Diamond Hill Adds to Stake in Automotive Parts Company

Transactions in 3rd quarter reflect diversity of portfolio

Nov 12, 2015

Diamond Hill Capital (Trades, Portfolio)’s bottom-up investment approach produces some good returns via its Small Cap Fund. The Fund posted returns of 4.6% last year, but its best year of late was 2013, when its returns were nearly 40%.

Diamond Hill’s most significant third-quarter transaction was the addition of 4,592,212 shares to its stake in BorgWarner Inc. (BWA, Financial), an Auburn Hills, Mich.-based supplier of automotive components and parts, for an average price of $47.22 per share. The transaction had a 1.32% impact on Diamond Hill’s portfolio.

BorgWarner has a market cap of $9.19 billion and an enterprise value of $10.04 billion. It has a P/E of 14.8, a forward P/E of 12.0, a P/B of 2.5 and a P/S of 1.2. GuruFocus has given BorgWarner a Financial Strength rating of 8/10 and a Profitability and Growth rating of 7/10.

Diamond Hill is BorgWarner’s leading shareholder among the gurus. Mario Gabelli (Trades, Portfolio), Pioneer Investments (Trades, Portfolio), Steven Cohen (Trades, Portfolio), Ken Fisher (Trades, Portfolio), Chuck Royce (Trades, Portfolio), John Burbank (Trades, Portfolio) and Louis Moore Bacon (Trades, Portfolio) also have shares of BorgWarner in their portfolios.

Thursday afternoon BorgWarner sold for $40.99 per share.

Diamond Hill also increased its stake in Loews Corp. (L, Financial), a New York-based conglomerate, by nearly 18,829% with the purchase of 4,363,037 shares for an average price of $37.43 per share. The deal had a 1.09% impact on Diamond Hill’s portfolio.

Loews has a market cap of $13.17 billion and an enterprise value of $23.94 billion. It has a P/E of 20.6, a forward P/E of 14.1, a P/B of 0.7 and a P/S of 1.0. GuruFocus has given Loews a Financial Strength rating of 6/10 and a Profitability and Growth rating of 7/10.

Loews sold for $37.16 per share Thursday afternoon.

Diamond Hill reduced its stake in Dover Corp. (DOV, Financial), a Downers Grove, Ill.-based conglomerate, by 2,268,438 shares. Diamond Hill sold the shares for an average price of $62.7 per share with a -1.06% impact on its portfolio.

Dover has a market cap of $9.87 billion and an enterprise value of $11.89 billion. It has a P/E of 11.4, a forward P/E of 15.7, a P/B of 2.8 and a P/S of 1.4. GuruFocus has given Dover a Financial Strength rating of 8/10 and a Profitability and Growth rating of 8/10.

Richard Pzena (Trades, Portfolio), Jeremy Grantham (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio), Robert Olstein (Trades, Portfolio), Chuck Royce (Trades, Portfolio), Tom Russo (Trades, Portfolio) and Ray Dalio (Trades, Portfolio) have shares of Dover in their portfolios.

Thursday afternoon Dover sold for $63.98 per share.

Diamond Hill reduced its stake in Devon Energy Corp. (DVN, Financial), an Oklahoma City-based oil and gas company, by more than 57%, selling 1,857,888 shares for an average price of $45.89 per share. The transaction had a -0.74% impact on Diamond Hill’s portfolio.

Devon Energy has a market cap of $18.43 billion and an enterprise value of $32.92 billion. It has a forward P/E of 73, a P/B of 1.6 and a P/S of 1.1. GuruFocus has given Devon Energy a Financial Strength rating of 6/10 and a Profitability and Growth rating of 7/10.

Devon Energy sold for $45.72 per share Thursday afternoon.

Diamond Hill sold its 1,764,756-share stake in Baxter International Inc. (BAX, Financial), a Deerfield, Ill.-based medical equipment company, for an average price of $37.85 per share. The deal had a -0.37% impact on Diamond Hill’s portfolio.

Baxter International has a market cap of $20.52 billion and an enterprise value of $20.12 billion. It has a P/E of 11.9, a forward P/E of 27, a P/B of 2.6 and a P/S of 1.3. GuruFocus has given Baxter International a Financial Strength rating of 7/10 and a Profitability and Growth rating of 7/10.

Thursday afternoon Baxter International sold for $37.46 per share.

Diamond Hill sold its 641,994-share stake in Catamaran Corp. (CTRX, Financial), a Schaumburg, Ill.-based pharmacy benefit management company, for an average price of $61.33 per share. The transaction had a -0.26% impact on Diamond Hill’s portfolio.

Catamaran has a market cap of $12.79 billion and an enterprise value of $13.36 billion. It has a P/E of 42.6, a forward P/E of 21.6, a P/B of 2.5 and a P/S of 0.6. GuruFocus has given Catamaran a Financial Strength rating of 7/10 and a Profitability and Growth rating of 8/10.

Eric Mindich (Trades, Portfolio), Jim Simons (Trades, Portfolio), Wallace Weitz (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio), Jeremy Grantham (Trades, Portfolio), Louis Moore Bacon (Trades, Portfolio) and Prem Watsa (Trades, Portfolio) have shares of Catamaran in their portfolios.

Catamaran sold for $61.47 per share Thursday.

Diamond Hill bought a 673,243-share stake in Deere & Co. (DE, Financial), a Moline, Ill.-based heavy equipment company, for an average price of $87.98 per share. The deal had a 0.25% impact on Diamond Hill’s portfolio.

Deere has a market cap of $24.04 billion and an enterprise value of $56.64 billion. It has a P/E of 11.3, a forward P/E of 16.5, a P/B of 3.1 and a P/S of 0.8. GuruFocus has given Deere a Financial Strength rating of 5/10 and a Profitability and Growth rating of 8/10.

Thursday afternoon Deere sold for $73.27 per share.

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.

Research Tools

All-In-One Screener Stock Ideas Stock List Guru List Guru Real-Time Picks Insider List Insider Trades Economic Indicators Sector & Industry Performance DCF Calculator Discussion Board

Product

Pricing Plans Excel Add-In Google Sheets Add-on Data API Stock Comparison Table Manual of Stocks Mobile App 中文

Education

Financial Glossary Tutorials FAQ Schedule Free Session Buffett Indicator Shiller P/E Yield Curve Today U.S. Inflation Rate Global Market Valuation Fed Net Liquidity Buffett Assets Allocation

Company

About GuruFocus Career Contact Us ETF Advertise Site Map Term of Use Privacy Policy Referral Program Partner Program

Survey

We'd love to learn more about your experiences on GuruFocus.com and how we can improve!

Take Survey

Disclaimers

GuruFocus.com is not operated by a broker or a dealer. It has an affiliated registered investment adviser, which serves as the subadviser to an exchange traded fund. This investment adviser does not provide advice to individual investors. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The individuals or entities selected as "gurus" may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. Gurus may be added or dropped from the GuruFocus site at any time. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes are provided by QuoteMedia, Inc. (CSI). Company fundamental data is provided by Morningstar. Analyst estimates data is sourced from both Refinitiv and Morningstar, with priority given to Refinitiv data. Data is updated daily.