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Mason Hawkins' Top Second Quarter Portfolio Changes

August 14, 2013 | About:
Monica Wolfe

Monica Wolfe

118 followers
Mason Hawkins has been chairman and chief executive officer of Southeastern Asset Management since 1975. He and his partners manage the Longleaf Partners Funds. Hawkins has been receiving a lot of press recently as he’s teamed up with Carl Icahn in the fight for Dell.

Over the second quarter, Hawkins bought one new stock bringing his total number of stocks owned to 36. His portfolio is currently valued at over $20 billion.





CNH Global NV (
CNH)

Over the second quarter, Mason Hawkins made his largest increase in CNH Global. The guru upped his stake in the company by 101.82%. He purchased shares when they were trading at an average price of $42.36 per share.

Hawkins initially bought into CNH Global in 2012Q4. The guru currently holds 3,815,399 shares of CNH, representing 1.57% of the company’s shares outstanding and 0.78% of his total portfolio.

Hawkins’ holding history as of the second quarter:

1376431269415.png

CNH Global is a world leader in the agricultural and construction businesses. The company is the number one manufacturer of agricultural tractors and combines in the world, the third largest maker of construction equipment, and has one of the industry's largest equipment finance operations.

CNH Global’s historical revenue and net income:

1376432383780.png

The second quarter financials for CNH Global reported:

· Net sales increased 9% to $5.5 billion

· EPS was up 31% to $1.93 per share.

· Operating profit of $659 million.

· Generated $856 million in operating cash on a year-to-date basis.

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

1376432675521.png

CNH Global has a market cap of $11.54 billion. Its shares are currently trading at around $47.61 with a P/E ratio of 8.80, a P/S ratio of 0.50 and a P/B ratio of 1.30. The company had an annual average earnings growth of 10% over the past five years.

Murphy Oil Corporation (MUR)

During the second quarter, Hawkins upped his stake in Murphy Oil by 53.23%. The guru bought a total of 5,578,849 when the average price per share was around $62.65 per share. The price per share has increased approximately 12.4% from the average purchase price.

Hawkins now holds on to a total of 16,060,252 shares of Murphy Oil, representing 8.42% of the company’s shares outstanding and 4.8% of his total portfolio. Hawkins has consistently increased his position in Murphy Oil since 2011Q3.

Hawkins’ holding history as of the second quarter:

1376488824088.png

Murphy Oil is an international oil and gas company that conducts business through various operating subsidiaries. The company produces oil and natural gas in the U.S., Canada, Malaysia and Republic of the Congo and conducts exploration activities worldwide.

Murphy Oil’s historical revenue and net income:

1376489180974.png

The company’s preliminary second quarter earnings reported:

- Net income of $402.6 million up from $295.4 million in the second quarter 2012.

- EPS of $2.12 per diluted share versus $1.52 per share in 2012Q2

- Revenue of $7.217 billion up from $7.157 billion.

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

1376489910167.png

Murphy Oil has a market cap of $13.16 billion. Its shares are currently trading at around $70.44 with a P/E ratio of 14.58, a P/S ratio of 0.48 and a P/B ratio of 1.40. The company had an annual average earnings growth of 13.4% over the past ten years.

GuruFocus rated Murphy Oil the business predictability rank of 2-star.

Service Corporation (SCI)

Mason Hawkins made his largest reduction of the quarter in Service Corporation. The guru decreased his position -63.29% by selling a total of 9,128,548 shares. He sold these shares at around an average price of $17.02 per share. Since his reduction, the price per share has increased approximately 12.6% from the average selling price.

Hawkins now holds on to 5,295,700 shares of Service Corporation, representing 2.51% of the company’s shares outstanding and 0.47% of his total portfolio. Hawkins’ holding history as of the close of the second quarter:

1376490214748.png

Service Corporation International is North America’s largest single provider of funeral, cremation and cemetery services. The company operates more than 1,800 funeral homes and cemeteries.

Service Corporation’s historical revenue and net income:

1376490424833.png

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

1376490640836.png

Service Corporation has a market cap of $4.07 billion. Its shares are currently trading at around $19.19 with a P/E ratio of 26.10, a P/S ratio of 1.70. The company had an annual average earnings growth of 11.3% over the past ten years.

Saks Incorporated (SKS)

Hawkins also significantly cut his holdings in Saks over the past quarter. The guru reduced his holdings -48.99% by selling a total of 12,657,009 shares at an average price of $12.87 per share. The price has increased approximately 24.6% from the average quarterly price.

Hawkins now holds on to a total of 13,180,706 shares of Saks, representing8.63% of the company’s shares outstanding and 0.88% of his total portfolio.

Hawkins’ holding history as of the second quarter:

1376491236050.png

Saks Inc. is a luxury retailer offering a wide assortment of distinctive fashion apparel, shoes, accessories, jewelry, cosmetics and gifts. Saks Fifth Avenue stores are principally free-standing stores in exclusive shopping destinations or anchor stores in upscale regional malls.

Saks’ historical revenue and net income:

1376491360469.png

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

1376491403804.png

Saks has a market cap of $2.41 billion. Its shares are trading at around $16.03 with a P/E ratio of 52.80, a P/S ratio of 0.80 and a P/B ratio of 2.20.

You can view Mason Hawkins’ second quarter portfolio here.

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