The founder of the Washington state-based D3 Family of Funds – and its largest investor – guru David Nierenberg (Trades, Portfolio) manages D3’s portfolio, which is worth more than $75 million. He also serves on the Washington State Investment Board, which manages $80 billion of public employee retirement funds.
He made only four moves in his own portfolio in the first quarter, adding to two stakes and reducing two others.
Nierenberg added to two stakes in his portfolio – C&J Energy Services Ltd (CJES, Financial) and Houston Wire & Cable Co (HWCC, Financial).
The purchase of C&J Energy Services, a Houston-based provider of well construction, well completions and well services to the oil and gas industry, had the greatest impact on Nierenberg’s portfolio. He purchased 325,000 shares for an average price of $11.95 per share. The acquisition had a 5.62% impact on his portfolio. C&J Energy Services is the fourth-largest stake in Nierenberg’s portfolio.
C&J Energy Services has a market cap of $834.2 million and an enterprise value of $1.17 billion. It has a P/E of 12.3, a Price/Book of 1.1 and a Price/Sales of 0.5. Ron Baron (Trades, Portfolio) also has shares of C&J Energy Services in his portfolio.
By comparison, Nierenberg’s investment in Houston Wire & Cable Co, one of the largest wire and cable providers in the United States, was considerably smaller. Nierenberg added 30,000 shares to his stake for an average price of $10.68 per share. That transaction had a 0.45% impact on his portfolio.
Houston Wire & Cable, which was founded in 1975, has a market cap of $158.5 million and an enterprise value of $207.8 million. It has a P/E of 11.9, a Price/Book of 1.4 and a Price/Sales of 0.4. Charles Brandes (Trades, Portfolio) and Arnold Van Den Berg (Trades, Portfolio) have shares of Houston Wire & Cable in their portfolios.
On May 7, Houston Wire & Cable announced a quarterly dividend. Stockholders of record as of May 18 will receive a dividend of $0.12 per share on May 29.
Reductions
Nierenberg reduced his positions in two companies in the first quarter – Malibu Boats Inc (MBUU, Financial) and Electro Scientific Industries (ESIO, Financial).
He reduced his stake in Malibu Boats, a Tennessee-based maker of recreational vessels, by more than 28%, selling 145,000 shares for an average price of $20.78 per share. That sale had a -3.72% impact on his portfolio.
Malibu Boats, which has been in business since 1982, has a market cap of $307.8 million and an enterprise value of $338.58 million. It has a P/E of 111, a Price/Book of 9.4 and a Price/Sales of 1.4. Joel Greenblatt (Trades, Portfolio) sold his stake in Malibu Boats in the first quarter.
Nierenberg sold more than 8% of his stake in Electro Scientific Industries, a Portland, Oregon-area high technology company that was founded in 1944. Nierenberg sold 253,084 shares of Electro Scientific for an average price of $6.75 per share. The sale had a -2.61% impact on his portfolio.
Electro Scientific Industries, the second-largest stake in Nierenberg’s portfolio, has a market cap of $169.6 million and an enterprise value of $89.97 million. It has a Price/Book of 0.9 and a Price/Sales of 1.1.
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