Wallace Weitz

Wallace Weitz

Last Update: 11-14-2016

Number of Stocks: 69
Number of New Stocks: 3

Total Value: $2,611 Mil
Q/Q Turnover: 6%

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

Wallace Weitz' s Profile & Performance

Profile

Portfolio manager of Weitz Value Fund, Weitz Hickory Fund and Weitz Partners Value Fund, which he started in 1983.

Web Page:http://www.weitzfunds.com/

Investing Philosophy

Weitz's approach to value investing has evolved over the years. It combines Graham's price sensitivity and insistence on a "margin of safety" with a conviction that qualitative factors that allow a company to have some control over its destiny can be more important than statistical measurements, such as historical book value or reported earnings.

Historical Allocation of Stock, Bonds, Cash

Total Holding History

Performance of Weitz Partners Fund

YearReturn (%)S&P500 (%)Excess Gain (%)
2015-9.251.19-10.4
20147.9113.69-5.8
201330.8732.39-1.5
3-Year Cumulative28.2 (8.6%/year)52.3 (15.1%/year)-24.1 (-6.5%/year)
201217.92161.9
20112.192.110.1
5-Year Cumulative54.4 (9.1%/year)80.4 (12.5%/year)-26 (-3.4%/year)
201027.4915.0612.4
200931.326.464.8
2008-38.06-37-1.1
2007-8.545.49-14.0
200622.5315.796.7
10-Year Cumulative79.4 (6%/year)102 (7.3%/year)-22.6 (-1.3%/year)
2005-2.424.91-7.3
200414.9910.884.1
200325.3828.68-3.3
2002-16.99-22.15.1
2001-0.86-11.8911.0
15-Year Cumulative107.8 (5%/year)107.5 (5%/year)0.3 (0%/year)
200021.07-9.130.2
199922.0221.041.0
199829.1328.580.5
199740.6433.367.3
199619.0422.96-3.9
20-Year Cumulative563.5 (9.9%/year)381.4 (8.2%/year)182.1 (1.7%/year)
199538.6637.581.1
1994-8.971.32-10.3
199323.0310.0813.0
199215.147.627.5
19912830.47-2.5
25-Year Cumulative1418.6 (11.5%/year)937.3 (9.8%/year)481.3 (1.7%/year)
1990-6.35-3.1-3.2
198920.2531.69-11.4
198814.9316.61-1.7
19874.255.1-0.8
198611.1618.6-7.4
30-Year Cumulative2177.7 (11%/year)1824 (10.4%/year)353.7 (0.6%/year)
198540.7231.69.1
198414.436.18.3

