CONFLUENCE INVESTMENT MANAGEMENT LLC recently filed their 13F report for the fourth quarter of 2022, which ended on 2022-12-31.
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.
Confluence Investment Management LLC is an investment management firm based out of Saint Louis, Missouri. The company was originally founded in 2007 by Mark Alan Keller, who is still with the company today acting as its CEO and CIO. Confluence Investment Management conducts its research both internally and externally, focusing on investing its assets in the value stocks of small and large cap companies. The firm utilizes a fundamental and technical methodology with a bottom up investment approach. Confluence Investment Management invests most heavily in the finance sector, which alone makes up over a quarter of its total asset allocations, and also invests in a variety of other sectors including, industrials, health care, consumer staples, consumer discretionary, information technology, and real estate, among others to a lesser degree, in order of decreasing allocation. The company holds its allocations for an average of 10.3 quarters and, in the most recent quarter, has had a turnover rate of approximately 11.3%. Confluence Investment Management now operates with 24 employees of which half are investment professionals. The company oversees over $3.7 billion in total assets under management spread across over 9,700 total accounts, all of which are discretionary except for 15 which make up $630 million of its managed assets. Both of Confluence Investment Management’s total number of accounts and total assets under management have been increasing in recent years with its total number of accounts growing from under 2,000 five years ago to its current amount and its total managed assets increasing from $580 million back in 2010 to its current amount. The company mainly caters to individuals, which alone makes up over half of its entire client base. Confluence Investment Management offers a variety of strategies including its Large Cap Value, Small Cap Value, Equity Income, IDEA Plus, Increasing Dividend Equity Account, Income with Growth, Global Hard Assets, and Specialty Finance BDC, among others.
As of the latest 13F report, the guru’s equity portfolio contained 304 stocks valued at a total of $6.70Bil. The top holdings were PEP(2.78%), PGR(2.50%), and LMT(2.45%).
According to GuruFocus data, these were CONFLUENCE INVESTMENT MANAGEMENT LLC’s top five trades of the quarter.
3M Co
The guru sold out of their 439,496-share investment in NYSE:MMM. Previously, the stock had a 0.89% weight in the equity portfolio. Shares traded for an average price of $131.19 during the quarter.
On 01/04/2023, 3M Co traded for a price of $122.47 per share and a market cap of $67.69Bil. The stock has returned -27.74% over the past year.
GuruFocus gives the company a financial strength rating of 6 out of 10 and a profitability rating of 9 out of 10.
In terms of valuation, 3M Co has a price-earnings ratio of 10.67, a price-book ratio of 4.81, a price-earnings-to-growth (PEG) ratio of 5.08, a EV-to-Ebitda ratio of 8.31 and a price-sales ratio of 2.02.
The price-to-GF Value ratio is 0.69, earning the stock a GF Value rank of 10.
Masco Corp
The guru established a new position worth 716,048 shares in NYSE:MAS, giving the stock a 0.56% weight in the equity portfolio. Shares traded for an average price of $52.05 during the quarter.
On 01/04/2023, Masco Corp traded for a price of $47.42 per share and a market cap of $10.69Bil. The stock has returned -30.08% over the past year.
GuruFocus gives the company a financial strength rating of 5 out of 10 and a profitability rating of 8 out of 10.
In terms of valuation, Masco Corp has a price-earnings ratio of 12.93, a price-earnings-to-growth (PEG) ratio of 1.87, a EV-to-Ebitda ratio of 10.38 and a price-sales ratio of 1.28.
The price-to-GF Value ratio is 0.61, earning the stock a GF Value rank of 8.
SPDR Portfolio Developed World ex-US ETF
The guru sold out of their 927,175-share investment in ARCA:SPDW. Previously, the stock had a 0.42% weight in the equity portfolio. Shares traded for an average price of $28.83 during the quarter.
On 01/04/2023, SPDR Portfolio Developed World ex-US ETF traded for a price of $29.83 per share and a market cap of $13.17Bil. The stock has returned -16.02% over the past year.
There is insufficient data to calculate the stock’s financial strength and profitability ratings.
In terms of valuation, SPDR Portfolio Developed World ex-US ETF has a price-earnings ratio of 12.38 and a price-book ratio of 1.51.
Fortune Brands Home & Security Inc
CONFLUENCE INVESTMENT MANAGEMENT LLC reduced their investment in NYSE:FBIN by 416,548 shares. The trade had a 0.39% impact on the equity portfolio. During the quarter, the stock traded for an average price of $63.54.
On 01/04/2023, Fortune Brands Home & Security Inc traded for a price of $57.98 per share and a market cap of $7.42Bil. The stock has returned -33.93% over the past year.
GuruFocus gives the company a financial strength rating of 5 out of 10 and a profitability rating of 9 out of 10.
In terms of valuation, Fortune Brands Home & Security Inc has a price-earnings ratio of 10.26, a price-book ratio of 2.60, a price-earnings-to-growth (PEG) ratio of 0.80, a EV-to-Ebitda ratio of 8.25 and a price-sales ratio of 0.94.
The price-to-GF Value ratio is 0.71, earning the stock a GF Value rank of 10.
Novartis AG
The guru sold out of their 186,547-share investment in NYSE:NVS. Previously, the stock had a 0.25% weight in the equity portfolio. Shares traded for an average price of $82.89 during the quarter.
On 01/04/2023, Novartis AG traded for a price of $92.21 per share and a market cap of $199.70Bil. The stock has returned 8.72% 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, Novartis AG has a price-earnings ratio of 9.50, a price-book ratio of 3.12, a price-earnings-to-growth (PEG) ratio of 0.81, a EV-to-Ebitda ratio of 6.63 and a price-sales ratio of 3.85.
The price-to-GF Value ratio is 1.05, earning the stock a GF Value rank of 6.
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.
When GuruFocus covers insider information, we only track open market or the private purchase and sale of common stock with the transaction code of P or S. Therefore, all the transactions mentioned in this article are only the ones with transaction code of P or S.
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