Renowned investor Mario Cibelli recently disclosed his firm's portfolio updates for the second quarter of 2023, which ended on June 30, 2023. Cibelli is known for his value-oriented investment approach, focusing on long-term capital appreciation by investing in a concentrated portfolio of undervalued securities. His firm's Q2 2023 portfolio contained 29 stocks, with a total value of $81 million.
Top Holdings
The top holdings in Cibelli's portfolio were PayPal Holdings Inc (PYPL, Financial) with 17.17%, World Wrestling Entertainment Inc (WWE) with 11.53%, and Uber Technologies Inc (UBER) with 10.76% of the portfolio.
Key Trades of the Quarter
During the quarter, Cibelli made significant transactions in three companies: PayPal Holdings Inc, Match Group Inc, and WESCO International Inc.
PayPal Holdings Inc (NAS:PYPL)
Cibelli purchased 61,500 shares of PayPal, increasing his total holding to 207,500 shares. This trade had a 5.09% impact on the equity portfolio. The stock traded for an average price of $68.30 during the quarter. As of August 14, 2023, PayPal's stock price was $62.962, with a market cap of $69.31 billion. The stock has returned -37.55% over the past year. GuruFocus gives PayPal a financial strength rating of 6 out of 10 and a profitability rating of 10 out of 10. The company's valuation ratios include a price-earnings ratio of 17.68, a price-book ratio of 3.54, a PEG ratio of 1.16, a EV-to-Ebitda ratio of 10.31, and a price-sales ratio of 2.48.
Match Group Inc (NAS:MTCH)
The firm completely sold out its 67,500-share investment in Match Group. The shares traded for an average price of $36.59 during the quarter. As of August 14, 2023, Match Group's stock price was $44.67, with a market cap of $12.45 billion. The stock has returned -34.16% over the past year. GuruFocus gives Match Group a financial strength rating of 4 out of 10 and a profitability rating of 8 out of 10. The company's valuation ratios include a price-earnings ratio of 27.30, a EV-to-Ebitda ratio of 19.32, and a price-sales ratio of 4.25.
WESCO International Inc (NYSE:WCC)
Cibelli established a new position in WESCO International, purchasing 11,250 shares. This gave the stock a 2.5% weight in the equity portfolio. The shares traded for an average price of $145.92 during the quarter. As of August 14, 2023, WESCO's stock price was $155.97, with a market cap of $8.03 billion. The stock has returned 11.87% over the past year. GuruFocus gives WESCO a financial strength rating of 6 out of 10 and a profitability rating of 8 out of 10. The company's valuation ratios include a price-earnings ratio of 10.35, a price-book ratio of 1.67, a PEG ratio of 0.34, a EV-to-Ebitda ratio of 8.16, and a price-sales ratio of 0.37.
In conclusion, Cibelli's Q2 2023 portfolio update reveals a strategic focus on companies with strong financial strength and profitability ratings. His top trades reflect a balanced approach between buying undervalued stocks and selling those that may have reached their potential.
