Bernard Horn (Trades, Portfolio)’s Polaris Global Value Fund looks for undervalued stocks in which to invest. The Fund has been pretty good at it, too, producing returns of nearly 37% in 2013 and 21% the year before.
Horn’s most noteworthy transaction of the second quarter was his sale of his 49,916-share stake in Meiji Holdings Co. Ltd. (TSE:2269, Financial), a Tokyo-based confectionary company, for an average price of ¥123.67 (about $1.03 in U.S. currency) per share. The sale had a -2.08% impact on Horn’s portfolio.
Meiji Holdings has a market cap of $1.25 trillion and an enterprise value of $1.43 trillion. It has a P/E of 27.3, a P/B of 3.2 and a P/S of 1.1.
Horn sold two other stakes in the second quarter – GTECH S.p.A. (MIL:GTK, Financial) and CRH PLC (LSE:CRH, Financial). He reduced none of the stakes in his portfolio.
Horn sold his 177,989-share stake in GTECH, a Rome-based gaming company and license holder for the Italian National Lottery, for an average price of €18.16 (approximately $20.46 in American dollars) per share. The sale had a -1.21% impact on Horn’s portfolio.
GTECH has a market cap of $3.19 billion and an enterprise value of $5.78 billion. It has a P/E of 17.7, a P/B of 1.3 and a P/S of 1.0.
Two years ago, New Jersey Gov. Chris Christie privatized New Jersey’s lottery system. Higher costs associated with the company that Christie hired, Northstar New Jersey, have led to a $136 million shortfall in the state’s budget. GTECH is a partner of Northstar.
Horn sold his 113,298-share stake in CRH, an Irish building materials company, for an average price of £28.08 (roughly $43.59 in U.S. money) per share. The sale had a -1.01% impact on Horn’s portfolio.
CRH has a market cap of $13.86 billion and an enterprise value of $16.18 billion. It has a P/E of 32.6, a P/B of 1.7 and a P/S of 1.0.
Horn bought four new stakes in the second quarter – Capital One Financial Corp. (COF, Financial), Kia Motors Corp. (XKRX:000270, Financial), WorleyParsons Ltd. (ASX:WOR) and International Game Technology PLC (IGT).
Horn acquired a 49,300-share stake in Capital One Financial, a Richmond, Va.-based bank holding company, for an average price of $83.89 per share. The purchase had a 1.42% impact on Horn’s portfolio and made Capital One Financial the 15th-most valuable stake in that portfolio.
Capital One Financial has a market cap of $39.8 billion and an enterprise value of $76.53 billion. It has a P/E of 10.4, a P/B of 0.9 and a P/S of 1.8. Dodge & Cox, James Barrow (Trades, Portfolio), HOTCHKIS & WILEY, Bill Nygren (Trades, Portfolio), Diamond Hill Capital (Trades, Portfolio), Andreas Halvorsen (Trades, Portfolio), Chris Davis (Trades, Portfolio), Jeremy Grantham (Trades, Portfolio), John Buckingham (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio), Pioneer Investments (Trades, Portfolio), David Dreman (Trades, Portfolio) and Paul Tudor Jones (Trades, Portfolio) have shares of Capital One Financial in their portfolios.
Horn bought a 103,200-share stake in Kia Motors, a Seoul, South Korea-based automaker, for an average price of â‚©47073.8 (about $39.97 in American currency) per share. The purchase had a 1.37% impact on Horn’s portfolio and made Kia Motors the 20th-most valuable stake in that portfolio.
Kia Motors has a market cap of $20.61 trillion and an enterprise value of $19.89 trillion. It has a P/E of 10.3, a P/B of 1.0 and a P/S of 0.7. Tweedy Browne (Trades, Portfolio) Global Value has shares of Kia Motors in its portfolio.
Horn purchased a 497,400-share stake in WorleyParsons, an Australian provider of project delivery and consulting services to a variety of businesses, for an average price of AUD 10.44 (approximately $7.48 in U.S. dollars). The purchase had a 1.3% impact on Horn’s portfolio.
WorleyParsons has a market cap of $1.53 billion and an enterprise value of $2.38 billion. It has a P/B of 0.8 and a P/S of 0.2.
Horn acquired a 17,989-share stake in International Game Technology, a London-based gaming and lottery systems company, for an average price of $19.13 per share. The deal had a 1.03% impact on Horn’s portfolio.
International Game Technology has a market cap of $2.97 billion and an enterprise value of $6.12 billion. It has a P/E of 17.7, a P/B of 1.3 and a P/S of 1.0. Mario Gabelli (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio) and Jeremy Grantham (Trades, Portfolio) have shares of International Game Technology in their portfolios.
Horn added to 16 existing stakes in his portfolio in the second quarter. The most significant was his addition of 2,393,000 shares to his stake in Showa Denko K.K. (TSE:4004), a Tokyo-based maker of chemical products and industrial materials, for an average price of ¥164.37 (roughly $1.37 in American money) per share. The purchase had a 1.03% impact on Horn’s portfolio.
Showa Denko has a market cap of $194.25 billion and an enterprise value of $525.51 billion. It has a P/E of 24.1, a P/B of 0.6 and a P/S of 0.2.
Horn bought 156,400 shares of Svenska Handelsbanken (SHB A), a Stockholm-based financial services company, for an average price of Kr126.66 (about $15.28 in U.S. currency) per share. The purchase had a 0.75% impact on Horn’s portfolio.
Svenska Handelsbanken has a market cap of $242.19 billion and an enterprise value of $242.2 billion. It has a P/E of 16.2, a P/B of 2.0 and a P/S of 6.7.
Horn acquired 197,800 shares of YIT Oyj (OHEL:YTY1V), a Helsinki-based construction and services company, for an average price of €6.41 (approximately $7.22 in American dollars) per share. The buy had a 0.46% impact on Horn’s portfolio.
YIT Oyj has a market cap of $699.49 million and an enterprise value of $858.09 million. It has a P/E of 9.5, a P/B of 1.2 and a P/S of 0.4.
Among the other stakes to which Horn added were Ipsos (XPAR:IPS), DNB ASA (OSL:DNB), Basf SE (XTER:BAS), Hewlett-Packard Co. (HPQ) and Solvay SA (BRU:SOLB).
To view the portfolios of more gurus, visit the List of Gurus page. Not a premium member of GuruFocus? Try it free for 7 days.
