Westport Asset Management

Westport Asset Management

Last Update: 2014-05-09

Number of Stocks: 59
Number of New Stocks: 1

Total Value: $1,057 Mil
Q/Q Turnover: 1%

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

Westport Asset Management' s Profile & Performance

Profile

The firm's investment philosophy is a modified form of bottom-up value investing that combines classic value investment with forward-looking business analysis. This approach combines low valuation, a value attribute, with improving earnings and cash flow, a growth attribute. This variation of value investing may reduce downside risk while offering the potential for capital appreciation as a stock gains favor among other investors as its price increases.

The firm's investment focus is on companies selling at a substantial discount to their intrinsic value. These companies are often out of favor with Wall Street due to transitory problems.

Principles of the firm include founder Andrew J. Knuth and Managing Director Edmund H. Nicklin, Jr.

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

Investing Philosophy

Normally, the Westport Fund invests primarily in undervalued common stocks of mid capitalization companies. A mid capitalization company is defined as having a market value between $2 and $10 billion. The Westport Fund will opportunistically invest in securities of companies with both larger and smaller market capitalizations, but expects the median market capitalization of the Fund to be in the mid capitalization range. The Westport Fund considers several factors as part of its analysis for determining value, primarily the potential for capital appreciation and secondarily the potential for current income.

Total Holding History

Performance of Westport Fund

YearReturn (%)S&P500 (%)Excess Gain (%)
201328.5431.55-3.0
201212.2615.4-3.1
20113.242.081.2
3-Year Cumulative49 (14.2%/year)55 (15.7%/year)-6 (-1.5%/year)
201020.0615.065.0
200932.1726.465.7
5-Year Cumulative136.4 (18.8%/year)125.5 (17.7%/year)10.9 (1.1%/year)
2008-30.28-376.7
200713.715.618.1
200613.2715.79-2.5
200511.614.916.7
200416.86124.9
10-Year Cumulative176.9 (10.7%/year)104.1 (7.4%/year)72.8 (3.3%/year)
200329.3628.70.7
2002-16.91-22.15.2
20013.99-11.915.9
20008.68-9.117.8
199946.132125.1
15-Year Cumulative391.5 (11.2%/year)98.3 (4.7%/year)293.2 (6.5%/year)
199812.228.6-16.4

Top Ranked Articles

Westport Asset Management Buys MSM, ROST, MA, CHKP, LH, WSH, FST, Sells DV
Westport Fund has outperformed the market in eleven out of the last twelve years. Their 10 year cumulative return is 108%, while the market gained just 16.4%. This is the portfolio update for the first quarter of Westport. Read more...
Westport Asset Management Makes Two Sells in Q3 Portfolio Update
Milwaukee-based Westport Asset Management reported its portfolio updates for the third quarter that ended Sept. 30, a short list containing only one reduction and one complete sell of all its shares of one company, in addition to three increases in current shareholdings and one new holding – six transactions in total. Read more...
Westport Asset Management Comments on Precision Castparts
Making the third largest contribution for the half was Precision Castparts Corp. (PCP), the components supplier to the aerospace industry. After being essentially flat in the first quarter, the stock rose over 19% in the second quarter, adding 177 basis points to performance. As we had anticipated, the shares rose as problems with Boeing's 787 were resolved. Read more...
Westport Asset Management RSG, SGY, LPS, CHKP, Sells KBR, AIR, ELMG, DBD
Westport Asset Management just reported their fourth quarter portfolio. The firm likes to invest in undervalued companies with market cap between $2 and $10 billion. The firm’s flagship fund Westport Fund has achieved impressive performance since 1999. The fund outperformed the market every year except for 2006, when the fund underperformed by 2.5%. Read more...
Westport Funds Selects 1 Stock in Q2
Westport Funds, a firm led by Andrew Knuth and Edmund Nicklin that has beat its index since inception, is having a strong year as well. The Westport Select Cap Fund has returned 22.06% from the start of the year through July 31, even through higher volatility in May and June. “A focus on the long-term and avoidance of short-term fads, even those that seem compelling, is a key factor in these long-term results,” the fund’s manager wrote in their second quarter shareholder letter. Read more...
» More Westport Asset Management Articles

Commentaries and Stories

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Westport Asset Management Comments on Albemarle Corp.
Albemarle Corp. (ALB) was sold when it became clear that the markets for a number of its products were unlikely to develop as planned. More...

