Donald G. Smith is the CIO of Donald Smith (Trades, Portfolio) & Co. In 1980, Smith became the CIO of Home Insurance Company and president of Home Portfolio Advisors Inc., which he bought in 1983 and changed the name to Donald Smith (Trades, Portfolio) & Co. Inc.
The following are the stakes that Smith reduced in the third quarter.
AerCap Holdings NVÂ (AER)
Smith initiated a position in this company at $15.15 per share in the first quarter of 2013. This quarter he reduced it by 7.59%, well above his purchase price at $44.2 per share. The deal had an impact of -0.8% on his portfolio, and the stock price went up 1%.
AerCap Holdings has an $8.78 billion market cap and $37.78 billion enterprise value. The company is an integrated aviation company, conducting aircraft leasing and trading aircraft. It also provides aircraft management services to other owners of aircraft.
In this quarter many investors reduced their stakes in AerCap Holdings, but huge decreases of 64.58% and 50.66% were made by Steven Cohen (Trades, Portfolio) and Eric Mindich (Trades, Portfolio). Louis Moore Bacon (Trades, Portfolio) reduced his stake by 16.99% and a minor decrease of 7.59% was done by Leon Cooperman (Trades, Portfolio).
American National Insurance Company (ANAT)
American National Insurance Company makes up 3.55% of Smith's portfolio. It has had a long-term position in the portfolio since 2010. This quarter he reduced his stake by 18.80% at $102.74 per share; the price went up 3%. Currently it is trading at $105.26.
American National Insurance Company has a $2.86 billion market cap and a $2.33 billion enterprise value. The company's core businesses are life insurance, annuities and property and casualty insurance. It also offers limited health insurance.
The stock faced huge decrease of 82.71% by Chuck Royce (Trades, Portfolio) and another decreases of 5.77% and 2.43% by Tweedy Browne (Trades, Portfolio) and Jim Simons (Trades, Portfolio).
American International Group Inc. (AIG)
Smith initiated buying this company at $30.51 per share in the second quarter of 2011 and later in the fourth quarter increased his stake by 96.18%. This quarter he reduced his stake by 23.77%, and the price went up 4%; the stock is trading at $62.8 per share.
American International Group has a $77.19 billion market cap and $94.15 billion enterprise value. It is a holding company that, through its subsidiaries, is engaged in insurance and insurance-related activities in the United States and abroad.
Many investors reduced their stakes of American International, but a decrease was made by Bruce Berkowitz (Trades, Portfolio) of 96.05%. Pioneer Investments (Trades, Portfolio) and Larry Robbins (Trades, Portfolio) reduced their stakes by 51.56% and 41.85%.
JetBlue Airways Corp. (JBLU)
JetBlue Airways makes up 4.77% of Smith's portfolio. It has had a long-term position in the portfolio since 2010 and last six quarters he had been reducing his stake. This quarter he reduced his stake by 17.38% at $23.57 per share; the price went up 14%. Currently it is trading at $26.49.
JetBlue Airways has an $8.1 billion market cap and an $8.72 billion enterprise value. The company is a passenger airline that has established a new airline category –Â a value airline – based on service, style and cost.
The stock faced a decrease of 82.28% from Paul Tudor Jones (Trades, Portfolio). Other investors like Whitney Tilson (Trades, Portfolio), Robert Olstein (Trades, Portfolio) and Joel Greenblatt (Trades, Portfolio) reduced their stakes by 51.53%, 44.06% and 36.10%.
Korea Electric Power Corp. (KEP)
It has had a long-term position in the portfolio since 2010. In the last four quarters Smith had been increasing his stake and this quarter he reduced his stake by 25.49%. The price dropped by 2%; the stock is trading at $62.8 per share.
Korea Electric Power has a $26.43 billion market cap and $23.04 billion enterprise value. The company is engaged in the generation, transmission and distribution of electricity and development of electric power resources in the republic of Korea.
Smith was the only investor who reduced his stake while Sarah Ketterer (Trades, Portfolio) increased her stake by 55.32% and Jim Simons (Trades, Portfolio) bought new shares of Korea Electric.
