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50 Sold Out – Burbank’s Passport Capital Unloads Chemicals

Sally Jones

Sally Jones

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In the second quarter of 2013, Guru John Burbank sold 50 companies and reduced many more. One of the main themes of his major reductions was about unloading large positions in four chemical companies.

Based in San Francisco, Passport Capital LLC is a global investment firm founded in 2000 by Guru John H. Burbank III. The firm manages approximately $3.1 billion in assets, using a combination of macroeconomic analysis, fundamental research and quantitative tools.

Passport Capital’s recently updated portfolio lists 132 stocks, 55 of them new, with a total value of $3.03 billion and a quarter-over-quarter turnover of 34%. The portfolio is currently weighted with top three sectors: basic materials sector at 11.8%, consumer cyclical at 11.2% and consumer defensive at 6.5%.

Here are six of Burbank’s highest-impact sells and reductions, as of June 30, 2013:

Huntsman Corporation (HUN): Sold Out

Impacts Portfolio: -6.3%

Up 25% over 12 months, Huntsman Corporation has a market cap of $4.22 billion; its shares were traded at around $17.49 with a P/E ratio of 43.50.

Huntsman Corporation was formed in 2004 to hold the Huntsman businesses. The company operates all of its businesses through its subsidiary, Huntsman International and is a manufacturer of organic and inorganic chemical products.

Guru Action: As of June 30, 2013, Passport Capital sold out its position, selling 8,529,842 shares at an average price of $18.29, for a loss of 4.4%. Out of ten quarters, three of those quarters show losses. The highest gain was 66.3% in the fourth quarter of 2011 when Burbank bought 229,600 shares at an average price of $10.52.

Track historical pricing, revenue and net income:



PennyMac Mortgage Investment Trust (PMT): Sold Out

Impacts Portfolio: -2.1%

Down 3% over 12 months, PennyMac Mortgage Invest Trust has a market cap of $1.48 billion; its shares were traded at around $21.05 with a P/E ratio of 6.00.

PennyMac Mortgage Investment Trust was organized in 2009. As a newly-formed finance company, it invests mainly in residential mortgage loans and mortgage-related assets.

Guru Action: As of June 30, 2013, Passport Capital sold out its position, selling 2,045,880 shares at an average price of $23.35, for a loss of 9.9%. The firm had losses in all three quarters of holding, bottoming out in the previous quarter when Burbank bought a new holding of 504,312 shares at an average price of $26.03 per share, losing 19.1%.

Track historical pricing, revenue and net income:



Eastman Chemical Company (EMN): Sold Out

Impacts Portfolio: -1.8%

Up 39% over 12 months, Eastman Chemical Company has a market cap of $11.72 billion; its shares were traded at around $76.00 with a P/E ratio of 19.90.

Eastman Chemical Company began business in 1920 for the purpose of producing chemicals for Eastman Kodak Company's photographic business and later became a public company, incorporated in 1993. This global chemical company manufactures and sells a portfolio of chemicals, plastics and fibers.

Guru Action: As of June 30, 2013, Passport Capital sold out its position, unloading 629,493 shares at an average price of $69.70, for a gain of 9%. The firm had four consecutive quarters of gains, gaining the most, 41.8%, in the third quarter 2012 when Burbank bought a new holding of 172,536 shares at an average price of $53.58 per share.

Track historical pricing, revenue and net income:





Kinross Gold Corporation (KGC): Reduced

Impacts Portfolio: -3.47%

Down 38% over 12 months, Kinross Gold Corporation has a market cap of $6.28 billion; its shares were traded at around $5.49 with a P/B ratio of 0.94.

Kinross Gold Corporation was initially created in 1993. The company is engaged in the mining and processing of gold and silver ore. Kinross explores and acquires gold-bearing properties worldwide.

Guru Action: As of June 30, 2013, Passport Capital reduced its position by 88.93%, selling 10,864,606 shares at an average price of $5.82, for a loss of 5.7%. Current shares stand at 1,325,853.

The firm has averaged a loss of 40% on 14,121,122 shares bought at an average price of $9.11 per share. On shares sold, the firm averaged a loss of 11% on 12,768,269 shares sold at an average price of $6.20 per share.

Track historical pricing, revenue and net income:



Methanex Corporation (MEOH): Reduced

Impacts Portfolio: -2.98%

Up 62% over 12 months, Methanex Corporation has a market cap of $4.43 billion; its shares were traded at around $46.51 with a P/B ratio of 3.17.

Methanex Corporation was incorporated in 1968. The company produces and globally markets methanol, a chemical that is used to make a wide range of industrial, consumer and energy products.

Guru Action: As of June 30, 2013, Passport Capital reduced its position by 90.18%, selling 1,814,865 shares at an average price of $42.29, for a gain of 10%. Current shares remaining are 197,635.

The firm has averaged a gain of 53% on 2,478,400 shares bought at an average price of $30.32 per share. On shares sold, the firm averaged a gain of 17% on 2,280,765 shares sold at an average price of $39.85 per share.

Track historical pricing, revenue and net income:





Cytec Industries (CYT): Reduced

Impacts Portfolio: -2.83%

Up 8% over 12 months, Cytec Industries has a market cap of $2.73 billion; its shares were traded at around $74.53 with a P/E ratio of 20.30.

A global specialty chemicals company, Cytec Industries was incorporated in 993. The company is focused on developing, manufacturing and selling value-added products that serve a diverse range of end markets in aerospace, adhesives, automotive and many others.

Guru Action: As of June 30, 2013, Passport Capital reduced its position by 27.21%, selling 958,515 shares at an average price of $73.16, for a gain of 1.9%. Current shares remaining are 2,564,323.

The firm has averaged a gain of 40% on 3,607,938 shares bought at an average price of $53.30 per share. On shares sold, the firm averaged a gain of 5% on 1,043,615 shares sold at an average price of $71.22 per share.

Track historical pricing, revenue and net income:





As a strategy, Passport Capital invests in businesses approaching inflection points that result from growing demand and strong market positioning.

Study the rest of John Burbank’s trades.

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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: 4.3/5 (3 votes)

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