Top Ranked Articles

Wallace Weitz Comments on Express Scripts Guru stock highlight
Express Scripts (NASDAQ:ESRX) is the largest stand-alone pharmacy benefits manager (PBM) in the United States, helping health benefit providers improve access to (and the affordability of) prescription drugs. Negotiations with Anthem, Express Scripts’ largest customer, hit an impasse early in the quarter. Anthem elected to bring the details of the disagreement public at a widely attended industry conference in January, providing the investment community a lens into how far the two companies were apart on the economics of their existing contract. Since then, Anthem has also filed a lawsuit against Express Scripts. While we hope a mutually agreeable solution will eventually be achieved, it remains possible (some believe likely) that Anthem will choose not to renew its contract with Express in 2019. We have run scenarios encompassing a range of different outcomes, and we believe Express Scripts’ shares are undervalued in all but the most dire. We continue to monitor contract-related developments and are otherwise heartened by improved execution across the other 84% of Express Scripts’ enterprise. Read more...
Wally Weitz Gives Rare Early Look at 4th Quarter Portfolio The guru discloses several buys and sells long before deadline
Wallace Weitz (Trades, Portfolio), founder and chief investment officer of Weitz Investments, on Friday gave a rare mid-quarter update of some changes he made to a portfolio that he manages, the Partners III Opportunity Fund. Read more...
Weitz Funds Comments on Endo International Guru stock highlight
Endo International (NASDAQ:ENDP) is a specialty healthcare company engaged in developing, manufacturing, marketing and distributing branded pharmaceutical and generic products and medical devices. Endo experienced significantly worse than anticipated erosion at Qualitest, its legacy generic drug platform. Simply put, our analysis of the company’s competitive positioning in controlled substance generics was wrong. The competitive environment changed quickly and we were slow to recognize it. After conversations with management and a couple of the larger drug buying consortiums, we could not gain comfort in the durability of Endo’s now lower earnings base. The company’s balance sheet and potential legal obligations (liabilities relating to the company’s legacy vaginal mesh products) leave less room for error given growth challenges on the branded side of Endo’s business. Given the erosion in our investment thesis, questions about management’s ability to identify and navigate risk, and a growing list of unknowns surrounding the business, we elected to close our position and refocus our capital in more attractive opportunities.
From Read more...
Weitz Funds Comments on EOG Resources Guru stock highlight
EOG Resources (NYSE:EOG) is primarily a domestic producer of oil and natural gas with operations focused in most of the productive basins in the United States (the Eagle Ford, Permian and Bakken, among others). Shares of EOG Resources fell largely in sympathy with oil prices during the quarter. While EOG continues to set the standard for cost and capital efficiency among independent domestic oil producers, lower prices continue to weigh on returns and cash generation. The global crude market still has a ways to go before supply and demand come into balance, but when it does, we see oil prices significantly higher than present levels. EOG is likely among the best-positioned producers in a rising-price environment given its large inventory of drilled uncompleted wells (DUCs), high-return drilling opportunities and healthy balance sheet. Read more...
Wallace Weitz Comments on Valeant Pharmaceuticals Guru stock highlight
Valeant Pharmaceuticals (NYSE:VRX) is a multi-national, specialty pharmaceutical and medical device company that develops, manufactures and markets a broad range of brand name, generic and over-the-counter products in over 100 countries. We closed our position in Valeant toward the end of October last year. The stock came under heavy selling pressure as a result of increased political scrutiny around drug pricing and possible wrongdoing at one of its “alternative fulfillment” pharmacy partners. Our decision to sell was ultimately based on a combination of important questions we had difficulty answering regarding potential long-term reputational damage to Valeant’s business, the likelihood of difficult payer negotiations, future business model uncertainty and financial leverage. While our investment in Valeant ended on a disappointing note, it was a healthy multi-year contributor to Fund performance. Read more...
» More Wallace Weitz Articles

Commentaries and Stories

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Weitz Funds Analyst Corner: A Perspective on Murphy USA By Dan Walker, CFA Wallace Weitz - Weitz Funds Analyst Corner: A Perspective On Murphy USA
Murphy USA (NYSE:MUSA) is the largest stand-alone fuel retailer in the United States. The majority of its stores are located adjacent to a Wal-Mart, and they pursue a low-cost, high-volume model. More...

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Weitz Funds Comments on Oracle Guru stock highlight
Oracle (NYSE:ORCL) is the market share leader in sales of database software and is number two in enterprise software, globally. Oracle has moved aggressively to rewrite its enterprise applications, which were previously available for on premise installation, as Software as a Service (SaaS) products. The company has gained significant traction in moving customers to SaaS and we believe will gain share in the overall enterprise applications market. Oracle recently announced the availability of its Database as a Service offering, which it believes will enable customers to move their database workloads to the Oracle Cloud. We believe the company will grow as its new applications gain acceptance with its large base of customers. More...

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Weitz Funds Comments on Twenty-First Century Fox Guru stock highlight
Twenty-First Century Fox (NASDAQ:FOXA) is a diversified media and entertainment company. Shares of Fox declined in the wake of the company’s fiscal fourth quarter earnings report. The good news was continued strength in distribution revenues earned by its suite of Pay-TV networks around the world as well as a resilient ad market in the U.S. Unfortunately, Fox’s international ad revenues slowed considerably due to weakness in Northern Europe and India, rising only 1% in local currency after seven straight quarters of very strong, double- digit growth. Additionally, Fox’s three major summer film releases, X-Men: Apocalypse, Ice Age: Collision Course, andIndependence Day: Resurgence, all underperformed expectations. Moreover, management de-emphasized share repurchase within their capital allocation plans, preferring to preserve flexibility to either invest in the business organically (e.g., increasing investment in original content at the National Geographic channel) or to make acquisitions. Despite a more challenging international ad market and disappointing box office results, we continue to More...

