The Signature Select Canadian Fund (Trades, Portfolio) added 40 new stocks to its portfolio during the six months ended March 31, according to data reported by GuruFocus Real Time Picks.
The fund is managed by CI Investments and seeks long-term capital appreciation, coupled with dividend income. Thirty-seven percent of the fund’s assets are current held in Canadian equities, followed by 32.1% in U.S. stocks. The chart below shows the fund’s returns since 2000.
SPDR Gold Trust ETF (GLD, Financial)
Signature’s largest purchase was 634,500 shares of the Gold Trust ETF, which traded for an average price of $116.97 during the quarter. The graph below shows the fund’s holding history in the ETF.
Sony Corp (TSE:6758, Financial)
The fund purchased 450,000 shares of Japanese electronics company Sony for an average price of ¥3011.98 per share. Over the past year, the stock price has rocketed 101%, closing at ¥3,461.50 on June 30. The forward P/E ratio is 7.14, and the P/S ratio is 0.47.
EBITDA per share has been declining since 2013, recording at ¥375.04 million in FY 2015, down from ¥414.69 the year before.
Since 2009, Sony had posted a profit only in 2013. In FY 2015, net loss was ¥125,980 million. In addition, the current dividend yield is 0.72%, which is close to the five-year low.
Rocket Internet SE (FRA:RKET, Financial)
The fund bought 236,700 shares of Rocket Internet for an average €47.87 per share. The company aims to be the largest internet platform outside of the U.S. and China, identifying business models and transferring them to underserved or untapped markets.
Rocket launched its IPO in September 2014 on the Frankfurt Stock Exchange with the aim to raise €750 million.
The stock price increased 8% over the past year and closed at $40.41 on June 30. In the first half of the year ended June 2014, Rocket reported EBITDA per share of €-0.90, down from €0.19 in the first half of 2013.
Hilton Worldwide Holdings (HLT, Financial)
Signature also bought 393,100 shares of Hilton Worldwide, which traded for an average of $27.55 during the quarter. The purchase has a 0.89% portfolio weighting.
Hilton manages more than 4,300 hotel and resort properties in 94 countries and territories. Its stock rose 18% over the past year, closing at $27.33 on June 29.
In 2014, Hilton reported EBITDA per share of $2.43, up from $2.08 the year before. Net income has also increased steadily over time, recording at $673 million in 2014.
Mondelez International (MDLZ, Financial)
The fund’s fifth-largest purchase was 287,000 shares of Mondelez at an average price of $36.15 per share. The holding has a 0.79% portfolio weighting.
The company markets food and beverage products in 165 countries with brands that include Oreos, Nabisco, Cadbury chocolates and Trident gum. The stock price increased 10% over the last year, closing at $41.61 on July 1. The current P/E ratio is 30.28, while the P/S ratio is 2.12.
The company has struggled to improve its growth rates over the years, with revenue declining 3.2% and EBITDA declining 5.6% over the last five years. EBITDA per share in 2014 was $2.57, which has remained flat since 2010.
The current dividend yield is 1.44%, which is close to the 10-year low. The payout ratio is 43%.
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