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Sally Jones
Sally Jones
Articles (580) 

Alan Fournier—Reduces PHH

March 16, 2013 | About:

On March 14, 2013, Alan Fournier, fund manager of Pennant Capital Management, reduced his position on PHH Corporation (NYSE:PHH) by 38.73%, leaving the value investor with 2,845,982 PHH shares. The current share price is $21.81. PHH Corporation has two different segments of business: mortgage services and fleet management outsourcing. PHH Mortgage sells its loans to secondary market investors. The company posted net income of $58 million in the fourth quarter of 2012, compared to $46 million for the same period in the previous year.

Check out Alan Fournier’s PHH Holding History.

PHH Corporation has a market cap of $1.24 billion. The company has a P/E ratio of 36.4, a P/B of 0.8 and a P/S ratio of 0.5023.

See a detailed analysis of PHH.

Other recent Guru trades show that Arnold Schneider sold out his PHH shares on December 31, 2013 when Jim Simons reduced his position by 34.42%, and Steve Cohen made a new buy the same day, with 18,651 shares.

PHH Corporation, like other financial services companies, is adjusting to a changing and more regulated environment. Mortgage firms are seeing lower margins, and according to Bloomberg: “The amount that lenders make from packaging each loan into securities and selling them to investors may be down as much as 40 percent from last quarter...”

See the GuruFocus checkup on PHH financials and performance.

Fournier’s company Pennant Capital Management’s portfolio lists 42 stocks with a total value of $4.7 billion, and a quarter-over-quarter turnover of 10%. The Pennant Capital portfolio heavyweight sectors are currently technology 28.7%, consumer cyclical 17.7%, and healthcare 13.7%.

Investor Guru Alan Fournier’s Top Buys, Top Sales, and Top Holdings:

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About the author:

Sally Jones
Sally Jones writes about Real Time Picks. She says, "I truly enjoy watching the Gurus in realtime and telling their story."

Rating: 3.3/5 (3 votes)


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