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David Goodloe
David Goodloe
Articles (743) 

Murray Stahl's 3rd-Quarter Transactions Lean to Reductions

Guru slashes stakes in Jarden, Wendy's, AutoNation

November 27, 2015 | About:

Murray Stahl (Trades, Portfolio), chairman of Horizon Asset Management Inc., takes a value approach to investing, a strategy that has produced double-digit returns for Horizon's investors. In the third quarter, though, Stahl's largest deals were reductions of his existing stakes.

Stahl’s most noteworthy reduction of the third quarter was his sale of 3,120,268 shares of Jarden Corp. (NYSE:JAH), a Boca Raton, Fla.-based provider of a range of consumer goods, for the average price of $52.9 per share. The transaction had a -2.33% impact on Stahl’s portfolio and reduced his stake in the company by more than 44%.

Jarden has a market cap of $10.27 billion and an enterprise value of $15.03 billion. It has a P/E of 41.7, a forward P/E of 14.7, a P/B of 2.7 and a P/S of 1.1. GuruFocus has given Jarden a Financial Strength rating of 6/10 and a Profitability and Growth rating of 8/10.

Larry Robbins (Trades, Portfolio), Diamond Hill Capital (Trades, Portfolio), Ken Fisher (Trades, Portfolio), Steven Cohen (Trades, Portfolio), Pioneer Investments (Trades, Portfolio), Caxton Associates (Trades, Portfolio), John Keeley (Trades, Portfolio), Louis Moore Bacon (Trades, Portfolio) and Chris Davis (Trades, Portfolio) have shares of Jarden in their portfolios.

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Jarden sold for $46.59 per share Wednesday.

Stahl reduced his stake in Wendy’s Co. (NASDAQ:WEN), a Dublin, Ohio-based hamburger restaurant chain, by more than 40%. Stahl sold 11,365,454 shares for an average price of $9.69 per share. The deal had a -1.85% impact on Stahl’s portfolio.

Wendy’s has a market cap of $2.87 billion and an enterprise value of $5.1 billion. It has a P/E of 38.5, a forward P/E of 29.6, a P/B of 4.1 and a P/S of 1.9. GuruFocus has given Wendy’s a Financial Strength rating of 6/10 and a Profitability and Growth rating of 4/10.

Stahl is the company’s leading shareholder among the gurus with 16,769,109 shares in his portfolio. Jim Simons (Trades, Portfolio), Robert Olstein (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio), George Soros (Trades, Portfolio) and Steven Cohen (Trades, Portfolio) have shares of Wendy’s in their portfolios.

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On Wednesday Wendy’s sold for $10.51 per share.

Stahl sold 1,060,574 shares of AutoNation Inc. (NYSE:AN), a Fort Lauderdale, Fla.-based automotive retailer, for an average price of $60.83 per share. The transaction had a -0.96% impact on Stahl’s portfolio, and the shares he sold represented nearly one-fourth of his stake.

AutoNation has a market cap of $7.15 billion and an enterprise value of $9.29 billion. It has a P/E of 16.1, a forward P/E of 13.3, a P/B of 3.2 and a P/S of 0.4. GuruFocus has given AutoNation a Financial Strength rating of 5/10 and a Profitability and Growth rating of 8/10.

Edward Lampert (Trades, Portfolio), Bill Gates (Trades, Portfolio), Larry Robbins (Trades, Portfolio), Mario Gabelli (Trades, Portfolio), Steven Cohen (Trades, Portfolio) and Jeremy Grantham (Trades, Portfolio) have shares of AutoNation in their portfolios.

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AutoNation sold for $64.61 per share Wednesday.

Stahl reduced his stake in Brookfield Asset Management Inc. (NYSE:BAM), a Toronto-based manager of assets primarily in infrastructure, private equity, property and renewable power, by nearly 30%. Stahl sold 1,797,764 shares for an average price of $33.2 per share. The deal had a -0.91% impact on Stahl’s portfolio.