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Westport Asset Management Comments on Core Laboratories
And finally, Core Laboratories N.V. (CLB), a unique and highly regarded oil service company, was sold in January with a gain of 87% for the 15 month holding period. It was originally purchased when its share price experienced a sharp decrease after reporting disappointing earnings for the third quarter of 2012. More...

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Westport Asset Management Comments on Brown & Brown
Brown & Brown, Inc. (BRO), the insurance broker, was sold after it met its price objective and pricing for some insurance lines was viewed as unlikely to increase further, barring calamities that would consume large amounts of industry capital. More...

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Westport Asset Management Comments on Bed Bath and Beyond
Bed Bath and Beyond, Inc. (BBBY) was added to the portfolio during the quarter in response to a significant reduction in its stock price when it reported third quarter fiscal 2014 results and gave a disappointing outlook for the remainder of the fiscal year. Nonetheless, this premier provider of domestic merchandise and household furnishings remains a market leader and continues to improve its multi-channel sales (an expansion of internet marketing capabilities). More...

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Westport Asset Management Comments on MasterCard Inc.
The greatest disappointment in the quarter was from MasterCard, Inc. (MA) whose stock price declined 10.6% and negatively impacted performance in the quarter by 37 basis points. This negative performance is attributable to results for the fourth quarter of 2013 coming in below estimates. The company decided to invest additional money in support of new customers which reduced earnings. The outlook for MasterCard, Inc. and Visa Inc. is positive as the volume of business increases when countries move from paper based systems for commerce to electronic ones. More...

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Westport Asset Management Comments on EOG Resources Inc.
The exploration and production company EOG Resources, Inc. (EOG) was the primary driver for this sector's performance, contributing 63 basis points with a nearly 17% stock price gain for the quarter. More...

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Westport Asset Management Comments on FEI Company
The third large contributor was FEI Company (FEIC), a producer of electron microscopes, whose shares were up over 15% and added 104 basis points. The company continues to benefit from its unique market position and growing acceptance of new products. More...

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Westport Asset Management Comments on DeVry Education Group Inc.
DeVry Education Group Inc. (DV) was up over 19% and added 110 basis points. This for-profit education company reported December quarter earnings that exceeded analysts' estimates and indicated that new student enrollment at its largest operating unit could soon improve. More...

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Westport Asset Management Comments on United Rentals Inc.
In this environment, the Westport Select Cap Fund continued to perform well. Several issues stood out on the upside with three adding one percentage point or more to performance. United Rentals, Inc. (URI), the country's largest equipment rental company, gained over 21% in the quarter, adding 126 basis points***. The company continues to benefit from the gradual improvement in non-residential construction and the continuing trend to rent versus buy decisions on the part of major customers. More...

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Westport Select Cap Fund First Quarter 2014 Commentary
Portfolio Review During the first quarter the Westport Select Cap Fund (WPSRX)'s R shares rose 2.13%, ahead of the Russell 2000® Index's gain of 1.12%. Since inception 16 and a quarter years ago, the Westport Select Cap Fund R shares have outperformed by just under 3 percentage points a year, 10.52% to 7.65%, both compounded annually. More...

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Westport Funds First Quarter 2014 Investor Letter
Portfolio Review More...

