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Richard Pzena's Q3 Top Five

November 11, 2013 | About:
Monica Wolfe

Monica Wolfe

133 followers
As of the second quarter Richard Pzena, the founder and co-chief investment officer at Pzena Investment Management, held 130 stocks (thirteen of which he bought during the quarter) valued at over $15.4 billion.

The following five stocks are the companies he holds the largest stake in.

Hewlett-Packard Co. (HPQ)

Richard Pzena’s largest holding is in Hewlett-Packard where the guru maintains 30,983,162 shares of the company’s stock. His position in the company represents 4.2% of his total portfolio and 1.61% of the company’s shares outstanding.

During the third quarter Pzena made a slight reduction of his holdings in HP. The guru cut his holdings -5.89% by selling a total of 1,939,025 shares. He sold these shares in the third quarter price range of $20.99 to $27.30, with an estimated average quarterly price of $24.32. Since then the price per share has gone up about 6.7%.

Richard Pzena’s historical holding history:

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Hewlett-Packard is a global provider of products, technologies, software, solutions and services to individual consumers, small- and medium-sized businesses and large enterprises, including customers in the government, health and education sectors.

Hewlett-Packard’s historical revenue and net income:

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The analysis on HP reports that the company’s revenue has been in decline over the past year, its dividend yield is near a 1-year low and its price is near a 1-year high. Also the analysis reports that HP has issued $5.1 billion of debt over the past three year.

The top guru shareholders of HP:

1. Dodge & Cox: 163,003,351 shares, representing 8.45% of the company’s shares outstanding and 4.8% of their total portfolio.

2. Richard Pzena: 30,983,162 shares, representing 1.61% of the company’s shares outstanding and 4.2% of his total portfolio.

3. Jeremy Grantham: 30,121,915 shares, representing 1.56% of the company’s shares outstanding and 1.9% of the company’s shares outstanding.

Hewlett-Packard has a market cap of $50.66 billion. Its shares are currently trading at around $6.36 per share with a P/S ratio of 0.50 and a P/B ratio of 2.00.

Oracle Corporation (ORCL)

Pzena’s second largest holding goes to Oracle Corporation where, as of the third quarter, he held on to 17,238,143 shares of the company’s stock. His holdings make up for 3.7% of his total portfolio and 0.37% of the company’s shares outstanding.

During the third quarter Pzena upped his position 22.18% by purchasing a total of 3,129,122 shares. He bought these shares in the third quarter price range of $30.10 to $34.05, with an estimated average quarterly price of $32.44. Since then the price per share has increased approximately 5.9%.

Pzena’s historical holding history:

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Oracle provides technologies of cloud computing, including database and middleware as well as web-based applications, virtualization, clustering and systems management. It provides cloud services as well as software and hardware products to other cloud service providers, both public and private.

Oracle’s historical revenue and net income:

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The analysis on Oracle reports that the company’s revenue has slowed down over the past year, its price is near a 10-year high, its operating margin is expanding and its dividend yield is also near a 5-year high.

The top guru shareholders of Oracle:

1. Jeremy Grantham: 49,839,220 shares, representing 1.08% of the company’s shares outstanding and 4% his total portfolio.

2. Meryl Witmer: 37,704,501 shares, representing 0.81% of the company’s shares outstanding and 6.2% of her total portfolio.

3. Donald Yacktman: 24,416,925 shares, representing 0.53% of the company’s shares outstanding and 3.6% of her total portfolio.

The Peter Lynch Chart suggests that the company is currently undervalued:

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Oracle Corporation has a market cap of $156.91 billion. Its shares are currently trading at around $34.43 with a P/E ratio of 14.90, a P/S ratio of 4.40 and a P/B ratio of 3.60. The company had an annual average earnings growth of 20.00% over the past ten years.

GuruFocus rated Oracle the business predictability rank of 5-star.

Baker Hughes (BHI)

The guru’s third largest holding is in Baker Hughes where he holds on to 10,606,614 shares of the company’s stock. His holdings make up for 3.4% of his total portfolio and 2.39% of the company’s shares outstanding.

Over the third quarter Pzena upped his position 12.53% by purchasing a total of 1,180,936 shares of the company’s stock. He bought these shares in the price range of $46.22 to $50.38, with an estimated average quarterly price of $48.22. Since then the price per share has jumped up about 20.1%.

