Mason Hawkins is primarily a value investor similar to Benjamin Graham and Philip Fisher. These legendary gurus look for businesses with good management, good people, and companies that sell for deep discounts significantly less than their intrinsic value.
Hawkins founded Southeastern Asset Management in 1975 and is the chairman and CEO for the company. Hawkins and his team of long-term value investors look to build portfolios primarily focusing on 18 to 22 stocks at any given time, looking at a wide range of industries. Hawkins believes that concentrating allows for adequate diversification, while providing some of the best opportunities to maximize returns, and minimize loss of principal.
On Oct. 30, Hawkins added 928,864 shares of Actuant Corp. (ATU, Financial) and now holds a total of 6,206,884 shares in the stock.
Actuant was incorporated in 1910 in Wisconsin. The company's business segments are Industrial, Energy and Engineered Solutions. Its raw materials includes steel, plastic resin and copper. Actuant is a diversified industrial company serving customers in more than 30 countries.
Actuant has a market cap of $1.33 billion, a P/E ratio of 71.28, an enterprise value of $1.75 billion, and a dividend yield of 0.18%.
One severe warning for Actuant is that margins have been on the decline for the past five years, averaging a 11.6% decline over that time span.
Below is a Peter Lynch chart for Actuant Corp.
In the third quarter of 2015, Hawkins added 1,253,469 shares of FedEx Corp. (FDX, Financial), a 24.52% increase, and now owns a total of 6,386,107 shares in this holding.
FedEx is also traded in Switzerland, Brazil, and Argentina.
FedEx was incorporated in Delaware on Oct. 2, 1997. FedEx delivers packages via air, ground and sea across the world that covers more than 220 countries and territories, linking more than 99% of the world’s GDP.
One amazing thing that I have read about FedEx is how founder Fred Smith once saved the company by gambling. Smith started operations in 1971, but two years later, the funds had dwindled to $5,000. Smith then flew to Las Vegas desperate to pay his bills for his company, and he won $27,000 playing Blackjack. He immediately wired the money back to FedEx to keep it running for another week.
Hawkins explains his rationality for increasing his holding:
“FedEx (FDX, Financial) rose 22% for the year and 8% in the fourth quarter. The company expanded operating margins in its Express, Ground and Freight segments over the year and executed on profit improvement initiatives. EPS (earnings per share) grew as did our appraisal. The company repurchased close to 10% of its shares. FedEx moved to further entrench itself in Ground delivery through expansion capex and the acquisition of Genco, which handles reverse logistics for retailer returns. FedEx expects to benefit over the next year from a healthy U.S. economy and lower fuel prices, which improve the relative cost of faster delivery via planes at a premium versus slower shipping via boats.”
FedEx has a market cap of $40.23 billion, a P/E ratio of 36.53, an enterprise value of $43.95 billion, a P/S ratio of 0.85 and a dividend yield of 0.67%.
Below is a Peter Lynch chart for FedEx.
Hawkins also added 5,019,254 shares of Wynn Resorts in the third quarter of 2015, a 70.57% increase. He now owns 12,132,059 total shares in the stock.
Wynn is a developer, owner and operator of destination casino resorts. Wynn resorts owns 72.2% of Wynn Macau,Ă‚ which operates a casino hotel resort property in the Macau Special Administrative Region of China. The company also owns and operates a casino hotel resort property in Las Vegas.
Wynn is currently expanding to build the Everett hotel and casino in Massachusetts and plan to have it up and running by 2018. In addition, the new Wynn Palace located in Cotai near Macau is set to be launched in the first quarter of 2016.
Wynn Resorts has a market cap of $6.33 billion, a P/E ratio of 32.40, an enterprise value of $13.17 billion and a dividend yield of 4.82%.
Below is a Peter Lynch chart for Wynn Resorts.
Cheers to your investment success.
