’s second quarter activity today. Eight new buys were added for a total of 193 stocks and a portfolio value of $39.39 billion. The largest of the new holdings are Liberty Global PLC (LBTYK, Financial), Wesco Aircraft Holdings PLC (WAIR, Financial), SINA Corporation (SINA, Financial), Brookfield Property Partners LP (BPY, Financial) and DCT Industrial Trust Inc. (DCT, Financial).
Liberty Global PLC (LBTYK)
David made Liberty Global 1% of his portfolio, buying 5,827,348 shares at $69 each on average. Liberty shares since gained 10%. The price is $75.88 Wednesday. Davis has traded Liberty shares before, but not at this scale, as his trading history shows:
Liberty Global was formed on Jan. 13, 2005. Liberty Global has a market cap of $30.34 billion; its shares were traded at around $75.88 with a P/E ratio of 973.20 and P/S ratio of 1.90. Liberty Global had an annual average earnings growth of 4.5% over the past five years.
Long-term revenue and earnings history:
The Peter Lynch chart identifies the stock as overvalued:
Wesco Aircraft Holdings PLC (WAIR)
Davis purchased 1,437,261 shares of Wesco Aircraft Holdings for $17 on average. Up 18% since, shares are $19.44 each on Wednesday.
Wesco Aircraft was incorporated in Delaware on July 21, 2006. Wesco Aircraft Holdings Inc. has a market cap of $1.82 billion; its shares were traded at around $19.44 with a P/E ratio of 19.20 and P/S ratio of 2.20.
The revenue and earnings history:
The Peter Lynch chart calls Wesco Aircraft overvalued:
SINA Corporation (SINA)
David purchased 275,943 shares of SINA Corporation at $55 each on average. The price increased 35% since, reaching $73.57 Wednesday.
SINA Corporation was founded in March 1999 through the merger of Beijing SINA Information Technology Co. SINA Corporation has a market cap of $4.9 billion; its shares were traded at around $73.57 with a P/E ratio of 152.60 and P/S ratio of 9.00.
SINA’s long-term revenue and earnings history:
The Peter Lynch chart indicates the stock is overvalued:
Brookfield Property Partners LP (BPY)
Davis purchased 509,972 shares of Brookfield Property Partners at $22 on average. Share fell 7% since, trading at $20.21 Wednesday.
Brookfield Property Partners LP has a market cap of $1.64 billion; its shares were traded at around $20.21 with and P/S ratio of 6.60. The dividend yield of Brookfield Property Partners LP stocks is 0.60%.
Long-term revenue and earnings history:
According to the Peter Lynch chart, the stock is overvalued:
DCT Industrial Trust Inc. (DCT)
David purchased 947,856 shares of DCT for $8 on average, a 0.017% portfolio position. He has an extensive trading history with the stock:
DCT Industrial Trust Inc. or DCT was formed as a Maryland corporation in April 2002 and have elected to be treated as a real estate investment trust or REIT for U.S. federal income tax purposes. DCT Industrial Trust Inc. has a market cap of $2.17 billion; its shares were traded at around $7.42 with a P/E ratio of 17.20 and P/S ratio of 7.20. The dividend yield of DCT Industrial Trust Inc. stocks is 3.80%.
Long-term revenue and earnings history:
See more Chris Davis stocks in his portfolio here. Also check out the Undervalued Stocks, Top Growth Companies and High Yield stocks of Chris Davis.
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The underperformance has precedent though, and in each similar period in the past, the fund came back strong when the gap between price and value in its holdings closed. “The gap between ‘price and value’ in our portfolio today is as large as we have ever seen,” David wrote in a June letter.
Davis announced the fund’s second quarter activity today. Eight new buys were added for a total of 193 stocks and a portfolio value of $39.39 billion. The largest of the new holdings are Liberty Global PLC (LBTYK, Financial), Wesco Aircraft Holdings PLC (WAIR, Financial), SINA Corporation (SINA, Financial), Brookfield Property Partners LP (BPY, Financial) and DCT Industrial Trust Inc. (DCT, Financial).
Liberty Global PLC (LBTYK)
David made Liberty Global 1% of his portfolio, buying 5,827,348 shares at $69 each on average. Liberty shares since gained 10%. The price is $75.88 Wednesday. Davis has traded Liberty shares before, but not at this scale, as his trading history shows:
Liberty Global was formed on Jan. 13, 2005. Liberty Global has a market cap of $30.34 billion; its shares were traded at around $75.88 with a P/E ratio of 973.20 and P/S ratio of 1.90. Liberty Global had an annual average earnings growth of 4.5% over the past five years.
Long-term revenue and earnings history:
The Peter Lynch chart identifies the stock as overvalued:
Wesco Aircraft Holdings PLC (WAIR)
Davis purchased 1,437,261 shares of Wesco Aircraft Holdings for $17 on average. Up 18% since, shares are $19.44 each on Wednesday.
Wesco Aircraft was incorporated in Delaware on July 21, 2006. Wesco Aircraft Holdings Inc. has a market cap of $1.82 billion; its shares were traded at around $19.44 with a P/E ratio of 19.20 and P/S ratio of 2.20.
The revenue and earnings history:
The Peter Lynch chart calls Wesco Aircraft overvalued:
SINA Corporation (SINA)
David purchased 275,943 shares of SINA Corporation at $55 each on average. The price increased 35% since, reaching $73.57 Wednesday.
SINA Corporation was founded in March 1999 through the merger of Beijing SINA Information Technology Co. SINA Corporation has a market cap of $4.9 billion; its shares were traded at around $73.57 with a P/E ratio of 152.60 and P/S ratio of 9.00.
SINA’s long-term revenue and earnings history:
The Peter Lynch chart indicates the stock is overvalued:
Brookfield Property Partners LP (BPY)
Davis purchased 509,972 shares of Brookfield Property Partners at $22 on average. Share fell 7% since, trading at $20.21 Wednesday.
Brookfield Property Partners LP has a market cap of $1.64 billion; its shares were traded at around $20.21 with and P/S ratio of 6.60. The dividend yield of Brookfield Property Partners LP stocks is 0.60%.
Long-term revenue and earnings history:
According to the Peter Lynch chart, the stock is overvalued:
DCT Industrial Trust Inc. (DCT)
David purchased 947,856 shares of DCT for $8 on average, a 0.017% portfolio position. He has an extensive trading history with the stock:
DCT Industrial Trust Inc. or DCT was formed as a Maryland corporation in April 2002 and have elected to be treated as a real estate investment trust or REIT for U.S. federal income tax purposes. DCT Industrial Trust Inc. has a market cap of $2.17 billion; its shares were traded at around $7.42 with a P/E ratio of 17.20 and P/S ratio of 7.20. The dividend yield of DCT Industrial Trust Inc. stocks is 3.80%.
Long-term revenue and earnings history:
See more Chris Davis stocks in his portfolio here. Also check out the Undervalued Stocks, Top Growth Companies and High Yield stocks of Chris Davis.
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