Founded in 1970, Manning & Napier Advisors, Inc. ("Manning & Napier") serves clients in all 50 states and manages approximately $16 billion in client assets as of March 31, 2010. It remains an employee-owned firm, with 100% of the firm owned by full-time employees.
Manning & Napier has established strategies and disciplines to survive the tough investment environment of the 1970s. In that decade, the stock market failed to beat either inflation or T-Bills. For a newly-formed investment firm to not only survive but grow in that environment, it had to add value rather than just ride a wave of market performance. Manning & Napier’s ability to find opportunity in challenging environments has proven to be just as valuable in the 21st Century as it did in the 1970s.
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In this article we would like to highlight some of Manning & Napier's best holdings based on their earnings yield and current price in the market. The reason these are very important is the same reason earning high returns on equity and investment capital is important. Manning & Napier Advisors owns 321 stocks with a total value of $15.66 billion.
Five of Manning & Napier Advisors Highest Earnings Yielding Stocks:
No. 1: SuperValu (NYSE:SVU), Weightings: 0.02% - 228,020 Shares
No. 2: Goldman Sachs (NYSE:GS), Weightings: 0.04% - 36,100 Shares
No. 3: Mirant Corp. (MIR), Weightings: 0.01% - 177,140 Shares
No. 4: WellPoint Inc. (WLP), Weightings: 0.05% - 117,930 Shares
No. 5: Credit Suisse (NYSE:CS), Weightings: 0.01% - 39,660 Shares
No. 1: SuperValu (NYSE:SVU)
SUPERVALU is one of the nation's largest supermarket retailer and largest food distributor. Supervalu Inc. has a market cap of $2.84 billion; its shares were traded at around $13.40 with a P/E ratio of 6.63 and P/S ratio of 0.07. The dividend yield of Supervalu Inc. stocks is 2.61%. Supervalu Inc. had an annual average earnings growth of 6% over the past 10 years. The company's book value is slightly higher than the company's stock price and despite last year’s massive loss; SVU has maintained a decade of profitability that it seems to be getting back to in 2010. They have an earnings yield of 13.70% based on their forward earnings estimates.
Manning & Napier Advisors owns 228,020 shares as of 3/31/2010, which accounts for 0.02% of the $15.66 billion portfolio.
No. 2: Goldman Sachs (NYSE:GS)
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. Goldman Sachs Group Inc. The company has a market cap of $75.33 billion; its shares were traded at around $142.99 with a P/E ratio of 5.97 and P/S ratio of 1.46. The dividend yield of Goldman Sachs Group Inc. stocks is 0.98%. Goldman Sachs Group Inc. They had an annual average earnings growth of 12.7% over the past 10 years. Warren Buffett has continued to back the firm and it's easy to see why. The company has done a wonderful job of increasing both their sales and their net income over the last decade. The company carries a current earnings yield of 13%, which I feel is very justified. Obviously, Manning & Napier like the stock as well.
Manning & Napier Advisors owns 36,100 shares as of 3/31/2010, which accounts for 0.04% of the $15.66 billion portfolio.
No. 3: Mirant Corp. (MIR)
Mirant is a competitive energy company that produces and sells electricity in the United States, the Caribbean, and the Philippines. Mirant Corp. has a market cap of $1.51 billion; its shares were traded at around $10.5 with a P/E ratio of 2.84 and P/S ratio of 0.65. The company has consistently bought back their outstanding shares, while scaling back their assets and liabilities. Currently the company's book value (29.77) is close to 200% higher than the company's market price. They have an earnings yield of 15.50% based on their forward earnings estimates.
Manning & Napier Advisors owns 177,140 shares as of 3/31/2010, which accounts for 0.01% of the $15.66 billion portfolio.
No. 4: WellPoint Inc. (WLP)
WellPoint, Inc. is the largest publicly traded commercial health benefits company in terms of membership in the United States. Wellpoint Inc. has a market cap of $22.61 billion; its shares were traded at around $50.94 with a P/E ratio of 8.06 and P/S ratio of 0.35. Wellpoint Inc. had an annual average earning growth of 21.6% over the past 10 years. Trading below book value, the company consistently maintains high returns on equity and the management has grown the company's book value from $9.25 to over $56 in the last decade. They have an earnings yield of 12% based on their forward earnings estimates.
Manning & Napier Advisors owns 117,930 shares as of 3/31/2010, which accounts for 0.05% of the $15.66 billion portfolio.
No. 5: Credit Suisse (NYSE:CS)
CREDIT SUISSE GROUP and Winterthur offer investment products, private banking and financial advisory services, as well as insurance and pension solutions. Credit Suisse Group has a market cap of $47.69 billion; its shares were traded at around $40.22 with a P/E ratio of 8.67 and P/S ratio of 1.51. The dividend yield of Credit Suisse Group stocks is 2.99%. Credit Suisse Group had an annual average earning growth of 39.9% over the past 10 years. This is a tremendous financial organization with over 1 trillion dollars worth of assets. They have had a spotty decade, yet with a current earnings yield of 13.4% and a price close to their 52 week low, the price may be right.
Manning & Napier Advisors owns 39.660 shares as of 3/31/2010, which accounts for 0.01% of the $15.66 billion portfolio.
Each of the companies above offer excellent earnings yields, and is traded fair prices considering both their 52 week high and 52 week low prices. Please feel free to use the DCF Calculator with the stock's current data to find the current "fair value" and remember that the final decision should always be in your hands.
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About the author:
I write about stocks that look interesting to me based on 15+ years of experience in the capital markets. I rarely write about stocks that I own personally or through my company. My views are my own.