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Match Bull Markets while Outperforming Bearish Ones; Auxier Fund’s Large Cap Holdings: PM, WMT, KO, WTW, TRV, APOL

February 09, 2011 | About:
Jeff Auxier of Auxier Focus Fund reported his fourth quarter portfolio. For the year 2010 his fund returned 10.1% compared with 15.06% for the S&P. Since inception in 1999, his fund has outperformed the market by 92% cumulatively. The goal of Jeff Auxier is to match bull markets while dramatically outperforming bearish ones.

Indeed, if we look into the performance of Auxier Focus Fund in the down years of the last decade, it did better than the market by 24.5% in 2001, when the market declined by 12%; it outperformed again in 2002 by 15%, and 12% in 2008.

Jeff Auxier may not be a household name of mutual fund managers, but he has achieved a track record that many house name mutual fund managers would love to have. Over the past 10 years ended 2009, his fund has a cumulative return of 86.5%, while the S&P 500 lost 8.1%. In 2008, the market was down 37%, his fund lost 24.5%, a lot less than the market. In this year until June 30, his fund was down 3.99%, while the market lost 6.65%.

Jeff Auxier has demonstrated outstanding risk management capabilities with his fund. Due to his excellent performances, Morningstar has assigned 5-star for 3-year, 5-year and 10-year performances.

By the way, we at GuruFocus may have contributed to his outstanding performances, as Jeff Auxier has been a Premium Member of GuruFocus since 2007. Why don’t you also sign up our Premium Membership if you have not done so?

Similar to Steven Romick, Arnold van den Berg and Don Yacktman, Jeff Auxier likes high quality large caps now. He wrote in his latest shareholder letter:

“High quality stocks should benefit from increasing dividend payout ratios and low relative valuations. In time, rising risk premiums on bonds should cool speculation, aiding investors focused on fundamentals and cash flow. As markets become more expensive we tend to gravitate toward defensive positions —special situations where the return is more dependent on, for example, managerial acumen than the general supply/demand fluctuations of markets. These include work-outs, breakups, spinoffs and post-bankruptcy IPOs (initial public offerings).”

These are his top holdings:

No. 1: PHILIP MORRIS INTERNATIONAL INC. (NYSE:PM), Weightings: 4.22% - 151,573 Shares

Philip Morris International is the international tobacco company, with products sold in over 160 countries. Philip Morris International Inc. has a market cap of $103.38 billion; its shares were traded at around $59.06 with a P/E ratio of 15.3 and P/S ratio of 1.7. The dividend yield of Philip Morris International Inc. stocks is 4.5%.

No. 2: WALMART STORES INC. (NYSE:WMT), Weightings: 2.71% - 105,750 Shares

Wal-Mart Stores, Inc. is the world's largest retailer. Walmart Stores Inc. has a market cap of $203.23 billion; its shares were traded at around $56.38 with a P/E ratio of 14.6 and P/S ratio of 0.5. The dividend yield of Walmart Stores Inc. stocks is 2.1%. Walmart Stores Inc. had an annual average earning growth of 11.1% over the past 10 years. GuruFocus rated Walmart Stores Inc. the business predictability rank of 5-star.

No. 3: COCACOLA COMPANY (NYSE:KO), Weightings: 2.52% - 80,635 Shares

The Coca-Cola Company is the world's largest beverage company and is the producer and marketer of soft drinks. Cocacola Company has a market cap of $145.17 billion; its shares were traded at around $62.87 with a P/E ratio of 18.2 and P/S ratio of 4.7. The dividend yield of Cocacola Company stocks is 2.8%. Cocacola Company had an annual average earning growth of 8.9% over the past 10 years. GuruFocus rated Cocacola Company the business predictability rank of 3.5-star.

Coca-Cola Director Barry Diller bought 390,000 shares of KO stock in November of 2010.

No. 4: WEIGHT WATCHERS INTERNATIONAL INC. (NYSE:WTW), Weightings: 2.4% - 134,402 Shares

Weight Watchers International, Inc. is the largest provider of weight control programs in the world. Weight Watchers International Inc. has a market cap of $2.91 billion; its shares were traded at around $42.06 with a P/E ratio of 15.7 and P/S ratio of 2. The dividend yield of Weight Watchers International Inc. stocks is 1.8%. Weight Watchers International Inc. had an annual average earning growth of 12.7% over the past 10 years.

No. 5: THE TRAVELERS COMPANIES INC. (NYSE:TRV), Weightings: 2.39% - 90,007 Shares

The Travelers Companies Inc. is a provider of commercial property-liability insurance and asset management services. The Travelers Companies Inc. has a market cap of $25.91 billion; its shares were traded at around $57.88 with a P/E ratio of 8.9 and P/S ratio of 1. The dividend yield of The Travelers Companies Inc. stocks is 2.6%. The Travelers Companies Inc. had an annual average earning growth of 28.3% over the past 5 years.

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About the author:

Charlie Tian, Ph.D. - Founder of GuruFocus. You can now order his book Invest Like a Guru on Amazon.

Rating: 2.4/5 (10 votes)


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GuruFocus has detected 8 Warning Signs with Philip Morris International Inc $PM.
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