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David Winters’s Top Domestic Holdings: Berkshire Hathaway, ConsolidatedTomoka Land Co, Goldman Sachs Group, Chesapeake Energy Corp., Franklin Resources Inc. , and General Dynamics Corp.

September 21, 2009 | About:
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(GuruFocus, Updated on September 20, 2009) Summary: As of June 30, 2009, David Winters’s top domestic holdings include: Berkshire Hathaway Inc. (BRK-B), ConsolidatedTomoka Land Co (CTO), Goldman Sachs Group Inc. (GS), Chesapeake Energy Corp. (CHK), Franklin Resources Inc. (BEN), and General Dynamics Corp. (GD)

Winters of Wintergreen Fund

Winters started his own mutual fund Wintergreen Fund in 2005 after a successful career in Mutual Series Group and then Franklin Mutual Advisers, LLC. Here is the bio from Wintergreen Advisers, LLC’s website:
Prior to forming Wintergreen Advisers in May 2005, Mr. Winters held various positions with Franklin Mutual Advisers, LLC, including, president, chief executive officer and chief investment officer. Mr. Winters led the Mutual Series group of global and domestic equity value funds and served as the chief investment officer of Franklin Mutual Advisers, LLC with assets under management in excess of $35 billion as of March 31, 2005. Mr. Winters also served as the portfolio manager of the Mutual Discovery Fund during the period beginning February 1, 2000 through May 10, 2005, and other client accounts managed in a similar investment style. Mr. Winters had been a member of the management team of the Mutual Series since 1987. He was named director of research in 2000, and was promoted to president and chief investment officer in 2001.


As of June 30, 2009, four years after launching the fund, Winters manages $885 million. For young professionals who are inspired to manage hundreds of millions or billions of dollars of asset, here is a lesson to learn: first learn the trade from people like Michael Price and then become the president and CIO of companies like Franklin Mutual Advisers. 

Fund performance and Current Outlook

YTD, Wintergreen Fund is up about 28%, partially offset the 39% decline last year. As of June30, 2009, the mutual fund is about 86% in stocks and 14% in cash, according to the fund’s semi-annual report.

Winters is optimistic about the world economy and the recovery of the stock market. With much cash in his hand, he is waiting to buy more stocks if the market dips, so said him in the following Bloomberg interview:



Top 2Q09 Holdings: 

Winters invests globally. Only 25.4% of his fund's assets are invested in Domestic US stocks, The rest invested in places like Japan (10.7%), Switzerland (13.4%), UK (11.5%), Hong Kong (10.3%), Malaysia (6.3%), and Canada (6.1%) etc.. Here we include only the domestic US companies. 

No. 1: Berkshire Hathaway Inc. (BRK-B), Weightings: 20.49% - 27,059 Shares

Yes, Surprise! We have a true believer of Warren Buffett in Winters. Nearly a quarter of his investment in domestic equity is dedicated to this one stock. 

Winters owned the stock since 4Q06, when he just owned 6,312 shares. He built his stake in Berkshire Hathaway over the past two and half years and by2Q09, he owns 27,059, down slightly from the previous quarter.

No. 2: ConsolidatedTomoka Land Co (CTO), Weightings: 13.59% - 1,481,474 Shares

Consolidated-Tomoka Land Co. is primarily engaged in the real estate industry through its wholly owned subsidiaries. Real estate operationsinclude commercial real estate real estate development residential and golf operations property leasing leasing properties for oil and mineral exploration and the sale of forest products. Consolidatedtomoka Land Co has a market cap of $229.09 million; its shares were traded at around $40.03 with a P/E ratio of 17.18 and P/S ratio of 12.4. The dividend yield of Consolidatedtomoka Land Co stocks is 0.5%.

Wintersowns 1.48 million shares, unchanged from the previous quarter.

No. 3: Goldman Sachs Group Inc.(GS), Weightings: 10.75% - 278,829 Shares

Goldman Sachs is a global investment banking and securities firm providing a full range of investing advisory and financing services worldwide to a substantial and diversified client base which includes corporations financial institutions governments and high net worth individuals. (Company Press Release) Goldman Sachs Group Inc. The has a market cap of $93.65 billion; its shares were traded at around $183.18 with a P/E ratio of 35.5 and P/S ratio of 1.75. The dividend yield of Goldman Sachs Group Inc. The stocks is 0.76%. Goldman Sachs Group Inc. The had an annual average earning growth of 24.5% over the past 10 years.

