A Look at Richard Blum's Portfolio

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Apr 24, 2015

"Blum Capital Partners was founded in 1975 as an investment firm making strategic block and control investments in public and private transactions. Our hybrid investment strategy combines a rigorous, private equity process applied to the public markets with a proven ability to play a constructive, active role in unlocking value from our portfolio companies through the implementation of financial, operational and governance initiatives"

According to GuruFocus, Blum’s portfolio is composed of 5 stocks with a total value of $578 Mil. Let’s have a look at these 5 companies.

CBRE Group Inc (CBG)

The Company offers real estate and investment services to owners, lenders and investors in office, retail, industrial, multifamily and other types of commercial real estate. Its business includes commercial property and corporate facilities management, tenant/occupier and property/agency leasing, property sales, real estate investment management, valuation, commercial mortgage origination and servicing, capital markets - structured finance and debt solutions, development services and proprietary research.

CBG has a market cap of $12.83 billion and is currently trading at P/E (ttm) of 26.40 and that is ranked higher than 67% of the 2471 companies in the Global Real Estate Services industry.

At current price, based on DCF model, CBG fair value is $21.39, so the stock looks overpriced by 79%. The price rose +47% over the last 12 months.

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CBGÂ has positive returns (23.24% of ROE, 6.64% of ROA and 68.06% of ROC) and Financial strength rated 5/10.

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Jeff Ubben is the main Guru holding CBG with 9.41% of shares outstanding, followed by Richard Blum (3.52%) and Ron Baron (1.66%)

Avid Technology Inc (AVID)

Avid Technology is a provider of digital media content-creation products and solutions for audio, film, video, and broadcast professionals, as well as artists and creative enthusiasts. Its audio and video solutions are designed to be extensions of the people using them, so that they amplify creativity, speed production processes and provide the science behind the art of making great creative experiences.

AVID has a market cap of $ 645.2Â million and is currently trading at P/E (ttm) of 44.10 and AVID's P/E(ttm) is ranked higher than 72% of the 3000 companies in the Global Electronic Gaming & Multimedia industry.

At current price, based on DCF model, AVID fair value is $ 5.46, and these days the stock is overpriced by 199%. Despite this, the price rose by 114% over the last 12 months.

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AVIDÂ has positive returns (7.19% of ROA and 58.15% of ROC) but weak financial strength rated 3/10 even if cash to debt ratio says the company is with no debts.

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Richard Blum holds 18.06% of Shares Outstanding, followed by Chuck Royce with 4.84%

Career Education Corp (CECO)

The Company offers education to a diverse student population across the world in a variety of career-oriented disciplines through online, on-ground and hybrid learning program offerings. It serves students from campuses throughout the United States, offering doctoral, master's, bachelor's and associate degrees and diploma and certificate programs.

CECO has a market Cap of $ 328.9 Million and is currently trading at P/B (ttm) of 1.2 and CECO's P/B(ttm) is ranked higher than 88% of the 227 companies in the Global Education & Training Services industry.

The price dropped by 32% over the last 12 months.

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CECO has deep-negative returns (-49.66% of ROE, -26.11% of ROA and -62.69% of ROC) but a solid financial strength rated 6/10.

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Richard Blum keeps buying CECO since 4 months and now he holds 9.77% of shares outstanding

ITT Educational Services, Inc (ESI)

The Company is a provider of postsecondary degree programs in the United States. It offers diploma, associate, bachelor and master degree programs. As of December 31, 2012, the Company had offered master, bachelor and associate degree programs to approximately 61,000 students and had 149 locations (including 147 campuses and two learning sites) in 39 states. In addition, it offered one or more of its online programs to students who are located in 48 states.

ESI has a market Cap of $144.2Â Million and is currently trading at a forward P/E of 17.39 and this ratio is ranked lower than 58% of the 227 companies in the Global Education & Training Services industry.

The price of ESI tanked by 77% over the last 12 months.

The Peter Lynch earnings line fair value is set to $14.8 with a current margin of safety of 57%

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MoneyGram International Inc (MGI)

The Company is a money transfer and payment services company. Its products include money transfers, bill payment services, money order services and official check processing. Its segments include Global Funds Transfer and Financial Paper Products.

MGI has a market Cap of $434.8 Million and is currently trading at P/E (ttm) of 7.5 and MGI’s P/E(ttm) is ranked higher than 91% of the 455 companies in the Global Credit Servicesindustry.

At current price, based on DCF model, MGI fair value is $15.49, and these days the stock is trading with a margin of safety of 47%. The price dropped by 40% over the last 12 months.

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MGI has almost null returns (1.53% of ROA and 3.58% of ROC) and Financial strength, rated 6/10.

David Abrams is the main holder of MGI (5.49% of shares outstanding). Richard Blum holds the 2.9%