Value investor Mason Hawkins (Trades, Portfolio) is observing his 40th anniversary as chairman and CEO of Southeastern Asset Management, where the emphasis is on “good business, good people, and a good price” when considering investing in a company.
Southeastern Asset Management typically holds no more than two dozen stakes in each portfolio; Hawkins’ portfolio is a little higher than that with 30 stakes in it currently. Hawkins made half a dozen new buys in the first quarter, two of which – Wynn Resorts Ltd (WYNN, Financial) and Google Inc (GOOG, Financial) – landed in the top 20 most valuable stakes in his portfolio.
Hawkins bought 4,573,838 shares of Wynn Resorts, a Nevada-based developer and operator of hotels and casinos, for an average price of $142.7 per share. The transaction had a 3.61% impact on Hawkins’ portfolio and made Wynn Resorts the 12th-most valuable stake in Hawkins’ possession.
Wynn Resorts has a market cap of $11.09 billion and an enterprise value of $17.35 billion. It has a P/E of 23.9 and a Price/Sales of 2.2. Ron Baron (Trades, Portfolio), Murray Stahl (Trades, Portfolio), Jim Simons (Trades, Portfolio), Mario Gabelli (Trades, Portfolio), Caxton Associates (Trades, Portfolio) and Chris Davis (Trades, Portfolio) have shares of Wynn Resorts in their portfolios. Ray Dalio (Trades, Portfolio), John Burbank (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio) and Steve Mandel (Trades, Portfolio) sold their stakes in the first quarter.
Earlier this week, Wynn Resorts slipped to its 52-week low of $97.89 after a reported decline of more than 37% in Macau gaming revenue in May.
Hawkins purchased 916,019 shares of Google, a California-based technology company, for an average price of $535.97 per share. The acquisition had a 3.14% impact on Hawkins’ portfolio and made Google the 13th-most valuable stake in that portfolio.
Google has a market cap of $365.58 billion and an enterprise value of $305.38 billion. It has a P/E of 25.3, a Price/Book of 3.4 and a Price/Sales of 5.5. Dodge & Cox, PRIMECAP Management (Trades, Portfolio), Chris Davis (Trades, Portfolio), Frank Sands (Trades, Portfolio), Andreas Halvorsen (Trades, Portfolio), Lee Ainslie (Trades, Portfolio), Manning & Napier Advisors, Inc, Ruane Cunniff (Trades, Portfolio), Ken Fisher (Trades, Portfolio), Pioneer Investments (Trades, Portfolio), David Tepper (Trades, Portfolio), First Pacific Advisors (Trades, Portfolio), Steven Romick (Trades, Portfolio), Jim Simons (Trades, Portfolio), David Rolfe (Trades, Portfolio), Robert Karr (Trades, Portfolio), Tweedy Browne (Trades, Portfolio), Wallace Weitz (Trades, Portfolio), Tweedy Browne (Trades, Portfolio) Global Value, Mohnish Pabrai (Trades, Portfolio), Murray Stahl (Trades, Portfolio), Julian Robertson (Trades, Portfolio), David Winters (Trades, Portfolio), Wintergreen Fund (Trades, Portfolio), Louis Moore Bacon (Trades, Portfolio), RS Investment Management (Trades, Portfolio), Charles de Vaulx (Trades, Portfolio), Signature Select Canadian Fund (Trades, Portfolio), Ron Baron (Trades, Portfolio), Mario Gabelli (Trades, Portfolio), Tom Gayner (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio), Steven Cohen (Trades, Portfolio), Mario Cibelli (Trades, Portfolio), Tom Russo (Trades, Portfolio) and Bill Frels (Trades, Portfolio) have shares of Google in their portfolios. Richard Snow (Trades, Portfolio) and John Griffin (Trades, Portfolio) sold their stakes in the first quarter.
Hawkins also bought stakes in HollyFrontier Corp (HFC, Financial), Diamond Offshore Drilling Inc (DO, Financial), Triangle Petroleum Corp (TPLM, Financial) and Northern Oil & Gas Inc (NOG, Financial) in the first quarter.
Hawkins added to five existing stakes in the first quarter, including the third-most valuable stake in his portfolio, Consol Energy Inc (CNX, Financial), a Pennsylvania-based energy company emphasizing coal and natural gas production. Hawkins bought 12,191,212 shares of Consol Energy for an average price of $30.58 per share. The deal had a 2.13% impact on his portfolio.
