Donald Smith (Trades, Portfolio) sold many stocks during the third quarter. Some of them brought him some profits, but he lost on other investments. His biggest quarterly losses were 88% and 60% on Peabody Energy Corp. (BTU) and Tecumseh Products Co. (TECU), but it had a huge gain of 262% on Bassett Furniture Industries Inc. (BSET).
Smith is the CEO of Donald Smith (Trades, Portfolio) & Co. and is a deep-value manager employing a strict bottom-up approach. He invests in stocks of out-of-favor companies selling at discounts to tangible book value.
Montpelier RE Holdings Ltd. (MRH)
It had a long-term position in the portfolio since 2010 and, in the last three quarters, the guru has been reducing his stake. In this quarter he sold the stake and gained 45%. The deal had an impact of -1.94% on the portfolio.
The company has a market cap of $1.78 billion and through its subsidiaries in Bermuda, the U.S., the United Kingdom (the U.K.) and Switzerland (collectively Montpelier), provides customized and innovative insurance and reinsurance solutions to the global market.
David Dreman (Trades, Portfolio) and Jim Simons (Trades, Portfolio) closed their positions in this quarter.
Biglari Holdings Inc. (BH)
Smith bought 14,449 shares in the first quarter for an average price of $42.19 and sold the shares in the third quarer below the purchase price at $403.79 and lost 4% on the investment. The deal had an impact of -0.13% on the portfolio.
The company has a market cap of $673.37 million. It has a P/E of 25.60, a forward P/E ratio of 12.25, a P/B of 1.38 and a P/S of 0.81. GuruFocus has given the stock a financial strength rating of 6/10 and a profitability and growth rating of 6/10.
It is a diversified holding company engaged in a number of diverse business activities. The company is currently engaged in the franchising and operating of restaurants.
The stock lost its position in the portfolios of James Barrow (Trades, Portfolio), Prem Watsa (Trades, Portfolio), Jim Simons (Trades, Portfolio) and Chuck Royce (Trades, Portfolio).
Tecumseh Products Co.
It had a long-term position in the portfolio since 2011, and the guru had been increasing and reducing his stake but never exited his position. In the third quarter he sold the shares and lost 60% on the investment. The deal had an impact of -0.09% on the portfolio.
The company has a market cap of $92.63 million. It has a forward P/E ratio of 26.18, a P/B of 0.69 and a P/S of 0.14. GuruFocus has given the stock a financial strength rating of 6/10 and a profitability and growth rating of 3/10.
Chuck Royce (Trades, Portfolio) and Jim Simons (Trades, Portfolio) exited their positions in this quarter.
Peabody Energy Corp.
The guru acquired a position in this company in Q3 2014; in the last two quarters he has been reducing his stake below 0.1%. In the third quarter the guru sold the stake and lost 88% on the investment. The deal had an impact of -0.08% on the portfolio.
The company has a market cap of $143.38 million. It has a P/B of 0.11 and a P/S of 0.02. GuruFocus has given the stock a financial strength rating of 6/10 and a profitability and growth rating of 5/10.
Peabody Energy is a private-sector coal company, and it owns interests in 30 coal mining operations, including a majority interest in 29 coal operations located in the U.S. and Australia.
The stock also lost its position in the portfolio of George Soros (Trades, Portfolio).
Bassett Furniture Industries Inc.
It had a long-term position in the portfolio since 2012. In the last three quarters the investor has been reducing his stake; in the third quarter he sold the stake and gained 262% on the investment.
The company has a market cap of $261.87 million. It has a P/E 13.95, a forward P/E ratio of 24.39, a P/B of 1.49 and a P/S of 0.62. GuruFocus has given the stock a financial strength rating of 7/10 and a profitability and growth rating of 8/10.
The stock was traded by three investors:Â Jim Simons (Trades, Portfolio) and Mario Gabelli (Trades, Portfolio) reduced their stake, and Donald Smith (Trades, Portfolio) closed his position.
UTStarcom Holdings Corp. (UTSI)
It had a long-term position in the portfolio since 2012. In the last three quarters the investor has been reducing his stake and in the third quarter sold the shares and lost 7% on the investment.
The company has a market cap of $91.56 million. It has a forward P/E ratio of 50.00, a P/B of 0.84 and a P/S of 0.73. GuruFocus has given the stock a financial strength rating of 3/10 and a profitability and growth rating of 3/10.
It is a telecom infrastructure provider company. The company is engaged in providing next-generation broadband products, solution and services.
The stock was traded by four investors. Donald Smith (Trades, Portfolio) exited his position, and Arnold Schneider (Trades, Portfolio), Charles Brandes (Trades, Portfolio) and Jim Simons (Trades, Portfolio) reduced their holdings.
