Markel-Gayner Asset Management Corp.’s Tom Gayner (Trades, Portfolio) gained four new holdings in the first quarter. They are Healthcare Services Group Inc. (HCSG, Financial), Albemarle Corp. (ALB, Financial), International Business Machines Corp. (IBM, Financial) and Rockwell Collins Inc. (COL, Financial).
As president and chief investment officer of Markel-Gayner Asset Management, Gayner utilizes fundamental analysis to find value in equity and fixed-income markets in the U.S. His current portfolio consists of 133 stocks and is valued at $4.4 billion.
The investor purchased 55,000 shares of Healthcare Services for an average price of $41.12 per share, giving it 0.05% portfolio space.
Headquartered in Bensalem Township, Pennsylvania, Healthcare Services provides management, administrative and operating expertise to various departments of the health care industry. The company has a market cap of $3.35 billion; its shares were trading around $45.91 on Monday with a price-earnings (P/E) ratio of 41.7, a price-book (P/B) ratio of 9.4 and a price-sales (P/S) ratio of 2.2.
The Peter Lynch chart below shows the stock is trading above its fair value.
GuruFocus ranked the company’s financial strength 9 of 10 and its profitability and growth 8 of 10. The trailing dividend yield and forward dividend yield are both 1.6%. Over the past five years, Healthcare Services has grown its dividend by 3% per year.
Ron Baron (Trades, Portfolio) is the company’s largest guru shareholder with 0.7% of outstanding shares. Chuck Royce (Trades, Portfolio) and Columbia Wanger (Trades, Portfolio) also hold the stock.
Gayner bought 15,000 shares of Albemarle for an average price of $97.31 per share, expanding the portfolio 0.04%.
The Charlotte, North Carolina-based company develops, manufactures and markets engineered specialty chemicals. The company has a market cap of $12.3 billion; its shares were trading around $109.47 per share on Monday with a P/E ratio of 19.3, a P/B ratio of 3.3 and a P/S ratio of 4.3.
According to the Peter Lynch chart below, the stock is trading above its fair value.
GuruFocus ranked Albemarle’s financial strength 6 of 10 and its profitability and growth 5 of 10. The trailing dividend yield is 1.13% and the forward dividend yield is 1.2%. Over the past five years, the company has grown its dividend at a rate of 12.9% per year.
Spiros Segalas (Trades, Portfolio) is the company’s largest guru shareholder with 1.77% of its outstanding shares. In all, nine other gurus own the stock.
After selling out of IBM in first-quarter 2014, the guru initiated a new position of 9,700 shares for an average price of $175.39 per share. The trade impacted the portfolio by 0.04%.
IBM is a multinational technology company headquartered in New York. It has a market cap of $150.14 billion; its shares were trading around $159.81 on Monday with a P/E ratio of 13.2, a P/B ratio of 8.2 and a P/S ratio of 1.9.
The Peter Lynch chart below indicates the stock is trading slightly below its fair value.
GuruFocus ranked IBM’s financial strength 5 of 10 and its profitability and growth 5 of 10. Its trailing dividend yield is 3.5%, and its forward dividend yield is 3.7%. Over the past five years, the company has grown its dividend at a rate of 14% per year.
Warren Buffett (Trades, Portfolio) is IBM’s largest shareholder with 8.6% of its outstanding shares. In total, 30 gurus have positions in the company.
Gayner purchased 15,000 shares of Rockwell Collins for an average price of $94.01 per share, giving it 0.03% portfolio space.
Based in Cedar Rapids, Iowa, the company designs, produces and supports communications and aviation systems for aircraft. The company has a market cap of $16.9 billion; its shares were trading around $103.49 on Monday with a P/E ratio of 18.6, a P/B ratio of 5.7 and a P/S ratio of 2.6.
According to the Peter Lynch chart below, the stock is trading above its fair value.
GuruFocus ranked Rockwell’s financial strength 5 of 10 and its profitability and growth 8 of 10. The trailing dividend yield and forward dividend yield are both 1.3%. The company has grown its dividend by 5.4% per year for the past five years.
Among the gurus invested in Rockwell Collins, Hotchkis & Wiley is the largest shareholder with 1.1% of outstanding shares. In total, six other gurus hold the stock.
During the quarter, Gayner sold out of Oracle Corp. (ORCL, Financial), Linear Technology Corp. (LLTC, Financial), CSX Corp. (CSX, Financial) and Mead Johnson Nutrition Co. (MJN, Financial).
Disclosure: I do not own any stocks mentioned in the article.
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