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Wilbur Ross Top Holdings: Assured Guaranty Ltd., Montpelier Re Holdings Ltd., International Coal Group, MetroPCS Communications, Satyam Computer Services

November 28, 2009 | About:
Saj Karsan

guruek

80 followers
(GuruFocus, November 28) Investment Guru, WL Ross and Co. Chairman Wilbur Ross is known for restructuring failed companies in industries such as steel, coal, telecommunications, foreign investment and textiles. He specializes in leveraged buyouts and distressed businesses. In 2009, Forbes magazine listed Ross as the #196 richest American, with an estimated net worth of $1.8B.

Forbes also features a Twenty-two Question for Wilbur Ross session in which Wilbur Ross answered 22 questions very briefly. He regret going to business too later in his life (he started his own firm at age 60), thinks one should trade gold instead of hoard or sell it, and one should “Buy prime resort property in low-taxed areas at depressed prices.”

Very recently, Ross was reported to be planning to buy $100 million worth of shares of China Longyuan Power Group, Asia's largest wind power generator, which aims to raise up to $2.2 billion from its Hong Kong initial public offering. The distressed situation investor knows when to venture out of his center of competence.

On Oct. 30, Ross told Bloomberg that U.S. is in the beginning of a huge crash in commercial real estate:
“All of the components of real estate value are going in the wrong direction simultaneously,” said Ross, one of nine money managers participating in a government program to remove toxic assets from bank balance sheets. “Occupancy rates are going down. Rent rates are going down and the capitalization rate -- the return that investors are demanding to buy a property -- are going up.”


Watch the video with Wilbur Ross talking to Fox Business Network about Dubai's debt's impact on banks around the world and the pending Commercial Real Estate crisis in the USA:

Watch the latest business video atFOXBusiness.com


Click here if you do not see the video player above.

Ross reports an equity portfolio of $604 million allocated among 20 stocks. He manages far more money than this amount, but you may have guessed where the rest of his money go.

Here are the top holdings of Wilbur Ross as of September 30, 2009:

No. 1: Assured Guaranty Ltd. (AGO), Weightings: 51.42% - 16,016,396 Shares

Assured Guaranty is a Bermuda-based holding company providing credit enhancement products to the municipal finance, structured finance and mortgage markets. Assured Guaranty Ltd. has a market cap of $3.49 billion; its shares were traded at around $22.3 with a P/E ratio of 15.1 and P/S ratio of 7.1. The dividend yield of Assured Guaranty Ltd. stocks is 0.8%.

No. 2: Montpelier Re Holdings Ltd. (MRH), Weightings: 18.61% - 6,896,552 Shares

Montpelier Re Holdings Ltd., through its operating subsidiaries, is a premier provider of global specialty property reinsurance products. Montpelier Re Holdings Ltd. has a market cap of $1.45 billion; its shares were traded at around $16.77 with a P/E ratio of 6.2 and P/S ratio of 2.8. The dividend yield of Montpelier Re Holdings Ltd. stocks is 1.7%.

No. 3: International Coal Group Inc. (ICO), Weightings: 16.35% - 24,537,423 Shares

ICG is a leading producer of coal in Northern and Central Appalachia and the Illinois Basin. The company has eleven active mining complexes, of which ten are located in Northern and Central Appalachia and one in Central Illinois. International Coal Group Inc. has a market cap of $662.8 million; its shares were traded at around $4.3 with a P/E ratio of 35.8 and P/S ratio of 0.6.

No. 4: MetroPCS Communications Inc. (PCS), Weightings: 5.14% - 3,322,020 Shares

MetroPCS Communications provides wireless communications services. Metropcs Communications Inc. has a market cap of $2.23 billion; its shares were traded at around $6.32 with a P/E ratio of 12.4 and P/S ratio of 0.8.

No. 5: Satyam Computer Services Ltd. (SAY), Weightings: 2.01% - 1,844,927 Shares

Satyam Computer Services Limited is a provider of information technology services in India. Satyam offers a comprehensive range of services, including software development, system maintenance, packaged software integration and engineering design services. Satyam Computer Services Ltd. has a market cap of $2.53 billion; its shares were traded at around $4.3 with a P/E ratio of 2.7 and P/S ratio of 1.2. Satyam Computer Services Ltd. had an annual average earning growth of 32.4% over the past 5 years.

Conclusion

Many of Wilbur Ross’s stock holdings are results from distressed debt reconstruction, not purchased from open market.

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About the author:

guruek
Saj Karsan founded an investment and research firm that is based on the principles of value investing. He has an MBA from the Richard Ivey School of Business, and an undergraduate engineering degree from McGill University.

Rating: 4.0/5 (6 votes)

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