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Alan Fournier – Selling Update on TRIP, PHH, ST, C, and More in Third Quarter

November 18, 2013 | About:
Sally Jones

Sally Jones

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The recent update of Pennant Capital's portfolio, led by Alan Fournier, lists 47 stocks, 4 of them new, with a total value of $5.58 billion, and a quarter-over-quarter turnover of 9%. The portfolio’s top sector weightings are consumer cyclical at 26.2%, industrials at 23.8% and technology at 16.8%. Alan Fournier is averaging a 12-month return of 7.05%.

Here’s a review of the four highest-impact decreases made by Guru Fournier in the third quarter of 2013, starting with his reduction of TripAdvisor Inc. (TRIP). TripAdvisor Inc. reported third quarter revenue of $255.1 million, up 20% year-over-year. The Internet travel company’s net income was $55.9 million for the quarter, showing a decline of 6%. Earnings were $0.38 per diluted share for the third quarter of 2013.

TripAdvisor Inc. (TRIP): Reduced

Impact to Portfolio: -0.96%

Current Shares: 2,580,554

Up 130% over 12 months, TripAdvisor Inc. has a market cap of $12.47 billion. Shares trade with a P/E of 58.40. The company does not pay a dividend.

Guru Action: As of Sept. 30, 2013, Alan Fournier reduced his position by 24.73%, unloading 847,644 shares at an average price of $70.85 per share, for a gain of 23.9%.

The current share price is around $87.77, with a change from average up 24%.

Over seven gaining quarters, Alan Fournier gained 219% on 6,295,850 shares bought at an average price of $27.52 per share. Selling 3,715,296 shares at an average price of $49.67 per share, he made a gain of 77%.

See more guru action in third quarter, and one insider sell.

Track historical pricing, revenue and net income:

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PHH Corporation (PHH): Sold Out

Impact to Portfolio: -0.9%

Up 15% over 12 months, PHH Corporation, a mortgage banking services company, has a market cap of $1.34 billion. Shares trade with a P/E of 11.40. The company does not pay a dividend.

Guru Action: As of Sept. 30, 2013, Alan Fournier sold out his holding, unloading 2,383,580 shares at an average price of $22.18 per share, for a gain of 5.3%.

The current share price is around $23.36, with a change from average up 5%.

In seven gaining quarters, Alan Fournier’s highest gain was 50.3% in the third quarter of 2008. He made a new buy of 11,200 shares at an average price of $15.54 per share.

Check out the guru action and recent insider trading.

Track historical pricing, revenue and net income:

1384728731127.png

Sensata Technologies Holding NV(ST): Reduced

Impact to Portfolio: -0.78%

Current Shares: 5,013,848

Up 32% over 12 months, Sensata Technologies Holding NV, an electronic components company, has a market cap of $6.71 billion. Shares trade with a P/E of 41.30. The company does not pay a dividend.

Guru Action: As of Sept. 30, 2013, Alan Fournier reduced his position by 19.42%, selling 1,208,156 shares at an average price of $37.47 per share, for a gain of 1.5%.

The current share price is around $38.03, with a change from average up 1%.

Overall, Alan Fournier gained 32% on 8,850,946 shares bought at an average price of $28.90 per share. Selling 3,837,098 shares at an average price of $33.18 per share, he made a gain of 15%.

As of Sept. 30, 2013, there are five guru stakeholders. No insider trading was found.

Track historical pricing, revenue and net income:

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Citigroup Inc. (C): Sold Out

Impact to Portfolio: -2.3%

Up 40% over 12 months, Citigroup Inc.has a market cap of $152.86 billion. Shares trade with a P/E of 12.70. The dividend yield is 0.08%.

For the third quarter of 2013, Citigroup Inc. reported revenue of $17.9 billion, compared to $13.7 billion in the same quarter a year ago. Net income was $3.2 billion for the third quarter, up from $468 million in the same quarter a year ago. Citigroup’s third quarter 2013 earnings were $1.00 per diluted share, up from $0.15 in the third quarter of 2012.

Guru Action: As of Sept. 30, 2013, Alan Fournier sold out his Citigroup holding. He sold 2,559,422 shares at an average price of $50.56, for a loss of 0.3%, in an otherwise gaining history of five years.

The current share price is around $50.40, with a change from average of 0%.

Fournier saw 14 out of 16 quarters with double-digit gains, topping out at 81.1% in the fourth quarter of 2011. In that quarter he bought 225,000 shares at an average price of $27.83 per share.

Check out numerous gurus and insiders trading Citigroup Inc.

Track historical pricing, revenue and net income:

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The Pennant Capital name was inspired by Guru Alan Fournier’s passion for sailboat racing. Pennant flags help the team see the wind’s changing directions.

Here is the complete portfolio of Alan Fournier.



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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: 3.0/5 (2 votes)

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