Bruce Berkowitz (Trades, Portfolio) is the founder and the managing member of the Fairholme Fund (Trades, Portfolio). He concentrates his investments in a relatively small number of companies.
The hedge fund has a portfolio composed of 22 stocks with a total value of $3,471 million. The following are his third quarter buys with an impact on his portfolio higher than 0.10%.
Berkowitz bought 9,710,500 shares of Canadian Natural Resources Ltd. (CNQ) with an impact of 5.44% on the portfolio.
Canadian Natural Resources is an independent energy company engaged in the acquisition, exploration and sale of crude oil, NGLs and natural gas.
Canadian had a strong third quarter in which average production increased 11% despite a very significant drop in capital program spending. The company expects to maintain this positive momentum into 2016, with 2016 production volumes targeted at roughly the same level as this year.
The stock is trading with a P/E ratio of 83.41 and has been as high as $38.39 and as low as $18.94 in the past year. It is currently 35.11% below its 52-week high and 31.52% above its 52-week low. According to the DCF calculator, the company looks highly overpriced by 461%.
The firm First Eagle Investment (Trades, Portfolio) is the company's leading shareholder among the gurus with a stake of 2.15% of outstanding shares, followed by Bruce Berkowitz (Trades, Portfolio) with 0.89% and T. Rowe Price with 0.66%.
The investor bought 3,010,000 shares of Citigroup Inc. (C) with an impact of 4.30% on the portfolio.
During the last quarter, net income was $1.35 per diluted share compared to 88 cents per diluted share for the third quarter 2014. The company was profitable again in this quarter, though its assets declined 20% year-over-year.
The stock is trading with a P/E ratio of 12.38 and has been as high as $44.31 and as low as $33.88 in the past year. It is currently 22.88% below its 52-week high and 0.86% above its 52-week low. According to the DCF calculator, the company looks undervalued by 16%.
The company's main shareholder among the gurus is James Barrow (Trades, Portfolio) with a stake of 0.73% of outstanding shares, followed by HOTCHKIS & WILEY with 0.55% and Ken Fisher (Trades, Portfolio) with 0.4%.
Berkowitz bought 745,400 shares of International Business Machines Corp. (IBM) with an impact of 3.15% on the portfolio.
During the last quarter, diluted earnings from continuing operations was down 13% year-to-year, but the company again made progress in the transformation of its business to higher value, with strong growth in its margins. Third quarter net income from continuing operations decreased by 14% and total revenues had the same decrease as well.
The stock is trading with a P/E ratio of 9.44 and has been as high as $176.30 and as low as $131.65 in the past year. It is currently 22.96% below its 52-week high and 3.17% above its 52-week low. According to the DCF calculator, the company looks undervalued by 53%.
Warren Buffett (Trades, Portfolio) is the company's leading guru shareholder with a stake of 8.35% of outstanding shares, followed by Jeremy Grantham (Trades, Portfolio) with 0.28% and T. Rowe Price with 0.15%.
The investor bought 6,752,400 shares of Now Inc. (DNOW) with the impact of 2.88% on the portfolio.
The company distributes energy and industrial products in the United States, Canada and internationally. It offers consumable maintenance, repair, and operating supplies; and pipes, valves, fittings, flanges, electrical products, artificial lift solutions, mill tools, safety supplies, and spare parts, as well as provides application systems and parts integration, optimization solutions, and after-sales support services.Ă‚
The stock is trading with a P/B ratio of 1.16 and has been as high as $29.23 and as low as $14.00 in the past year. It is currently 37.80% below its 52-week high and 29.86% above its 52-week low.
The company's main shareholder among the gurus is First Eagle Investment (Trades, Portfolio) with a stake of 7.89% of outstanding shares, followed by Berkowitz with 6.3% and Dodge & Cox with 2.94%.
Berkowitz bought 5,331,400 shares of MRC Global Inc. (MRC) with an impact of 1.71% on the portfolio.
