Francis Chou (Trades, Portfolio)’s Chou Associates Fund has been quite successful in its value-oriented approach to investing. Last year, at a time when lower oil prices were taking a toll on many investors, the Chou Associates Fund recorded returns exceeding 12%. In the years preceding 2014, the Fund’s returns were double, even three times that.
Chou made half a dozen deals in the third quarter, most involving additions to existing stakes, but his most noteworthy third-quarter transaction was his reduction of his stake in Nokia Oyj (NOK, Financial), a Finland-based communications and information technology company.
Chou sold 1,250,000 shares – one-fourth of his stake – for an average price of $6.57 per share. The deal had a -1.98% impact on Chou’s portfolio.
Nokia Oyj has a market cap of $27.77 billion and an enterprise value of $23.39 billion. It has a P/E of 15.7, a forward P/E of 16.8, a P/B of 2.8 and a P/S of 2.0. GuruFocus has given Nokia Oyj a Financial Strength rating of 7/10 and a Profitability and Growth rating of 4/10.
Jim Simons (Trades, Portfolio), John Rogers (Trades, Portfolio), Daniel Loeb (Trades, Portfolio), Jeff Auxier (Trades, Portfolio) and Ken Fisher (Trades, Portfolio) have shares of Nokia Oyj in their portfolios.
Late Wednesday Nokia Oyj sold for $7.57 per share.
Chou also reduced his stake in Ryanair Holdings PLC (RYAAY, Financial), an Ireland-based airline, by about 2%. Chou sold 425 shares for an average price of $77.29 per share. The transaction had a -0.01% impact on Chou’s portfolio.
Ryanair has a market cap of $22.17 billion and an enterprise value of $19.76 billion. It has a P/E of 21.5, a forward P/E of 17.3, a P/B of 4.8 and a P/S of 3.3. GuruFocus has given Ryanair a Financial Strength rating of 7/10 and a Profitability and Growth rating of 9/10.
Jim Simons (Trades, Portfolio), Sarah Ketterer (Trades, Portfolio), Manning & Napier Advisors Inc., Paul Singer (Trades, Portfolio), Causeway International Value (Trades, Portfolio), John Rogers (Trades, Portfolio), Ron Baron (Trades, Portfolio), Julian Robertson (Trades, Portfolio) and Ruane Cunniff (Trades, Portfolio) have shares of Ryanair in their portfolios.
Ryanair Holdings sold for $84.19 per share late Wednesday.
Chou added to three existing stakes in his portfolio – Ascent Capital Group Inc. (ASCMA, Financial), Resolute Forest Products Inc. (RFP, Financial) and China Yuchai International Ltd. (CYD, Financial).
Chou acquired 176,591 shares of Ascent Capital Group, a Denver-based residential security monitoring company, more than doubling his stake. Chou paid an average price of $33.47 per share. The purchase had a 1.67% impact on his portfolio.
Ascent Capital Group has a market cap of $309.12 million and an enterprise value of $1.88 billion. It has a forward P/E of 29.8, a P/B of 0.8 and a P/S of 0.6. GuruFocus has given Ascent Capital Group a Financial Strength rating of 6/10 and a Profitability and Growth rating of 5/10.
Mario Gabelli (Trades, Portfolio), Jim Simons (Trades, Portfolio) and Paul Tudor Jones (Trades, Portfolio) have shares of Ascent Capital Group in their portfolios.
Late Wednesday Ascent Capital Group sold for $23.22 per share.
Chou purchased 200,000 shares of Resolute Forest Products, a Montreal-based pulp and paper producer, for an average price of $9.69 per share. The deal had a 0.57% impact on Chou’s portfolio.
Resolute Forest Products has a market cap of $681.15 million and an enterprise value of $987.15 million. It has a forward P/E of 10.0, a P/B of 0.3 and a P/S of 0.2. GuruFocus has given Resolute Forest Products a Financial Strength rating of 6/10 and a Profitability and Growth rating of 4/10.
Prem Watsa (Trades, Portfolio), Donald Smith (Trades, Portfolio), Jim Simons (Trades, Portfolio), Michael Price (Trades, Portfolio), Chuck Royce (Trades, Portfolio), Pioneer Investments (Trades, Portfolio) and Paul Tudor Jones (Trades, Portfolio) have shares of Resolute Forest Products in their portfolios.
Resolute Forest Products sold for $7.47 per share late Wednesday.
Chou bought 47,827 shares of China Yuchai International, a Singapore-based machinery company, for an average price of $14.59 per share. The transaction had a 0.2% impact on Chou’s portfolio.
China Yuchai International has a market cap of $496.52 million and an enterprise value of $330.47 million. It has a P/E of 4.6, a forward P/E of 4.3, a P/B of 1.3 and a P/S of 0.0. GuruFocus has given China Yuchai International a Financial Strength rating of 6/10 and a Profitability and Growth rating of 4/10.
Charles Brandes (Trades, Portfolio), First Eagle Investment (Trades, Portfolio) and Sarah Ketterer (Trades, Portfolio) have shares of China Yuchai International in their portfolios.
China Yuchai International sold for $12.99 per share late Wednesday.
Chou bought one new stake – POSCO (PKX, Financial), a South Korean steelmaking company – in the third quarter.
Chou invested in a 21,000-share stake in POSCO for an average price of $40.9 per share. The deal had a 0.25% impact on Chou’s portfolio.
POSCO has a market cap of $13.05 billion and an enterprise value of $34.3 billion. It has a P/E of 25.1, a forward P/E of 8.8, a P/B of 0.4 and a P/S of 0.2. GuruFocus has given POSCO a Financial Strength rating of 7/10 and a Profitability and Growth rating of 7/10.
Third Avenue Management (Trades, Portfolio), Charles Brandes (Trades, Portfolio), Martin Whitman (Trades, Portfolio), Mohnish Pabrai (Trades, Portfolio), Jim Simons (Trades, Portfolio), RS Investment Management (Trades, Portfolio), Jeremy Grantham (Trades, Portfolio) and Charlie Munger (Trades, Portfolio) have shares of POSCO in their portfolios.
Late Wednesday POSCO sold for $40.77 per share.
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