David Herro (Trades, Portfolio)'s Oakmark Intl Small Cap (Trades, Portfolio) recently added a new international position to the portfolio and increased stakes in 22 other international positions. The firm currently has 61 stocks in its portfolio valued at $2.786 billion, with a quarter over quarter turnover of 9%.
Because the firm focuses on purchasing stocks outside of the United States, there is more risk involved than in U.S. investments, such as:currency fluctuation, different regulations in each country, possible higher transaction costs and not always having access to all of a company's information.
“The best way to navigate is to know your course ahead of time. Know the risk factors of the markets, avoid fads or trends and never invest if there’s a lack of proper investment or regulatory infrastructure," Herro says about how to minimize risk.
"We're very focused on paying a cheap price, and that only comes about when there's some short-term challenge."
Although Herro likes to invest in international stocks, he is cautious when it comes to emerging markets due to the fact that it is hard to find companies that "have clear and transparent corporate governance, good profitability and good business models and whose stocks sell at attractive prices.."
Oakmark International added Applus Services SA (APPS.Spain) during the end of the fourth quarter of 2014. 875,000 shares were purchased at an average price of $9.61/share and impacted the portfolio by 0.35%.
"We added one new security to the Fund during the quarter, Spain-based Applus Services (XMCE:APPS). Applus is a leading global certification company specializing in testing, inspection and certification services. The company provides solutions for clients in all sectors to ensure that their assets and products comply with environmental, quality, health and safety standards and regulations," says David Herro (Trades, Portfolio) in Oakmark Intl Small Cap (Trades, Portfolio) Fund's 4Q2014 Letter.
The stock is currently trading at €9.94
Out of the 22 positions the firm increased its stakes in, Julius Baer Gruppe AG (BAER.Switzerland), Michael Page International PLC (MPI.UK, Financial) and Konecranes Oyj (KCR1V.Finland) are currently the most heavily weighted stocks in the portfolio.
Julius Baer
Julius Baer consists of 4.7% of the firm's overall portfolio with 2,873,000 shares valued at ~$131.2 million and 1.33% of the company's shares outstanding.
Julius Baer is a private banking group that provides services and advice to private clients and independent asset managers in Switzerland and Europe.
The company's earnings per share for the trailing twelve months as of June 2014 was CHF0.86 with a growth rate at -33.80%. The stock is currently trading at CHR44.03 per share with a P/E ratio of 51.20, which is close to the five-year high of 52.09.
The company's dividend yield is currently 1.36% and close to its three-year low. Baer's most recent dividend payout was CHF0.60 per share on April 16, 2014. Dividends are awarded annually.
The current payout ratio is 0.44, which indicates the dividend is sustainable.
Michael Page International PLC
MPI.UK consists of 3.7% of the company’s portfolio and 4.98% of the company’s shares outstanding. Oakmark International currently owns 16,041,000 shares, valued at around $102.3 million.
Michael Page was incorporated in 1997 as a specialist recruitment consultancies company that provides recruitment services for employees looking for permanent, contract and temporary work for clerical professionals, qualified professionals and even those at the executive level.
The stock is currently trading at €5 and earnings per share for the trailing 12 months as of June 2014 was €0.14 with a growth rate of 15.40%.
The current P/E ratio is 36.64, which is close to its one-year high of 36.21, as shown in the chart above.
The company has paid dividends to shareholders semi-annually since 2001. Shareholders receive payments in October and June each year. On October 3, 2014, shareholders received a cash dividend payment of €0.034 per share--a 53.4% decrease from the previous payment of €0.073 per share on June 23, 2014.
As shown in the chart above, the stock’s current dividend yield is 2.13%, which is close to the two-year low.
The current payout ratio is 0.74.
Konecranes Oyk (KCR1V.Finland)
Konecranes consists of 3.5% of the firm's current portfolio and 5.89% of the company's shares outstanding. Oakmark Intl currently owns 3,410,000 shares,valued at around $97.5 million.
Konecranes was established mid-April of 1994 in the manufacturing and processing industries. The company manufactures equipment for shipyards, harbors, ports and power plants using real time services and productivity-enhancing lifting solutions.
The stock is currently trading at €30.99 and earnings per share for the trailing twelve months as of September 2014 was €1.16. The P/E ratio is 26.76.
Revenue per share was €34.24 and the P/S ratio is 0.91, which is close to the three-year high of 0.93.
Revenue per share €34.20. The company’s revenue has been declining over the past 1 2 months, as the current P/S ratio is 0.91 and close to the its three-year low. The current
median for the computer hardware company is 0.70%, as indicated in the chart below.
The firm also increased stakes in the following positions: Melco International Development Ltd (00200.Hongkong), Countrywide PLC (CWD.UK, Financial), Sulzer AG (SUN.Switzerland),Bucher Industries AG (BUCN.Switzerland), Totvs SA (TOTS3.Brazil), Transpacific Industries Group Ltd (TPI.Australia), Morgan Advanced Materials PLC (MGAM.UK), Titan Cement Co SA (TITK.Greece), Brunel International (BRNL.Netherlands), DGB Financial Group (139130.Korea.South), Davide Campari-Milano SpA (CPR.Italy), Electrocomponents PLC (ECM.UK), Panalpina Welttransport (Holding) AG (IPL.Australia), Hirose Electric Co., Ltd (6806.Japan).
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