1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
Holly LaFon
Holly LaFon
Articles (5125) 

Bearish Canadian Investor Prem Watsa's 7 New Positions

Prem Watsa (Trades, Portfolio) runs FairFax Financial Holdings Ltd. (TSX:FFH), a financial conglomerate that also has a strong investing side, reminiscent of Warren Buffett (Trades, Portfolio)’s Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B). The investing branch “emphasizes a conservative value investment philosophy, seeking to invest assets on a total return basis, which includes realized and unrealized gains over the long-term,” per the website.

Watsa for the past several years has predicted and invested against a serious market downturn. Since 1985, he has compounded Fairfax’s book value at 19% annually. But recently the growth rate has slowed to 10% because of his portfolio positing. As he explains in his 2012 investor letter:

“Since then, book value per share has increased by only approximately 10% (including dividends) because of our very cautious view of the financial markets (which has led us to be 100% hedged in our common stock portfolios) and, of course, the unprecedented catastrophes in 2011. We ended the year with cash and marketable securities at the holding company in excess of $1 billion.”

In the fourth quarter, he bought seven new stocks, but of humble position sizes. The portfolio overall is valued at $1.31 billion and contains 42 stocks in total.

The New Positions

VioPharma Inc. (NASDAQ:VPHM)

Watsa purchased 10,000 shares of ViroPharma Inc. in the fourth quarter, reflecting 0.038% of his portfolio, as the largest new position. The shares cost $45 on average in the fourth quarter.

1393283208903.png

ViroPharma Inc. was incorporated in Delaware in September 1994 and commenced operations in December 1994. Viropharma Inc. has a market cap of $3.29 billion; its shares were traded at around $49.96 with and P/S ratio of 8.02. Viropharma Inc. had an annual average earnings growth of 12.20% over the past five years.

Edwards Group Ltd. (NASDAQ:EVAC)

Watsa purchased 48,500 shares of Edwards Group Ltd., reflecting 0.038% of his portfolio. Shares cost $10 on average in the fourth quarter.

1393283326896.png

Edwards Group Ltd. is a Cayman Islands exempted company with limited liability incorporated on Feb. 10, 2012, and resident in the UK for tax purposes. Edwards Group Ltd. has a market cap of $1.16 billion; its shares were traded at around $10.27 with a P/E ratio of 15.40 and P/S ratio of 1.20.

Provident New York Bancorp (NYSE:PBNY)

Watsa purchased 25,000 shares of Provident New York Bancorp, reflecting 0.026% of his portfolio. The average share price of the fourth quarter was $12.

1393284255491.png

Provident New York Bancorp, a Delaware corporation is a unitary savings and loan holding company. Provident New York Bancorp has a market cap of $1.04 billion; its shares were traded at around $11.72 with a P/E ratio of 52.80 and P/S ratio of 3.71. The dividend yield of Provident New York Bancorp stocks is 2.0%. Provident New York Bancorp had an annual average earnings growth of 0.20% over the past 10 years.

Hewlett-Packard Co. (NYSE:HPQ)

Watsa purchased 9,400 shares of Hewlett-Packard Co., reflecting 0.02% of the portfolio. The fourth quarter average share price was $25.

1393284421978.png

Hewlett-Packard Co. was incorporated in 1947 under the laws of the State of California as the successor to a partnership founded in 1939 by William R. Hewlett-Packard Co. has a market cap of $57.11 billion; its shares were traded at around $29.92 with a P/E ratio of 11.40 and P/S ratio of 0.50. The dividend yield of Hewlett-Packard Co. stocks is 1.90%.

CSX Corp. (NASDAQ:CSX)

Watsa purchased 7,600 CSX Corp. shares, reflecting 0.017% of his portfolio. Shares cost $27 on average in the fourth quarter.

1393284570942.png

CSX Corporation was incorporated in 1978 under Virginia law. CSX Corp has a market cap of $27.9 billion; its shares were traded at around $27.69 with a P/E ratio of 15.20 and P/S ratio of 2.30. The dividend yield of CSX Corp stocks is 2.20%. CSX Corp had an annual average earnings growth of 14.20% over the past 10 years. GuruFocus rated CSX Corp the business predictability rank of 4.5-star.

General Dynamics Corp. (NYSE:GD)

Watsa bought 2,200 shares of General Dynamics Corp, representing 0.016% of the portfolio. The stock’s price averaged $89 in the fourth quarter.

1393361318764.png

General Dynamics is a Delaware was incorporated in 1952. General Dynamics Corp. has a market cap of $37.01 billion; its shares were traded at around $108.13 with a P/E ratio of 16.50 and P/S ratio of 1.20. The dividend yield of General Dynamics Corp. stocks is 2.10%.

Penn West Petroleum Ltd. (NYSE:PWE)

Watsa purchased 15,900 shares of Penn West Petroleum, representing 0.01% of the portfolio. The shares cost $10 on average in the fourth quarter.

1393361434886.png

Penn West Petroleum Ltd. is engaged in the operations of light oil in Canada. Penn West Petroleum Ltd. has a market cap of $3.99 billion; its shares were traded at around $8.16 with and P/S ratio of 2.20. The dividend yield of Penn West Petroleum Ltd. stocks is 9.60%.

For more Prem Watsa (Trades, Portfolio) buys and sells, see his portfolio here. Not a Premium Member of GuruFocus? Try it free for 7 days here!


Rating: 4.6/5 (5 votes)

Comments

Please leave your comment:


GuruFocus Mobile App Available


Select portfolio(s):

  • Loading...

Why you are interested?

Your selection and notes will be stored in your portfolio.

Login to add portfolio
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK