David Herro (Trades, Portfolio) runs several funds at Oakmark, including the Oakmark International Small Cap Fund. Through the first nine months of 2014, this fund declined 2%, just beating its benchmark MSCI World ex U.S. Small Cap Index, which declined 3%. Since inception in 1995, it has given investors 10% returns on average per year.
Herro in the small cap fund has allocated 22% of holdings in Asia, 62% in Europe and 13% in Australasia, with the remaining dispersed among North America, Latin America and the Middle East.
He also established five new stock positions in the third quarter and holds 61 in total. The total portfolio is valued at $2.8 billion.
Herro’s five new third-quarter stock picks are: Electrocomponents Plc (LSE:ECM, Financial), Transpacific Industries Group Ltd. (ASX:TPI, Financial), Countrywide Plc (LSE:CWD), Melco International Development Ltd. (HKSE:00200, Financial) and Brunel International (XAMS:BRNL, Financial).
Electrocomponents Plc (LSE:ECM, Financial)
Herro purchased 12,053,000 shares of Electrocomponents Plc, giving it 1.6% portfolio space. The average third quarter price for the stock was £2.44 per share.
Electrocomponents Plc was incorporated in the United Kingdom on Jan. 22, 1960. Electrocomponents Plc has a market cap of $913.891 million; its shares were traded at around £2.08 with a P/E ratio of 12.80 and P/S ratio of 0.72. The dividend yield of Electrocomponents Plc stocks is 5.65%. Electrocomponents Plc had an annual average earnings growth of 1.80% over the past 10 years. GuruFocus rated Electrocomponents Plc the business predictability rank of 2.5-star.
Transpacific Industries Group Ltd. (ASX:TPI, Financial)
Herro bought 52,142,000 shares of Transpacific Industries Group, a 1.3% portfolio holding. The share price averaged $0.97 in the third quarter.
Transpacific Industries Group Ltd. provides integrated industrial cleaning, recycling and total waste management solutions to customers across Australia and New Zealand. Transpacific Industries Group Ltd. has a market cap of $1.45 billion; its shares were traded at around $0.90 with a P/E ratio of 90.0 and P/S ratio of 1.0. The dividend yield of Transpacific Industries Group Ltd. stocks is 1.63%.
Countrywide Plc (LSE:CWD)
Herro bought 5,082,000 shares of Countrywide, a 1.3% portfolio holding. The stock’s price averaged £5 in the quarter.
Countrywide PLC was incorporated and registered in England and Wales on December 2012 and was subsequently re-registered as a public limited company on March 2013 with the name Countrywide Plc. Countrywide Plc has a market cap of £982.171 million; its shares were traded at around $4.54 with a P/E ratio of 27.70 and P/S ratio of 1.60. The dividend yield of Countrywide Plc stocks is 2.43%.
Melco International Development Ltd. (HKSE:00200, Financial)
Herro purchased 11,127,000 Melco International Development shares, a 0.92% portfolio holding. The stock’s third quarter average price was 21 Hong Kong dollars.
An investment holding company, it operates in three divisions: leisure division, gaming and entertainment division; technology division, and property and other investments division. Melco International Development Ltd. has a market cap of 26.68 billion Hong Kong dollars; its shares were traded at around $16.78 with a P/E ratio of 16.70 and P/S ratio of 142.33. The dividend yield of Melco International Development Ltd. stocks is 1.90%.
Brunel International (XAMS:BRNL, Financial)
Herro purchased 119,000 shares of Brunel International, a 0.07% portfolio holding. The stock’s price averaged 15 euros per share.
Brunel International provides staffing and consultancy services. Brunel International has a market cap of $747.371 million; its shares were traded at around $14.51 with a P/E ratio of 14.90 and P/S ratio of 0.57. The dividend yield of Brunel International stocks is 3.09%. Brunel International had an annual average earnings growth of 15.50% over the past 10 years. GuruFocus rated Brunel International the business predictability rank of 2.5-star.
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