Leon Cooperman (Trades, Portfolio), founder and chairman of Omega Family Office, disclosed this week that his firm’s top four trades during the third quarter included position boosts in Coterra Energy Inc. (CTRA, Financial) and Bausch Health Companies Inc. (BHC, Financial), a new holding in Las Vegas Sands Corp. (LVS, Financial) and the reduction of its holding in Navient Corp. (NAVI, Financial).
A Columbia University graduate, Cooperman applies a fundamental approach to investing combined with his macroeconomic views. The firm pays close attention to the valuation of markets, although it sometimes tries to predict market directions.
Cooperman converted his firm into a family office in 2018. As of Sept. 30, the firm’s $1.89 billion equity portfolio contains 65 stocks, with 10 new positions and a turnover ratio of 10%. The top four sectors in terms of weight are financial services, energy, technology and communication services, representing 21.82%, 15.19%, 11.29% and 9.45% of the equity portfolio.
Shares of Coterra averaged $17.17 during the third quarter; the stock is modestly undervalued based on Wednesday’s price-to-GF Value ratio of 0.72.
GuruFocus ranks the Houston-based energy company’s profitability 7 out of 10 on several positive investing signs, which include a high Piotroski F-score of 8 and profit margins and returns that outperform more than 79% of global competitors.
Bausch Health Companies
Shares of Bausch averaged $28.40 during the third quarter; the stock is modestly overvalued based on Wednesday’s price-to-GF Value ratio of 1.11.
GuruFocus ranks the Laval, Quebec-based drug manufacturer’s financial strength 2 out of 10 on several warning signs, which include a weak Altman Z-score of 0.05 and interest coverage ratios that underperform more than 90% of global competitors.
Las Vegas Sands
Shares averaged $43.05 during the third quarter; the stock is significantly overvalued based on Wednesday’s price-to-GF Value ratio of 1.66.
GuruFocus ranks the Las Vegas-based resort casino company’s financial strength 3 out of 10 on several warning signs, which include a low Piotroski F-score of 3, a weak Altman Z-score of 1.29 and debt ratios that are underperforming more than 90% of global competitors.
Shares of Navient averaged $21.46 during the third quarter; the stock is fairly valued based on Wednesday’s price-to-GF Value ratio of 1.03.
GuruFocus ranks the Wilmington, Delaware-based credit service company’s financial strength 2 out of 10 on the back of debt ratios that underperform more than 88% of global competitors despite having a high Piotroski F-score of 7.