At the end of the second quarter of 2015, the hedge fund American Financial Group Inc reported a total value of its portfolio of $1.2 billion with a decline of 2.04% since the previous quarter.
During the Q2 2015, the hedge fund bought 10 new stocks and increased five of its stakes. The following are the most heavily weighted buys during the quarter.
It bought shares of Arlington Asset Investment Corp (AI) with an impact of 1.02% on its portfolio. The company is an investment firm that acquires and holds mortgage-related and other assets. The company's portfolio consists primarily of agency-backed mortgage-backed securities and private label residential mortgage-backed securities.
The company has a profitability and growth rating of 3 out of 10 with slightly negative returns (ROE -9.01%, ROA -1.37%) that are underperforming 96% of companies in the Global Specialty Finance industry. Financial strength is rated as 6 out of 10 with an interest coverage of 4.86 and a cash to debt of 2.72.
The main hedge fund holding shares of the company is NWQ Managers (Trades, Portfolio) with 0.90% of outstanding shares, followed by Jim Simons (Trades, Portfolio) with 0.64% of shares outstanding and Chuck Akre (Trades, Portfolio), who holds 0.04%.
It bought shares of Ally Financial Inc (ALLY) with an impact of 0.88% on its portfolio. The company is engaged in Dealer Financial Services and Mortgage, Corporate and Other business. Dealer Financial Services includes its Automotive Finance operations and Insurance operations. Its primary customers are automotive dealers, which are typically independently owned businesses.
The company has a profitability and growth rating of 5 out of 10 with almost null returns (ROE -0.18%, ROA +0.89%). Financial strength has a rating of 5 out of 10 with an interest coverage of 0.45 and a cash to debt of 0.08; these ratios are underperforming 83% of the Global Specialty Finance industry.
The main shareholder is Daniel Loeb (Trades, Portfolio) with 5.40% of outstanding shares, followed by Richard Perry (Trades, Portfolio) with 4.57% of shares outstanding and Howard Marks (Trades, Portfolio) who holds 1.99%.
It bought shares of HSBC Holdings Plc (HSBC) with an impact of 0.82% on its portfolio. The company provides banking and financial services through four segments, including Retail Banking and Wealth Management, Commercial Banking, Global Banking and Markets and Global Private Banking. The Retail Banking and Wealth Management business offers deposits and provides transactional banking services to enable customers to manage their day-to-day finances and save for the future.
The company has a profitability and growth rating of 5 out of 10 with easy returns (ROE 7.04%, ROA +0.52%) that are ranked lower than 60% of the Global Banks – Global industry. Financial strength has a rating of 6 out of 10, with an interest coverage of 0.77 and a cash to debt of 3.45.
HSBC is undervalued and is trading with a margin of safety of 8% according to the DCF calculator that gives a fair price of $49.12. GuruFocus users give the company a fair value of $67.78 (average price after 5 votes) that offers investors a higher margin of safety.
The main shareholder is Ken Fisher (Trades, Portfolio) with 0.31% of outstanding shares, followed by Charles Brandes (Trades, Portfolio) with 0.05% of shares outstanding and Jim Simons (Trades, Portfolio) who holds 0.01%.
It bought shares of Pacific DataVision Inc. (PDVW) with an impact of 0.21% on its portfolio. The company is engaged in the development and sale of wireless communications applications, including the sale and installation of equipment used to run these applications. The Company offers its proprietary, cloud-based pdvConnect mobile resource management solution to dispatch-centric business who utilizes Tier 1 cellular networks.
The company has a profitability and growth rating of 2 out of 10 with negative returns (ROE -14.01%, ROA -12.87%) that are ranked lower than 78% of the other companies in the Global Software - Application industry. Financial strength has a rating of 6 out of 10 with no debt.
It bought shares of Prospect Capital Corporation (PSEC) with an impact of 0.63% on its portfolio. The company provides capital to middle-market companies and private equity financial sponsors for refinancing, leveraged buyouts, acquisitions, recapitalizations, later-stage growth investments, and capital expenditures. It invests in senior and subordinated debt and equity of companies in need of capital for acquisitions, divestitures, growth, development and recapitalization.
The company has a profitability and growth rating of 4 out of 10 with positive returns (ROE 8.86%, ROA 4.88%) that are ranked higher than 56% of the other companies in the Global Asset Management industry. Financial strength has a rating of 6 out of 10 with an interest coverage of 2.75 and a cash to debt of 0.02.
PSEC is undervalued and is trading with a margin of safety of 46% according to the DCF calculator that gives a fair price of $13.57. GuruFocus users give the company a fair value of $10.35 (average price after 5 votes) that put the stock still undervalued but with a smaller margin of safety.
The main shareholder David Dreman (Trades, Portfolio) with 0.07% of outstanding shares, followed by Manning & Napier Advisors, Inc with 0.03% of shares outstanding, and Joel Greenblatt (Trades, Portfolio) who holds 0.01%.
