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Conservative Scott Black – Delphi's High-Impact Sells in Third Quarter

October 20, 2013 | About:
Sally Jones

Sally Jones

49 followers
Conservative Guru Scott Black once said at a Barron’s Roundtable, “…My point is that when you try to pick the market based upon rational assumptions, it seems like you are always wrong. It is better to stay fully invested by buying good businesses that are statistically cheap and forgetting about the market overall.”

The third quarter portfolio of Delphi Management Inc., led by founder and president Scott Black, lists 122 stocks, 14 of them new, with a total value of $881 million and a quarter-over-quarter turnover of 9%.

The portfolio is currently weighted with top three sectors: consumer cyclical at 24.2%, financial services at 13.7% and technology at 12.3%. Guru Scott Black has averaged a return of 14.73% over 12 months.

In the third quarter of 2013, Scott Black reduced or sold out a total of 23 positions. Here’s a review of his four highest-impact sell outs, as of the quarter ending Sept. 30, 2013:



Omnicon Group Inc. (OMC): Sold Out

Impacts Portfolio: -1.5%

Up 34% over 12 months, Omnicon Group Inc., a holding company for advertising, marketing and corporate communications companies,has a market cap of $16.9 billion; its shares were traded at around $65.66 with a P/E of 17.70. The dividend yield is 2.28%.

Guru Action: As of Sept. 30, 2013, Scott Black sold out his position, unloading 196,084 shares at an average price of $63.69, gaining 3.1%.

Across a five-year history, Scott Black has averaged a 47% gain on 229,891 shares bought at an average price of $44.56 per share. Selling 33,807 shares at an average price of $48.49 per share, he has gained 35%.

Track historical pricing, revenue and net income:

1382215587911.png

Helmerich & Payne Inc. (HP): Sold Out

Impacts Portfolio: -1.2%

Up 52% over 12 months,Helmerich & Payne Inc., an oil and gas drilling company, as a market cap of $8.17 billion; its shares were traded at around $76.76 with a P/E of 11.20. The dividend yield is 1.13%.

Guru Action: As of Sept. 30, 2013, Scott Black sold out his position, unloading 158,047 shares at an average price of $66.00 per share, gaining 16.3%.

Guru Black has averaged a 41% gain on 159,565 shares bought at an average price of $54.40 per share. Selling 1,518 shares at an average price of $62.62 per share, he has gained 23%.

Track historical pricing, revenue and net income:

1382215762397.png

Rent-A-Center Inc. (RCII): Sold Out

Impacts Portfolio: -1.2%

Up 7% over 12 months, Rent-A-Center Inc. has a market cap of $1.92 billion; its shares were traded at around $35.89 with a P/E of 11.80. The dividend yield is 2.34%.

Guru Action: As of Sept. 30, 2013, Scott Black sold out his position, selling 265,207 shares at an average price of $38.55, for a loss of 6.9%.

Scott Black has averaged a 49% gain on 341,544 shares bought at an average price of $24.03 per share. Selling 76,337 shares at an average price of $32.86 per share, he has gained 9%.

Track historical pricing, revenue and net income:

1382218306000.png

Timken Company (TKR): Sold Out

Impacts Portfolio: -0.9%

Up 55% over 12 months, Timken Company, a tool and accessory company, has a market cap of $5.73 billion; its shares were traded at around $60.35 with a P/E of 18.60. The dividend yield is 1.52%.

Guru Action: As of Sept. 30, 2013, Scott Black sold out his position, unloading 134,213 shares at an average price of $59.85, gaining 0.8%.

Black has averaged a 37% gain on 165,730 shares bought at an average price of $43.95 per share. Selling 31,517 shares at an average price of $40.88 per share, he has gained 48%.

Track historical pricing, revenue and net income:

1382216126784.png

Delphi Management uses a conservative investment strategy that emphasizes the fundamental performance of underlying companies. The firm invests in companies that meet rigorous quantitative criteria. Delphi Management is a disciple of the Graham-Dodd school of value investing, meaning that an investment should exhibit ‘absolute value.’ Taking only long positions, Delphi Management invests only in equity securities of US-listed companies.

Founder of Delphi Management Inc., Scott Myles Black is also chairman, president, chief investment officer, and chief compliance officer at the company.

Be sure to study the rest of Scott Black’s portfolio.



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The 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.

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: 2.8/5 (4 votes)

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