Bernard Horn

Bernard Horn

Last Update: 2014-11-03

Number of Stocks: 86
Number of New Stocks: 4

Total Value: $263 Mil
Q/Q Turnover: 10%

Countries: USA FRA FIN JPN GBR NOR DEU KOR SWE CAN CHE BEL ITA THA HKG
Details: Top Buys | Top Sales | Top Holdings  Embed:

Bernard Horn' s Profile & Performance

Profile

Polaris Global Value Fund

Investing Philosophy

Our philosophy is based on two basic beliefs: (i) country and industry factors are important determinants of security prices, and (ii) global market fluctuations produce mispriced stocks. Global markets have proven generally efficient over time, but investor behavior creates volatility that leads to inefficiency somewhere in the world. During these periods, the stock price may not reflect a company’s long-term fundamental valuation and/or future cash flows. We seek to buy such undervalued companies worldwide.

Historical Allocation of Stock, Bonds, Cash

Total Holding History

Performance of Polaris Global Value Fund

YearReturn (%)S&P500 (%)Excess Gain (%)
201336.9431.555.4
20122115.45.6
2011-8.162.08-10.2
3-Year Cumulative52.2 (15%/year)55 (15.7%/year)-2.8 (-0.7%/year)
201020.6415.065.6
200935.4626.469.0
5-Year Cumulative148.7 (20%/year)125.5 (17.7%/year)23.2 (2.3%/year)
2008-46.19-37-9.2
2007-3.975.61-9.6
200624.5715.798.8
200510.524.915.6
200423.631211.6
10-Year Cumulative118.7 (8.1%/year)104.1 (7.4%/year)14.6 (0.7%/year)
200347.0628.718.4
20023.82-22.125.9
20012.21-11.914.1
2000-5.82-9.13.3
199916.521-4.5
15-Year Cumulative274.5 (9.2%/year)98.3 (4.7%/year)176.2 (4.5%/year)
1998-8.8528.6-37.5
199734.5533.41.1
199623.34230.3
199531.8237.6-5.8
1994-2.781.3-4.1
20-Year Cumulative626 (10.4%/year)483.2 (9.2%/year)142.8 (1.2%/year)
199325.710.115.6
19929.787.62.2
199117.1830.5-13.3
1990-11.74-3.1-8.6

Top Ranked Articles

Bernard Horn Comments on Methanex
One bright spot in the sector was Methanex (MEOH), which was the third largest individual contributor to overall performance this quarter. Methanex saw its stock price rebound from June quarter lows, while simultaneously benefitting from stabilizing methanol prices. Read more...
Bernard Horn Comments on Basf SE
Higher geopolitical risk and lower energy prices caused contraction at BASF (MIL:BASF), where nearly half of its energy business as well as its energy sourcing are Russian-based. Read more...
Bernard Horn Comments on Sberbank Of Russia
During the quarter, the Fund initiated a position in Sberbank (MIC:SBER), the largest bank in Russia with a 45% market share. The conservatively-managed bank is driven entirely by deposit funding and loans, making it one of the country’s most resilient financial institutions. Polaris’ valuation profile of Sberbank compensates for the geopolitical risks present in Russia. We bought a partial position, anticipating further negative events that may make the stock even more attractive on a valuation level. Read more...
Bernard Horn Comments on Carter’s Inc
In consumer discretionary, Carter’s Inc. (CRI) had double digit gains after posting strong second quarter results and raising its 2014 guidance. The company is benefitting from falling cotton prices due to bumper U.S. harvests and increased demand for apparel, resulting in healthy same store sales and new store openings. Read more...
Bernard Horn Comments on General Dynamics
General Dynamics (GD) was the only positive performer in the sector, as the company capitalized on three business trends: 1) its Gulfstream business jet sales reached pre-recession levels, with a strong order book; 2) it received a $300 million contract from the U.S. Navy to build nuclear submarines (with the prospect for orders of more than $1.5 billion) and 3) it signed a $5.7 billion deal with the British government for new armored fighting vehicles. In a world of continued geopolitical turmoil, General Dynamics’ defense business has been an effective hedger and performer. Read more...
» More Bernard Horn Articles

Commentaries and Stories

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Bernard Horn Comments on Methanex
One bright spot in the sector was Methanex (MEOH), which was the third largest individual contributor to overall performance this quarter. Methanex saw its stock price rebound from June quarter lows, while simultaneously benefitting from stabilizing methanol prices. More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

Bernard Horn Comments on Basf SE
Higher geopolitical risk and lower energy prices caused contraction at BASF (MIL:BASF), where nearly half of its energy business as well as its energy sourcing are Russian-based. More...

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Bernard Horn Comments on Sberbank Of Russia
During the quarter, the Fund initiated a position in Sberbank (MIC:SBER), the largest bank in Russia with a 45% market share. The conservatively-managed bank is driven entirely by deposit funding and loans, making it one of the country’s most resilient financial institutions. Polaris’ valuation profile of Sberbank compensates for the geopolitical risks present in Russia. We bought a partial position, anticipating further negative events that may make the stock even more attractive on a valuation level. More...

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Bernard Horn Comments on Carter’s Inc
In consumer discretionary, Carter’s Inc. (CRI) had double digit gains after posting strong second quarter results and raising its 2014 guidance. The company is benefitting from falling cotton prices due to bumper U.S. harvests and increased demand for apparel, resulting in healthy same store sales and new store openings. More...

