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Top 5 1st-Quarter Buys of Murray Stahl's Horizon Kinetics

Value-oriented firm releases quarterly portfolio

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James Li
May 12, 2021
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Murray Stahl (Trades, Portfolio), co-founder of Horizon Kinetics, disclosed this week that his firm's top five buys during the first quarter were in West Fraser Timber Co. Ltd. (WFG, Financial), Brigham Minerals Inc. (MNRL, Financial), Archer-Daniels Midland Co. (ADM, Financial), Mesabi Trust (MSB, Financial) and Intercontinental Exchange Inc. (ICE, Financial).

According to its website, the New York-based firm seeks long-term capital appreciation by applying a fundamental value, contrarian-oriented investing approach. The firm believes that investors are better served by extending their time horizon instead of increasing risk.

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As of March 31, Horizon Kinetics' $4.38 billion equity portfolio contains 339 stocks, with 19 new positions and a turnover ratio of 2%. The top four sectors in terms of weight are energy, financial services, basic materials and communication services, representing 58.52%, 10.31%, 6.97% and 5.43% of the equity portfolio.

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West Fraser Timber

The firm purchased 64,459 shares of West Fraser Timber (

WFG, Financial), giving the position 0.11% weight in the equity portfolio. Shares averaged $66.04 during the first quarter; the stock is modestly overvalued based on Wednesday's price-to-GF Value ratio of 1.15.

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GuruFocus ranks the Vancouver-based lumber company's profitability 8 out of 10 on several positive investing signs, which include a high Piotroski F-score of 7, a three-star business predictability rank and profit margins and returns outperforming more than 95% of global competitors.

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Brigham Minerals

Horizon Kinetics purchased 292,937 shares of Brigham Minerals (

MNRL, Financial), giving the holding 0.10% weight in the equity portfolio. Shares averaged $14.52 during the first quarter.

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GuruFocus ranks the Austin, Texas-based mineral acquisition company's financial strength 7 out of 10 on the back of a double-digit Altman Z-score and debt ratios outperforming over 73% of global competitors despite a low Piotroski F-score of 2.

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Archer-Daniels

The firm purchased 142,765 shares of Archer-Daniels (

ADM, Financial), expanding the position 77.18% and the equity portfolio 0.19%. Shares averaged $54.90 during the first quarter; the stock is significantly overvalued based on Wednesday's price-to-GF Value ratio of 1.40.

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GuruFocus ranks the Chicago-based agricultural commodities processing company's financial strength 5 out of 10 on the back of interest coverage and debt ratios that underperform more than 55% of global competitors despite a solid Piotroski F-score of 6 and an Altman Z-score of 3.

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Mesabi Trust

The firm purchased 271,070 shares of Mesabi Trust (

MSB, Financial), boosting the stake 18.91% and the equity portfolio 0.19%. Shares averaged $28.02 during the first quarter; the stock is significantly overvalued based on Wednesday's price-to-GF Value ratio of 2.30.

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GuruFocus ranks the New York-based iron ore royalty trust's financial strength and profitability 9 out of 10 on several positive investing signs, which include a high Piotroski F-score of 7, a double-digit Altman Z-score and profit margins and returns that outperform over 96% of global competitors.

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Intercontinental Exchange

The firm added 43,706 shares of Intercontinental Exchange, increasing the position by 8.01% and the equity portfolio by 0.11%. Shares averaged $113.41 during the first quarter; the stock is fairly valued based on Wednesday's price-to-GF Value ratio of 0.99.

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GuruFocus ranks the Atlanta-based financial exchange operator's profitability 8 out of 10 on the back of a four-star business predictability rank and profit margins outperforming over 60% of global competitors.

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Disclosure: No positions.

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