Exxon Mobil, Apple and Wells Fargo Are CrestPoint Capital Management's Top Q1 Holdings

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Apr 21, 2015

CrestPoint Capital Management is a professional money management firm that specializes in the management of common stock portfolios. It disclosed an equity portfolio valued at around $192.36 million as of March 2015, representing a 4.4% increase from the previous quarter. The equity portfolio is mainly invested in Technology (17%), Finance (16%), and Consumer Discretionary (14%) stocks.

The three largest holdings are represented by large-cap companies. These companies are Exxon Mobil Corporation (XOM, Financial), Apple Inc. (AAPL) and Wells Fargo & Company (WFC, Financial).

As of the end of the quarter, Exxon Mobil Corporation (XOM, Financial) represents Crestpoint’s largest holding in terms of value. The fund held 72,959 shares of the company valued at $6.20 million. The position represents 3.22% of the equity portfolio and decreased over the quarter by 3.7% from 75,759 shares as of the end of 2014. During 2014, the stock of declined by 8.93%.

The company explores for and produces crude oil and natural gas in the U.S, Canada, South America, Europe, Africa, Asia, and Australia. The company’s revenue decreased by 22.65% on the fourth quarter to $76.09 billion from $98.36 billion. Further, the net income for the quarter contracted to $6.57 million from $8.35 million the same quarter a year earlier.

Exxon big projects involve some risks including the overinvestment risk, execution risk, and budgetary risk. The constant trade-off between taking less favorable terms on the projects or focus on projects where expertise is needed remained intact. Other risks include the geopolitical risk, in countries such as Russia, Nigeria and Venezuela. Furthermore, this oil company would generate free cash flow enough to determine dividend increases and share repurchases. Finally, commodity risk is always a principal concern. This week the shares were climbing as oil prices rallied.

Several investors reported long positions in the stock at the end of the year, including Donald Yacktman (Trades, Portfolio)’s Yacktman Asset Management and Ken Fisher (Trades, Portfolio)’s Fisher Asset Management, which own 7.01 million shares and 4.38 million shares respectively.

Apple Inc. (AAPL) comes in next on the list with Crestpoint holding 33,170 shares, almost flat over the quarter; the value of the stake amounts to $4.1 million, according to the latest 13F filing. The stock appreciated by 38% during 2014 and 15.42% in the three month period.

The latest news focus the attention on China, in which the company has agreed to back two large solar farms, according to Bloomberg. The deal expands Apple´s solar aspirations beyond the U.S.

Among other investors, Carl Icahn (Trades, Portfolio) disclosed holding 52.76 million shares of the company, the value of the stake amounting to $5.82 million as of the end of 2014.

Next in line is Wells Fargo & Company (WFC, Financial), in which the fund disclosed holding 67,400 shares, down by 1.3% on the quarter, with the value of the stake amounting to $3.67 million.

Furthermore, the bank’s stock gained 20.48% in 2014. We think the bank is growing and as a consequence, last month it got approval of its capital plan and plans to increase its second-quarter dividend by 7% to $0.375 per common share.

Warren Buffet’s Berkshire Hathaway reported holding 463.46 million shares of Wells Fargo, valued at $25.41 million as of the end of 2014.

Disclosure: Omar Venerio holds no position in any stocks mentioned