Tom Gayner (Trades, Portfolio) is the executive vice president and chief investment officer of Markel Corp. (MKL, Financial) and president of Markel Gayner Asset Management Inc. He thinks stock is part of a business, and the business is worth what the present value of the future cash flows are.
His portfolio is composed of 122 stocks, and the following are the most heavily weighted trades during the third quarter.
He sold his stake in Chubb Corp. (CB) with an impact of -0.75% on the portfolio.
It is a holding company for several, separately organized property and casualty insurance companies referred to informally as the Chubb Group of Insurance Companies (the P&C Group). During the third quarter operating income per share was up by 9% and combined ratio was 83.3%.
GuruFocus gives Chubb a profitability and growth rating of 7 out of 10 with positive returns of ROE 12.48% and 3.96% that are outperforming 61% of other companies and 71% of the companies in the Global Insurance - Property & Casualty industry. Financial strength has a low rating of 5 out of 10, with weak cash-to-debt of 0.02 that is far below the industry median of 2.93.
HOTCHKIS & WILEY is the company's largest shareholder among the gurus with 1.09% of outstanding shares followed by PRIMECAP Management (Trades, Portfolio) with 1.04%, Pioneer Investments (Trades, Portfolio) with 0.78% and T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.54%.
Gayner increased his stake in Harley-Davidson Inc. (HOG) by 377.78% with an impact of 0.25% on the portfolio. The current stake is 0.31% of his total assets and 0.11% of the company’s outstanding shares.
The company produces and sells heavyweight motorcycles and offers motorcycle parts, accessories and related services. Dealer new motorcycle sales were down by 1.4% compared to the year-ago period. Gross margin was 34.6% in the third quarter compared to 34.9% in the third quarter of 2014.
GuruFocus gives Harley-Davidson a profitability and growth rating of 7 out of 10 with strong returns of ROE 11.46% and ROA 5.75% that are outperforming 78% of other companies in the Global Recreational Vehicles industry. Financial strength has a rating of 6 out of 10, with cash-to-debt of 0.20 that is below the industry median of 0.48.
The company's largest shareholder among the gurus is Dodge & Cox with 3.76% of outstanding shares followed by Bill Nygren (Trades, Portfolio) with 1.62%, HOTCHKIS & WILEY with 1.47% and Joel Greenblatt (Trades, Portfolio) with 0.49%.
The investor acquired a new stake in Capital One Financial Corp. (COF) with an impact of 0.24% on the portfolio. The current stake is 0.24% of his total assets and 0.02% of the company’s outstanding shares.
It is a diversified financial services company whose banking and nonbanking subsidiaries market a variety of financial products and services.
GuruFocus gives Capital One Financial a profitability and growth rating of 7 out of 10 with weak ROA 1.34% that is underperforming 61% of other companies in the Global Credit Services industry. Financial strength has a rating of 6 out of 10, with cash-to-debt of 0.16 that is below the industry median of 0.45.
Dodge & Cox is the company's largest shareholder among the gurus with 9.19% of outstanding shares followed by James Barrow (Trades, Portfolio) with 3.46%, HOTCHKIS & WILEY with 0.96% and Bill Nygren (Trades, Portfolio) with 0.77%.
Gayner increased his stake in Discovery Communications Inc. (DISCK) by 130.74% with an impact of 0.19% on the portfolio. The current stake is 0.34% of his total assets and 0.12% of the company’s outstanding shares.
The company is a nonfiction media company that provides original and purchased content to more than 2.2 billion cumulative viewers worldwide through networks that it wholly or partially owns. Third-quarter revenues decreased 1%, and adjusted OIBDA decreased 9%.
GuruFocus gives Discovery Communications a profitability and growth rating of 6 out of 10 with strong returns of ROE 17.02% and ROA 6.67% that are outperforming 73% of other companies in the Global Media - Diversified industry. Financial strength has a rating of 7 out of 10 with cash-to-debt of 0.04 that is below the industry median of 1.19.
The company's largest shareholder among the gurus is Mario Gabelli (Trades, Portfolio) with 0.35% of outstanding shares followed by Arnold Van Den Berg (Trades, Portfolio) with 0.33% and Wallace Weitz (Trades, Portfolio) with 0.16%.
The investor increased his stake in Oaktree Capital Group LLCÂ (OAK) by 40.06% with an impact of 0.17% on the portfolio. The current stake is 0.59% of his total assets and 0.3% of the company’s outstanding shares.
The company is an investment manager in alternative investments. It invests in distressed debt, corporate debt, control investing, convertible securities, real estate and listed equities.
