Alan Fournier

Last Update: 2014-08-14

Number of Stocks: 43
Number of New Stocks: 5

Total Value: $5,582 Mil
Q/Q Turnover: 15%

Countries: USA
Details: Top Buys | Top Sales | Top Holdings  Embed:

Alan Fournier' s Profile & Performance

Profile

Alan Fournier manages Pennant Master Fund,Pennant Windward Master Fund, Broadway Gate Master Fund, Ltd., and Pennant General Partner, LLC. Previously, Mr. Fournier was the partner responsible for global equity investments at Appaloosa Management L.P., and he began his investment career at Sanford C. Bernstein in 1988. Before entering the investment management industry, Mr. Fournier spent five years in technology system sales for Digital Equipment Corporation, where he was a national account manager.

Total Holding History

Top Ranked Articles

Enough Apple Pie, Alan Fournier Unloads Major American Companies
After selling companies as American as apple pie, both Coca-Cola Enterprises Inc. (CCE) and Google Inc. (GOOG) in the previous quarter, billionaire Guru Alan Fournier sold out four more holdings linked to American identity, ingenuity, innovation and insurance: Apple Inc. (APPL), Ford Motor Co. (F), Family Dollar Store (FDO) and WellPoint Inc. (WLP), as of the quarter ending March 31, 2013. Here are the details: Read more...
Alan Fournier - Steely on Steel with USAP
On March 6, 2013, Alan Fournier, fund manager of Pennant Capital Management, made his seventh add of Universal Stainless & Alloy Products (USAP) stock in a string of adds this year. With this latest increase of 0.76%, Fournier owns 1,103,668 USAP shares at the average price of $36.15. USAP's stock price continues to fluctuate slightly since its drop on Jan. 28, 2013 to $32.78. Read more...
Alan Fournier - Tenth Add of USAP in First Quarter
As of March 28, 2013, fund manager Guru Alan Fournier, Pennant Capital Management, made his tenth add of Universal Stainless & Alloy Products (USAP) stock in 2013, increasing his position by 0.84%, for a total of 1,126,021 shares. Ownership is filed as Pennant Capital Management and the Broadway Gate Master Fund Ltd. The current share price is $36.35, up 1%. Read more...
Billionaires Hold Four Stocks, 59% Off
It’s time to go desk-surfing with the GuruFocus special feature 52-week low Value Screen. Surf through hundreds of US.. stocks currently listed at a 52-week low and discover performance data along with billionaire ownership and insider trade information. If you’re a jet setter, thousands of other possible bargains around the world can be found using the GuruFocus 52-week low Value Screen for stocks in Canada, Europe, Asia, UK, Ireland, and Oceania. Read more...
USAP, X, NUE - Domestic Steel Production Second Quarter Update
In spite of high import penetration by foreign steel producers into U.S. markets, some investor Gurus are buying steel while others wait for a better U.S. trade policy that will even out the playing field of this sector know for margin swings. Here’s a look at the U.S. raw steel production numbers issued last week and an update on Guru trades of three U.S. steel companies. Read more...
» More Alan Fournier Articles

Commentaries and Stories

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

Hedge Fund Manager Larry Robbins Boosts Stakes in Carter´s
According to GuruFocus Real Time Picks, billionaire Larry Robbins (Trades, Portfolio), who founded Glenview Capital Management takes a long position on Carter's, Inc. (CRI). The company, a $4.24 billion market cap, has a trailing P/E ratio that indicates that the stock is relatively overvalued (29x vs 24.4x of industry mean). So one question arises, why this hedge fund manager is betting on it? More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

Kids' Apparel Is a Growing Business
According to GuruFocus Real Time Picks, Larry Robbins (Trades, Portfolio) added Carter's, Inc. (CRI) at an average price of $69.5 and currently holds 3,673,608 shares of the stock. This makes me feel that he is betting that the textiles, apparel, and luxury goods industry will expand in the near future. More...

  • Currently 3.29/5

Rating: 3.3/5 (7 votes)

Billionaires Hold Four Stocks, 59% Off Alan Fournier,Jean-Marie Eveillard - Billionaires Hold Four Stocks, 59% Off
It’s time to go desk-surfing with the GuruFocus special feature 52-week low Value Screen. Surf through hundreds of US.. stocks currently listed at a 52-week low and discover performance data along with billionaire ownership and insider trade information. If you’re a jet setter, thousands of other possible bargains around the world can be found using the GuruFocus 52-week low Value Screen for stocks in Canada, Europe, Asia, UK, Ireland, and Oceania. More...

