Madison Street Partners LLC is a hedge fund based in Colorado founded by Steven Owsley in 2004. Its portfolio reported a total value of its portfolio of $74 million, with a decrease of 24% since the previous quarter. During 2015, Q2, it bought 20 new stocks and increased four of its existing stakes. The following are the most heavily weighted buys during the quarter.
It bought shares of Citigroup Inc.(C) with an impact of 5.74% on its portfolio. It is a financial services holding company, whose businesses provide consumers, corporations, governments and institutions with a range of financial products and services, including consumer banking, credit cards, corporate and investment banking, securities brokerage and wealth management.
The company has a profitability and growth rating of 5 out of 10 with weak returns (ROE 5.78%, ROA 0.69%) that are under performing 69% of the Global Banks industry. Financial strength has a rating of 6 out of 10 with an interest coverage of 1.05, and a cash to debt of 0.65 that is very low if compared to the industry median of 1.36.
The price of the stock has risen by 38% during the last five years, and is almost flat from 12 months back and even year to date. The current price is hitting its lowest quotation of the last 12 months being -42.93% from its 52-week high and +0.27% from its 52-week low.
Second-quarter earnings came in at $1.51 in EPS, versus consensus estimates of $1.34 and the company is expected to announce next quarter earnings on Oct. 13, at consensus estimate of $1.4.
The main shareholder of the company is James Barrow (Trades, Portfolio) who holds 0.74% of outstanding shares that is 1.67% of his total assets, followed by HOTCHKIS & WILEY with 0.58% of outstanding shares and Ken Fisher (Trades, Portfolio) with 0.39%.
It bought shares of Morgan Stanley(MS) with an impact of 2.81% on its portfolio. The company through its subsidiaries and affiliates, provides financial products and services to a diversified group of clients and customers, including corporations, governments, financial institutions and individuals. It has three business segments: Institutional Securities, Wealth Management Group and Asset Management.
Morgan Stanley has a profitability and growth rating of 5 out of 10 with weak returns (ROE 5.31%, ROA 0.52%) that are underperforming 68% of the Global Capital Markets industry. Financial strength has a rating of 6 out of 10 and main ratios are negative, interest coverage of 0.98 and cash to debt of 0.29 are deeply underperforming the sector, but Interest coverage is topping the recent company’s history performance.
The price of the stock has risen by 34% during the last five years, has dropped by 12% year to date and is flat since 12 months back. The current price is -17.03% from its 52-week high and +12.01% from its 52-week low.
Quarterly results demonstrated solid performance, despite a muted operating environment in which profit margins hit 21% for the first time since the founding of the JV and net income applicable to Morgan Stanley was $1.8 billion, or $0.85 per diluted share and net income of $1.9 billion, or $0.92 per diluted share has an increase of 7% when compared to the same period a year ago.
The main shareholder of the company is Richard Pzena (Trades, Portfolio) who holds 0.51% of outstanding shares that is 2.16% of his total assets, followed by Diamond Hill Capital (Trades, Portfolio) with 0.42% of outstanding shares and Ken Heebner (Trades, Portfolio) with 0.33%.
It bought shares of Chicago Bridge & Iron Company(CBI) with an impact of 1.66% on its portfolio. It provides conceptual design, technology, engineering, procurement, fabrication, modularization, construction, commissioning, maintenance, program management and environmental services to customers in the energy infrastructure market throughout the world and is a provider of diversified government services. The company's reporting segments are comprised of four operating groups: Engineering, Construction and Maintenance; Fabrication Services; Technology; and Government Solutions.
The company has a profitability and growth rating of 7 out of 10 with positive returns (ROE 22.11%, ROA 6.38%) that are outperforming 78% of the Global Engineering & Construction industry and that are having the best performance of the recent past of the company. Financial strength has a rating of 7 out of 10 with an interest coverage of 11.76, and a very low cash to debt of 0.16.
The price of the stock has risen by 90% during the last five years, by 4% year to date but has dropped by 32% during the last 12 months. The current price is -32.76% from its 52-week high and +34.11% from its 52-week low.
During last quarter operating income was almost 9% and net income represents a 14% increase year over year. Also gross margin was 11.9%, compared to 11.6% an improvement of 30 basis points.
The main shareholder of the company is Warren Buffett (Trades, Portfolio) even so during the last quarter, he cut his stake by 12.84%; he holds 8.76% of outstanding shares that is 0.44% of his total assets. He is followed by David Einhorn (Trades, Portfolio) with 6.32% of outstanding shares and David Tepper (Trades, Portfolio) with 1.13%.
It bought shares of Gogo Inc.(GOGO) with an impact of 2.35% on its portfolio. The company is a provider of in-flight connectivity with a number of aircraft online and wireless digital entertainment and other services in the commercial and business aviation markets. Through its proprietary air-to-ground (ATG) network and satellite-based technologies,
Gogo has a weak profitability and a weak growth rate. Returns are negative (ROE -51.21%, ROA -11.27%) and are under performing 92% of the Global Telecom Services industry; during the last 3 years, revenue has dropped by 41%, EBITDA by 73% and EPS by 27%. Financial strength has a rating of 6 out of 10 with a cash to debt of 0.68 that is few high if compared to the industry median of 0.48.
The price of the stock has dropped by 3% during the last five years, by 7% year to date and by 8% during the last 12 months. The current price is -32.82% from its 52-week high and +24.68% from its 52-week low.
Revenue increased by 22% from Q2 2014 and adjusted EBITDA for Q2 2015 was $10.8 million, up from $3.1 million for Q2 2014. For the full year ending Dec. 31, they expect adjusted EBITDA at the higher end of $15 million to $25 million
The main hedge fund of the company is Columbia Wanger (Trades, Portfolio), it holds 3.95% of outstading shares that is 0.47% of its total assets, followed by Mario Gabelli (Trades, Portfolio) who holds 0.62% of outstanding shares and Steven Cohen (Trades, Portfolio) with an easy stake of 0.01%
As of the latest quarter, the hedge fund has its portfolio divided by the following sectors:
| Main Sectors | |
| Information Technology | 34% |
| Consumer Discretionary | 31% |
| Finance | 18% |
| Other | 10% |
| Industrials | 2% |
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