MRC Global is the largest distributor of pipe, valve and fitting products and services to the energy and industrial markets. Its customers' businesses are capital intensive and their operating processes and operating environments are often extreme.
The stock is trading with a P/E ratio of 17.32 and has been as high as $22.81 and as low as $10.20 in the past year. It is currently 36.56% below its 52-week high and 4.86% above its 52-week low. According to the DCF calculator, the company looks overpriced by 18%.
Berkowitz is the company's leading shareholder among the gurus with a stake of 5.22% of outstanding shares, followed by Tweedy Browne (Trades, Portfolio) with 4.83% and Joel Greenblatt (Trades, Portfolio) with 2.92%.
Berkowitz also bought 1,863,327 shares of Lands' End Inc. (LE) with an impact of 1.45% on the portfolio.
The company offers its products through catalogs, online at www.landsend.com and affiliated specialty and international websites, and through retail locations, primarily at Lands' End Shops at Sears, stand-alone Lands' End Inlet stores and international shop-in-shops that sell merchandise in various retail department stores.
The stock is trading with a P/E ratio of 12.06 and has been as high as $56.25 per share and as low as $20.71 per share in the past year. It is currently 60.04% below its 52-week high and 8.55% above its 52-week low. According to the DCF calculator, at the current price of $22.48 per share the company looks undervalued by 4%.
The company's main shareholder among the gurus is Edward Lampert (Trades, Portfolio) with a stake of 21.01% of outstanding shares, followed by Bruce Berkowitz (Trades, Portfolio) with 5.82% and Murray Stahl (Trades, Portfolio) with 0.46% of outstanding shares.
Berkowitz increased his stake of National Oilwell Varco Inc. (NOV) by 46.12% and with an impact of 0.56% on the portfolio.
The company is a provider in the design, manufacture and sale of equipment and components used in oil and gas drilling, completion and production operations, and the provision of oilfield services to the upstream oil and gas industry. The company conducts operations in approximately 900 locations across six continents.
During the third quarter, National Oilwell reported a 15% revenue decrease from the second quarter and 41% decrease compared to the same quarter of a year before. EBITDA was down by 19% from the second quarter and 58% down from the year-ago quarter.
The stock is trading with a P/E ratio of 11.60 and has been as high as $74.20 and as low as $34.54 in the past year. It is currently 48.33% below its 52-week high and 11.00% above its 52-week low. According to the DCF calculator, the company looks undervalued by 59%.
Dodge & Cox holds 5.77% of outstanding shares and is the main guru shareholder, followed by First Eagle Investment (Trades, Portfolio) with 5.63% and David Rolfe (Trades, Portfolio) with 1.89%.
He also increased his stake in Sears Canada Inc. (SRSC) by 11.31% and with an impact of 0.34% on the portfolio.
The stock is trading with a P/B ratio of 2.14 and has been as high as $10.92 and as low as $5.16 in the past year. It is currently 23.35% below its 52-week high and 62.21% above its 52-week low.
The company's main shareholder among the gurus is Edward Lampert (Trades, Portfolio) with a stake of 25.72% of outstanding shares, followed by Berkowitz with 17.57% and Murray Stahl (Trades, Portfolio) with 2.41% of outstanding shares.
Berkowitz bought 578,000 shares of ASA Gold And Precious Metals Ltd. (ASA) with an impact of 0.13% on the portfolio.
The company provides investors a vehicle to invest in a portfolio of companies engaged in the exploration, mining or processing of gold, silver or other precious minerals.
The stock is trading at $6.95 and has been as high as $12.31 and as low as $6.73 in the past year. It is currently 43.54% below its 52-week high and 3.27% above its 52-week low.
Chuck Royce (Trades, Portfolio) is the company's leading shareholder among the gurus with a stake of 4.72% of outstanding shares, followed by Bruce Berkowitz (Trades, Portfolio) with 3% and Arnold Van Den Berg (Trades, Portfolio) with 1.28%.