GuruFocus gives Oaktree Capital Group a profitability and growth rating of 2 out of 10 with weak ROA 0.16% that is underperforming 67% of other companies in the Global Asset Management industry. Financial strength has a weak rating of 3 out of 10, with cash-to-debt of 5.49.
Ron Baron (Trades, Portfolio) is largest shareholder of the company among the gurus, with 1.34% of outstanding shares followed by Murray Stahl (Trades, Portfolio) with 0.34%, then Gayner with 0.3% and Pioneer Investments (Trades, Portfolio) with 0.13%.
He increased his stake in JPMorgan Chase & Co. (JPM) by 115.29% with an impact of 0.16% on the portfolio. The current stake is 0.29% of the company’s outstanding shares.
It is a financial services firm and banking institution in the U.S. with operations around the world. During the third quarter consumer and business banking average deposits were up 9%, and business banking average loans were up 6%.
GuruFocus gives JPMorgan a profitability and growth rating of 6 out of 10 with positive returns of ROE 9.28% and ROA 0.95% that are outperforming 58% of other companies in the Global Banks - Global industry. Financial strength has a rating of 4 out of 10, with cash-to-debt of 1.17 that is slightly below the industry median of 1.55.
The company’s largest shareholder among the gurus is James Barrow (Trades, Portfolio) with 0.89% of outstanding shares followed by Dodge & Cox with 0.72%, Chris Davis (Trades, Portfolio) with 0.48% and Ken Fisher (Trades, Portfolio) with 0.38%.
The investor increased his stake in Marsh & McLennan Companies Inc. (MMC) by 22.59% with an impact of 0.14% on the portfolio. The current stake is 0.77% of his total assets and 0.11% of the company’s outstanding shares.
The company is a professional services firm providing advice and solutions in the areas of risk, strategy and human capital.
GuruFocus gives Marsh & McLennan Companies a profitability and growth rating of 6 out of 10 with strong returns of ROE 21.88% and ROA 8.64% that are outperforming 83% of other companies in the Global Insurance Brokers industry. Financial strength has a rating of 6 out of 10, with cash-to-debt of 0.30 that is far below the industry median of 20.88.
PRIMECAP Management (Trades, Portfolio) is the company's largest shareholder among the gurus with 3.34% of outstanding shares followed by T Rowe Price Equity Income Fund (Trades, Portfolio) with 1.34%, Diamond Hill Capital (Trades, Portfolio) with 0.52% and Charles de Vaulx (Trades, Portfolio) with 0.13%.
Gayner increased his stake in Monsanto Co. (MON) by 30.37% with an impact of 0.13% on the portfolio. The current stake is 0.56% of his total assets and 0.06% of the company’s outstanding shares.
The company is a provider of agricultural products for farmers. It offers corn, soybean, cotton, wheat, canola, sorghum and sugar cane seeds. Its segments are Seeds and Genomics and Agricultural Productivity. During the third quarter gross profit was 49% compared to 50% in the same quarter of a year before. Selling, general and administrative expenses was 20% compared to 19% in the same quarter of a year before.
GuruFocus gives Monsanto a profitability and growth rating of 8 out of 10 with strong returns of ROE 30.23% and ROA 10.34% that are outperforming 87% of other companies in the Global Agricultural Inputs industry. Financial strength has a rating of 8 out of 10, with cash-to-debt of 0.41 that is a few above industry median of 0.32.
The company's largest shareholder among the gurus is Larry Robbins (Trades, Portfolio) with 3.07% of outstanding shares followed by Frank Sands (Trades, Portfolio) with 2.81%, PRIMECAP Management (Trades, Portfolio) with 2.7% and Chris Davis (Trades, Portfolio) with 1.68%.
The investor increased his stake in Norfolk Southern Corp. (NSC) by 55.10% with an impact of 0.11% on the portfolio. The current stake is 0.31% of his total assets and 0.05% of the company’s outstanding shares.
The company is engaged in the rail transportation of raw materials, intermediate products and finished goods primarily in the Southeast, East and Midwest and, via interchange with rail carriers, to and from the rest of the United States.
GuruFocus gives Norfolk Southern a profitability and growth rating of 8 out of 10 with strong returns of ROE 11.46% and ROA 5.75% that are outperforming 69% of other companies in the Global Railroads industry. Financial strength has a rating of 7 out of 10, with cash-to-debt of 0.05 that is below industry median of 0.34.
James Barrow (Trades, Portfolio) is the company's largest shareholder among the gurus, with 0.71% of outstanding shares followed by PRIMECAP Management (Trades, Portfolio) with 0.3%, Manning & Napier Advisors Inc. with 0.26% and Pioneer Investments (Trades, Portfolio) with 0.24%.
