According to current portfolio statistics, a Premium feature of GuruFocus, the top-performing stocks in Kahn Brothers (Trades, Portfolio)’ portfolio during 2021 included IDT Corp. (IDT, Financial), MBIA Inc. (MBI, Financial), Patterson-UTI Energy Inc. (PTEN, Financial), Assured Guaranty Ltd. (AGO, Financial) and Pfizer Inc. (PFE, Financial).
Founded by the late Irving Kahn, the firm invests in out-of-favor stocks using bottom-up stock picking with a Benjamin Graham-style approach. The firm identifies stocks one at a time based on assets, operating performance and long-term fundamental business prospects.
As of December 2021, the firm’s $728 million equity portfolio contains 43 stocks with a quarterly turnover ratio of 2%. The top three sectors in terms of weight are financial services, health care and energy, representing 37.91%, 34.29% and 15.39% of the equity portfolio.
Shares of IDT traded around $36.53, up approximately 149.13% over the past year. The stock is significantly overvalued based on Wednesday’s price-to-GF Value ratio of 4.37.
GuruFocus ranks the Newark, New Jersey-based telecommunication service company’s financial strength 6 out of 10 on the back of a Beneish M-score that signals possible earnings manipulation despite the company having a high Piotroski F-score of 8, a strong Altman Z-score of 4.87 and debt ratios that are outperforming more than 85% of global competitors.
Shares of MBIA traded around $13.48, up approximately 87.25% over the past 12 months. The stock is modestly overvalued based on Wednesday’s price-to-GF Value ratio of 1.19.
Shares of Patterson-UTI traded around $10.07, up approximately 66.93% over the past year. The stock is significantly overvalued based on Wednesday’s price-to-GF Value ratio of 1.81.
GuruFocus ranks the Houston-based energy company’s financial strength 4 out of 10 on the back of a weak Altman Z-score of 1.08 and debt ratios that are underperforming more than 55% of global competitors.
Shares of Assured Guaranty traded around $51.87, up approximately 43.62% over the past year. The stock is modestly overvalued based on Wednesday’s price-to-GF Value ratio of 1.23.
Shares of Pfizer traded around $52.63, up approximately 45.12% during the past 12 months. The stock is modestly undervalued based on Wednesday’s price-to-GF Value ratio of 0.83.
GuruFocus ranks the New York-based drug manufacturer’s profitability 7 out of 10 on the back of three-year revenue and earnings decline rates underperforming more than 75% of global competitors despite profit margins and returns outperforming over 87% of global drug manufacturers.