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Horizon Kinetics - Impact Reductions

August 26, 2013 | About:
Sally Jones

Sally Jones

49 followers




Guru Murray Stahl’s investment company Horizon Kinetics poses an interesting question in its second quarter 2013 commentary, asking:

“What if the historical returns of the S&P 500, which forms the basis of projecting future stock market returns, and which therefore powerfully influence the proportion of a pension plan or 401k that will be allocated to stocks or bonds, are not actually representative of what investors are purchasing if they invest in the index today? The nature of the S&P 500 today is different than it was before 2005.”

Horizon Kinetics adheres to a long-term, contrarian, fundamental value investment philosophy. The firm’s recently updated portfolio lists 441 stocks, 26 of them new, with a total value of $6.83 billion and a quarter-over-quarter turnover of 4%. Its top three sectors are weighted as consumer cyclical at 32.6%, real estate at 21.5% and technology at 11%.

These are Stahl’s high-impact reductions, as of June 30, 2013.

Wynn Resorts Ltd. (WYNN): Reduced

Impact to Portfolio: -1.05%

Up 35% over 12 months, Wynn Resorts, a resort and casino company, has a market cap of $14.35 billion; its shares were traded at around $141.93. The P/E ratio is 25.80.

Historical share pricing:

1377449483615.png

Guru Action: As of June 30, 2013, Murray Stahl reduced his position by 52.67%, selling 577,393 shares at an average price of $133.27, for a gain of 6.5%. Current shares remaining are 518,865.

He has averaged a gain of 14% on 1,641,940 shares bought at an average price of $124.63 per share. On shares sold, he has averaged a gain of 29% on 1,499,375 shares sold at an average price of $109.84 per share.

His trading history:

1377448365801.png

WisdomTree Investments Inc. (WETF): Reduced

Impact to Portfolio: -0.93%

Up 91% over 12 months, WisdomTree Investments, an asset management company, has a market cap of $1.56 billion; its shares were traded at around $12.18. The P/E ratio is 55.90.

Historical share pricing:

1377449698873.png

Guru Action: As of June 30, 2013, Murray Stahl reduced his position by 71.61%, selling 7,736,982 shares at an average price of $11.69, for a gain of 4.2%. Current shares remaining are 3,067,569.

He has averaged a gain of 68% on 13,995,715 shares bought at an average price of $7.23 per share. On shares sold, he has averaged a gain of 20% on 10,928,146 shares sold at an average price of $10.19 per share.

WPX Energy Inc. (WPX): Reduced

Impact to Portfolio: -0.86%

Up 30% over 12 months, WPX Energy Inc., an oil and gas E&P company, has a market cap of $3.91 billion; its shares were traded at around $19.51. The P/B ratio is 0.70.

Historical share pricing:

1377449854813.png

Guru Action: As of June 30, 2013, Murray Stahl reduced his position by 66.33%, selling 3,664,640 shares at an average price of $17.86, for a gain of 9.2%. Current shares remaining are 1,859,918.

He has averaged a gain of 17% on 6,026,898 shares bought at an average price of $16.67 per share. On shares sold, he has averaged a gain of 11% on 4,166,980 shares sold at an average price of $17.63 per share.

Franco-Nevada Corp. (FNV): Reduced

Impact to Portfolio: -0.69%

Down 5% over 12 months, Franco-Nevada Corp. has a market cap of $6.8 billion; its shares were traded at around $46.37. The P/E ratio is 90.90. The company is a gold-focused royalty and stream company with additional interests in platinum group metals, oil and gas, and other resource assets.

Historical share pricing:

1377450426288.png

Guru Action: As of June 30, 2013, Murray Stahl reduced his position by 57.77%, selling 961,114 shares at an average price of $40.26, for a gain of 15.2%. Current shares remaining are 702,562.

He has averaged a gain of 11% on 6,907,665 shares bought at an average price of $41.59 per share. On shares sold, he has averaged a gain of 12% on 6,205,103 shares sold at an average price of $41.57 per share.

Virtus Investment Partners Inc. (VRTS): Reduced

Impact to Portfolio: -0.31%

Up 116% over 12 months, Virtus Investment Partners Inc. has a market cap of $1.55 billion; its shares were traded at around $190.41. The P/E ratio is 28.90.

Historical share pricing:

1377450808816.png

Guru Action: As of June 30, 2013, Murray Stahl reduced his position by 53.2%, selling 108,994 shares at an average price of $207.14, for a loss of 8.1%. Current shares remaining are 395,896.

He has averaged a gain of 399% on 339,261 shares bought at an average price of $38.18 per share. On shares sold, he has averaged a gain of 33% on 243,365 shares sold at an average price of $143.65 per share.

Stahl’s trading history shows remarkable gains:

1377449310674.png

Co-founder of the firm, Murray Stahl is also chairman of the board of Horizon Kinetics and oversees the firm’s research team. Stahl also serves as chairman of the firm’s investment committee, which is responsible for all portfolio management decisions.

Here is the complete portfolio of Murray Stahl.



Be sure to read:

1. Murray Stahl's Undervalued Stocks

2. Murray Stahl's Top Growth Companies

3. Murray Stahl's High Yield stocks

4. Stocks that Murray Stahl keeps buying

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GuruFocus Real Time Picks reports the stock purchases and sales that Gurus have made within the prior 2 weeks. The report time lag can be as short as 2 days after the date of the transaction. This feature is for Premium Members only.

Check out the GuruFocus special feature 52-week low screener to find the stocks hitting new lows but are still held by top investor Gurus and Insiders.

About the author:

Sally Jones
Sally Jones writes about Real Time Picks. She says, "I truly enjoy watching the Gurus in realtime and telling their story."

Rating: 3.0/5 (2 votes)

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