Lee Ainslie (Trades, Portfolio) is founder and CEO of Dallas-based Maverick Capital. He started Maverick Capital back in 1993 with $38 million. During the last quarter he bought 90 new stocks reaching a total of 119 stock and a total value of $6,214 Mil.
According to the overall rank of GuruFocus All-In-One Screeners, Allstate Corp (ALL), AmTrust Financial Services Inc (AFSI) and Alleghany Corp (Y) are the most undervalued companies with the most growing EPS during the last 5 years
Allstate Corp (ALL)
The company has a market cap of $27.85 billion and an enterprise value of 431.38 billion. Its business is conducted through Allstate Insurance Company, Allstate Life Insurance Company and other subsidiaries. The company is engaged in the property-liability insurance and life insurance business. It offers its products in the United States and Canada.
ALL’s EPS grew by 37.50% over the last 5 years and looks undervalued by 29% according to the DCF model that gives a fair value of $96.18. The stock is currently trading at $68, -6.55% from its 52-week high and +20.25% from its 52-week low, at a P/E(ttm) ratio of 10.30 and a forward P/E of 11.43.
During the Q1 of 2015 the company has been sold out by 2 gurus (RS Investment Management (Trades, Portfolio) and Ken Fisher (Trades, Portfolio)) and has been bought by gurus Paul Tudor Jones (Trades, Portfolio), Steven Cohen (Trades, Portfolio) and Jim Simons (Trades, Portfolio).
Even Lee Ainslie (Trades, Portfolio) bought ALL during the same period. He bought just 3,560 shares (with an impact of less than 0.01% on his portfolio) and since that buy the price of the stock decreased by 4%.
AmTrust Financial Services Inc (AFSI)
The company has a market cap of $4.99 billion and an enterprise value of $5.19 billion. It provides insurance coverage for small businesses and products with high volumes of insureds and loss profiles that it believes are predictable. It has operations in four business segments namely Small Commercial Business, Specialty Risk and Extended Warranty, Specialty Program, and Personal Lines Reinsurance.
AFSI’s EPS grew by 27.80% over the last 5 years and looks undervalued by 65% according to the DCF model that gives a fair value of $172.23. The stock is currently trading at $61, -2.15% from its 52 weeks high and +58.25% from its 52 weeks low, at a P/E(ttm) ratio of 10.00 and a forward P/E of 10.68.
The company has strong growth rates since 10 years, with revenue that grew at a rate of 23.90% as well as EBITDA that grew by 25.50%, EPS that grew by 28.50% and book value that grew by 27.60%.
During the Q1 of 2015 Murray Stahl (Trades, Portfolio) reduced his stake by 7%, Paul Tudor Jones (Trades, Portfolio) increased his stake by 120.09% and Chuck Royce (Trades, Portfolio) increased his stake by 23.51%. As happened for ALL, Lee Ainslie (Trades, Portfolio) started to hold AFSI on Q1 after his buy of 4,850 shares at an average price of $54.09. Since that trade, the price rose by 12%.
Alleghany Corp (Y)
The company has a market cap of $7.85 billion and an enterprise value of $8.57 billion. The company is engaged, through Alleghany Insurance Holdings LLC and its subsidiaries, in the property and casualty and surety insurance business. The company is also engaged in private capital investments in oil exploration and production, remanufacturer/retrofitter of precision machine tools and supplier of replacement parts¸ manufacturer of custom trailers and truck bodies.
Alleghany Corp’s EPS grew by 13.80% over the last five years and looks undervalued by 41% according to the DCF model that gives a fair value of $825.59. The stock is currently trading at $490, -3.24% from its 52 weeks high and +20.91% from its 52-week low, at a P/E(ttm) ratio of 13.40 and a forward P/E of 11.05.
The company during the last 10 years had a revenue growth rate of 10.70%, an EPS growth rate of 16.50% and a book value growth rate of 8.20%. The only negative growth rate is about free cash flow that decreased by 9.70%.
During the Q1 of 2015 the company has been traded by 12 gurus.
Lee Ainslie (Trades, Portfolio) bought the stock for the first time, with an impact of 0.01% on his portfolio.
Most weighted trades were from Zeke Ashton (Trades, Portfolio) that reduced his position by 16.95% (with an impact of 1.86% on his portfolio) and from Third Avenue Management (Trades, Portfolio) that reduced his position by 9.50% (with an impact of 0.15% on its portfolio).
