Charles Brandes' Top Performing Stocks

Guru's holdings with the highest returns year to date

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Oct 27, 2016
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Charles Brandes (Trades, Portfolio) is the chairman of Brandes Investment Partners. He started the firm in 1974 and manages multiple portfolios, including the U.S. Equity and Global Equity. The following are the top performers of his most recent investments.

Petroleo Brasileiro SA Petrobras ADRÂ (PBR.A, Financial), with a market cap of $75.59 billion, has gained 240.9% year to date. The guru's stake represents 0.4% of the company's outstanding shares and 2.38% of his total assets.

Petroleo Brasileiro SA Petrobras operates as an integrated oil and gas company in Brazil. Its business is structured into segments such as Exploration & Production, Refining, Transportation & Marketing, Distribution, Gas & Energy, Biofuel and International.

It is trading with a price-book (P/B) ratio of 0.96. Over the last 12 months, the price has risen by 188% and it is trading 1.53% below its 52-week high and 482.43% above its 52-week low.

It has a profitability and growth rating of 7 out of 10 but negative returns (ROE -13.54%, ROA -4.32%) that are underperforming 79% of competitors in the Global Oil & Gas Integrated industry. Financial strength has a rating of 4 out of 10 with a cash to debt ratio of 0.16 that is below the industry median of 0.38.

The largest shareholder among the gurus is Dodge & Cox with 2.99% of outstanding shares, followed by Sarah Ketterer (Trades, Portfolio) with 0.08% and PRIMECAP Management (Trades, Portfolio) with 0.01%.

Bank Bradesco SA ADRÂ (BBD, Financial), with a market cap of $56.65 billion, has gained 141.3% year to date. The guru's stake represents 0.01% of outstanding shares of the company and 0.04% of his total assets.

Bank Bradesco operates as a commercial bank. The company provides banking and financial products and services in Brazil and abroad to a wide range of clients.

It is trading with a P/E ratio of 10.07. Over the last 12 months, the price has risen by 107% and is currently trading 1.82% below its 52-week high and 155.36% above its 52-week low. The stock is undervalued with a margin of safety of 14% at a price of $10.24. The DCF calculator gives a fair value of $11.96. The Peter Lynch earnings line gives a fair value of $12.3.

The company has a profitability and growth rating of 7 out of 10 with strong returns (ROE 19.47%, ROA 1.71%) that are outperforming 82% of the companies in the Global Banks - Regional - Latin America industry. Financial strength has a rating of 5 out of 10 with a cash- debt ratio of 0.53 that is below the industry median of 2.1.

Companhia De Saneamento Basico Do Estado De Sao Paulo (SBS, Financial), with a market cap of $6.95 billion, has gained 122.5% year to date.

The company provides water and sewage services to residential, commercial, industrial and governmental customers. It also supplies water on wholesale basis and provides related consulting services.

It is trading with a P/E ratio of 16.7. Over the last 12 months, the price has risen by 137%. It is currently trading 0.78% below its 52-week high and 155.53% above its 52-week low. The stock is overpriced by 74% at a price of $10.17. The DCF calculator gives a fair value of $5.84 and the Peter Lynch earnings line gives a fair value of $8.3.

The company has a profitability and growth rating of 8 out of 10 with positive returns (ROE 9.27%, ROA 3.94%) that are outperforming 56% of the companies in the Global Utilities - Regulated Water industry. Financial strength has a rating of 5 out of 10 with a cash-debt ratio of 0.12 that is below the industry median of 0.26.

Paul Singer (Trades, Portfolio) is another notable shareholder among the gurus with 1.19% of outstanding shares, followed by Jim Simons (Trades, Portfolio) with 0.3%, RS Investment Management (Trades, Portfolio) with 0.06% and Lee Ainslie (Trades, Portfolio) with 0.03%.

Bank Bradesco SA ADRÂ (BBDO, Financial), with a market cap of $53.49 billion, has gained 109.8% year to date.

The company provides banking and financial products and services in Brazil and abroad to a wide variety of customers.

It is trading with a P/E ratio of 10.07. Over the last 12 months, the price has risen by 75%. It is currently trading 4.73% below its 52-week high and 133.01% above its 52-week low. The stock is undervalued with a margin of safety of 19% at a price of $9.67. The DCF calculator gives a fair value of $11.96 and the Peter Lynch earnings line gives a fair value of $12.3.