BIOTECHNOLOGY, METALS & MINERALS, GOLD


  • Currently 4.50/5

Rating: 4.5/5 (2 votes)

Recycled Steel Impacts Swinging Sector
With China’s steel sector slowing, it is still the world’s largest steel producer, followed by Japan, and the U.S. coming in third place. World Steel reports that U.S. crude steel production is down 2.9% for the month of August 2013, year over year. China’s steel production for the same month was up 12.8% compared to August 2012. Japan’s production is flat, down by 0.6% over last August. The most-recycled material, steel, is influencing the domestic market with around 66% of U.S. steel now produced from recycled scrap. More...

STEEL


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Alan Fournier's Top Five Positions
Alan Fournier is the founder and manager of Pennant Capital Management. Prior to creating Pennant, Fournier spent some time working at David Tepper’s Appaloosa Management managing global equity investments. During the second quarter Fournier sold out of four companies and made initial buys into eight new stocks. His second quarter portfolio held 46 stocks valued at $5.373 billion. The following five companies represent Fournier’s top five positions. More...

  • Currently 5.00/5

Rating: 5.0/5 (2 votes)

USAP, X, NUE - Domestic Steel Production Second Quarter Update
In spite of high import penetration by foreign steel producers into U.S. markets, some investor Gurus are buying steel while others wait for a better U.S. trade policy that will even out the playing field of this sector know for margin swings. Here’s a look at the U.S. raw steel production numbers issued last week and an update on Guru trades of three U.S. steel companies. More...

STEEL


  • Currently 4.10/5

Rating: 4.1/5 (10 votes)

Enough Apple Pie, Alan Fournier Unloads Major American Companies
After selling companies as American as apple pie, both Coca-Cola Enterprises Inc. (CCE) and Google Inc. (GOOG) in the previous quarter, billionaire Guru Alan Fournier sold out four more holdings linked to American identity, ingenuity, innovation and insurance: Apple Inc. (APPL), Ford Motor Co. (F), Family Dollar Store (FDO) and WellPoint Inc. (WLP), as of the quarter ending March 31, 2013. Here are the details: More...

BEVERAGES – SOFT DRINKS, AUTO MANUFACTURERS, COMPUTER SYSTEMS, DISCOUNT STORES, HEALTH CARE PLANS, INTERNET CONTENT & INFORMATION


  • Currently 2.50/5

Rating: 2.5/5 (6 votes)

Pennant Capital’s Fournier - Adds Again, USAP Down 20%
It appears that Guru Alan Fournier, Pennant Capital Management, has faith in stainless steel as the metal of today and the future, despite raw steel production in the U.S. being down 8.2% compared to a year ago. What’s not to love about the corrosion-fighting, heat-tolerant metal? Stainless steel is strong, beautiful, reflective and recyclable. More...

STEEL, STANLESS STEEL


  • Currently 4.75/5

Rating: 4.8/5 (4 votes)

Alan Fournier - Tenth Add of USAP in First Quarter
As of March 28, 2013, fund manager Guru Alan Fournier, Pennant Capital Management, made his tenth add of Universal Stainless & Alloy Products (USAP) stock in 2013, increasing his position by 0.84%, for a total of 1,126,021 shares. Ownership is filed as Pennant Capital Management and the Broadway Gate Master Fund Ltd. The current share price is $36.35, up 1%. More...

MANUFACTURNG, STANLESS STEEL, ALLOYS


  • Currently 3.50/5

Rating: 3.5/5 (4 votes)

Ford Motor Company (F) - How to Sell Cars to the Feminine Mystique
With automakers casting a wider global net, top billionaire investor Gurus seem split on the Ford Motor Co. (F) as of quarter ending Dec. 31, 2012. While increasing automotive exports overseas, automakers are also reaching towards women as a sector of key buyers, earners and decision-makers. The obvious necessity of marketing to women is finally trickling up in corporations after Betty Friedan wrote all about it 50 years ago in her classic book “The Feminine Mystique.” (There’s a chapter on advertising: The Sexual Sell.) More...

