John Buckingham (Trades, Portfolio) is the chief investment officer of AFAM Capital and is the editor of "The Prudent Investor," an investment newsletter. AFAM Capital is a rapidly growing asset manager specializing in the management of exchange-traded funds (ETFs) and equity portfolios.
The hedge fund has a portfolio composed of 150 stocks with a total value of $656 million and the following are the most weighted trades based on the impact on the portfolio during the third quarter.
The hedge fund reduced its stake in Activision Blizzard Inc. (ATVI) with an impact of -1.04% on the portfolio.
It has a long-term position and has been in the portfolio since 2010. Since then the position was reduced and increased several times, but the investor never sold out the stake in Activision. During the last quarter the position increased by 0.1% at an average price of $27.38 per share, and this quarter it saw a huge decrease of 96.46% above his purchase price at $27.81 per share.
The company is an online, personal computer, video game console, tablet, handheld and mobile game publisher. It has three operating segments: Activision Publishing Inc., Blizzard Entertainment Inc. and Activision Blizzard Distribution.
The stock is trading with a P/E ratio of 22.96 and has been as high as $37.86 per share and as low as $18.43 per share in the past year. It is currently 8.69% below its 52-week high and 87.57% above its 52-week low. According to the DCF calculator, at the current price of $34.57 per share the company looks undervalued by 20%.
PRIMECAP Management (Trades, Portfolio) is the company's leading shareholder among the gurus with a stake of 1.49% of outstanding shares, followed by Jim Simons (Trades, Portfolio) with 0.34%.
The hedge fund sold out its stake in Market Vectors Russia ETFÂ (RSX) with an impact of -0.74% on the portfolio.
Market Vectors Russia ETF is an exchange-traded fund incorporated in the U.S.
It was established in Q2 2012 but later in Q4 2012 the fund sold out the stake above the purchase price. In Q4 2013 the fund bought 225,667 shares at an average price of $26.27 per share; since then the fund has been reducing and increasing the stake. In this quarter the position was traded just by the investor.
The stock is trading at $16.43 and has been as high as $21.61 per share and as low as $12.50 per share in the past year. It is currently 23.97% below its 52-week high and 31.44% above its 52-week low.
The company's only shareholder among the gurus is Louis Moore Bacon (Trades, Portfolio) with a stake of 2,940,000 shares, about 1.17% of his total assets.
The hedge fund bought 154,338 shares of General Motors Co. (GM) with an impact of 0.71% on the portfolio.
The company designs, builds and sells cars, trucks and automobile parts. The company also provides automotive financing services through General Motors Financial Company Inc. Its four automotive segments include GM North America, GM South America, GM Europe and GM International.
General Motors is a new stock in the portfolio. The investment team bought shares at prices between $27.28 and $33.23 per share. After this buy the price went up by 16%, and the stock is currently trading at $35.55 per share. This quarter Ronald Muhlenkamp (Trades, Portfolio) and Ken Heebner (Trades, Portfolio) sold out their stakes in GM while Arnold Van Den Berg (Trades, Portfolio), Robert Olstein (Trades, Portfolio), Brian Rogers (Trades, Portfolio) and Ken Fisher (Trades, Portfolio) increased their stakes.
The stock is trading with a P/E ratio of 13.07 and has been as high as $39.00 and as low as $24.62 per share in the past year. It is currently 8.85% below its 52-week high and 44.39% above its 52-week low. According to the DCF calculator, at the current price of $33.55 per share the company looks undervalued by 12%.
Warren Buffett (Trades, Portfolio) is the company's leading shareholder among the gurus with a stake of 2.63% of outstanding shares, followed by David Tepper (Trades, Portfolio) with 1.21% and David Einhorn (Trades, Portfolio) with 0.94%. Buckingham has a stake of 0.01% of outstanding shares, 0.71% of its total assets.
The hedge fund bought 120,371 shares of National Oilwell Varco Inc. (NOV) with an impact of 0.69% on the portfolio.
The company designs, manufactures and sells equipment and components used in oil and gas drilling, completion and production operations and provides oilfield services to the upstream oil and gas industry.
National Oilwell Varco is a new stock in the portfolio, and the investment team bought shares of it at prices between $36.72 and $47.42 per share; after this buy the price dropped by 8%. This quarter First Eagle Investment (Trades, Portfolio), Robert Olstein (Trades, Portfolio) and Mario Gabelli (Trades, Portfolio) increased their stakes in National Oilwell Varco. Tweedy Browne (Trades, Portfolio)’s Global Value sold out its stake while Manning & Napier Advisors Inc. reduced its stake.
The stock is trading with a P/E ratio of 11.44 and has been as high as $74.20 and as low as $34.54 per share in the past year. It is currently 49.10% below its 52-week high and 9.35% above its 52-week low. According to the DCF calculator, at the current price of $37.77 per share, the company looks undervalued by 60%.
First Eagle Investment (Trades, Portfolio), with a stake of 5.63% of outstanding shares, is the company's main shareholder among the gurus, followed by Dodge & Cox with 5.1% and David Rolfe (Trades, Portfolio) with 1.97% of outstanding shares. John Buckingham (Trades, Portfolio) holds 0.03%, which is 0.69% of his total assets.
The hedge fund reduced its stake in Royal Caribbean Cruises Ltd. (RCL) by 33.86% with an impact of -0.51% on the portfolio.
The company operates in the cruise vacation industry. The company owns Royal Caribbean International, Celebrity Cruises, Pullmantur, Azamara Club Cruises, CDF Croisières de France and a 50% joint venture interest in TUI Cruises.
This quarter only John Buckingham (Trades, Portfolio) has traded Royal Caribbean at prices between $78.4 and $97.2 per share; after this trade the price went up by 12%. Currently Buckingham holds 96,058 shares of Royal Caribbean, which is 0.04% of outstanding shares and 0.54% of his total assets
The stock is trading with a P/E ratio of 38.29 and has been as high as $100.39 and as low as $65.91 per share in the past year. It is currently 2.23% below its 52-week high and 48.92% above its 52-week low. According to the DCF calculator, at the current price of $98.15 per share the company currently looks overpriced by 160%.
PRIMECAP Management (Trades, Portfolio) is the company's leading shareholder among the gurus with a stake of 2.33% of outstanding shares, followed by James Barrow with 1.92% and John Rogers (Trades, Portfolio) with 0.47%.
The investor sold out his stake Energy Select Sector SPDR (XLE) with an impact of 0.5% on the portfolio.
Energy Select Sector SPDR is an exchange-traded fund incorporated in the U.S. The ETF tracks the performance of the Energy Select Sector Index.
Energy Select Sector SPDR joined the portfolio in Q1 2012; since then the position was increased two times and then sold out in Q4 2012. It got a new position again in Q4 2014 at an average price of $83.14 per share. In the first two quarters the position was increased by 80.71% and reduced by 13.43%. In the third quarter the fund sold out its stake below its purchase price at $67.46 per share. After this sell the price went up by 1%.
The stock is trading at $67.8 per share and has been as high as $89.22 and as low as $58.74 per share in the past year. It is currently 24.02% below its 52-week high and 15.41% above its 52-week low.
The company's main shareholder among the gurus is Paul Singer (Trades, Portfolio) which holds 1,500,000 shares of Energy Select Sector SPDR, 1.59% of his total assets.