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Westport Funds - Westport Select Cap Fund Fourth Quarter Commentary
Portfolio Review During the fourth quarter the Westport Select Cap Fund's R shares rose 9.40%, ahead of the Russell 2000® Index's gain of 8.72%. For the year, the Select Cap Fund's R shares modestly trailed the Index with an increase of 37.22% compared to a return of 38.82% for the Russell 2000® Index. Since inception 16 years ago, the Select Cap Fund R shares have outperformed by just under 3 percentage points a year, 10.55% to 7.70%, both compounded annually. Obviously, 2013 was a remarkable year for small cap stocks. Only one other time in the past sixteen years has the Russell 2000® Index gained more than 30% and that was in 2003, but that year's gain followed a prior year loss of over 20%. By contrast, 2013's rise came after a more than 16% gain in 2012. More...

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Westport Funds Comments on Universal Health Services
In the case of Universal Health Services, Inc., the company i s likely to be one of the prime beneficiaries of expanding health care insurance coverage dictated by the Affordable Care Act * ** ( " Obama - care " ). Unique to Universal Health Services, Inc. (UHT) is its position in mental health services which account s for three - q uarters of its earnings before deductions for interest expense, taxes, depreciation and amortization . More...

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Westport Asset Management Comments on Precision Castparts Corp.
Precision Castparts Corp. (PCP) is a prime component supplier to the commercial aircraft manufacturers. Indicative of the attractiveness of this business was The Boeing Company ' s recent announcement that its year - end backlog was 5,080 planes compared to the 648 jets delivered in 2013. By the same token, Airbus ' (a subsidiary of Airbus Group NV) backlog at the end of November was 5,400 versus the 562 planes del ivered in the first eleven months of the year. More...

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Westport Asset Management Comments on Radian Group Inc.
One new position, Radian Group, Inc. (RDN), was established. One of the largest private mortgage insurance companies, Radian Group, Inc. should benefit from a recovery in the housing industry and from the Federal Housing Administration's gradual pull-back from the mortgage insurance market. More...

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Westport Funds Third Quarter Letter
Dear Fellow Shareholder: More...

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Westport Asset Management Comments on Lender Processing Services Inc.
The customers of Lender Processing Services, Inc. (LPS) are mortgage originators and servicers. The company supplies information technology "IT" to enable efficient mortgage processing and provides services that allow the customers to outsource many associated functions. Some of the services entangled the company in "robo signing" and the resulting lawsuits caused a sharp decline in its share price. In time most of the legal issues were resolved and its former parent Fidelity National Financial, Inc. decided the IT segment would enhance its product offerings, while substantial savings were available in merging its mortgage services with those of Lender Processing Services, Inc. Since the acquisition proposal is for cash and FidelityNational Financial, Inc. common stock, an analysis of Fidelity National Financial, Inc. was undertaken. The conclusion was that the new company is not attractive at this time. Consequently, holdings in Lender Processing Services, Inc. with a duration greater than one year were liquidated. More...

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Westport Asset Management Comments on Precision Castparts
Making the third largest contribution for the half was Precision Castparts Corp. (PCP), the components supplier to the aerospace industry. After being essentially flat in the first quarter, the stock rose over 19% in the second quarter, adding 177 basis points to performance. As we had anticipated, the shares rose as problems with Boeing's 787 were resolved. More...

  • Currently 3.33/5

Rating: 3.3/5 (3 votes)

Westport Asset Management Comments on Willis Group Holdings
The second largest contributor to first half performance was Willis Group Holdings plc (WSH), the international insurance broker. The shares rose over 21% and added 204 basis points to performance. The company's business turnaround continues and could be accelerated by actions expected to be announced this quarter by the new CEO. More...

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Westport Asset Management Comments on Universal Health Services Inc.
By far the biggest contributor to first half performance was the Westport Select Cap Fund's largest holding, Universal Health Services, Inc. (UHS), Class B shares. This operator of acute care and mental health hospitals gained over 38% and contributed 393 basis points to performance. Once again investors focused on the company as a prime beneficiary of the 2014 implementation of the Affordable Care Act, known by most commentators as "Obamacare." More...

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