The officers of Ruane Cunniff (Trades, Portfolio), which was founded by the late William Ruane, have a reputation for being value investors. Historically, the firm has shown an interest in healthcare, financial services and consumer cyclical stocks, but it doesn’t limit itself to those sectors; it pays little attention to market studies and prefers instead to go by the balance sheet, earnings history and prospects of an investment.
The firm traded in 40 stocks in the third quarter, a 22% increase over the second quarter’s activity and nearly 50% greater than its activity in the first quarter of 2014.
Ruane Cunniff (Trades, Portfolio) added 16 companies to its portfolio in the third quarter -- Constellation Software Inc (CNSWF, Financial), Hexcel Corp (HXL, Financial), MRC Global Inc (MRC, Financial), Dow Chemical Co (DOW, Financial), Chubb Corp (CB, Financial), Allstate Corp (ALL, Financial), eBay Inc (EBAY, Financial), Amgen Inc (AMGN, Financial), Central Securities Corp (CET, Financial), Daimler AG (DDAIF, Financial), JC Penney Co Inc (JCP, Financial), Travelers Companies Inc (TRV), AT&T Inc (T, Financial), Novartis AG (NVS), Medtronic Inc (MDT) and Kinder Morgan Energy Partners LP (KMP).
Ruane Cunniff (Trades, Portfolio) bought 256,800 shares of Constellation Software, a Toronto-based provider of software and services to public and private clients, for an average price of $247.76 per share. That purchase had a 0.34% impact on the firm’s portfolio.
None of the firm’s other new holdings had an impact of greater than 0.25% on its portfolio.
The firm added to 11 existing holdings – Fastenal Co (FAST), Qihoo 360 Technology Co Ltd (QIHU), Valeant Pharmaceuticals International Inc (VRX), Schlumberger NV (SLB), 58.com Inc (WUBA), JPMorgan Chase & Co (JPM), Walt Disney Co (DIS), Bank of America Corporation (BAC), Citigroup Inc (C), Intel Corp (INTC) and WPP PLC (WPPGY).
The firm bought 3,282,910 shares of Fastenal, a Minnesota-based reseller of industrial, safety and construction supplies, for an average price of $45.74 per share. The purchase had a 0.78% impact on the firm’s portfolio.
None of the other expansions of Ruane Cunniff (Trades, Portfolio)’s existing holdings had an impact of greater than 0.24% on its portfolio.
Divestitures and reductions
Ruane Cunniff (Trades, Portfolio) sold all its holdings in five companies – Corinthian Colleges Inc (COCO), Target Corp (TGT), Aon PLC (AON), Ctrip.com International Ltd (CTRP) and Pampa Energia SA (PAM).
The firm reduced its stakes in eight companies – Ritchie Bros Auctioneers Inc (RBA), TJX Companies (TJX), Berkshire Hathaway Inc (BRK.A), Concur Technologies Inc (CNQR), Expeditors International of Washington Inc (EXPD), Kellogg Co (K), Novo Nordisk A/S (NVO) and Progressive Corp (PGR).
The firm sold 2,822,806 shares of Ritchie Bros, a Canadian industrial auctioneer, for an average price of $23.84 per share. The transaction had a -0.37% impact on Ruane Cunniff (Trades, Portfolio)’s portfolio.
Ruane Cunniff (Trades, Portfolio) sold 1,146,751 shares of TJX Companies, a Massachusetts-based apparel and domestic goods company, for an average price of $56.44 per share. The transaction had a -0.32% impact on the firm’s portfolio.
None of the other reductions had an impact of greater than -0.24% on Ruane Cunniff (Trades, Portfolio)’s portfolio.
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