The Wintergreen Fund (Trades, Portfolio) was founded in New Jersey and is based in Milwaukee, but it doesn’t confine its activity to the U.S. or North America. Although the Fund has found many of its holdings in Europe, Canada and Asia, in any quarter you are apt to see companies from almost anywhere in the world among Wintergreen’s transactions, and the second quarter was no exception.
The Fund tended to focus on reducing stakes in the second quarter. It sold one stake – Lorillard Inc. (LO, Financial) – bought five and added to none, but it reduced 11 existing stakes in its portfolio.
The Wintergreen Fund (Trades, Portfolio)’s most noteworthy second-quarter transaction was its reduction of its stake in Genting Malaysia Bhd. (XKLS:4715, Financial), a Malaysian gaming, hotel and resort company. The Fund reduced its stake by 51%, selling 16,818,644 shares for an average price of RM4.3 (approximately $1.01 in U.S. currency) per share. The sale had a -2.14% impact on the Fund’s portfolio.
Genting Malaysia has a market cap of $25.18 billion and an enterprise value of $23.4 billion. It has a P/E of 21.4, a Price/Book of 1.4 and a Price/Sales of 3.0. Charles de Vaulx (Trades, Portfolio), IVA International Fund (Trades, Portfolio) and Steven Romick (Trades, Portfolio) have shares of Genting Malaysia in their portfolios.
The Fund reduced its position in its sixth-most valuable stake, Canadian Natural Resources Ltd. (TSX:CNQ, Financial), a Calgary, Alberta-based oil and gas exploration, development and production company, by nearly 15%, selling 360,096 shares for an average price of C$38.28 (about $29.04 in American money) per share. The transaction had a -1.23% impact on the Fund’s portfolio.
Canadian Natural Resources has a market cap of $30.59 billion and an enterprise value of $46.54 billion. It has a P/E of 19.4, a Price/Book of 1.1 and a Price/Sales of 1.8. Leith Wheeler Canadian Equity (Trades, Portfolio), Signature Select Canadian Fund (Trades, Portfolio) and Mawer Canadian Equity Fund (Trades, Portfolio) have shares of Canadian Natural Resources in their portfolios.
Because of the decline in oil prices, Canadian Natural Resources announced Sept. 10 that staff salaries in Calgary, Alberta and Aberdeen, Scotland will be cut by up to 10%.
The Fund sold 200,327 shares of its fifth-most valuable stake, Franklin Resources Inc. (BEN, Financial), a San Mateo, Calif.-based financial services company, for an average price of $51.3 per share. The deal had a -1.15% impact on the Fund’s portfolio.
Franklin Resources has a market cap of $23.61 billion and an enterprise value of $14.44 billion. It has a P/E of 10.4, a Price/Book of 1.9 and a Price/Sales of 2.9. Mason Hawkins (Trades, Portfolio), Bill Nygren (Trades, Portfolio), Richard Pzena (Trades, Portfolio), Diamond Hill Capital (Trades, Portfolio), John Rogers (Trades, Portfolio), David Winters (Trades, Portfolio), RS Investment Management (Trades, Portfolio), Pioneer Investments (Trades, Portfolio), Jim Simons (Trades, Portfolio), Chuck Royce (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio), Jeremy Grantham (Trades, Portfolio), Robert Olstein (Trades, Portfolio), Scott Black (Trades, Portfolio), Jeff Auxier (Trades, Portfolio), Ray Dalio (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio), Ken Fisher (Trades, Portfolio), Murray Stahl (Trades, Portfolio), David Dreman (Trades, Portfolio), Chris Davis (Trades, Portfolio) and Lee Ainslie (Trades, Portfolio) have shares of Franklin Resources in their portfolios.
The Fund sold more than 17% of its stake in Nestle SA (XSWX:NESN, Financial), a Swiss food and beverage company, for an average price of CHF72.32 (roughly $74.63 in U.S. dollars). The transaction had a -1.12% impact on the Fund’s portfolio.
Nestle has a market cap of $234.46 billion and an enterprise value of $248.14 billion. It has a P/E of 16.4, a Price/Book of 3.3 and a Price/Sales of 2.6. David Herro (Trades, Portfolio), Charles de Vaulx (Trades, Portfolio), Tweedy Browne (Trades, Portfolio) Global Value, IVA International Fund (Trades, Portfolio), MS Global Franchise Fund (Trades, Portfolio) and Signature Select Canadian Fund (Trades, Portfolio) have shares of Nestle in their portfolios.
The European Court of Justice ruled earlier this week that Nestle does not have the right to trademark the four-finger shape of its popular KitKat bar in the United Kingdom. The European Court of Justice is the highest court in the European Union (EU) regarding interpretation of EU law.
The Fund sold 200,818 shares of its eighth-most valuable stake, Altria Group Inc. (MO, Financial), a Henrico County, Va.-based tobacco company, for an average price of $50.68 per share. The sale had a -1.12% impact on the Fund’s portfolio.
Altria Group has a market cap of $105.98 billion and an enterprise value of $118.77 billion. It has a P/E of 20.8, a Price/Book of 38.1 and a Price/Sales of 5.7. James Barrow (Trades, Portfolio), Tom Russo (Trades, Portfolio), Jim Simons (Trades, Portfolio), Sarah Ketterer (Trades, Portfolio), David Winters (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio), Pioneer Investments (Trades, Portfolio), Jeff Auxier (Trades, Portfolio), Ruane Cunniff (Trades, Portfolio), Ray Dalio (Trades, Portfolio), Ken Fisher (Trades, Portfolio), Murray Stahl (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio), Donald Yacktman (Trades, Portfolio), Dodge & Cox, First Eagle Investment (Trades, Portfolio), Bill Frels (Trades, Portfolio), David Dreman (Trades, Portfolio) and Mario Gabelli (Trades, Portfolio) have shares of Altria Group in their portfolios.
The Fund also reduced its stakes in CIE FINANCIERE RICHEMONT SA (XSWX:CFR, Financial), British American Tobacco PLC (LSE:BATS), Reynolds American Inc. (RAI), Swatch Group AG (XSWX:UHRN), Genting Bhd. (XKLS:3182) and Swatch Group AG (XSWX:UHR).
To view the portfolios of more gurus, visit the List of Gurus page. Not a premium member of GuruFocus? Try it free for 7 days.