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Weitz Funds Comments on Mastercard Guru stock highlight
Mastercard (NYSE:MA) operates the world’s second-largest payment network and one of the best known global brands. During the quarter, shares rose as investors applauded continued payment volume growth and a slightly improved economic global outlook. Mastercard is among the most attractive businesses we own. Its network is well entrenched within the plumbing of payment systems across the globe. The transition from cash to digital forms of payment provide growth opportunities, while the core business produces healthy doses of excess cash flow with modest reinvestment requirements. More...

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Weitz Funds Comments on Express Scripts Guru stock highlight
Express Scripts (NASDAQ:ESRX) is the largest independent pharmacy benefits manager (PBM) in the United States, helping health benefit providers improve access to (and the affordability of) prescription drugs. As the U.S. election enters its final stages, pharmaceutical manufacturers have shouldered a significant portion of the public’s frustration with the growing lack of affordability in healthcare. In recent weeks, several drug companies have attempted to shift the conversation by pointing fingers at PBMs and other “middlemen” as contributing to (as opposed to minimizing) rising prescription drug costs. Express Scripts and its peers provide a necessary and valuable service to plan sponsors, constructing custom plan designs that balance customer desires for access, cost and flexibility. Providing the absolute lowest cost for each drug utilized is not often the sponsor’s only (or even primary) goal. Additionally, competitive intensity across the industry is high, with no less than two (and in most cases three) potential PBM models to choose from for managing drug costs. We believe Express Scripts keeps a reasonable amount More...

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Weitz Funds Comments on Allergan Guru stock highlight
Allergan (NYSE:AGN) is a global specialty pharmaceutical company focusing on the development, manufacturing, marketing and distribution of brand name, biosimilar and over-the-counter (OTC) pharmaceutical products. One week after closing the sale of Actavis generics to Teva Pharmaceuticals, Allergan reported mildly disappointing top-line results for the quarter. Importantly, however, Allergan’s “core” products continue to grow nicely, with five of the company’s seven core therapeutic categories growing by double digits (in constant currency) versus the prior year. Our base case valuation of $350-360 per share does not depend on Allergan hitting CEO Brent Saunders’ goal of double- digit organic growth. However, strong, high single-digit organic sales growth appears achievable, as the company’s recently launched products continue to scale. One near-term positive of a lower share price is that Allergan’s $5 billion in share repurchases between now and year end will go further, and deployment of a portion of the company’s nearly $28 billion in cash remains a possible catalyst for the stock. The re-emergence of drug pricing More...

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Weitz Funds Comments on Texas Instruments Guru stock highlight
Texas Instruments (NASDAQ:TXN) is one of the largest Analog and Embedded Semiconductor manufacturers globally. Texas Instruments designs, makes and sells semiconductors to electronics designers and manufacturers across the world. Analog and embedded content is found in just about every electronic device made, including automobiles. Texas Instruments has continued to benefit from investor recognition of the company’s execution, disciplined capital allocation (returning all excess cash to shareowners) and the potential that the market for analog semiconductors has become slightly less cyclical as the industry has matured and consolidated. More...

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Weitz Funds Comments on Range Resources Guru stock highlight
Range Resources (NYSE:RRC) is an independent producer of natural gas and natural gas liquids (NGLs) based in Fort Worth, Texas, with operations in the Marcellus shale and emerging Terryville field. Range’s stock cooled some during the third quarter following a strong rebound during the first half of the year. As expected, Range completed its purchase of Memorial Resource Development during mid-September, adding another sizeable low-cost, high-return natural gas asset in northern Louisiana to its prolific Marcellus acreage position. An improved balance sheet and the opportunity to produce significant quantities of natural gas near growing demand centers at rates of return similar to the Marcellus are clear positives from the Memorial transaction. Overall, we believe the backdrop for the most efficient natural gas producers remains favorable in the intermediate term; though weather continues to pose near-term risks, given elevated gas storage levels. We believe Range shares are worth between $48-50 share. More...

