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Kahn Brothers Reduce BMY, SLM, TRV, USG, PFE, LARK in Second Quarter

August 27, 2013 | About:
Sally Jones

Sally Jones

49 followers
Thomas Kahn once explained The Kahn Brothers’ investment approach: “We study companies and try to find undervalued securities... We're absolute value investors focusing on asset values, book value discounts and low price to earnings ratios to normalized earnings. And we aren't interested in so-called relative values -- you know, something selling at 20 times earnings in an industry group with a 35 multiple.”

One of America’s oldest and best value investors, Irving Kahn is still actively investing at his firm in New York. The Kahn Brothers recently updated portfolio shows 46 stocks, none of them new, with a total value of $648 million and a quarter-over-quarter turnover of 1%. The current portfolio is weighted with financial services at 39.7%, healthcare at 25% and consumer cyclical at 9.2%.

As of June 30, 2013, centenarian Irving Kahn made these high-impact reductions along with many more:

REDUCED: Bristol-Myers Squibb Company (BMY)

Impact to Portfolio: -2.17%

Current Shares: 55,433

Up 29% over 12 months, Bristol-Myers Squibb Company has a market cap of $69.84 billion; its shares were traded at around $42.42, with a P/E of 51.90. The P/B ratio is 4.80.

Guru Action: As of June 30, 2013, Kahn reduced his position by 86.62%, selling 358,994 shares at an average price of $43.41, for a loss of 2.3%.

He has averaged a gain of 98% on 704,060 shares bought at an average price of $21.45 per share. On shares sold, he has averaged a gain of 22% on 1,761,476 shares sold at an average price of $34.87 per share.

His holding history:

1377555727897.png

REDUCED: SLM Corp. (SLM)

Impact to Portfolio: -0.93%

Current Shares: 1,518,301

Up 58% over 12 months, SLM Corp. has a market cap of $10.8 billion; its shares were traded at around $24.76, with a P/E of 8.00. The P/B ratio is 2.30.

Guru Action: As of June 30, 2013, Kahn reduced his position by 16.91%, selling 309,020 shares at an average price of $21.84, for a gain of 13.4%.

He has averaged a gain of 102% on 2,084,719 shares bought at an average price of $12.23 per share. On shares sold, he has averaged a gain of 29% on 580,218 shares sold at an average price of $19.15 per share.

His holding history:

1377556114128.png

REDUCED: Travelers Companies Inc. (TRV)

Impact to Portfolio: -0.35%

Current Shares: 2,000

Up 23% over 12 months, Travelers Companies Inc. has a market cap of $29.92 billion; its shares were traded at around $80.12, with a P/E of 10.40. The P/B ratio is 1.20.

Track historical pricing:

1377557097921.png

Guru Action: As of June 30, 2013, Kahn reduced his position by 93.32%, selling 27,928 shares at an average price of $84.05, for a loss of 4.7%.

He has averaged a gain of 64% on 108,176 shares bought at an average price of $48.97 per share. On shares sold, he has averaged a gain of 30% on 106,176 shares sold at an average price of $61.47 per share.



REDUCED: USG Corp. (USG)


Impact to Portfolio: -0.22%

Current Shares: 120,000

Up 15% over 12 months, USG Corp. has a market cap of $2.55 billion; its shares were traded at around $23.49, with a P/B of 175.60.

Track historical pricing:

1377557859186.png

Guru Action: As of June 30, 2013, Kahn reduced his position by 32.14%, selling 56,830 shares at an average price of $25.99, for a loss of 9.6%.

He has averaged a gain of 36% on 182,000 shares bought at an average price of $17.31 per share. On shares sold, he has averaged a loss of 8% on 62,000 shares sold at an average price of $25.51 per share.



REDUCED: Pfizer Inc. (PFE)


Impact to Portfolio: -0.13%

Current Shares: 2,541,622

Up 17% over 12 months, Pfizer Inc. has a market cap of $185.5 billion; its shares were traded at around $28.02, with a P/E of 7.80. The P/B ratio is 2.60.

Track historical pricing:

1377557956315.png

Guru Action: As of June 30, 2013, Kahn reduced his position by 1.2%, selling 30,814 shares at an average price of $29.12, for a loss of 3.8%.

He has averaged a gain of 56% on 1,266,951 shares bought at an average price of $17.94 per share. On shares sold, he has averaged a gain of 41% on 379,174 shares sold at an average price of $19.91 per share.

REDUCED: Landmark Bancorp Inc. (LARK)

Impact to Portfolio: -0.09%

Current Shares: 87,513

Up 2% over 12 months, Landmark Bancorp Inc. has a market cap of $59.8 million; its shares were traded at around $20.37, with a P/E of 10.70. The P/B ratio is 1.00.

Track historical pricing:

1377558127866.png

Guru Action: As of June 30, 2013, Kahn reduced his position by 24.31%, selling 28,114 shares at an average price of $21.15, for a loss of 3.7%.

He has averaged a gain of 34% on 5,368 shares bought at an average price of $15.22 per share. On shares sold, he has averaged a gain of 7% on 44,030 shares sold at an average price of $19.03 per share.

Kahn Brothers uses a bottom-up selection approach and invests in undervalued equity securities that are usually out-of-favor in the market. The hedge fund selects securities, based on asset valuations, operating performance metrics and long-term fundamental business prospects.

Here is the complete portfolio of Irving Kahn.



Be sure to read more about Irving Kahn's Undervalued Stocks and Irving Kahn's Top Growth Companies.



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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: 2.5/5 (6 votes)

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