Horizon Asset of Murray Stahl (Trades, Portfolio)’s Horizon Kinetics hit something of a speed bump in its annual returns in 2014. It returned only 4.3% to investors after logging returns of 36% in 2013 and 27% in 2012. That may help to explain, in part, why Stahl’s second-quarter emphasis was on his existing stakes, not new ones.
Stahl did invest in more than a dozen new buys in the second quarter, but all were small by guru standards. His most significant activity involved adding to or reducing existing stakes in his portfolio.
Stahl added to more than 150 existing stakes in the second quarter. Many of those also were modest, but some were noteworthy. For example, Stahl increased his stake in Silver Wheaton Corp. (SLW, Financial), a Canadian silver mining company, by more than 50%. Stahl purchased 979,090 shares for an average price of $19.21 per share. The deal had a 0.25% impact on Stahl’s portfolio.
Silver Wheaton has a market cap of $4.62 billion and an enterprise value of $5.47 billion. It has a P/E of 30.3, a Price/Book of 1.1 and a Price/Sales of 7.1. Stahl is Silver Wheaton’s leading shareholder among the gurus; Jim Simons (Trades, Portfolio), Ray Dalio (Trades, Portfolio), John Hussman (Trades, Portfolio), John Burbank (Trades, Portfolio) and Mario Gabelli (Trades, Portfolio) also have shares of Silver Wheaton in their portfolios.
Stahl increased his stake in LSB Industries Inc. (LXU, Financial), an Oklahoma City-based maker of commercial, institutional and residential heating, ventilation and air conditioning products, by nearly 33%. Stahl acquired 232,325 shares for an average price of $42.52 per share. The transaction had a 0.14% impact on Stahl’s portfolio.
LSB Industries has a market cap of $535.86 million and an enterprise value of $861.62 million. It has a P/E of 148.8, a Price/Book of 1.2 and a Price/Sales of 0.8. Third Avenue Management (Trades, Portfolio), Richard Snow (Trades, Portfolio) and Jim Simons (Trades, Portfolio) have shares of LSB Industries in their portfolios.
Stahl added nearly one-fifth to his stake in Royal Gold Inc. (RGLD, Financial), a Denver-based precious metals company with claims on gold, silver, copper, lead and zinc mines around the world. Stahl bought 120,085 shares for an average price of $64.1 per share. The acquisition had a 0.11% impact on Stahl’s portfolio.
Royal Gold has a market cap of $2.9 billion and an enterprise value of $2.69 billion. It has a P/E of 55.8, a Price/Book of 1.2 and a Price/Sales of 10.4. First Eagle Investment (Trades, Portfolio), Julian Robertson (Trades, Portfolio), Ray Dalio (Trades, Portfolio), Mario Gabelli (Trades, Portfolio), Jim Simons (Trades, Portfolio) and Chuck Royce (Trades, Portfolio) have shares of Royal Gold in their portfolios.
Among the other stakes to which Stahl added are DISH Network Corp. (DISH, Financial), Discovery Communications Inc. (DISCA, Financial), The E. W. Scripps Co. (SSP, Financial) and Texas Pacific Land Trust (TPL, Financial).
Stahl reduced his stake in Brookfield Asset Management Inc. (BAM, Financial), a Toronto-based asset management company, by 449,866 shares. Stahl sold the shares for an average price of $36.25 per share. The transaction had a -0.22% impact on Stahl’s portfolio.
Brookfield Asset Management has a market cap of $29.65 billion and an enterprise value of $107.48 billion. It has a P/E of 10.5, a Price/Book of 1.5 and a Price/Sales of 1.6. Lou Simpson (Trades, Portfolio), Glenn Greenberg (Trades, Portfolio), Tom Gayner (Trades, Portfolio), Third Avenue Management (Trades, Portfolio), Ron Baron (Trades, Portfolio), Chris Davis (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio) and Ken Fisher (Trades, Portfolio) have shares of Brookfield Asset Management in their portfolios.
Stahl also reduced his stake in Howard Hughes Corp. (HHC, Financial), a Dallas-based real estate development and management company. Stahl sold 72,080 shares for an average price of $149.3 per share. The deal had a -0.15% impact on Stahl’s portfolio.
Howard Hughes Corp. has a market cap of $4.88 billion and an enterprise value of $6.73 billion. It has a Price/Book of 2.2 and a Price/Sales of 7.1. Bill Ackman (Trades, Portfolio), Ron Baron (Trades, Portfolio), John Paulson (Trades, Portfolio) and Whitney Tilson (Trades, Portfolio) have shares of Howard Hughes Corp. in their portfolios.
Stahl reduced his stake in Jarden Corp. (JAH, Financial), a Boca Raton, Fla.-based provider of consumer goods. Stahl sold 181,908 shares for an average price of $52.9 per share. The sale had a -0.13% impact on Stahl’s portfolio.
Jarden has a market cap of $10.92 billion and an enterprise value of $15.31 billion. It has a P/E of 45.9, a Price/Book of 3.8 and a Price/Sales of 1.2. Larry Robbins (Trades, Portfolio), Diamond Hill Capital (Trades, Portfolio), Ken Fisher (Trades, Portfolio), Pioneer Investments (Trades, Portfolio), Caxton Associates (Trades, Portfolio), John Keeley (Trades, Portfolio), Louis Moore Bacon (Trades, Portfolio), Jim Simons (Trades, Portfolio), Steven Cohen (Trades, Portfolio) and Chris Davis (Trades, Portfolio) have shares of Jarden in their portfolios.
Among the other stakes that Stahl reduced in the second quarter are Lands' End Inc. (LE, Financial), WisdomTree Investments Inc. (WETF), Live Nation Entertainment Inc. (LYV) and Wendy's Co. (WEN).
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