John Hussman (Trades, Portfolio) is known for his negative thoughts on the Federal Reserve and the U.S. Treasury. He has been named the "Prophet of Doom" because he predicted the financial crisis of 2008 and says there is another to come that will be much worse.
Stocks and bonds are as overvalued as ever right now, he says, and investing in bonds within the next 10 years will lead to financial loss.
Hussman recently increased his portfolio by adding 28 new positions. He now has 185 stocks total and a 24% quarter over quarter turnover. His portfolio's total value is currently $953 Mil. The majority of his portfolio are stocks in the healthcare sector (21.5%), the technology sector (20.1%) and consumer cyclicals (11%).
Here's a look at Hussman's most heavily weighted new buys from each of the sectors:
Laboratory Corp of America Hldgs (LH, Financial)
90,000 shares of Laboratory Corp were purchased during 1Q2015. LH consists of 1.9% of Hussman's portfolio and 0.09% of shares outstanding.
Laboratory Corp is an independent clinical company in the United States that was founded in 1971. The company has a 3.5 out of 5 star business predictability rating.
Revenue per share for the trailing twelve months as of December 2014 was $69.60. Within the last year, the average growth rate was 10%. One good sign for investors is the company has shown predictable revenue and earnings growth.
The Peter Lynch earnings line is currently at $127.80 and LH is trading at $119.45, which indicates the stock may be undervalued.
Cisco Systems Inc (CSCO, Financial)
Hussman purchased 606,900 shares of CSCO, valued at $16,705,000. Cisco consists of 1.75% of his overall portfolio.
The company designs, manufactures and sells Internet Protocol based networking products and services that are related to the IT industry. Cisco has a business predictability rating of 4 out of 5 stars.
The Peter Lynch earnings line is currently at $35.70 and CSCO is trading at $29.27 a share, which indicates it may be currently undervalued.
Revenue per share for the trailing twelve months as of January 2015 was $9.29. Its growth rate for the past year was 4.70%. The company has shown predictable revenue and earnings growth, which is a good sign for investors.
During 1Q2015, Hussman purchased 350,000 shares od ZUMZ, which now consists of 1.48% of his portfolio.
Zumiez is a specialty retailer that was formed in 1978 in Washington State. The company recieved a 4 out of 5 star business predictability rating.
The Lynch earnings line is at $31.90 and ZUMZ is currently trading at $31.87, which indicates the stock's value may be right on target.
One good sign for investors is the P/S ratio of 1.15 is currently close to its one-year low of 1.06. Another good sign is the P/B ratio of 2.61 is currently close to its one-year low of 2.38.
For a complete list of new buys in Hussman's portfolio, click here.