Brookfield has a market cap of $32.55 billion and an enterprise value of $123.81 billion. It has a P/E of 13.7, a forward P/E of 20.9, a P/B of 1.6 and a P/S of 1.7. GuruFocus has given Brookfield a Financial Strength rating of 6/10 and a Profitability and Growth rating of 8/10.

Lou Simpson (Trades, Portfolio), Glenn Greenberg (Trades, Portfolio), Tom Gayner (Trades, Portfolio), Third Avenue Management (Trades, Portfolio), Ron Baron (Trades, Portfolio), Jim Simons (Trades, Portfolio), Chris Davis (Trades, Portfolio) and Jeremy Grantham (Trades, Portfolio) have shares of Brookfield Asset Management in their portfolios.

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On Wednesday Brookfield Asset Management sold for $34.01 per share.

Not all of Stahl’s third-quarter transactions were reductions although most of the ones with significant impact on his portfolio were.

Stahl increased his stake in Silver Wheaton Corp. (SLW), a Vancouver, British Columbia-based silver mining and streaming company, by more than 65%. Stahl acquired 1,880,515 shares for an average price of $13.05 per share. The deal had a 0.41% impact on Stahl’s portfolio.

Silver Wheaton has a market cap of $5.12 billion and an enterprise value of $6.06 billion. It has a P/E of 99.2, a forward P/E of 18.9, a P/B of 1.2 and a P/S of 8.3. GuruFocus has given Silver Wheaton a Financial Strength rating of 8/10 and a Profitability and Growth rating of 8/10.

Stahl is Silver Wheaton’s leading shareholder among the gurus with 4,755,717 shares in his portfolio. Jim Simons (Trades, Portfolio), Ray Dalio (Trades, Portfolio), John Hussman (Trades, Portfolio) and Mario Gabelli (Trades, Portfolio) also have shares of Silver Wheaton in their portfolios.

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Silver Wheaton sold for $12.69 per share Wednesday.

Stahl sold his 685,042-share stake in CSX Corp. (NASDAQ:CSX), a Jacksonville, Fla.-based transportation, real estate and technology holding company, for an average price of $29.44 per share. The transaction had a -0.32% impact on Stahl’s portfolio.

CSX has a market cap of $28.11 billion and an enterprise value of $37.26 billion. It has a P/E of 14.3, a forward P/E of 14, a P/B of 2.4 and a P/S of 2.3. GuruFocus has given CSX a Financial Strength rating of 7/10 and a Profitability and Growth rating of 9/10.

PRIMECAP Management (Trades, Portfolio), Steven Cohen (Trades, Portfolio), Jim Simons (Trades, Portfolio), Ray Dalio (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio), David Winters (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio), Wintergreen Fund (Trades, Portfolio), Louis Moore Bacon (Trades, Portfolio), Chuck Akre (Trades, Portfolio), John Buckingham (Trades, Portfolio), David Dreman (Trades, Portfolio), Ken Fisher (Trades, Portfolio) and Prem Watsa (Trades, Portfolio) have shares of CSX in their portfolios.

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On Wednesday CSX sold for $28.83 per share.

Stahl made 14 new buys in the third quarter, most of which had comparatively small impacts on his portfolio.

His largest new buy was his investment in a 2,199,813-share stake in Emergent Capital Inc. (EMG), a Boca Raton, Fla.-based specialty finance company. Stahl paid an average price of $5.55 per share in a deal that had a 0.22% impact on his portfolio.

Emergent Capital has a market cap of $119.27 million and an enterprise value of $350.34 million. It has a forward P/E of 7.3, a P/B of 0.5 and a P/S of 1.4. GuruFocus has given Emergent Capital a Financial Strength rating of 6/10 and a Profitability and Growth rating of 2/10.

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Emergent Capital sold for $4.24 per share Wednesday.

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.

About the author:

David Goodloe
I'm a journalist by training. I grew up in Arkansas and earned my B.A. at the University of Arkansas. I earned my master's degree at the University of North Texas. My background includes stints at newspapers in Arkansas and Texas and teaching news writing and news editing to students at the University of Oklahoma and Richland College here in Dallas. I'm a writer/editor at GuruFocus.

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