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Daruma Capital and Mariko Gordon's Fourth Quarter Buys Topped by Web-Based Companies

February 17, 2014 | About:
Monica Wolfe

Monica Wolfe

133 followers

“Thrift, fearlessness, resilience, hard work, intellectual curiosity and an ability to take and avoid risk are in my blood—a perfect pedigree for a money manager.” - Mariko Gordon

Mariko Gordon is one of the newest gurus introduced to the exclusive list of investment gurus followed by GuruFocus. Gordon founded Daruma Capital Management in 1995, after having worked with Valenzuela Capital Management as well as the small-cap guru Chuck Royce and his fund, Royce & Associates. Currently Mariko Gordon is the CEO and CIO of her fund Daruma Asset Management.

Over the past quarter Gordon purchased ten new stocks bringing her total number of stocks to 75 valued at $2.41 billion. The following five companies represent Mariko Gordon (Trades, Portfolio)’s top five positions as of the close of the fourth quarter.

Acxiom Corporation (ACXM)

Acxiom Corporation is Mariko Gordon (Trades, Portfolio)’s largest holding with 2,817,727 shares. This position makes up for 4.3% of the guru’s portfolio holdings as well as 3.80% of the company’s shares outstanding.

During the fourth quarter Gordon cut her holdings -14.2% by selling 466,354 shares of the company’s stock. She sold these shares in the fourth quarter price range of $28.58 to $38.45, with an estimated average quarterly price of $33.42 per share. Since then the price per share has increased approximately 9.8%.

Gordon’s historical holding history of Acxiom:

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Acxiom Corporation is an enterprise data, analytics and software-as-a-service company. The company operates out of two segments: marketing and data. Acxiom helps clients connect and analyze online, offline, customer and partner data.

Acxiom’s historical revenue and net income:

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The analysis on Acxiom Corporation reports that the company’s revenue has been in decline over the past five years, its price is near a 10-year high and its operating margin is expanding.

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

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Acxiom Corporation has a market cap of $2.8 billion. Its shares are currently trading at around $36.70 with a P/E ratio of 55.10, a P/S ratio of 2.50 and a P/B ratio of 4.00.

Dealertrack Technologies (TRAK)

Mariko Gordon (Trades, Portfolio)’s second largest position is in Dealertrack Technologies where she maintains 1,946,832 shares of the company’s stock. This position makes up for 3.9% of the guru’s total portfolio as well as 4.45% of the company’s shares outstanding.

Gordon reduced her holdings -5.63% over the past quarter by selling 116,213 shares of the company’s stock. She sold these shares in the quarterly price range of $37.17 to $48.19, with an estimated average quarterly price of $41.62. Since then the price per share has increased approximately 9.7%.

Mariko Gordon (Trades, Portfolio)’s holding history as of the fourth quarter:

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Dealertrack Technologies and its web-based software solutions and services enhance efficiency and profitability for all major segments of the automotive retail industry, including dealers, lenders, OEMs, third-party retailers, agents, and aftermarket providers.

Dealertrack’s historical revenue and net income:

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The analysis on Dealertrack reports that the company’s price is near a 10-year high, its asset growth is faster than its revenue growth and its gross margin has been in a long-term decline.

There are four gurus including Mariko Gordon (Trades, Portfolio) that hold a position in Dealertrack. Check out their holdings here.

Dealertrack has a market cap of $2 billion. Its shares are currently trading at around $45.67 with a P/E ratio of 197.70, a P/S ratio of 4.50 and a P/B ratio of 3.30. The company had an annual average earnings growth of 15.90% over the past five years.

Brunswick Corporation (BC)

The guru’s third largest holding is in Brunswick Corporation where she holds on to 1,864,468 shares of the company’s stock. This position makes up for 3.6% of her total portfolio as well as 2.06% of the company’s shares outstanding.

During the fourth quarter Gordon cut her holdings -8.57% by selling a total of 174,755 shares of the company’s stock. She bought these shares in the fourth quarter price range of $39.09 to $46.48, with an estimated average quarterly price of $44.44 per share. Since this increase the price per share has dropped approximately -2.5%.

Mariko Gordon (Trades, Portfolio)’s historical holding history:

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Brunswick Corporation is a global manufacturer and marketer of boats. Their portfolio includes various boats as well as marine parts and accessories including motors, propellers, positioning systems and navigations systems. Along with boating equipment, the company also owns and operates Brunswick bowling centers in the U.S. and internationally.

Brunswick’s historical revenue and net income:

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The analysis on Brunswick reports that the company’s revenue has been in decline over the past five years, its price is at a 10-year high and its Piotroski F-Score is high, indicating a healthy situation.

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

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Brunswick Corporation has a market cap of $3.95 billion. Its shares are currently trading at around $43.31 with a P/E ratio of 37.20, a P/S ratio of 1.10 and a P/B ratio of 13.60.

WEX (WEX)

Mariko Gordon (Trades, Portfolio)’s fourth largest position goes to WEX where she maintains 881,599 shares of the company’s stock. This holding makes up for 3.6% of the guru’s total portfolio as well as 2.27% of the company’s shares outstanding.

During the fourth quarter Gordon decreased her holdings a slight -0.74% by selling a total of 6,601 shares. She sold these shares near the estimated average quarterly price of $93.91 per share, and since then the price per share has dropped approximately -2.8%.

Mariko Gordon (Trades, Portfolio)’s holding history as of the close of the fourth quarter:

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WEX Inc formerly Wright Express Corporation, provides corporate card payment solutions. WEX expanded the scope of its business into a multi-channel provider of corporate payment solutions. It operates in two business segments: Fleet Payment Solutions and Other Payment Solutions.

WEX’s historical revenue and net income:

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The analysis on WEX reports that the company’s price is near a 10-year high, its asset growth is faster than its revenue growth and the company has issued $155.296 million of debt over the past three years.

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

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WEX has a market cap of $3.55 billion. Its shares are currently trading at around $91.28 with a P/E ratio of 24.90, a P/S ratio of 5.10 and a P/B ratio of 13.60. WEX had an annual average earnings growth of 13.90% over the past ten years.

Shutterfly (SFLY)

Gordon’s fifth largest position is in Shutterfly where she holds on to 1,638,218 shares of the company’s stock. This position makes up for 3.5% of Gordon’s portfolio as well as 4.34% of the company’s shares outstanding.

Gordon increased her position a notable 24.02% by purchasing a total of 317,266 shares. She bought them near the average quarterly price of $50.48 per share. Since then the price per share has dropped an additional -6.6%.

Gordon’s historical holding history:

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Shutterfly is an Internet-based social expression and personal publishing service that enables consumers to share, print and preserve their memories by leveraging its technology, manufacturing, web-design and merchandising capabilities.

Shutterfly’s historical revenue and net income:

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The analysis on Shutterfly reports that the company’s asset growth is faster than its revenue growth, its operating margin is expanding and its Piotroski F-Score is high, indicating a healthy situation.

Shutterfly has a market cap of $1.79 billion. Its shares are currently trading at around $47.15 with a P/E ratio of 141.60, a P/S ratio of 2.60 and a P/B ratio of 2.50. The company had an annual average earnings growth of 17.70% over the past five years.

Check out Mariko Gordon’s complete fourth quarter portfolio here. Also check out a little more about her investment strategies and performance data here.

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