John Buckingham (Trades, Portfolio), chief investment officer of AFAM (Al Frank Asset Management) Capital, which specializes in managing exchange-traded funds and equity portfolios, and editor of The Prudent Investor, an investment newsletter, learned the ropes from value investor Al Frank. The Al Frank Fund posted returns of 5.47% in 2014, 37.06% in 2013 and 17.26% in 2012.
Buckingham bought 10 new stakes in the second quarter, including a 194,008-share stake in Vanguard Total Bond Market ETF (BND, Financial) for an average price of $81.95 per share. Buckingham had a position in Vanguard Total Bond Market before but sold out in 2012. The purchase had a 2.1% impact on his portfolio.
John Keeley (Trades, Portfolio) and First Eagle Investment (Trades, Portfolio) have shares of Vanguard Total Bond Market ETF in their portfolios.
Buckingham added to more than 100 existing stakes in the second quarter, the most prominent being his purchase of 107,582 shares of Sanofi (SNY, Financial), a Paris-based pharmaceutical company, for an average price of $50.66 per share. The acquisition had a 0.71% impact on Buckingham’s portfolio.
Sanofi has a market cap of $137.89 billion and an enterprise value of $144.17 billion. It has a P/E of 26.2, a Price/Book of 2.2 and a Price/Sales of 3.5. Dodge & Cox, James Barrow (Trades, Portfolio), Ken Fisher (Trades, Portfolio), HOTCHKIS & WILEY, Bill Nygren (Trades, Portfolio), Warren Buffett (Trades, Portfolio), PRIMECAP Management (Trades, Portfolio), Manning & Napier Advisors, Inc, NWQ Managers (Trades, Portfolio), Charles Brandes (Trades, Portfolio), Sarah Ketterer (Trades, Portfolio), Francis Chou (Trades, Portfolio), Scott Black (Trades, Portfolio), Murray Stahl (Trades, Portfolio), Mario Gabelli (Trades, Portfolio) and David Dreman (Trades, Portfolio) have shares of Sanofi in their portfolios.
Among the other stakes that Buckingham increased were his holdings in Vanguard Intermediate Tm. Cpte. Bd. ETF (VCIT, Financial), iShares MSCI All Peru Capped Index Fund (EPU, Financial), Gilead Sciences Inc. (GILD, Financial), Goodyear Tire & Rubber Co. (GT, Financial), Microsoft Corp. (MSFT, Financial) and Target Corp. (TGT, Financial).
Reductions and divestitures
Buckingham reduced his positions in 35 companies in the second quarter. He sold 198,192 shares of iShares Trust (FLOT, Financial). Buckingham sold the shares for an average price of $50.62 per share. The transaction had a -1.29% impact on his portfolio.
Buckingham also sold 111,888 shares of Vanguard Short-Term Bond ETF (BSV, Financial). Buckingham sold the shares for an average price of $80.11 per share. That sale had an impact of -1.16% on his portfolio.
Buckingham also reduced his position in SPDR Series Trust (SJNK, Financial), selling 239,038 shares for an average price of $28.94 per share. The deal had a -0.9% impact on Buckingham’s portfolio.
Buckingham also reduced his positions in Exxon Mobil Corporation (XOM), Cardinal Health Inc. (CAH), Aetna Inc. (AET) and Comcast Corp. (CMCSA).
Buckingham sold his stakes in 15 companies in the second quarter. He sold his 398,375-share stake in Market Vectors Emerging Mkts. Local ETF (EMLC) for an average price of $19.97 per share. The sale had a -1.03% impact on Buckingham’s portfolio.
He also sold his 111,193-share stake in St. Jude Medical Inc. (STJ), a Minnesota-based medical device company, for an average price of $72.13 per share. The sale had a -0.94% impact on Buckingham’s portfolio.
St. Jude Medical has a market cap of $19.99 billion and an enterprise value of $23.45 billion. It has a P/E of 19.8, a Price/Book of 5.3 and a Price/Sales of 3.7. Vanguard Health Care Fund (Trades, Portfolio), James Barrow (Trades, Portfolio), Bill Frels (Trades, Portfolio), Jeremy Grantham (Trades, Portfolio), John Rogers (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio), Jim Simons (Trades, Portfolio), Ken Fisher (Trades, Portfolio), Louis Moore Bacon (Trades, Portfolio), David Dreman (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio), Mario Gabelli (Trades, Portfolio) and John Keeley (Trades, Portfolio) have shares of St. Jude Medical in their portfolios.
Buckingham sold his 185,833-share stake in ConAgra Foods Inc. (CAG), a Nebraska-based food processing company, for an average price of $38.55 per share. The transaction had a -0.87% impact on Buckingham’s portfolio.
ConAgra Foods has a market cap of $19.41 billion and an enterprise value of $26.75 billion. It has a Price/Book of 4.3 and a Price/Sales of 1.2. Joel Greenblatt (Trades, Portfolio), Brian Rogers (Trades, Portfolio), Mario Gabelli (Trades, Portfolio), Pioneer Investments (Trades, Portfolio), Manning & Napier Advisors, Inc, Jeff Auxier (Trades, Portfolio), First Eagle Investment (Trades, Portfolio) and John Keeley (Trades, Portfolio) have shares of ConAgra Foods in their portfolios.
Buckingham also sold his stakes in Eli Lilly and Co. (LLY), International Game Technology PLC (IGT), SpartanNash Company (SPTN) and New York Community Bancorp Inc. (NYCB), among others.
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