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Critical Investor John Hussman's Top Five Q2 Holdings

August 01, 2014 | About:
Monica Wolfe

Monica Wolfe

133 followers
John Hussman (Trades, Portfolio) is a market analyst with a dire outlook for the markets, largely owing to Fed interference in them. Dr. Hussman is also the president and principal shareholder of Hussman Strategic Advisors, the investment advisory firm that manages the Hussman Funds. He is also the President of the Hussman Investment Trust. Hussman manages Hussman Strategic Growth Fund, which invests primarily in U.S. stocks, and Hussman Strategic Total Return Fund, which invests primarily in U.S. Treasury and government agency securities.

Over the past quarter Hussman added 31 stocks to his portfolio, bringing his total to 189 stocks valued at $1.302 billion. The following five companies represent his top five portfolio holdings as of the close of the second quarter.

Barrick Gold Corp (ABX)

The guru’s largest holding is in Barrick Gold where he holds on to 2,050,000 shares of the company’s stock. This position makes up for 2.9% of his total assets managed and 0.18% of the company’s shares outstanding.

Over the past quarter Hussman upped his holdings 382.35% by purchasing 1,625,000 shares of Barrick Gold’s stock. The guru purchased these shares in the quarterly price range of $15.69 to $18.93 with an estimated average quarterly price of $17.31 per share. Since then the price per share is trading up about 5.8%.

Hussman’s historical holding history:

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Barrick Gold Corporation produces and sells gold and copper. The company business activities also includes exploration and mine development. It holds interests in oil and gas properties located in Canada.

Barrick Gold Corp.’s historical revenue and net income:

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The analysis on Barrick reports that the company’s Piotroski F-Score is low, its revenue per share has been in decline over the past year, and its dividend yield is sitting near a 2-year low.

Check out Barrick Gold in comparison to other gold mining companies:



Barrick Gold has a market cap of $21.33 billion. Its shares are currently trading at around $18.31 with a P/S ratio of 1.70 and a P/B ratio of 1.60. The company also holds a dividend yield of 1.10%.

Newmont Mining (NEM)

John Hussman (Trades, Portfolio)’s second largest position goes to Newmont Mining where he owns 1,450,000 shares of the company’s stock. This holding makes up for 2.8% of his total assets managed as well as 0.29% of the company’s shares outstanding.

Over the past quarter Hussman increased his position in Newmont Mining 383.33% by purchasing 1,150,000 shares. He bought these shares near the estimated average quarterly price of $24.07 per share. Since then the price per share has increased approximately 4.9%.

Hussman’s historical holding history:

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Newmont Mining Corporation is engaged in the exploration for and acquisition of gold properties. It is also engaged in the production of copper. The company is a gold producer with operations in the United States, Australia, Peru, Indonesia, Ghana, New Zealand and Mexico.

Newmont Mining’s historical revenue and net income:

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The analysis on Newmont Mining reports that the company’s Piotroski F-Score is low, its revenue per share has been in decline over the past three years and its dividend yield is sitting near a 2-year low. The analysis also notes that the company has issued $1.9 billion of debt over the past three years.

Check out Newmont in contrast to its competitors:



Newmont Mining has a market cap of $12.63 billion. Its shares are currently trading at around $25.32 with a P/S ratio of 1.60 and a P/B ratio of 1.20. The dividend yield of Newmont Mining is at 2.50%.

WellPoint (WLP)

Hussman’s third largest holding is in WellPoint where he maintains 200,000 shares of the company’s stock. This position makes up for 1.7% of his total portfolio as well as 0.07% of the company’s shares outstanding.

Over the past quarter Hussman bought back into WellPoint. The company sold out of the stock during the first quarter. Over the second quarter he bought these 200,000 shares in the quarterly price range of $92.00 to $108.82 with an estimated average quarterly price of $102.96. Since then the price per share is trading up about 8.1%.

Hussman’s historical holdings as of Q2:

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WellPoint is a health benefits company in terms of commercial membership in the US. The company offers a spectrum of network-based managed care plans to the large and small employer, individual, Medicaid and senior markets.

WellPoint’s historical revenue and net income:

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The analysis on WellPoint reports that the company’s dividend yield is near a 2-year low, its price is near a 10-year high and it has issued $6.1 billion of debt over the past three years.

The Peter Lynch Chart suggests that the company is currently slightly undervalued:

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WellPoint has a market cap of $30.55 billion. Its shares are currently trading at around $111.38 per share with a P/E ratio of 14.70, a P/S ratio of 0.50 and a P/B ratio of 1.20. The dividend yield of WellPoint is 1.50% and it had an annual average earnings growth of 12.80% over the past ten years.

SunPower (SPWR)

The guru currently holds on to 500,000 shares of SunPower. This position represents 1.6% of Hussman’s total portfolio and 0.38% of the company’s shares outstanding.

Over the past quarter Hussman increased his holdings in SunPower 25% by purchasing 100,000 shares of the company’s stock. The guru bought these shares near the estimated average quarterly price of $33.30 per share, and since then the price per share has increased approximately 3.4%.

Hussman’s historical holding history:

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SunPower is a vertically integrated solar products and services company that designs, manufactures and delivers high-performance solar electric systems worldwide for residential, commercial, and utility-scale power plant customers.

SunPower’s historical revenue and net income:

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The analysis on SunPower reports that the company’s short interest is high because about 29.10% of the float is shorted, the company has issued $48.391 million of debt over the past three years, and also over the past three years the company’s revenue per share has been in decline.

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

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SunPower has a market cap of $4.48 billion. Its shares are currently trading at around $34.31 with a P/E ratio of 23.60, a P/s ratio of 2.00 and a P/B ratio of 3.80.

Becton Dickinson & Co. (BDX)

The guru’s fifth largest holding is in Becton Dickinson & Co. where he holds on to 175,000 shares of the company’s stock. This position represents 1.6% of his total portfolio holdings as well as 0.09% of the company’s shares outstanding.

Over the past quarter Hussman increased his holdings in Becton Dickinson 75% by purchasing a total of 75,000 shares of the company’s stock. He bought these shares near the estimated average quarterly price of $116.18 per share. Since then the price per share has fallen -0.2%.

Hussman’s historical holdings:

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Becton Dickinson & Co. is a global medical technology Company engaged in the development, manufacture and sale of medical devices, instrument systems and reagents used by healthcare institutions, life science researchers, clinical laboratories, the pharmaceutical industry and the general public.

Becton Dickinson’s historical revenue and net income:

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The analysis on Becton Dickinson reports that the company’s dividend yield is near a 5-year low, its price is near a 10-year high and over the past three years the company has issued approximately $1.2 billion of debt. The analysis also notes that the company’s Piotroski F-Score is high, it has shown predictable revenue and earnings growth and its P/B ratio is close to a 1-year low.

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

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Becton Dickinson has a market cap of $22.4 billion. Its shares are currently trading at around $115.93 with a P/E ratio of 24.10 and a P/S ratio of 2.80. The company had an annual average earnings growth of 9% over the past ten years.

GuruFocus rated the company the business predictability rank of 3.5-star.

Check out Hussman’s complete second quarter holdings here.

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Rating: 5.0/5 (2 votes)

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Comments

chompinchuck
Chompinchuck - 4 months ago

What I love about John is that he writes thes horrific letters and then, of course, basically owns the same stocks as everyone else.

nolan
Nolan - 4 months ago

Yes, but probably with a fair amount of cash as well.

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