David Herro (Trades, Portfolio) runs both the International and International Small Cap at The Oakmark Funds. He is highly interested in good business at unreasonably low prices, and is optimistic about emerging markets and companies exposed to emerging markets currently.
“We also note that we’re about to go into a slight uplift in global GDP growth. This ultimately should be good for corporate profits and for consumer spending,” he told CNBC on Feb. 3.
Among his two funds he bought into three new companies in the fourth quarter: MTU Aero Engines AG (XTER:MTX, Financial), Oracle Corp Japan (TSE:4716, Financial) and Schindler Holding AG (XSWX:SCHN, Financial).
MTU Aero Engines AG (XTER:MTX, Financial)
Herro bought 389,000 shares of MTU Aero Engines in the fourth quarter, covering 1.6% of the Oakmark International Small Cap portfolio. The stock’s price averaged €71 in the fourth quarter.
MTU Aero Engines AG develops and manufactures engines and offers commercial engine services and support for commercial aero engines. MTU Aero Engines AG has a market cap of €3.25 billion; its shares were traded at around €62.46 with a P/E ratio of 23.10 and P/S ratio of 0.86. The dividend yield of MTU Aero Engines AG stocks is 1.21%. MTU Aero Engines AG had an annual average earnings growth of 6.30% over the past five years.
Herro mentioned the holding his fourth quarter letter:
“MTU Aero Engines (XTER:MTX), a German aircraft engine manufacturer, engages in the development, manufacturing, marketing and support of commercial and military aircraft engines. MTU has positions on a number of aircraft engines produced by GE and Pratt Whitney that have attractive long-term secular growth prospects.”
Oracle Corp Japan (TSE:4716, Financial)
Herro bought 361,000 shares of Oracle Corp Japan, which is 0.56% of the Oakmark International Small Cap stock fund. The stock’s price averaged 3,849 yen per share.
Oracle Corporation Japan is involved in the sale of relational database management systems and middle ware packages. Oracle Corporation Japan has a market cap of $558 billion; its shares were traded at around 4340 yen with a P/E ratio of 21.30 and P/S ratio of 3.68. The dividend yield of Oracle Corporation Japan stocks is 1.72%.
Schindler Holding AG (XSWX:SCHN, Financial)
Herro bought 100,000 shares of Schindler Holding AG, for a 0.055% holding in the Oakmark International Fund. The shares cost CHF128 per share on average in the fourth quarter.
Schindler Holding AG supplies elevators, escalators and moving walks. Schindler Holding AG has a market cap of $9.58 billion; its shares were traded at around CHF134.10 with a P/E ratio of 28.20 and P/S ratio of 1.81. The dividend yield of Schindler Holding AG stocks is 1.07%. Schindler Holding AG had an annual average earnings growth of 0.60% over the past five years.
See Herro’s Oakmark International Fund portfolio here, and his Oakmark International Small Cap Fund portfolio here. Not a Premium Member of GuruFocus? Try it free for 7 days here!
