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Richard Perry's Top Second Quarter Portfolio Changes

Monica Wolfe

Monica Wolfe

118 followers
During the second quarter Guru Richard Perry made noticeable increases in two companies as well as noticeable reductions in his holdings in three.

The following companies represent the top five changes Perry made to his portfolio during the second quarter 2013.



Hess Corp (HES)

During the second quarter, Perry upped his position in Hess by 158.83%. The guru purchased a total of 2,117,095 shares at an average price of $69.20. From his average purchasing price, the price per share has increased approximately 8.3%.

Perry bought into Hess during the second quarter of 2007 and sold out when the company hit $91.89 per share during the first quarter of 2008. The guru bought back into the company in second quarter 2012 and since then has seen gains up to 54.4%.

Perry currently holds 3,450,000 shares of Hess, representing 1.01% of the company’s shares outstanding and 5.9% of his total portfolio. As of the second quarter, Hess Corp is Perry’s sixth largest holding.

Perry’s holding history of Hess:



Hess Corporation is a leading global independent energy company engaged in the exploration and production of crude oil and natural gas.

Hess’s historical revenue and net income:

1376323485920.png

Hess reported its results for the second quarter 2013 which reported:

· Net income increased $1,341 million from $549 million in second quarter 2012.

· Adjusted earnings were $520 million; adjusted EPS was $1.51 per share.

· The company completed its sale of its Russian subsidiary, Samra-Nafta, for proceeds of $1.9 billion.

· Proceeds from year-to-date asset sales were used to reduce debt by $2.4 billion.

The company also recently reported that they would be selling their Energy Marketing Business to Direct Energy for a total consideration of $1.025 billion. This transaction is a part of the company’s previously announced plan for Hess to exit the entirety of its downstream business as it transforms into a pure play E&P company.

The Peter Lynch Chart shows that the company is currently undervalued:

1376323623436.png

Hess has a market cap of $25.73 billion. Its shares are trading at around $74.96 with a P/E ratio of 9.30, a P/S ratio of 0.70 and a P/B ratio of 1.10. The company had an annual average earnings growth of 7.4% over the past 10 years.

Advance Auto Parts (AAP)

During the second quarter, Perry increased his holdings in Advance Auto Parts by 104.51%. The guru bought a total of 833,848 shares at an average price of $82.78 per share. The price per share has increased a minor 0.1% from his average purchase price.

Perry has held on to his current position in Advance Auto Parts since 2012Q4 and has seen gains of 13.6% since then. The guru currently holds on to 1,631,688 shares of AAP, representing 2.22% of the company’s shares outstanding and 3.4% of his total portfolio.

Perry’s holding history of Advance Auto Parts as of June 30:



Advance Auto Parts is an automotive aftermarket retailer of parts, accessories, batteries and maintenance items in the U.S. The company serves both the do-it-yourself and the professional installer markets. The company recently opened its 4,000th store in Montgomery, N.Y.

Advance Auto Parts historical revenue and net income:

1376324998593.png

The company’s second quarter financials reported:

· EPS increased 18.7% to $1.59 per share.

· Total sales increased 6.1% to $1.55 billion.

· Added 26 stores over the past quarter.

· Operating income increased 15.1% to $194.7 million.

· The company has repurchased 1.0 million shares year-to-date for a cost of $74.5 million.

The Peter Lynch Chart shows that AAP appears to be currently overvalued:

1376325222664.png

Advance Auto Parts has a market cap of $6.06 billion. Its shares are currently trading at around $82.84 with a P/E ratio of 16.30, a P/S ratio of 1.00 and a P/B ratio of 5.20. The company had an annual average earnings growth of 14.2% over the past 10 years.

GuruFocus rated AAP the business predictability rank of 5-star.

Apple (AAPL)

During the second quarter, Richard Perry cut his holdings in Apple by -61.54%. The guru sold a total of 40,000 shares at an average price of $430.74 per share. Since his sell, the share price is trading up about 8.2%.

Perry now owns 25,000 shares of Apple, representing 0.25% of his total portfolio. Perry’s holding history as of the second quarter:



The company designs, manufactures, and markets personal computers, mobile communication devices, and portable digital music and video players and sell a variety of related software, services, peripherals and networking solutions.

Apple’s historical revenue and net income:

1376325944447.png

The Peter Lynch Chart shows that Apple currently appears to be undervalued:

1376325979469.png

Apple has a market cap of $423.11 billion. Its shares are currently trading at around $465.94 with a P/E ratio of 11.60, a P/S ratio of 2.60 and a P/B ratio of 3.10. The company had an annual average earnings growth of 82.7% over the past 10 years.

GuruFocus rated Apple the business predictability rank of 4.5-star.

Hillshire Brands (HSH)

During the second quarter Richard Perry also made a notable decrease in position in Hillshire Brands. The guru reduced his position -58.03% by selling 3,365,900 shares. He sold these shares at an average price of $34.60 per share. Since his sell, the price per share has dropped approximately 4.6%.

Perry now owns a total of 2,434,100 shares of Hillshire, representing 1.98% of the company’s shares outstanding and 2.1% of his total portfolio. Perry has seen gains of 24.8% since he bought into the company in 2012Q3.

Perry’s holding history as of the second quarter:



Hillshire Brands is a manufacturer and marketer of high-quality, brand-name products for consumers throughout the world. It focused primarily on the meats, bakery and beverage products categories. Sara Lee's operations are organized around six business segments.

Hillshire Brands’ historical revenue and net income:

1376326747867.png

Hillshire Brands, formerly Sara Lee Corp, has a market cap of $4.06 billion. Its shares were traded at around $33.01 with a P/E ratio of 47.80, a P/S ratio of 1.00 and a P/B ratio of 10.00.

MGIC Investment Corporation (MTG)

Richard Perry reduced his position in MGIC Investment by 53.5% during the second quarter. The guru sold a total of 4,796,500 shares at an average cost of $5.69 per share. Since his sell, the price per share has increased approximately 35%. The guru now holds on to 4,169,464 shares of MGIC Investments, representing 2.06% of the company’s shares outstanding and 0.65% of his total portfolio.

Perry’s holding history as of the second quarter:



MGIC Investment Corp. is the holding company for MGIC, which is the nation’s largest private mortgage insurer as measured by $15.6 billion primary insurance in force covering 1 million mortgages as of June 30, 2013. The company serves lenders throughout the U.S., Puerto Rico and other locations.

MGIC’s historical revenue and net income:

1376328477728.png

MGIC Investment has a market cap of $2.56 billion. Its shares are currently trading at around $7.59 with a P/S ratio of 1.30 and a P/B ratio of 1.90.

You can check out Richard Perry’s second quarter portfolio here.

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Rating: 3.0/5 (5 votes)

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