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Weitz Funds Comments on Redwood Trust Guru stock highlight
Redwood Trust (NYSE:RWT) invests in mortgage-related and other real estate-related assets, and is engaged in residential and commercial mortgage banking activities. Redwood recently took meaningful steps to right- size its cost and business structure in light of market conditions. After a successful repositioning of the company’s mortgage-banking business and associated expense infrastructure, Redwood’s leaner and more nimble platform is well positioned to execute longer-term strategic initiatives intended to enhance growth opportunities and future earnings power. We believe Redwood Trust remains competitively advantaged as a residential mortgage credit investor and is well positioned to benefit from potential government-sponsored enterprise (GSE) reform and the eventual revitalization of private-label residential securitization. Trading under book value and generating a dividend yield of nearly 8%, the stock continues to represent a compelling investment value. More...

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Weitz Balanced Fund 3rd Quarter Commentary Overview of quarter and holdings Wallace Weitz - Weitz Balanced Fund 3rd Quarter Commentary
Investment Style: Moderate Allocation More...

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Wally Weitz Comments on National CineMedia Guru stock highlight
National CineMedia (NASDAQ:NCMI) operates digital, in-theatre media networks selling advertising and promotions. National CineMedia’s shares posted a modestly negative return during the quarter as investors adjusted to a slightly reduced outlook from the company’s management team. Although inventory sell-through and pricing remain strong, management indicated that current quarter results were being impacted by advertisers spending more with the Summer Olympics than previously anticipated. Shares were also likely pressured, to some degree, by a slightly disappointing summer box office, with a handful of key titles underperforming expectations. We continue to believe National CineMedia’s advertising network provides significant value and opportunity for marketers looking to reach large audiences, particularly with younger demographics. More...

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Wally Weitz Comments on Fossil Group Guru stock highlight
Fossil Group (NASDAQ:FOSL) is the fourth-largest producer of watches and the largest licenser of watches and jewelry globally. Following a strong first quarter earnings report, Fossil reported disappointing results in the second quarter due to a tough consumer environment and weakness in the wholesale channel in North America and Europe. The main drivers of the wholesale channel weakness were weak foot traffic, inventory destocking and continued moderation at their largest licensed brand, Michael Kors. This difficult environment led management to cut guidance for the full year. The retail channel and Fossil’s owned brands continued to outperform, with Skagen growing double- digits and the Fossil brand posting growth in a difficult environment. Despite low visibility through the end of the year, we expect a rebound in 2017 led by strategic investments and a large pipeline of product introductions, including wearables launches across 10 brands. Furthermore, investments in brand building and omni-channel initiatives should also benefit 2017 results. More...

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Wally Weitz Comments on Range Resources Guru stock highlight
Range Resources (NYSE:RRC) is an independent producer of natural gas and natural gas liquids (NGLs) based in Fort Worth, Texas, with operations in the Marcellus shale and emerging Terryville field. Range’s stock cooled some during the third quarter following a strong rebound during the first half of the year. As expected, Range completed its purchase of Memorial Resource Development during mid-September, adding another sizeable low-cost, high-return natural gas asset in northern Louisiana to its prolific Marcellus acreage position. An improved balance sheet and the opportunity to produce significant quantities of natural gas near growing demand centers at rates of return similar to the Marcellus are clear positives from the Memorial transaction. Overall, we believe the backdrop for the most efficient natural gas producers remains favorable in the intermediate term; though weather continues to pose near-term risks, given elevated gas storage levels. We believe Range shares are worth between $48-50 share. More...

