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First Eagle Investment Management Sells Out Auto Makers, Reduces BRK.B, LO

November 21, 2013 | About:
Sally Jones

Sally Jones

49 followers
The stock picks by Jean-Marie Eveillard’s First Eagle Investment Management over the past 12 months have an average 12-month return of 60.79%. As of the third quarter, the portfolio lists 361 stocks, 62 of them new, and a total value at $34.43 billion, with a quarter-over-quarter turnover of 12%. The portfolio is weighted with top three sectors: basic materials at 19%, technology at 15.2% and financial services at 13.9%.

In the third quarter of 2013, First Eagle Investment Management reduced its Berkshire Hathaway Inc.(BRK.B) position by 99.85% and sold out two auto manufacturers, General Motors Co. (GM) and Ford Motor Co. (F), both up more than 50% over 12 months. The firm also reduced Lorillard Inc. (LO) by more than 38%. The cigarette maker reported that its third quarter sales of $1.82 billion are up 10% over the third quarter a year ago. The company’s net income is down 8.8% over the same time period, coming in at $258 million (GAAP) for the third quarter of 2013. Earnings of $0.69 per diluted share are also down by 4.2% over last year’s same quarter.

Here’s a look at the high-impact sells and reductions made by First Eagle Investment Management in the third quarter of 2013.

Lorillard Inc. (LO): Reduced

Impacts Portfolio: -0.61%

Current Shares: 7,203,461

Up 31% over 12 months, Lorillard Inc., a cigarette maker, has a market cap of $19.46 billion; its shares were traded at around $52.82 with a P/E ratio of 16.70. The dividend yield is 4.10%.

Guru Action: As of Sept. 30, 2013, First Eagle Investment Management reduced its position by 38.04%, selling 4,421,600 shares at an average price of $44.06, for a gain of 19.9%.

Overall, the firm has averaged a 67% gain on 11,625,061 shares bought at an average price of $31.54 per share. The firm gained 20% on 4,421,600 shares sold at an average price of $44.06 per share.

More gurus and insiders are trading LO.

Track historical share pricing, revenue and net income:

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Berkshire Hathaway Inc. (BRK.B): Reduced

Impacts Portfolio: -0.39%

Current Shares: 1,669

Up 31% over 12 months, Berkshire Hathaway Inc. has a market cap of $268.55 billion; its shares were traded at around $114.90 with a P/E ratio of 14.20. The company does not pay a dividend.

Guru Action: As of Sept. 30, 2013, First Eagle Investment Management reduced its position by 99.85%, selling 1,117,831 shares at an average price of $115.36, for a loss of 0.4%.

The firm has averaged a 40% gain on 5,641,746 shares bought at an average price of $82.26 per share. Selling, the firm gained 40% on 5,640,527 shares at an average price of $82.35 per share.

Check out the numerous guru trades and recent insider selling.

Track historical share pricing, revenue and net income:

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General Motors Co. (GM): Sold Out

Impacts Portfolio: -0.38%

Up 53% over 12 months, General Motors Co. has a market cap of $52.35 billion; its shares were traded at around $37.69 with a P/E ratio of 10.70. The company does not pay a dividend.

Guru Action: As of Sept. 30, 2013, First Eagle Investment Management sold out its GM, selling 3,696,822 shares at an average price of $35.86, for a gain of 5.1%.

Holding for four quarters, the firm’s highest gain was 19% on a buy of 3,696,822 shares at an average price of $31.68 per share, in the second quarter of 2013.

Check out the active guru and insider trading for GM.

Track historical share pricing, revenue and net income:

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Ford Motor Co. (F): Sold Out

Impacts Portfolio: -0.37

Up 55% over 12 months, Ford Motor Co. has a market cap of $65.54 billion; its shares were traded at around $16.92 with a P/E ratio of 12.00. The dividend yield is 2.37%.

Guru Action: As of Sept. 30, 2013, First Eagle Investment Management sold out its Ford holding, selling 7,661,723 shares at an average price of $16.89, for a gain of 0.2%, its lowest point in the trading history.

Holding for 12 gaining quarters, the firm’s highest gain was 222.3% made on a new buy of 962,370 shares at an average price of $5.25 per share, in the second quarter of 2009.

Here are more gurus and insiders trading Ford Motor.

Track historical share pricing, revenue and net income:

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Here is the complete portfolio of First Eagle Investment Management.



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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."

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