Tech Data Corp. (TECD)
Tech Data makes up 1.23% of Smith's portfolio. It has had a long-term position in the portfolio since 2010, and it saw a huge increase of 83.48% in the first quarter of 2013. This quarter he reduced his stake by 36.66% at $61.24 per share; the price went up 9%. Currently it is trading at $66.64.
Tech Data has a $2.35 billion market cap and a $2.13 billion enterprise value. The company is a distributor of technology products. It serves as a link in the technology supply chain by bringing products from the technology vendors to market, as well as providing its customers with logistics capabilities and value-added services.
Other investors like Richard Pzena (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio) and Charles Brandes (Trades, Portfolio) reduced their stakes by 42.57%, 41.22% and 38.34%.
XL Group PLCÂ (XL)
Smith initiated buying this company at $21.15 per share in the fourth quarter of 2010 then increased his stake by 435.36% in the first quarter of 2012. This quarter he reduced his stake by 11.26%, and the price increased by 3%. Currently the stock is trading at $38.81 per share.
XL Group PLC has an $11.65 billion market cap and a $12.1 billion enterprise value. The company through its subsidiaries, is an insurance and reinsurance company providing property, casualty and specialty products to industrial, commercial and professional firms, insurance companies and other enterprises.
In this quarter Louis Moore Bacon (Trades, Portfolio) reduced his stake by 67.86% and another decrease was done by Richard Pzena (Trades, Portfolio) of 0.76%.
Micron Technology Inc. (MU)
Micron Technology makes up 5.5% of Smith's portfolio. It has had a long-term position in the portfolio since 2010; in the last eight quarters he has been reducing his stake. This quarter he reduced his stake by 7.18% at $17.2 per shares; the price dropped by 14%. Currently it is trading at $14.85.
Micron Technology has a $2.86 billion market cap and a $2.33 billion enterprise value. The company manufactures and markets a range of DRAM, NAND Flash and NOR Flash memory, as well as other memory technologies, packaging solutions and semiconductor systems for use in computing, consumer, networking, automotive, industrial, embedded and mobile products.
The stock faced a decrease of 94.93% from Seth Klarman (Trades, Portfolio) and 67.40% decrease from David Einhorn (Trades, Portfolio). A minor decrease of 6.38% was done by Joel Greenblatt (Trades, Portfolio).
Royal Caribbean Cruises Ltd. (RCL)
Smith has had this company in his portfolio since 2010 and again bought 2,464,726 shares at $28.11 per share in the third quarter of 2011. This quarter he reduced his stake by 26.24%, and the price increased by 7%; the stock is trading at $93.65 per share.
Royal Caribbean Cruises has a $20.6 billion market cap and $28.85 billion enterprise value. 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 John Buckingham (Trades, Portfolio) reduced his stake by 33.86% while John Rogers (Trades, Portfolio) reduced his stake by 7.87%. James Barrow (Trades, Portfolio) and PRIMECAP Management (Trades, Portfolio) reduced their stakes below 1%.
Wpx Energy Inc. (WPX)
Smith initiated buying this company at $17.67 per share in the first quarter of 2012. In the last two quarters he had been reducing his stake; this quarter he reduced his stake by 10.56% and the price dropped by 25%. Currently the stock is trading at $6.29 per share.
Wpx Energy has a $1.73 billion market cap and a $5.75 billion enterprise value. The company is an independent natural gas and oil exploration and production company engaged in the development of long-life unconventional properties.
The stock saw decreases of 48.56% and 30.80% by Murray Stahl (Trades, Portfolio) and Arnold Schneider (Trades, Portfolio).
RenaissanceRe Holdings Ltd. (RNR)
RenaissanceRe Holdings makes up 0.46% of Smith's portfolio. It is a new stock in the portfolio and Smith bought 772,356 shares in the first quarter at $99.99 per share. Last quarter he reduced his stake by 61.01%, and this quarter he reduced his stake by 44.72% at $104.95 per share; the price went up 8%. Currently it is trading at $112.67
RenaissanceRe Holdings has a $5.18 billion market cap and a $4.48 billion enterprise value. The company is a provider of reinsurance and insurance coverage and related services.
Steven Cohen (Trades, Portfolio) was other investor who reduced his stake, by 10.09%.
