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Alan Fournier's Top Five Positions

August 22, 2013 | About:
Monica Wolfe

Monica Wolfe

122 followers
Alan Fournier is the founder and manager of Pennant Capital Management. Prior to creating Pennant, Fournier spent some time working at David Tepper’s Appaloosa Management managing global equity investments. During the second quarter Fournier sold out of four companies and made initial buys into eight new stocks. His second quarter portfolio held 46 stocks valued at $5.373 billion. The following five companies represent Fournier’s top five positions.



TransDigm Group (TDG)

Fournier maintains his largest position in TransDigm Group where he holds 2,152,710 shares. His position in TransDigm represents 4.30% of the company’s shares outstanding and 6.3% of his total portfolio.

During the second quarter, Fournier decreased his position in TransDigm by -2.23%. The guru sold a total of 49,000 shares in the second quarter price range of $144.18 to $162.48, with an estimated average price of $150.05. Since then, the share price has dropped about -7.2%.

Fournier’s holding history as of the second quarter:

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The Company is a global designer, producer and supplier of engineered aircraft components for use on nearly all commercial and military aircraft in service today.

TransDigm’s historical revenue and earnings growth:

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The Peter Lynch Chart suggests that TransDigm is currently overvalued:

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TransDigm Group has a market cap of $7.31 billion. Its shares are currently trading at around 139.18 with a P/E ratio of 32.80, a P/S ratio of 4.10 and a P/B ratio of 8.70. The company had an annual average earnings growth of 21.4% over the past five years.

DaVita Health Care Partners (DVA)

Fournier’s second largest holding is in DaVita Health Care Partners. The guru holds on to 2,675,972 shares, representing 2.54% of the company’s shares outstanding and 6% of his total portfolio.

During the second quarter Fournier reduced his position by -1.51%. The guru sold a total of 41,000 shares in the second quarter price range of $117.32 to $131.19, with an estimated average price of $124.88. Since then the price per share has dropped about -12.3%.

Fournier’s holding history as of the second quarter:

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DaVita is a provider of dialysis services in the United States for patients suffering from chronic kidney failure, also known as end stage renal disease, or ESRD.

DaVita’s historical revenue and earnings growth:

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The Peter Lynch Chart suggests that DaVita is currently overvalued:

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DaVita Health Care Partners has a market cap of $11.7 billion. Its shares are currently trading at around $110.08 with a P/E ratio of 20.00, a P/S ratio of 1.10 and a P/B ratio of 2.90. The company had an annual average earnings growth of 16.5% over the past ten years.

GuruFocus rated DaVita the business predictability rank of 3.5-star.

Priceline.com (PCLN)

Fournier currently holds 329,800 shares of Priceline.com making it his third largest position. The guru’s holdings make up 0.66% of the company’s shares outstanding and 5.1% of his total portfolio.

Fournier upped his position in Priceline over the duration of the second quarter. Fournier increased his holdings 10.37% by purchasing a total of 31,000 shares in the price range of $683.57 to $842.50. The price per share has increased about 24.6% from the estimated average second quarter price.

Fournier’s holding history as of the second quarter:

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Priceline.com is an online travel company that offers its customers a range of travel services, including hotel rooms, car rentals, airline tickets, vacation packages, cruises and destination services.

Priceline’s historical revenue and net income:

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The Peter Lynch Chart suggests that Priceline is currently overvalued:

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Priceline has a market cap of $49.04 billion. Its shares are currently trading at around $952.15 with a P/E ratio of 31.30, a P/S ratio of 8.30 and a P/B ratio of 8.40. The company had an annual average earnings growth of 55.1% over the past five years.

NVR Inc. (NVR)

Alan Fournier’s fourth largest holding is in NVR Inc where he maintains 259,302 shares. His position makes up 5.19% of the company’s shares outstanding and 4.4% of his total portfolio.

Fournier hasn’t changed his position in NVR since 2012Q4. The guru’s holding history as of the most recent quarter:

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The Company's main business is the construction and sale of single-family detached homes, townhomes and condominium buildings.

NVR’s historical revenue and earnings growth:

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The Peter Lynch Chart suggests that NVR is currently overvalued:

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NVR has a market cap of $4.16 billion. Its shares are currently trading at around $897.33 with a P/E ratio of 22.80, a P/S ratio of 1.30 and a P/B ratio of 3.50. The company had an annual average earnings growth of 6.9% over the past five years.

Huntington Ingalls Industries (HII)

Fournier’s fifth largest position is in Huntington Ingalls Industries. The guru holds on to 4,129,567 shares, representing 8.32% of the company’s shares outstanding and 4.3% of his total portfolio. The guru did not make any changes to his holdings in Huntington over the second quarter.

Fournier’s holding history as of June 30:

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Huntington Ingalls builds, overhauls & repairs ships primarily for the U.S. Navy and the U.S. Coast Guard. It is the nation's sole industrial designer, builder and refueler of nuclear-powered aircraft carriers, the sole supplier and builder of amphibious assault and expeditionary warfare ships to the U.S. Navy, the sole builder of National Security Cutters for the U.S. Coast Guard.

Huntington Ingalls’ historical revenue and net income:

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The Peter Lynch Chart suggests that Huntington Ingalls is currently overvalued:

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Huntington Ingalls Industries has a market cap of $3.24 billion. Its shares are currently trading at around $65.13 with a P/E ratio of 20.10, a P/S ratio of 0.50 and a P/B ratio of 3.60.

Check out Alan Fournier’s second quarter portfolio here.

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