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Wally Weitz Comments on ADT Corp Guru stock highlight
ADT Corp (NYSE:ADT) is a provider of monitored security, interactive home and business automation, and related monitoring services in the United States and Canada. After reaching a 2016 low of $24.94, ADT shares rose on February 15, 2016, in response to the announcement that private equity firm Apollo Global Management had agreed to acquire ADT for $42 per share, a slight discount to our mid-$40s estimate of business value. Apollo plans to combine ADT with its own alarm monitoring business, Protection One. We exited our roughly two year position at the end of February for a modest gain. More...

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Wally Weitz's Hickory Fund 3rd Quarter Commentary Overview of quarter and holdings Wallace Weitz - Wally Weitz's Hickory Fund 3rd Quarter Commentary
Calendar Year-to-Date Contributors More...

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Wally Weitz Comments on Wells Fargo Guru stock highlight
Wells Fargo (NYSE:WFC) is a financial services company. The opening of bogus bank and credit card accounts at Wells Fargo was a serious violation of customer trust. Management’s pressure on employees to “make the numbers” and their apparent slow response to the problem once it surfaced are serious lapses of judgement and culture. Members of top management are paying a financial price, and some may lose their jobs. The bank may face additional penalties, and the reputational damage is significant. From an investment perspective, though, while the stock will probably be under a cloud for some period of time, we do not expect a permanent impairment of the company’s business value. The company’s very low- cost deposit base, ubiquitous distribution, ample capital and diverse business lines give us confidence in the durability of Wells Fargo’s franchise. The stock trades at less than 12x our earnings estimates, and we continue to own the company at quarter end. More...

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Wally Weitz Comments on Berkshire Hathaway Guru stock highlight
LiLAC Group (NASDAQ:LILA) is a tracking stock distributed by Liberty Global during the third calendar quarter of 2015 designed to provide an avenue to tap growth opporutnities available in Latin America and the Caribbean. In May of 2016, Liberty Global closed its acquisition of Cable & Wireless Communications and attributed the operations to LiLAC Group. The consideration paid included new shares of both the Latin American and European tracking stocks. To compensate the European tracker stockholders, Liberty Global received a 67% intergroup stake in LiLAC. In an effort to remove this complexity and restore the Latin America tracker to full public ownership, Liberty Global announced on June 2 the intergroup stake would be distributed directly to shareholders. Shares were subsequently pressured, as many shareholders either sold short the new LiLAC shares before they were received or sold outright after the distribution. As the selling pressure abated, shares fell again after LiLAC missed earnings expectations in the most recent quarter. More...

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Wally Weitz Comments on Berkshire Hathaway Guru stock highlight
Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B) is a conglomerate holding company owning subsidiaries engaged in a number of business activities. Berkshire shares were helped by the closing of the Precision Castparts acquisition in the first calendar quarter, improved operating performance at its Burlington Northern railroad subsidiary and the potential of further capital allocation opportunities. Additionally, Berkshire shares were helped by the diversification of its underlying businesses as well as the appreciation of the publically traded securities it holds. Furthermore, momentum resulting from management’s general optimism about the company’s long-term prospects continues to excite investors. More...

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Wally Weitz's Partners III Opportunity Fund 3rd Quarter Commentary Fund beats index Wallace Weitz - Wally Weitz's Partners III Opportunity Fund 3rd Quarter Commentary
The Partners III Opportunity Fund’s Institutional Class returned +4.06% in the third calendar quarter, compared to +3.85% for the S&P 500 and +4.40% for the Russell 3000. For the calendar year to date, the Partners III Opportunity Fund’s Institutional Class returned +4.72%, compared to +7.84% for the S&P 500 and +8.18% for the Russell 3000. More...

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Wally Weitz Comments on Avon Products Guru stock highlight
Avon Products (NYSE:AVP) is a manufacturer and marketer of beauty and related products. Avon shares responded positively to developments during the quarter, including continued improvement in local currency sales and the identification of $70 million of cost savings in 2016. In addition, the outlook for the Brazilian economy, Avon’s single largest market, is slowly improving. Although the stock responded well this quarter to positive developments, the allocation is sized in accordance with the economic headwinds that still persist and the variance of possible outcomes among our estimates of intrinsic value. More...

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