  • Currently 3.33/5

Rating: 3.3/5 (3 votes)

Alan Fournier—Reduces PHH
On March 14, 2013, Alan Fournier, fund manager of Pennant Capital Management, reduced his position on PHH Corporation (PHH) by 38.73%, leaving the value investor with 2,845,982 PHH shares. The current share price is $21.81. PHH Corporation has two different segments of business: mortgage services and fleet management outsourcing. PHH Mortgage sells its loans to secondary market investors. The company posted net income of $58 million in the fourth quarter of 2012, compared to $46 million for the same period in the previous year. More...

FINANCIAL SERVICES, CREDIT SERVICES


  • Currently 3.67/5

Rating: 3.7/5 (3 votes)

Alan Fournier - Steeled Again on USAP
Yesterday Alan Fournier, fund manager of Pennant Capital Management, made his fifth purchase of Universal Stainless & Alloy Products (USAP) stock in 2013, adding another 0.82% of USAP at $35.85. The current price of USAP is $36.69. Fournier now owns 1,112,768 shares of USAP. The stock price has gone up 33 cents per share since Fournier’s last add on March 6, 2013. USAP manufactures specialty steel products, including stainless steel, tool steel and other alloyed steels. According to SEC filings, Fournier’s hedge fund Pennant Capital is 10% owner of USAP. Here’s Alan Fournier’s Holding History of USAP. More...

STEEL


  • Currently 4.67/5

Rating: 4.7/5 (6 votes)

Alan Fournier - Steely on Steel with USAP
On March 6, 2013, Alan Fournier, fund manager of Pennant Capital Management, made his seventh add of Universal Stainless & Alloy Products (USAP) stock in a string of adds this year. With this latest increase of 0.76%, Fournier owns 1,103,668 USAP shares at the average price of $36.15. USAP's stock price continues to fluctuate slightly since its drop on Jan. 28, 2013 to $32.78. More...

STEEL, ALLOYS, PENNANT CAPITAL MANAGEMENT, ALAN FOURNIER, UNIVERSAL STAINLESS & ALLOY PRODUCTS


  • Currently 2.75/5

Rating: 2.8/5 (4 votes)

Alan Fournier - Full Sail with USAP
On Feb. 15, 2013, Alan Fournier, fund manager of Pennant Capital Management, made his third purchase of USAP stock in 2013 so far, acquiring 20,500 shares of Universal Stainless & Alloy Products (USAP) at the average price of $36.09, as reported in the latest Real Time Picks. More...

STEEL AND ALLOYS, ALAN FOURNIER, PENNANT CAPITAL, USAP


  • Currently 1.00/5

Rating: 1.0/5 (1 vote)

