Broadview Advisors' Largest Buys in Q2 2015

Broadview Advisors is a hedge fund based in Wisconsin that, on its last quarterly 13F, reported a total value of its portfolio of $948 million, with a decrease of 5.97% since the previous quarter. During Q2 2015, the firm bought 12 new stocks and increased 33 of its existing stakes. The following are the most heavily weighted buys during the quarter.

It bought shares of Towers Watson & Co (TW) with an impact of 1.18% on its portfolio. The company is a professional services company that helps organizations improve performance through effective people, risk and financial management. It offers solutions in the areas of employee benefits, talent management, rewards, risk and capital management and healthcare exchanges for both retirees and active employees.

The company has a profitability and growth rating of 7 out of 10 with positive returns (ROE 12.77%, ROA 7.12%) that are outperforming 65% of the Global Business Services industry. Financial strength has a rating of 6 out of 10 with a strong cash to debt of 3.51 that is above the industry median of 1.75.

The price of the stock has risen by 142% during the last 5 years, by 4% year to date, by 7% during the last 12 months and is now -18.09% from its 52-week high and +18.47% from its 52-week low.

For the second consecutive quarter, the company posted record-high organic revenue growth. Reported revenues for the quarter had an increase of 8% over the prior year's second quarter and up 11% on an organic and constant currency basis. EBITDA was 22% of revenue, while the prior year second quarter adjusted EBITDA was 19.4%.

The main shareholder is Chuck Royce (Trades, Portfolio) with 1.13% of outstanding shares, followed by Ron Baron (Trades, Portfolio) with 0.99% and Pioneer Investments (Trades, Portfolio) with 0.56%.

It bought shares of Brunswick Corp (BC) with an impact of 0.80% on its portfolio. The company is engaged in the design, manufacture and marketing of recreation products including marine engines, boats, fitness equipment and bowling and billiards equipment. The company has four operating segments: Marine Engine, Boat, Fitness and Bowling & Billiards.

Brunswick has a profitability and growth rating of 6 out of 10 with positive returns (ROE 22.54%, ROA 8.94%) that are outperforming 81% of the Global Leisure industry. Financial strength has a rating of 8 out of 10 with a interest coverage of 11.01 and a cash to debt of 1.35 that is outperforming the industry median of 0.69.

The price of the stock has jumped by 232% during the last 5 years, has dropped by 7% year to date and has risen by 9% during the last 12 months and is now -15.80% from its 52-week high and +24.91% from its 52-week low.

During the second quarter consolidated net sales increased 6% versus second quarter 2014; 11% growth on a constant currency basis and adjusted operating earnings increased by 9%.

The main shareholder of the company is Mariko Gordon (Trades, Portfolio) with 1.76% of outstanding shares, followed by the hedge funds Meridian Funds (Trades, Portfolio) with 0.9% and RS Investment Management (Trades, Portfolio) with 0.56%.

It bought shares of Superior Energy Services Inc (SPN) with an impact of 0.58% on its portfolio. The Company is a provider of specialized oilfield services and equipment. The Company operates in four segments: Drilling Products and Services; Onshore Completion and Workover Services; Production Services; and Subsea and Technical Solutions.

The company has a weak profitability rated 4 out of 10 with negative returns (ROE -16.49%, ROA -9.11%) that are underperforming 82% of the Global Oil & Gas Equipment & Services industry and negative operating margin of -13.02% and net-margin of -16.19%. Financial strength has a rating of 6 out of 10 with a cash to debt of 0.30 that is underperforming the industry median of 0.45.

The price of the stock has dropped by 35% during the last 5 years, and by 27% year to date, but has started an upward trend that has helped the price to rise by 58% during the last 12 months. Currently, the price is -58.43% from its 52-week high and +18.75% from its 52-week low.

Richard Pzena (Trades, Portfolio) is the main guru holding 3.15% of outstanding shares of the company. Second is Jim Simons (Trades, Portfolio) with 0.69% followed by Kyle Bass (Trades, Portfolio) with .41%.

It bought shares of VWR Corp (VWR) with an impact of 0.51% on its portfolio. The company offers distribution and services network that reaches specialized labs and facilities spanning internationally. It distributes laboratory supplies, including chemicals, glassware, equipment, instruments, protective clothing, production supplies and other assorted laboratory products, which it acquires from various sources including its branded and private label suppliers and its internal manufacturing operations.

VWR has a profitability and growth rating of 3 out of 10 even so returns are positive; ROE is 19.24% and ROA is 4.17% and both of them are outperforming the Global Diagnostics & Research industry. Financial strength has a rating of 6 out of 10 with a weak cash to debt of 0.06 that is underperforming the average ratio of competitors that is 2.79.

The price of the stock has risen by 22% during the last 5 years and has had the same performance during the last 12 months; it is now -11.13% from its 52-week high and +24.37% from its 52-week low.

The financial results of the second quarter 2015 demonstrate the multiple levers that VWR has available to drive double digit earnings growth. Both the Americas and EMEA-APAC segments posted organic revenue growth rates above long-term expectations of 3 to 4%. Also, 2Q15 cash flow from operating activities was $107 million, up 101% versus 2Q14.

The main hedge fund holding shares of the company is Vanguard Health Care Fund with 2.88% of outstanding shares, followed by Columbia Wanger (Trades, Portfolio) with 2.28% and Paul Tudor Jones (Trades, Portfolio) with 0.05%.

It bought shares of Heartland Payment Systems Inc (HPY) with an impact of 0.42% on its portfolio. The company provides Card Payment Processing services to merchants in the United States which involves providing end-to-end electronic payment processing services to merchants.

Heartland Payment Systems has a profitability and growth rating of 6 out of 10 with positive returns, ROE 14.70% but a weak ROA of 2.94% that is outperforming 55% of the Global Business Services industry. Financial strength has a rating of 7 out of 10 with a interest coverage of 10.19 and a cash to debt of 0.09 that is very low compared to the industry median of 1.75.

The price of the stock has climbed by 271% during the last 5 years, by 8% year to date and by 21% during the last 12 months and is now -11.23% from its 52-week high and +24.69% from its 52-week low.

The second quarter was the most profitable in the history of Heartland Payment Systems. Net revenue grew by 28% and adjusted net income and adjusted EPS increased by 98% and 24% respectively. A year-over-year increase by 14.5% is the key to transaction volume processing growth and ultimately card processing net revenues.

The main shareholder of the company is Ken Fisher (Trades, Portfolio) with 4.85% of outstanding shares, followed by the hedge fund RS Investment Management (Trades, Portfolio) with 2.43% and Steven Cohen (Trades, Portfolio) with 0.20%.

Increased stakes

The hedge fund also increased seven of its stakes, and the most important are the following: Mgic Investment Corp (MTG) by 19%, Hibbett Sports Inc (HIBB) by 30%, Kforce Inc (KFRC) by 12%, Renasant Corp (RNST) by 15%, Cree Inc (CREE) by 8%, Flotek Indudstries Inc Del (FTK) by 18.06%, U S Silica Holdings Inc (SLCA) by 25.14% and Commvault Systems Inc (CVLT) by 20.81%

As of the latest quarter, the hedge fund has its portfolio divided by the following sectors:

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