GAMCO Investors’ Mario Gabelli (Trades, Portfolio) added 49 stocks to his portfolio during the second quarter. His top five new purchases were Janus Henderson Group PLC (JHG, Financial), Altaba Inc. (AABA, Financial), Kate Spade & Co. (KATE, Financial), West Corp. (WSTC, Financial) and Dril-Quip Inc. (DRQ, Financial).
With the majority of his holdings in the industrial and consumer cyclical sectors, Gabelli manages a portfolio of 822 stocks that is valued at $15.6 billion.
Janus Henderson
In his largest new purchase for the quarter, Gabelli bought 1.8 million shares of Janus Henderson for an average price of $32.69 per share, giving it 0.4% portfolio space.
The investment management company has a market cap of $3.87 billion; its shares were trading around $34.18 on Monday with a price-earnings (P/E) ratio of 23.88, a price-book (P/B) ratio of 2.48 and a price-sales (P/S) ratio of 3.54.
The Peter Lynch chart below shows the stock is trading above its fair value.
GuruFocus ranked Janus Henderson’s financial strength 8 of 10 and its profitability and growth 8 of 10. The company does not pay a dividend.
With his purchase, Gabelli became the company’s largest guru shareholder with 1.67% of outstanding shares. Ken Fisher (Trades, Portfolio) also owns the stock.
Altaba
Gabelli purchased 582,600 shares of Altaba for an average price of $50.17 per share, expanding the portfolio 0.2%.
The investment company, which is a result of Verizon’s (VZ, Financial) acquisition of Yahoo Inc.’s internet business earlier this year, has a market cap of $52.9 billion; its shares were trading around $59.12 on Monday with a forward P/E ratio of 86.96, a P/B ratio of 1.60 and a P/S ratio of 10.45.
According to the Peter Lynch chart below, the stock is trading above its fair value.
GuruFocus ranked Altaba’s financial strength 6 of 10 and its profitability and growth 7 of 10. The company does not pay a dividend.
With 0.54% of outstanding shares, Steven Romick (Trades, Portfolio) is the company’s largest shareholder among the gurus. First Eagle Investment (Trades, Portfolio) is also a shareholder.
Kate Spade
The guru bought 1.3 million shares of Kate Spade for an average price of $18.41 per share, allocating it a portfolio weight of 0.16%.
The fashion designer and retailer has a market cap of $2.38 billion; its shares were trading around $18.49 on Monday with a P/E ratio of 16.66, a P/B ratio of 5.44 and a P/S ratio of 1.73.
Based on the Peter Lynch chart below, the stock appears to be trading slightly above its fair value.
GuruFocus ranked Kate Spade’s financial strength 7 of 10 and its profitability and growth 6 of 10. The company pays a quarterly dividend of 5.6 cents per share.
With his purchase, Gabelli became the fashion company’s largest guru shareholder with 1.03% of outstanding shares. Jim Simons (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio), Louis Moore Bacon (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio) and George Soros (Trades, Portfolio) also have positions in the stock.
West Corp.
Gabelli purchased a 786,475-share holding in West for an average price of $23.78 per share. The trade had an impact of 0.12% on the portfolio.
The telecommunications company has a market cap of $1.99 billion; its shares were trading around $23.34 on Monday with a P/E ratio of 9.77 and a P/S ratio of 0.86.
As illustrated in the Peter Lynch chart below, the stock appears to be trading slightly below its fair value.
GuruFocus ranked West’s financial strength 3 of 10 and its profitability and growth 5 of 10. The company pays a quarterly dividend of 22 cents. It has a trailing dividend yield of 2.89% and a payout ratio of 38%.
With his purchase, Gabelli became the company’s largest guru shareholder with 0.92% of outstanding shares. Simons, Greenblatt and Jeremy Grantham (Trades, Portfolio) are also shareholders.
Dril-Quip
Having previously sold out of Dril-Quip in the second quarter of 2013, Gabelli established a new position of 282,000 shares, paying an average price of $51.6 per share. The trade had an impact of 0.09% on the portfolio.
The oilfield services company has a market cap of $1.6 billion; its shares were trading around $42.4 on Monday with a P/E ratio of 28.26, a P/B ratio of 1.17 and a P/S ratio of 3.35.
The Peter Lynch chart below shows the stock is trading above its fair value.
GuruFocus ranked Dril-Quip’s financial strength 9 of 10 and its profitability and growth 7 of 10. The company does not pay a dividend.
With 0.98% of outstanding shares, Fisher is the company’s largest guru shareholder. Greenblatt, First Eagle and Chuck Royce (Trades, Portfolio) also hold the stock.
Other new purchases Gabelli made during the quarter include The Spectranetics Corp. (SPNC, Financial), C.R. Bard Inc. (BCR, Financial), Patheon NV (PTHN, Financial), Albany Molecular Research Inc. (AMRI, Financial) and Rockwell Collins Inc. (COL, Financial).
Disclosure: I do not own any stocks mentioned.
