David Dreman (Trades, Portfolio) is the founder and chairman of Dreman Value Management LLC and also serves as the firm's chief investment officer. During the third quarter, the guru’s largest buys were the following:
Dreman's position in Manulife Financial Corp. (MFC, Financial) was significantly boosted by 2,327.35%. The trade had an impact of 0.52% on the portfolio.
The company provides financial protection and wealth management products and services to customers in Asia, Canada and the United States. Third quarter net income attributed to shareholders was $1,117 million compared $622 million in the third quarter of 2015. The company reported fully diluted earnings per common share of 55 cents compared to 33 cents in the same quarter of a year before.
GuruFocus gives the stock a profitability and growth rating of 4 out of 10. The return on equity (ROE) of 7.22% and return on assets (ROA) of 0.44% are underperforming 67% of the companiesin the Global Insurance - Life industry. Financial strength has a rating of 6 out of 10. The cash-debt ratio of 2.93 is below the industry median of 8.23.
The largest shareholder of the company among the gurus is Jeremy Grantham (Trades, Portfolio) with 0.03% of outstanding shares, followed by Sarah Ketterer (Trades, Portfolio) with 0.02%.
Another position that was significantly increased was Magna International Inc. Class AĂ‚ (MGA, Financial) by 2,098.81%. The transaction had an impact of 0.51% on the portfolio.
The company is an automotive supplier. Its product capabilities include chassis, interior, exterior, seating, powertrain, electronic, vision, closure and roof systems and modules and complete vehicle engineering and contract manufacturing. During the third quarter, sales grew 16% and diluted earnings per share increased 14%. The company returned $288 million to shareholders through share repurchases and dividends.
GuruFocus gives the stock a profitability and growth rating of 7 out of 10. The ROE of 21.74% and ROA of 9.55% are outperforming 85% of the companies in the Global Auto Parts industry. Financial strength has a rating of 6 out of 10. The cash-debt ratio of 0.11 is below the industry median of 0.49.
Hotchkis & Wiley is the largest shareholder of the company among the gurus with 0.59% of outstanding shares, followed by Steven Cohen (Trades, Portfolio) with 0.17%, Grantham with 0.02%, Dreman with 0.01%, Scott Black (Trades, Portfolio) with 0.01%, Manning & Napier Advisors Inc. with 0.01% and Jim Simons (Trades, Portfolio) with 0.01%.
The guru acquired 9,185 shares of CVS Health Corp. (CVS, Financial). The new holding joined Dreman’s portfolio with an impact of 0.5%.
CVS is an integrated pharmacy health care provider. The company has three segments: Pharmacy Services, Retail Pharmacy and Corporate. Third quarter net revenues grew 15.5% and GAAP operating profit increased 20.9%. The company reported a growth of 28% for adjusted earnings per share.
GuruFocus gives the stock a profitability and growth rating of 8 out of 10. The ROE of 14.07% and ROA of 5.50% are outperforming 62% of the companies in the Global Health Care Plans industry. Financial strength has a rating of 6 out of 10. The cash-debt ratio of 0.09 is below the industry median of 1.36.
The largest shareholder of the company among the gurus is Barrow, Hanley, Mewhinney & Strauss with 0.85% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.52%, PRIMECAP Management (Trades, Portfolio) with 0.33%, Grantham with 0.11%, Mario Gabelli (Trades, Portfolio) with 0.1%, NWQ Managers (Trades, Portfolio) with 0.09%, Simons with 0.09%, RS Investment Management (Trades, Portfolio) with 0.08% and Charles de Vaulx (Trades, Portfolio) with 0.07%.
Dreman increased his holding of LyondellBasell Industries NV. (LYB, Financial) by 21.03%. The trade had an impact of 0.21% on the portfolio.
The company produces polypropylene and polypropylene compounds, propylene oxide, polyethylene, ethylene and propylene. It also provides technology licenses. Third quarter income was $1 billion and diluted earnings per share was $2.31.
GuruFocus gives the stock a profitability and growth rating of 6 out of 10. The ROE of 59.44% and ROA of 16.51% are outperforming 92% of the companies in the Global Specialty Chemicals industry. Financial strength has a rating of 6 out of 10. The cash-debt ratio of 0.20 is below the industry median of 0.60.
Andreas Halvorsen (Trades, Portfolio) is the largest shareholder of the company among the gurus with 0.97% of outstanding shares, followed by Barrow, Hanley, Mewhinney & Strauss with 0.28%, Grantham with 0.27%, First Eagle Investment (Trades, Portfolio) with 0.13% and Simons with 0.08%.
The investor increased his stake in Bank of America Corp. (BAC, Financial) by 15.44% with an impact of 0.21% on the portfolio.
It is a bank holding and a financial holding company. Through its subsidiaries, it provides banking and non-banking financial services and products throughout the United States and select international markets. During the third quarter, revenue grew 3% and net interest income increased 3%. The company reported an increase of 7% for net income.
GuruFocus gives the stock a profitability and growth rating of 4 out of 10. The ROE of 5.16% and ROA of 0.70% are underperforming 73% of the companies in the Global Banks - Global industry. Financial strength has a rating of 5 out of 10. The cash-debt ratio of 0.60 is below the industry median of 2.0.
The largest shareholder of the company among the gurus is Dodge & Cox with 2.26% of outstanding shares, followed by Barrow, Hanley, Mewhinney & Strauss with 0.79%, Hotchkis & Wiley with 0.55%, Ken Fisher (Trades, Portfolio) with 0.35%, First Pacific Advisors (Trades, Portfolio) with 0.33%, Bill Nygren (Trades, Portfolio) with 0.32% and Richard Pzena (Trades, Portfolio) with 0.28%.
Dreman established a new position by purchasing 3,390 shares of Orbital ATK Inc. (OA, Financial). The transaction had an impact of 0.16% on the portfolio.
The company designs, builds and delivers space, defense and aviation-related systems as a contractor and merchant supplier.
GuruFocus gives the stock a profitability and growth rating of 5 out of 10. The ROE of 16.79% and ROA of 5.78% are outperforming 74% of the companies in the Global Aerospace & Defense industry. Financial strength has a rating of 5 out of 10. The cash-debt ratio of 0.05 is below the industry median of 0.35.
The largest shareholder of the company among the gurus is First Eagle Investment (Trades, Portfolio) with 8.07% of outstanding shares, followed by Barrow, Hanley, Mewhinney & Strauss with 2.58%, NWQ Managers with 1.08%, Keeley Asset Management Corp (Trades, Portfolio) with 0.17%, Caxton Associates (Trades, Portfolio) with 0.14% and Pioneer Investments with 0.02%.
Another acquisition was Ares Capital Corp. (ARCC, Financial). The investor bought 15,670 shares with an impact of 0.15% on the portfolio.
Ares is involved in finance and is a closed-end, non-diversified management investment company. Its investment objective is to generate both current income and capital appreciation through debt and equity investments.
GuruFocus gives the stock a profitability and growth rating of 7 out of 10. The ROE of 7.94% and ROA of 4.46% are outperforming 63% of the companies in the Global Asset Management industry. Financial strength has a rating of 4 out of 10. The cash-debt ratio is 0.03.
The largest shareholder of the company among the gurus is Pioneer Investments with 0.62% of outstanding shares, followed by Columbia Wanger (Trades, Portfolio) with 0.51%, NWQ Managers with 0.36%, Scott Black (Trades, Portfolio) with 0.05% and Paul Tudor Jones (Trades, Portfolio) with 0.05%.
Disclosure: I do not own any shares of any stocks mentioned in this article.
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