Universal Stainless: Valuations Not as Attractive as Miss Universe
Universal Stainless & Alloy Products Inc. (USAP) headquartered in Bridgeville, Pa. and established in 1994, manufactures and markets semi-finished and finished specialty steels, including stainless steel, tool steel and certain other alloyed steels. USAP's products, sold to service centers, forgers, rerollers and original equipment manufacturers, are further processed by customers for use in a variety of industries, including aerospace, power generation, oil and gas and heavy equipment manufacturing. Its specialty bar facilities have one of the broadest and diverse size range and product capabilities in the industry. USAP also offers conversion services on its Radial Forge and Universal Rolling Mill. Guru Alerts After divesting 144,592 shares of USAP in the second and thrid quarter of 2012 at prices ranging from $37 to $42, he added to his position in USAP again in the fourth quarter of 2012 with a purchase of 2,700 shares at an average price of $33.05. Two guru investors Chuck Royce and Alan Fournier own 569,908 shares and 1,052,668 shares in USAP at average prices of approximately $27 per share and $38 per share. Valuation USAP currently trades at a trailing twelve months P/E of 13.6 and a trailing twelve months EV/EBITDA of 8.5. Its current P/E valuations are at a slight 4% discount to its five year average P/E of 14.2. On an asset valuation basis, it is also trading close to parity with its five year average P/B of 1.22. USAP achieved a trailing twelve months ROE of 9.8% and a five year average ROE of 9.0%. USAP Historical P/E-ROE Comparison USAP has a decent historical earnings track record with positive earnings in eight of the last ten years and positive operating cash flow in almost every single year in the past decade except for 2004. USAP's gross and net margins swing wildly from year to year across various commodity and economic cycles, and is reflective of the specialty steel industry. USAP Earnings-Cash Flow Comparison USAP Profit Margins Analysis Financial and Business Risks USAP is highly geared with a debt-to-equity ratio of 57%. It has geared up considerably in the past two years; USAP's gearing remained below 10% from 2007 to 2010. USAP Cash-Debt-Market Capitalization Comparison On Nov. 5, 2012, USAP announced that it was correcting the results for the third quarter of 2012 previously reported on Oct. 24, 2012, as a result of the discovery of an incorrect customer invoice, for which a credit memo has now been issued. The effect of this correction is that previously reported sales for the third quarter of 2012 were reduced by $0.9 million to $61.4 million from the $62.3 million originally reported. While the amount is small and relatively insignificant, it does raise potential concerns about the robustness of USAP's internal controls. The steel industry is very competitive and USAP competes with both domestic and foreign producers of specialty steel products, and other producers of products fashioned from alternative materials such as aluminum, composites and plastics. According to its 2011 10-K, unfair pricing practices by foreign producers have resulted in high import penetration into the U.S. markets, with 2010 import penetration for stainless bar and stainless rod at 50% and 37% respectively. USAP faces considerable customer concentration risk, with its two largest customers, Carpenter Technology Corp. and Fry Steel Co., accounting for 12% and 11% respectively of its 2011 sales. In addition, USAP has a significant exposure to the cyclicality of the aerospace industry, with 42% of its sales and 33% of tons shipped representing products sold to customers in the aerospace market in 2011. Raw materials costs represents more than half of USAP's total cost of products sold in 2011, 2010 and 2009. USAP purchases scrap metal and alloy additives for its melting operation. A substantial portion of the alloy additives is available only from foreign sources such as Australia, Canada, China, Russia, Brazil and South Africa. USAP had 518 employees out of a total of 661 who were covered under collective bargaining agreements as at Dec. 31, 2012, including 34% of its employees who are employed at the company’s Dunkirk facility, whose collective bargaining agreement expires in October 2012. On Nov. 12, 2012, USAP announced that its Dunkirk Specialty Steel LLC subsidiary has reached a new five-year collective bargaining agreement with the Dunkirk hourly employees. Its other collective bargaining agreements for the Bridgeville and Titusville facilities expire in August 2013 and September 2015 respectively. Hourly employees are entitled to receive 8.5% of their respective facilities’ annual pre-tax profits in excess of $1.0 million at Bridgeville and Dunkirk, and in excess of $500,000 at Titusville, under USAP's collective bargaining agreements. Business Quality and Capital Allocation USAP has had a history of transformational investments. In 2002, USAP acquired steel facility in Dunkirk, New York for a purchase price of $4.1 million, which transformed the company to a fully integrated manufacturer of specialty steel products. In 2011, USAP acquired a construction stage Forge, VIM and Remelt facility in North Jackson, Ohio for a purchase price of $116 million, excluding costs to complete equipment installation. The facility includes state-of-art radial forge, Vacuum Induction Melting furnace, two Vacuum Arc Remelting furnaces and other heat treating/finishing equipment. USAP views this as a strategic step to strengthen its industry position, replace third party forging with in-house state-of-the-art forging equipment, improve yields & reduce operating costs, reduce cycle times and expand product portfolio into higher margin products. USAP sees opportunities to grow in its key end-markets: aerospace, oil & gas and power generation which accounts 47%, 21% and 16% of trailing twelve month sales as at the second quarter of 2012. The ramp of its North Jackson facility will enable USAP to introduce new products and capabilities to its aerospace customers with shorter cycle time and cost reductions. In its power generation end-market, USAP is expanding its market share in the maintenance market and management anticipate new turbine market growth between 2013 and 2015. USAP does not pay a dividend. Conclusion Valuations are reasonable, but not particularly attractive at current price levels as USAP is trading at parity to five year average mean P/E and P/B valuations. The increase in financial leverage and the absence of dividends further reduce the attractiveness of the stock. Disclosure The author does not have a position in any of the stocks mentioned. More...

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Goforit
ReplyGoforit - 4 months ago
How are premium members of GuruFocus supposed to evaluate the list of Gurus when more often than not there is no historical performance records. Most of the time the "profile/performance" tab does not have anything on performance. Why not? Maybe it should just be called the "profile" tab. This is very frustrating.

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