Winters owns 278,829 shares, unchanged from the previous quarter. Winters made the following comment on Goldman in the 2009 semi-annual report:
Goldman is a financial services company with solid management, along with quality assets, and a well-defined business mix, but until recently it wasn’t available at a price we liked. As market conditions deteriorated last fall, Goldman approached our target price and out continued analysis indicated an increase in Goldman’s intrinsic value. Time has strengthened our belief that Goldman will be a survivor. Goldman seems to have emerged form the economic crisis and is reestablishing itself as one of the world’s preeminent financial firms. We believe that as global economic conditions improve, Goldman is poised to continue to successfully participate in the trading and asset management businesses as well as a potential flurry of merger and acquisition deals. We believe Goldman stands ready to capture a good portion of this growing business as several of its competitors have been weekened or have fallen. In addition we feel Goldman’s strong international presence leaves it particularly well positioned to be a long-term winner for he Fund’s shareholders.


No. 4: Franklin Resources Inc. (BEN), Weightings: 9.43% - 501,044 Shares

Franklin Resources provides investment advisory and related services to retail mutual funds institutional and private accounts and other investment products globally. Related services include transfer agency fund administration custodial trustee and fiduciary services. The mutual funds and other products that it advise are sold to the public under three brand names: Franklin Templeton and Mutual Series. Franklin Resources Inc. has a market cap of $23.83 billion; its shares were traded at around $103.46 with a P/E ratio of 28.82 and P/S ratio of 3.95. The dividend yield of Franklin Resources Inc. stocks is 0.81%. Franklin Resources Inc. had an annual average earning growth of 12.4% over the past 10 years.

Winters held 501, 044 shares of BEN as of 2Q09, increasing slightly from 1Q09.

No. 5: Chesapeake Energy Corp. (CHK), Weightings: 8.74% - 1,686,243 Shares

Chesapeake Energy Corp. is an independent oil and gas company engaged in the development exploration acquisition and production of onshore natural gas and oil reserves. Chesapeake owns interests in producing oil and gas wells concentrated in three primary operating areas: the Mid-Continent region of Oklahoma western Arkansas southwestern Kansas and the Texas Panhandle; the Gulf Coast region consisting primarily of the Austin Chalk Trend in Texas and Louisiana and the Tuscaloosa Trend in Louisiana; and the Helmet area of northeastern British Columbia. Chesapeake Energy Corp. has a market cap of $17.87 billion; its shares were traded at around $27.85 with a P/E ratio of 10.47 and P/S ratio of 1.54. The dividend yield of Chesapeake Energy Corp. stocks is 1.08%. Chesapeake Energy Corp. had an annual average earning growth of 19.6% over the past 5 years.

Winters owned 1.686 million shares as of 2Q09, down slightly from 1.831 million shares from 1Q09.

No. 6: General Dynamics Corp. (GD), Weightings: 8.62% - 595,280 Shares

General Dynamics Corp.'s primary businesses focus is on shipbuilding and marine systems business aviation information systems and land and amphibious combat systems. Each of these businesses involves design manufacturing and program management expertise advanced technology and integration of complex systems. The primary customers for the company's businesses are the United States military the armed forces of allied nations other government organizations and a diverse base of corporate and industrial buyers. General Dynamics Corp. has a market cap of $24.88 billion; its shares were traded at around $64.61 with a P/E ratio of 10.16 and P/S ratio of 0.85. The dividend yield of General Dynamics Corp. stocks is 2.35%. General Dynamics Corp. had an annual average earning growth of 13.9% over the past 10 years. GuruFocus rated General Dynamics Corp. the business predictability rank of 5-star.

Winters owned 595,280 shares as of 2Q09, down slightly from 618,323 shares in 1Q09.

Conclusion

Winters is a global value investor. He is a concentrated investor with minimum turnover.

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