The guru’s historical holding history:

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Baker Hughes is a supplier of oilfield services, products, technology and systems to the oil and natural gas industry. It also provides industrial and other products and services to the downstream refining, and the process and pipeline industries.

Baker Hughes’ historical revenue and net income:

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The analysis on Baker Hughes reports that the company’s revenue has slowed down over the past year, its price is sitting near a 2-year high, it has issued $612 million over the past three years and its dividend yield is nearing a 2-year low.

The top guru shareholders of Baker Hughes:

1. Dodge & Cox: 24,824,534 shares, representing 5.6% of the company’s shares outstanding and 1.4% of their total portfolio.

2. Richard Pzena: 10,606,614 shares, representing 2.39% of the company’s shares outstanding and 3.4% of his total portfolio.

3. Manning & Napier: 7,457,283 shares, representing 1.68% of the company’s shares outstanding and 1.7% of their total portfolio.

The Peter Lynch Chart suggests that the company is currently overvalued:

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Bakers Hughes has a market cap of $25.84. Its shares are currently trading at around $58.30 with a P/E ratio of 24.50, a P/S ratio of 1.20 and a P/B ratio of 1.40. The company had an annual average earnings growth of 11% over the past ten years.

American International Group (AIG)

Pzena’s fourth largest position is in American International Group, or AIG. The guru maintains 10,491,924 shares, representing 3.3% of his total portfolio and 0.71% of the company’s shares outstanding.

Over the third quarter Pzena reduced his position by a minor -0.76%. The guru sold a total of 71,051 shares in the price range of $44.22 to $50.27, with an estimated average quarterly price of $47.53. Since then the price per share has increased approximately 2.1%.

Richard Pzena’s holding history as of the third quarter:

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American International Group is a holding company which, through its subsidiaries, is engaged in a range of insurance and insurance-related activities in the United States and abroad.

AIG’s historical revenue and net income:

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The analysis on AIG reports that the company’s dividend yield is near a 10-year low, its revenue has been in decline over the past five years and its P/S ratio is nearing a 5-year high.

The top guru shareholders of AIG:

1. Bruce Berkowitz: 86,148,865 shares, representing 5.84% of the company’s shares outstanding and 50.1% of his total portfolio.

2. Fairholme Fund: 79,280,825 shares, representing 5.37% of the company’s shares outstanding and 51.2% of its total portfolio.

3. HOTCHKIS & WILEY: 15,396,372 shares, representing 1.04% of the company’s shares outstanding and 3.4% of his total portfolio.

The Peter Lynch Chart suggests that the company is currently undervalued:

1384204102109.png

American International Group has a market cap of $71.82 billion. Its shares are currently trading at around $48.78 with a P/E ratio of 27.40, a P/S ratio of 1.20 and a P/B ratio of 0.70.

Staples (SPLS)

Pzena’s fifth largest position goes to Staples where the guru holds on to 32,431,464 shares. His position in the company represents 3.1% of his total portfolio and 4.91% of the company’s shares outstanding.

Over the third quarter Pzena reduced his holdings -7.26% by selling 2,537,825 shares of the company’s stock. He sold these shares in the third quarter price range of $13.83 to $17.24, with an estimated average quarterly price of $15.68. Since then the price per share has increased approximately 0.3%.

Pzena’s historical holding history:

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Staples operates as an office products company. The Company's three reportable segments are North American Delivery, North American Retail and International Operations.

Staples’ historical revenue and net income:

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The top guru shareholders of Staples:

1. Richard Pzena: 32,431,464 shares, representing 4.91% of the company’s shares outstanding and 3.1% of his total portfolio.

2. Brian Rogers: 13,250,000 shares, representing 2.01% of the company’s shares outstanding and 0.75% of his total shares outstanding.

3. Diamond Hill Capital: 7,897,713 shares, representing 1.2% of the company’s shares outstanding and 1.2% of its total portfolio.

Staples has a market cap of $10.49 billion. Its shares are currently trading at around $15.88 with a P/S ratio of 0.40 and a P/B ratio of

Check out Richard Pzena’s third quarter portfolio here.

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Rating: 3.5/5 (6 votes)

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