The company has a profitability and growth rating of 7 out of 10 with positive returns (ROE 19.47%, ROA 1.71%) that are outperforming 82% of the companies in the Global Banks - Regional - Latin America industry. Financial strength has a rating of 5 out of 10 with a cash-debt ratio of 0.53 that is below the industry median of 2.10.

Newmont Mining Corp. (NEM, Financial), with a market cap of $19.02 billion, has gained 99.6% year to date. The guru's stake represents 0.26% of outstanding shares of the company and 1% of his total assets.

Newmont Mining Corp. is engaged in the production and exploration of gold and copper. It is engaged in the production of copper mainly through its Batu Hijau operation in Indonesia and Boddington operation in Australia.

It is trading with a P/E ratio of 597.34. Over the last 12 months, the price has risen by 91%. It is currently trading 22.21% below its 52-week high and 123.30% above its 52-week low. The stock is overpriced by 2,289% at a price of $35.84. The DCF calculator gives a fair value of $1.5 and the Peter Lynch earnings line gives a fair value of $2.1.

The company has a profitability and growth rating of 5 out of 10 with almost null returns (ROE 0.35%, ROA 0.16%) that are outperforming 75% of the competitors in the Global Gold industry. Financial strength has a rating of 5 out of 10 with a cash-debt ratio of 0.53 that is below the industry median of 20.62.

Mario Gabelli (Trades, Portfolio) is the largest shareholder among the gurus with 0.28% of outstanding shares, followed by First Eagle Investment (Trades, Portfolio) with 0.27%, Pioneer Investments (Trades, Portfolio) with 0.13%, Jim Simons (Trades, Portfolio) with 0.09%, John Hussman (Trades, Portfolio) with 0.08%, Ray Dalio (Trades, Portfolio) with 0.05%, Louis Moore Bacon (Trades, Portfolio) with 0.05% and Donald Smith (Trades, Portfolio) with 0.03%.

Vale SA ADRÂ (VALE, Financial), with a market cap of $33.45 billion, has gained 79.6% year to date.

Vale is a metals and mining company. It produces and supplies iron ore, iron ore pellets, nickel, manganese ore, ferroalloys, copper, coal, phosphates, potash, cobalt and other elements.

It is trading with a P/B ratio of 1.88. Over the last 12 months, the price has risen by 41%. It is currently trading 1.37% below its 52-week high and 204.69% above its 52-week low.

The company has a profitability and growth rating of 5 out of 10 with negative returns (ROE -24.93%, ROA -8.84%) that are outperforming 51% of competitors in the Global Gold industry. Financial strength has a rating of 4 out of 10 with a cash-debt ratio of 0.14 that is below the industry median of 20.61.

The largest shareholder among the gurus is Jim Simons (Trades, Portfolio) with 0.29% of outstanding shares, followed by Ken Heebner (Trades, Portfolio) with 0.14%, Ray Dalio (Trades, Portfolio) with 0.03% and Howard Marks (Trades, Portfolio) with 0.01%.

Telefonica Brasil SA ADR. (VIV, Financial), with a market cap of $23.42 billion, has gained 59.8% year to date. The guru's stake represents 0.72% of outstanding shares of the company and 2.58% of his total assets.

Telefonica Brasil SA provides fixed-line telecommunications services in the State of Sao Paulo. It offers international and interregional long-distance services, as well as multimedia communication services including text, data and voice.

It is trading with a P/B ratio of 15.71. Over the last 12 months, the price has risen by 35%. It is currently trading 11.60% below its 52-week high and 79.66% above its 52-week low. The stock is overpriced by 111% at a price of $13.87. The DCF calculator gives a fair value of $6.58 and the Peter Lynch earnings line gives a fair value of $9.3.

The company has a profitability and growth rating of 5 out of 10 with returns (ROE 5.71%, ROA 3.82%) that are outperforming 60% of the companies in the Global Telecom Services industry. Financial strength has a rating of 6 out of 10 with a cash-debt ratio of 0.66 that is above the industry median of 0.45.

Another notable shareholder among the gurus is Richard Pzena (Trades, Portfolio) with 0.29% of outstanding shares, followed by Howard Marks (Trades, Portfolio) with 0.12% and RS Investment Management (Trades, Portfolio) with 0.02%.

Disclosure: I do not own any shares of any stocks mentioned in this article.

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