Consol Energy has a market cap of $6.28 billion and an enterprise value of $9.69 billion. It has a P/E of 51.1, a Price/Book of 1.3 and a Price/Sales of 1.8. David Einhorn (Trades, Portfolio), Brian Rogers (Trades, Portfolio), Mario Gabelli (Trades, Portfolio) and Ray Dalio (Trades, Portfolio) have shares of Consol Energy in their portfolios.
Hawkins also added to the 17th-most valuable stake in his portfolio, CNH Industrial NV (CNHI, Financial), a London-based agricultural and construction equipment company. He acquired 5,310,274 shares of CNH Industrial for an average price of $7.91 per share. The transaction had a 0.27% impact on Hawkins’ portfolio.
CNH Industrial has a market cap of $12.39 billion and an enterprise value of $60.31 billion. It has a P/E of 27.8, a Price/Book of 2.5 and a Price/Sales of 0.4. HOTCHKIS & WILEY, Mario Gabelli (Trades, Portfolio), James Barrow (Trades, Portfolio) and Jim Simons (Trades, Portfolio) have shares of CNH Industrial in their portfolios. David Dreman (Trades, Portfolio) sold his stake in the first quarter.
Citing market conditions, CNH Industrial announced a new round of job cuts at its Fargo, N.D., facility at the end of May. Those cuts are expected to be complete by the end of July. CNHI, which had more than 70,000 employees worldwide in 2013, cut 80 jobs in February and 40 jobs late in 2014.
Hawkins also added to his stakes in Dreamworks Animation SKG Inc (DWA, Financial), Chemtura Corp (CHMT, Financial) and Deltic Timber Corp (DEL, Financial).
Reductions and divestitures
Hawkins reduced 17 of his existing stakes, including the most valuable stake in his portfolio, Level 3 Communications Inc (LVLT), a Colorado-based telecommunications company and Internet service provider. Hawkins sold 9,496,925 shares of Level 3 for an average price of $52.13 per share in a deal that had a -2.69% impact on his portfolio.
Level 3 has a market cap of $19.57 billion and an enterprise value of $29.96 billion. It has a P/E of 49.4, a Price/Book of 2.9 and a Price/Sales of 2.2. Jim Simons (Trades, Portfolio), George Soros (Trades, Portfolio), Steven Cohen (Trades, Portfolio), Pioneer Investments (Trades, Portfolio), Louis Moore Bacon (Trades, Portfolio) and Dodge & Cox have shares of Level 3 in their portfolios. Mario Gabelli (Trades, Portfolio), Ray Dalio (Trades, Portfolio) and Joel Greenblatt (Trades, Portfolio) sold their stakes in the first quarter.
Hawkins also sold a portion of his fifth-most valuable stake, Chesapeake Energy Corp (CHK), an Oklahoma City-based oil and natural gas company. Hawkins sold 9,667,590 shares of Chesapeake for an average price of $17.65 per share. The sale had a -1.09% impact on his portfolio.
Chesapeake Energy has a market cap of $8.67 billion and an enterprise value of $21.63 billion. It has a Price/Book of 1.0 and a Price/Sales of 0.5. Carl Icahn (Trades, Portfolio), Bill Nygren (Trades, Portfolio), Charles Brandes (Trades, Portfolio), Richard Snow (Trades, Portfolio), Arnold Schneider (Trades, Portfolio), Steven Cohen (Trades, Portfolio), Ray Dalio (Trades, Portfolio), John Rogers (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio), John Buckingham (Trades, Portfolio), Murray Stahl (Trades, Portfolio), David Dreman (Trades, Portfolio) and Paul Tudor Jones (Trades, Portfolio) have shares of Chesapeake in their portfolios.
Hawkins also reduced his stakes in Mondelez International Inc (MDLZ), McDonald's Corp (MCD), Empire State Realty Trust Inc (ESRT), FedEx Corp (FDX), Aon PLC (AON), Murphy Oil Corp (MUR), Everest Re Group Ltd (RE), Royal Philips NV (PHG), Graham Holdings Co (GHC), California Resources Corp (CRC), Bank of New York Mellon Corp (BK), Scripps Networks Interactive Inc (SNI), Loews Corp (L), Franklin Resources Inc (BEN) and Vail Resorts Inc (MTN).
Hawkins also sold four of his stakes in the first quarter – Abbott Laboratories (ABT), Travelers Companies Inc (TRV), Berkshire Hathaway Inc (BRK.B) and Melco Crown Entertainment Ltd (MPEL).
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