ADVISORY RESEARCH INC recently filed their 13F report for the second quarter of 2022, which ended on 2022-06-30.
The 13F report details which stocks were in a guru’s equity portfolio at the end of the quarter, though investors should note that these filings are limited in scope, containing only a snapshot of long positions in U.S.-listed stocks and American depository receipts as of the quarter’s end. They are not required to include international holdings, short positions or other types of investments. Still, even this limited filing can provide valuable information.
Advisory Research is a private investment management company based out of Chicago. The company was founded in 1974 on the “principles of value investing and the commitment to provide premier investment strategies and the best in client service,” continuing to expand and improve its investment management capabilities throughout its history. The company utilizes a fundamental analysis and a bottom up investment approach to make its asset allocation decisions. Advisory Research conducts its research in house, investing in the value stocks of companies across all value caps with an emphasis on micro-cap companies with capitalizations below $300 million and international investments with those below a $4 billion market capitalization. The firm operates as a subsidiary of Piper Jaffray Asset Management Inc. and is currently headed by Chris D. Crawshaw, who acts as the company’s CEO, CIO, CCO, and chairman. Advisory Research invests most heavily in the energy sector, which alone makes up over half of its total asset allocations, and also invests in the finance, consumer discretionary, utilities and telecommunications, and industrials sectors, among others to a lesser degree, in order of decreasing allocation. The company currently holds approximately $12 billion in total assets under management spread across 1350 accounts with all but 4 of the accounts being discretionary. Although its total number of accounts has only seen moderate growth in recent years, its total assets under management has grown significantly, increasing from $4.5 billion back in 2010 to well over twice that amount today. Advisory Research caters mainly to high net worth individuals, which alone makes up over half of its client base, and also caters to individuals, investment advisors, corporations, pooled investment vehicles, charities, and others. The company currently has 71 employees with 3 investment professionals and 9 broker dealer representatives. Advisory Research’s mutual fund offerings include its All Cap Value, Strategic Income, International All Cap Value, and Emerging Markets Opportunities funds.
As of the latest 13F report, the guru’s equity portfolio contained 370 stocks valued at a total of $1.02Bil. The top holdings were DEN(6.92%), SM(5.51%), and OVV(4.99%).
According to GuruFocus data, these were ADVISORY RESEARCH INC’s top five trades of the quarter.
Enerplus Corp
The guru established a new position worth 2,926,378 shares in NYSE:ERF, giving the stock a 3.78% weight in the equity portfolio. Shares traded for an average price of $13.76 during the quarter.
On 08/17/2022, Enerplus Corp traded for a price of $14.39 per share and a market cap of $3.33Bil. The stock has returned 171.06% over the past year.
GuruFocus gives the company a financial strength rating of 5 out of 10 and a profitability rating of 7 out of 10.
In terms of valuation, Enerplus Corp has a price-earnings ratio of 6.73, a price-book ratio of 4.67, a EV-to-Ebitda ratio of 3.69 and a price-sales ratio of 2.29.
The price-to-GF Value ratio is 1.36, earning the stock a GF Value rank of 1.
Chesapeake Energy Corp
The guru established a new position worth 352,317 shares in NAS:CHK, giving the stock a 2.79% weight in the equity portfolio. Shares traded for an average price of $90.29 during the quarter.
On 08/17/2022, Chesapeake Energy Corp traded for a price of $98.33 per share and a market cap of $11.88Bil. The stock has returned 92.70% over the past year.
GuruFocus gives the company a financial strength rating of 4 out of 10 and a profitability rating of 3 out of 10.
In terms of valuation, Chesapeake Energy Corp has a price-earnings ratio of 10.27, a price-book ratio of 2.06, a EV-to-Ebitda ratio of 13.65 and a price-sales ratio of 2.61.
Devon Energy Corp
ADVISORY RESEARCH INC reduced their investment in NYSE:DVN by 528,526 shares. The trade had a 2.5% impact on the equity portfolio. During the quarter, the stock traded for an average price of $65.21.
On 08/17/2022, Devon Energy Corp traded for a price of $64.14 per share and a market cap of $42.00Bil. The stock has returned 151.73% over the past year.
GuruFocus gives the company a financial strength rating of 7 out of 10 and a profitability rating of 5 out of 10.
In terms of valuation, Devon Energy Corp has a price-earnings ratio of 8.15, a price-book ratio of 4.16, a EV-to-Ebitda ratio of 5.09 and a price-sales ratio of 2.47.
The price-to-GF Value ratio is 1.75, earning the stock a GF Value rank of 1.
Ovintiv Inc
During the quarter, ADVISORY RESEARCH INC bought 524,081 shares of NYSE:OVV for a total holding of 1,157,467. The trade had a 2.26% impact on the equity portfolio. During the quarter, the stock traded for an average price of $51.58.
On 08/17/2022, Ovintiv Inc traded for a price of $48.08 per share and a market cap of $12.23Bil. The stock has returned 105.52% over the past year.
GuruFocus gives the company a financial strength rating of 5 out of 10 and a profitability rating of 7 out of 10.
In terms of valuation, Ovintiv Inc has a price-earnings ratio of 5.22, a price-book ratio of 2.11, a EV-to-Ebitda ratio of 4.37 and a price-sales ratio of 1.17.
The price-to-GF Value ratio is 1.24, earning the stock a GF Value rank of 3.
Coterra Energy Inc
The guru sold out of their 889,357-share investment in NYSE:CTRA. Previously, the stock had a 1.92% weight in the equity portfolio. Shares traded for an average price of $30.28 during the quarter.
On 08/17/2022, Coterra Energy Inc traded for a price of $29.35 per share and a market cap of $23.35Bil. The stock has returned 96.29% over the past year.
GuruFocus gives the company a financial strength rating of 7 out of 10 and a profitability rating of 8 out of 10.
In terms of valuation, Coterra Energy Inc has a price-earnings ratio of 8.19, a price-book ratio of 1.91, a price-earnings-to-growth (PEG) ratio of 0.08, a EV-to-Ebitda ratio of 5.11 and a price-sales ratio of 3.23.
The price-to-GF Value ratio is 0.69, earning the stock a GF Value rank of 8.
Please note, the numbers and facts quoted are as of the writing of this article and may not factor in the latest trading data or company announcements.
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