  • Currently 0.00/5

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Bernard Horn Comments on General Dynamics
General Dynamics (GD) was the only positive performer in the sector, as the company capitalized on three business trends: 1) its Gulfstream business jet sales reached pre-recession levels, with a strong order book; 2) it received a $300 million contract from the U.S. Navy to build nuclear submarines (with the prospect for orders of more than $1.5 billion) and 3) it signed a $5.7 billion deal with the British government for new armored fighting vehicles. In a world of continued geopolitical turmoil, General Dynamics’ defense business has been an effective hedger and performer. More...

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Bernard Horn Comments on Caverion Corp
Since the spin-off from YIT, Caverion Corp (OHEL:CAV1V). has encountered a number of loss-making legacy projects in Norway and Denmark. The company is making strides to complete these contracts quickly, making room for new bookings with profitability. More...

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Bernard Horn Comments on YIT Oyj
The prolongation of the Ukraine crisis and stagnation in Finnish construction negatively impacted YIT (OHEL:YTY1V)’s stock price. YIT lowered guidance for 2014, projecting revenue will grow to 0-5% while keeping its operating margin outlook unchanged at 7.5-8% More...

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Bernard Horn Comments on Konecranes
Konecranes (OHEL:KCR1V) issued subpar results, with lower year-on-year sales and orders, pointing to diminished demand for heavy-duty cranes and hoists, especially in process industries. More...

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Bernard Horn Comments on Tullow Oil
Tullow Oil (LSE:TLW) was among the greatest detractor, after announcing a $95 million loss for the first six months of 2014 following more than $400 million in write-offs for exploration costs. However, the company’s oil fields already in production have an estimated worth of about $7.6 billion, and the future looks promising with new projects in Ghana and Kenya. Tullow and its Kenyan exploration partner, Africa Oil, recently discovered 600 million barrels of oil in the South Lokichar Basin. More...

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Bernard Horn Comments on Greencore Group
On the other hand, in late September, Greencore Group (LSE:GNC) saw its stock price decline in response to negative news on the U.K. retail grocery market. Greencore subsequently released a statement reaffirming full year guidance projecting growth in the ready-to-eat/food-to-go market, which is the fastest growing category of U.K. grocery store sales. We believe investors unfairly penalized Greencore on broader market news that was not applicable. More...

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Bernard Horn Comments on MEIJI Holdings
MEIJI Holdings (TSE:2269), a Japanese dairy products company, could not offset declines in other consumer staples stocks. Regulations by the Japanese government resulted in increased prices for milk used in cheese processing. MEIJI responded by raising prices of butter and cheese, successfully passing on the higher costs to consumers. More...

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Bernard Horn Comments on FairPoint Communications
During the quarter, we purchased U.S. regional telecom operator FairPoint Communications (FRP), which may benefit from a shift to Ethernet from legacy lines amongst New England businesses. More...

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Bernard Horn Comments on Frontier Communications
In the telecom sector, Frontier Communications (FTR)’ stock price surged 16% on the day that its direct competitor, Windstream Holdings (WIN), announced a restructuring plan. Windstream intends to spin off its fiber and copper networks into a publicly traded REIT not subject to federal income tax. If Windstream proves successful in this endeavor, other rural carriers may follow suit. Frontier (FTR) subsequently reported strong second quarter 2014 earnings, with revenue trajectory from residential customers and stability in the small, medium and enterprise business lines. The company is also preparing for the fourth quarter close of the AT&T Connecticut wireline acquisition. More...

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Bernard Horn Comments on NextEra Energy
In utilities, absolute positive performance for Guangdong Investment (HKSE:00270) was not enough to compensate for weakness in NextEra Energy and Allete (ALE). NextEra (NEE) reported flat year-on-year growth in adjusted earnings per share for the second quarter. Capital projects for NextEra’s subsidiary, Florida Power & Light, remain on schedule and second quarter earnings per share rose slightly compared to the first quarter. More...

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Bernard Horn Comments on Hewlett-Packard Co
H-P (HPQ) posted solid quarter-end revenues on the back of broad-based PC revenue growth of 12% year-on-year and unit growth of 13%. The company generated strong free cash flow, of which half will be returned to shareholders More...

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Bernard Horn Comments on Infosys
As CFOs and CTOs resume IT spending, Infosys (INFY) has maintained full year guidance for revenue growth of 7-9% on operating margins of 24-25%. Often criticized for its cash hoarding approach, Infosys has begun to spend from its coffers, hiring three experienced research and development professionals from SAP, developing intellectual property and pursuing acquisitions. More...

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Bernard Horn Comments on Microsoft
Microsoft (MSFT) announced strong earnings, promoting its cloud strategy and game console sales. The company has also spent extensive time and resources developing an integrated operating system for laptops, tablets, phones, etc. that may stem attrition from Microsoft products. More...

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Bernard Horn Comments on Actavis PLC
On July 1, Actavis (ACT) announced the completion of its acquisition of Forest Laboratories Inc. (a Fund holding), in a cash and equity transaction valued at approximately $28 billion. We maintained a position in Actavis, as its pro-forma financial statements fit the Polaris valuation profile. As one of the largest generic pharmaceutical companies, Actavis is expected to broaden its product platform with the Forest acquisition, increase operating cash flow and realize $1 billion in cost synergies. More...

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Bernard Horn’s Polaris Global Value Fund Q3 2014 Shareholder Letter
Dear Fellow Shareholder, More...

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Bernard Horn Comments on Valassis Communications
Only one consumer discretionary stock was sold during the six-month period. Valassis Communications (VCI), a U.S. direct mail/geography targeted advertising company, was originally added to the Fund in October 2013. By mid-February 2014, the company was acquired by Harland Clarke Holdings Corp. at a 20% premium over Valassis’ closing price as of December 17, 2013. More...

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