Hotchkis & Wiley disclosed on Tuesday that it expanded its position in MDC Partners Inc. (MDCA, Financial) and further reduced its holding of Discovery Inc. (DISCA, Financial). The firm also eliminated its holding of Energy XXI Gulf Coast Inc. (EGC, Financial), according to GuruFocus real-time picks.
MDC Partners
Hotchkis and Wiley added 3,444,619 shares of MDC Partners for $4.60 per share. The firm increased its portfolio 0.06% with this transaction.
MDC Partners engages in direct marketing, mobile marketing and data analytics activites. GuruFocus ranks the company’s profitability 6 out of 10: even though the company’s three-year revenue growth rate underperforms 51% of global competitors, MDC Partners’ profit margins and returns still outperform over 92% of global competitors.
Discovery
Having sold over 9 million shares in May, Hotchkis and Wiley sold another 7,889,914 Class A shares of Discovery for $27.50, reducing its position to 3,551,984 shares. With this transaction, the firm trimmed 0.86% of its portfolio.
GuruFocus lists four severe warning signs for the New York-based entertainment company, including contracting gross margins and increasing long-term debt. The company’s operating margin is near a 10-year low of 27.13% despite outperforming 64% of global competitors.
Energy XXI Gulf Coast
Hotchkis and Wiley sold its 3,808,700 shares of Energy XXI Gulf Coast for $8.84 per share. With this transaction, the firm pared 0.06% of its portfolio.
Energy XXI Gulf Coast engages in the development, exploitation and acquisition of oil and natural gas properties in conventional energy assets around the Gulf of Mexico. GuruFocus ranks the company’s profitability 2 out of 10 as operating margins outperform just 51% of global competitors.
See also
According to GuruFocus top10 holdings pages, Hotchkis and Wiley’s top four holdings are Hewlett Packard Enterprise Co. (HPE, Financial), American International Group Inc. (AIG, Financial), Wells Fargo & Co. (WFC, Financial) and Oracle Inc. (ORCL, Financial).
Disclosure: No positions.
