David Herro (Trades, Portfolio) has been a manager of the Oakmark International Fund since 1992. During his tenure, Morningstar has named him International Fund Manager of the Year (2006) and International Stock Fund Manager of the Decade (2000-2009). In recent years, the Oakmark International Fund has provided evidence to support those honors with returns exceeding 29% in 2012 and 2013.
It should come as no surprise that nearly all of Herro’s transactions in the first quarter had a distinct international flavor.
Herro increased his most valuable stake, Credit Suisse Group (XSWX:CSGN, Financial), purchasing 6,825,000 shares for an average price of CHF22.69 (nearly $23.59 in American dollars) per share. Credit Suisse Group is a financial services holding company based in Zurich, Switzerland.
Credit Suisse has a market cap of $38.68 billion and an enterprise value of $153.79 billion. It has a P/E of 21.0, a Price/Book of 0.9 and a Price/Sales of 1.6. Causeway International Value (Trades, Portfolio) and Signature Select Canadian Fund (Trades, Portfolio) have shares of Credit Suisse in their portfolios.
The transaction had a 0.65% impact on Herro’s portfolio.
Herro added to some other noteworthy stakes in his portfolio, including Toyota Motor Corp (TSE:7203, Financial), Honda Motor Co Ltd (TSE:7267, Financial) and Diageo PLC (LSE:DGE, Financial).
Herro made two new buys in the first quarter, neither of which had much impact on his portfolio – Adidas AG (XTER:ADS, Financial) and Komatsu Ltd (TSE:6301).
Divestitures and reductions
By volume, Herro’s stake in Lloyds Banking Group PLC (LSE:LLOY), a British financial institution, is his largest – by far. It is nearly three times the size of Herro’s second-largest stake even after Herro sold 397,792,000 shares for an average price of £0.77 ($1.18 in U.S. money) per share in the first quarter.
Lloyds has a market cap of $62.46 billion and an enterprise value of $84.19 billion. It has a Price/Book of 1.3 and a Price/Sales of 1.9. Causeway International Value (Trades, Portfolio) has shares of Lloyds in its portfolio.
The transaction had a -0.65% impact on Herro’s portfolio.
Herro also reduced his stake in his second-largest holding, Intesa Sanpaolo (MIL:ISP), an Italian banking group, selling 40,788,000 shares for an average price of €2.77 (about $3.02 in U.S. currency). The sale had a -0.43% impact on his portfolio.
Intesa Sanpaolo has a market cap of $51.6 billion and an enterprise value of $53.43 billion. It has a P/E of 40.5, a Price/Book of 0.4 and a Price/Sales of 4.0.
Herro sold his stakes in four companies in the first quarter – Canon Inc (TSE:7751), Koninklijke Ahold NV (XAMS:AH), Thomson Reuters Corp (TSX:TRI) and Continental AG (XTER:CON).
Herro sold 5,663,000 shares of Canon, a Tokyo-based electronics company, for an average price of ¥32.79 (about $0.26 in American money) per share. The transaction had a -0.067% impact on his portfolio.
Canon has a market value of $4.72 trillion and an enterprise value of $4.08 trillion. It has a P/E of 19.5, a Price/Book of 1.6 and a Price/Sales of 1.3.
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