Insight into the Investment Shifts of a Seasoned Value Investor
Alan Fournier (Trades, Portfolio), a seasoned investor with a background in technology sales and a history at prestigious firms like Appaloosa Management L.P., has made significant changes to his portfolio in the third quarter of 2023. Fournier, who transitioned his firm into a family office in 2018, is known for his unique investment strategy that combines growth and value investing with a long/short approach. His latest 13F filing reveals strategic adjustments, including increases in certain stocks and complete exits from others.
Alan Fournier (Trades, Portfolio)'s Investment Profile
Alan Fournier (Trades, Portfolio)'s investment career spans over three decades, beginning at Sanford C. Bernstein in 1988. His tenure in technology system sales at Digital Equipment Corporation honed his analytical skills, which he later applied to the investment management industry. Fournier's investment philosophy is a tapestry woven from his experiences at Bernstein, Pneza Investment, and Appaloosa Management, focusing on a blend of growth and value investing, complemented by hedging, leverage, options trading, and short-selling. Despite never having taken a formal finance or accounting course, Fournier's success is a testament to his hands-on learning and strategic acumen.
Key Position Increases
During the third quarter, Fournier increased his stakes in two notable companies:
- DISH Network Corp (DISH, Financial) saw an addition of 509,690 shares, bringing the total to 4,150,000 shares. This move represents a significant 14% increase in share count and a 1.08% impact on the current portfolio, with a total value of $24,319,000.
- Perimeter Solutions SA (PRM, Financial) experienced an increase of 83,233 shares, resulting in a total of 1,600,000 shares. This adjustment signifies a 5.49% increase in share count, with a total value of $7,264,000.
Summary of Sold Out Positions
Fournier also made the decision to completely exit four holdings in the third quarter:
- Antero Midstream Corp (AM, Financial) was sold off entirely, with 290,000 shares liquidated, impacting the portfolio by -1.12%.
- Airspan Networks Holdings Inc (MIMO) also saw a complete exit, with all 56,836 shares sold, though the impact on the portfolio was negligible.
Key Position Reductions
Reductions were made in five stocks, with Alphabet Inc (GOOGL, Financial) and Amazon.com Inc (AMZN, Financial) being the most significant:
- Alphabet Inc (GOOGL, Financial) was reduced by 35,000 shares, leading to an -8.54% decrease in shares and a -1.4% impact on the portfolio. The stock traded at an average price of $129.36 during the quarter and has seen a return of 1.95% over the past three months and 49.71% year-to-date.
- Amazon.com Inc (AMZN, Financial) saw a reduction of 28,000 shares, resulting in a -7.45% decrease in shares and a -1.22% impact on the portfolio. The stock's average trading price was $134 during the quarter, with a return of 3.02% over the past three months and 69.75% year-to-date.
Portfolio Overview
As of the third quarter of 2023, Alan Fournier (Trades, Portfolio)'s portfolio comprised 13 stocks. The top holdings included 17.73% in Alphabet Inc (GOOGL), 15.98% in Amazon.com Inc (AMZN), 14.71% in Microsoft Corp (MSFT, Financial), 12.79% in TransDigm Group Inc (TDG, Financial), and 8.78% in DISH Network Corp (DISH, Financial). The investments are primarily concentrated in six industries: Communication Services, Consumer Cyclical, Technology, Industrials, Energy, and Basic Materials, reflecting Fournier's strategic focus and market outlook.
Alan Fournier (Trades, Portfolio)'s latest 13F filing offers a glimpse into the strategic mind of a value investor who has navigated the markets with a distinctive approach. His recent moves reflect a continuous search for value and growth, as well as a willingness to adapt to changing market conditions. Investors and followers of Fournier's investment style will be watching closely to see how these adjustments play out in the coming quarters.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
