David Winters (Trades, Portfolio) is the manager of Wintergreen Fund (Trades, Portfolio), and the former chief executive officer and chief investment officer of Franklin Mutual Advisers.
His portfolio is composed of 12 stocks, one of which was new to the portfolio in Q1. The total value of the portfolio is $606 million with a 2% Q/Q turnover.
During the last quarter, he mostly reduced his positions and the following are the trades with the biggest impact on his portfolio.
He reduced by 68.58% his stake in Coca-Cola Co (KO) with an impact of 9.12% on his portfolio. After this sale, he holds 788,223 shares of the company, representing 0.02% of KO’s outstanding shares, or 5.27% of his total assets.
Coca-Cola owns or licences and markets more than 500 nonalcoholic beverage brands, mainly sparkling beverages, but also a variety of still beverages such as waters, enhanced waters, juices and juice drinks, ready-to-drink teas and coffees, and energy and sports drinks.
During the last 12 months, the price of the stock declined by 2%; it is now trading with a P/E(ttm) ratio of 25.50 and according to the DCF model looks overpriced by 76%.
With an impact of 5.1% on his portfolio, he sold out his stake of MasterCard Inc (MA) with a final gain of 193%. MasterCard is a technology company in the payments industry that facilitates the processing of payment transactions, including authorization, clearing and settlement, and related products and services. The company is trading with a P/E(ttm) of 28.30 near its 52 weeks high (-1.99% and +33.00% from its 52-week low). The company has amazing returns (ROE 58.09%, ROA 25.52%) and during the last year the price rose by 21%.
He reduced by 23.46% his stake in Reynolds American Inc (RAI) with an impact of 3.97% on his portfolio. After this sale, he holds 1,607,838 shares of the company, representing 0.3% of RAI’s outstanding shares or 18.28% of the total assets he manages.
The company, through its subsidiaries, manufactures cigarettes and other tobacco products in the United States.
During the last 12 months, the price of the stock increased by +19%; it is now trading with a P/E(ttm) ratio of 25.30, and according to the DCF model looks overpriced by 71%.
He reduced by 16.25% his stake in Franklin Resources Inc (BEN) with an impact of 2.68% on his portfolio. After this sale he holds 1,993,067 shares of the company, representing 0.32% of BEN’s outstanding shares or 16.78% of his total assets.
The company operates as an investment management company and provides investment management and related services to investors in jurisdictions worldwide through products that include U.S.- and non-U.S.-registered open-end and closed-end funds, unregistered funds, and institutional, high net-worth and separately-managed accounts..
During the last 12 months, the price of the stock dropped by 11%; it is now trading with a P/E(ttm) ratio of 13.20 and according to the DCF model looks undervalued by 35%.
He reduced by 53.60% his stake in Lorillard Inc (LO) with an impact of 2.57% on his portfolio. After this sale he holds 279,885 shares of the company that represent the 0.08% of LO’s outstanding shares or 3.02% of his total assets.
The company through its subsidiaries is engaged in the manufacture and sale of cigarettes and manufactures all of its products at its Greensboro, North Carolina facility.
During the last 12 months, the price of the stock rose by +18%; it is now trading with a P/E(ttm) ratio of 21.50 and according to the DCF model looks overpriced by 39%.
He reduced by 16.06% his stake in Altria Group Inc (MO) with an impact of 1.7% on his portfolio. After this sale he holds 1,438,205 shares of the company that represent the 0.07% of MO’s outstanding shares or 11.87% of his total assets.
The company, through its subsidiaries is engaged in the manufacture and sale of cigarettes and certain smokeless tobacco products in the United States.
During the last 12 months, the price of the stock rose by +16%; it is now trading with a P/E(ttm) ratio of 19.40 and according to the DCF model looks overpriced by 31%.
He bought 292,455 shares of CSX Corp (CSX) which is engaged in transportation supplier, which provides rail-based transportation services including traditional rail service and the transport of intermodal containers and trailers. After this buy the price of the stock did not face much change (-1%). The company is trading with a P/E (ttm) of 17.30 (-9.37% from its 52 weeks high and +12.89% from its 52 weeks low). It has positive returns (ROE +17.89% and ROA 6.06%) and looks undervalued by 26% according to the DCF model.
The investor now holds 0.03% of outstanding shares of the company and CSX now comprises 1.5% of his total assets.
With an impact of 0.26% on his portfolio, he sold out his stake of H.B. Fuller Company (FUL) with a final loss of 6%. FUL is a formulator, manufacturer and marketer of adhesives, sealants, paints and other specialty chemical products. The company is trading with a high P/E (ttm) of 46.90 (-19.39%Â from its 52 weeks high and +11.94% from its 52 weeks low). The company has positive returns (ROE 4.89%, ROA 2.30%) and during the last year the price dropped by 18%.
With an impact of 0.25% on his portfolio, he sold out his stake of Domtar Corp(UFS) with a final gain of 7%. UFS is an integrated manufacturer and marketer of uncoated freesheet paper in North America. The company is trading with a P/E(ttm) of 6.60 (-10.21% from its 52 weeks high and +31.27% from its 52 weeks low). The company has positive returns (ROE 15.14%, ROA 6.89%) but during the last year the price dropped by 6%.
