Hertz Global Holding is the worlds largest general use car rental company operating from approximately 8100 locations in 147 countries worldwide. Hertz Global Holdings Inc. has a market cap of $2.9 billion; its shares were traded at around $7.22 with a P/E ratio of 48.1 and P/S ratio of 0.3.
Bruce Berkowitz started to own HTZ in 3Q08 when he had 12.3 million shares. He increased number of shares quickly to 34.2 million shares in 4Q08, and in 1Q09, he increased his stake further to 42.7 million shares. With the recent purchase on May 31, 2009, Bruce Berkowitz’s 58.2 million shares is 14.5% of the car rental company.
Spirit Aerosystems is the world's largest independent supplier of commercial airplane assemblies and components. Spirit AeroSystems Holdings Inc. has a market cap of $2.21 billion; its shares were traded at around $15.8 with a P/E ratio of 9.1 and P/S ratio of 0.6.
Like the story with HTZ, Bruce Berkowitz initiated a position (of 3.0 million shares) in SPR in 3Q08, and quickly built a significant stake of 15.7 million shares in 4Q08. In 1Q09, he further increased his holdings to 3.4 million shares. After the purchase on May 31, 2009, Bruce Berkowitz’s 21.8 million shares accounts for 21% of the airplane parts company.
At today’s prices of HTZ and SPR, Bruce Berkowitz has made good money of both stocks.
Bruce Berkowitz’s investment philosophy centers around free cash flow. In GuruFocus’s opinion, his style of money management is similar to young Warren Buffett.
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About the author:
My name is Ben C. and I am 2nd year MBA candidate at the Anderson School of Business at the University of California- Los Angeles. I have a BS in Economics from the Wharton School of Business at the University of Pennsylvania. Before coming to Anderson I worked as a generalist equity research analyst for Right Wall Capital, a long-short equity hedge fund located in New York City. Prior to working at Right Wall I worked as an analyst at Blue Ram Capital, another long-short equity hedge fund located in Rye Brook, NY. This past summer, I worked for West Coast Asset Management as a research analyst. West Coast, which was co-founded by Kinko’s founder Paul Orfalea, is run by well-known value investors Lance Helfert and Atticus Lowe.