Insights into the Latest 13F Filings and Strategic Shifts
Donald Smith & Co (Trades, Portfolio), under the legacy of its founder Donald G. Smith, continues to make significant moves in the stock market. Donald G. Smith, who passed away in 2019, was renowned for his deep-value investment strategy, focusing on underappreciated stocks with strong potential for earnings growth. The firm, known for its bottom-up approach, targets companies trading at substantial discounts to their tangible book value. This strategy has guided the firm since its inception in 1980, following Donald Smith's extensive experience in finance and law, including a stint volunteering for Ben Graham.
Summary of New Buys
During the first quarter of 2024, Donald Smith & Co (Trades, Portfolio) initiated positions in several companies, notably adding Corebridge Financial Inc (CRBG, Financial). The firm purchased 3,098,261 shares of CRBG, which now constitutes 2.07% of their portfolio, amounting to a significant $89.01 million.
Key Position Increases
The firm also strategically increased its holdings in several stocks. Noteworthy is the addition to their Jackson Financial Inc (JXN, Financial) stake, where they added 397,287 shares, bringing the total to 2,376,476 shares. This move increased their share count by 20.07% and had a 0.61% impact on their current portfolio, valued at $157.18 million. Another significant increase was in Golar LNG Ltd (GLNG, Financial), with an additional 870,233 shares, bringing the total to 3,586,994 shares, marking a 32.03% increase in share count, valued at $86.30 million.
Summary of Sold Out Positions
Significant portfolio adjustments included exiting positions in several companies. The most impactful was the sale of all 1,954,585 shares of Textainer Group Holdings Ltd (TGH, Financial), which had a -2.47% impact on the portfolio. Another complete exit was from Celestica Inc (CLS, Financial), where all 1,271,050 shares were sold, impacting the portfolio by -0.95%.
Key Position Reductions
Reductions were also prominent in the firm's strategy this quarter. The firm reduced its stake in Radian Group Inc (RDN, Financial) by 861,329 shares, resulting in a -21.47% decrease in shares and a -0.63% impact on the portfolio. The stock traded at an average price of $29.44 during the quarter. Similarly, Jefferies Financial Group Inc (JEF, Financial) saw a reduction of 415,676 shares, a -12.7% decrease, impacting the portfolio by -0.43%. JEF traded at an average price of $41.65 during the quarter.
Portfolio Overview
As of the first quarter of 2024, Donald Smith & Co (Trades, Portfolio)'s portfolio included 61 stocks. The top holdings were 8.24% in AerCap Holdings NV (AER, Financial), 4.73% in M/I Homes Inc (MHO, Financial), 4.57% in Unum Group (UNM, Financial), 4.56% in Eldorado Gold Corp (EGO, Financial), and 4.17% in United States Steel Corp (X, Financial). The firm's investments are primarily concentrated in eight industries: Financial Services, Basic Materials, Industrials, Consumer Cyclical, Energy, Real Estate, Technology, and Utilities.
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.
