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Tiziano Frateschi
Tiziano Frateschi
Articles (2014)  | Author's Website |

Tom Russo's Best Investments of the Year

Assets with the highest returns year to date

December 28, 2016 | About:

Tom Russo (Trades, Portfolio) oversees $3 billion as a general partner of the Semper Vic Partners and Semper Vic Partners (Q.P.) limited partnerships. He also oversees funds in discretionary, individually managed accounts for individuals, trusts and endowments. The following are the best performers of his investments this year.

Martin Marietta Materials Inc. (NYSE:MLM) with a market cap of $14.55 billion has gained 69% year to date. The guru's stake represents 3.08% of his total assets.

The company is a producer of granite, limestone, sand, gravel and aggregate products for the construction industry.

It is trading with a price-earnings (P/E) ratio of 36.16. Over the last 12 months, the price has risen by 64% and is now trading 3.05% below its 52-week high and 111.61% above its 52-week low. The stock is overpriced by 238% at $229.19. The DCF calculator gives a fair value of $67.85. The Peter Lynch earnings line gives a fair value of $95.1.

GuruFocus gives the stock a profitability and growth rating of 8 out of 10. The return on equity (ROE) of 10.03% and return on assets (ROA) of 5.68% are outperforming 62% of the companies in the Global Building Materials industry. Financial strength has a rating of 6 out of 10. The cash-debt ratio of 0.03 is below the industry median of 0.41.

Tom Russo (Trades, Portfolio) is the largest shareholder among the gurus with 3.26% of outstanding shares, followed by First Eagle Investment (Trades, Portfolio) with 2.28%, Ken Heebner (Trades, Portfolio) with 0.92%, Paul Tudor Jones (Trades, Portfolio) with 0.23%, Ron Baron (Trades, Portfolio) with 0.2% and Pioneer Investments (Trades, Portfolio) with 0.02%.

Pioneer Natural Resources Co. (NYSE:PXD) with a market cap of $31.4 billion has gained 46.7% year to date. It is an independent oil and gas exploration and production company with operations in the United States.

The price over the last 12 months has risen 52%. It is now trading 1.32% below its 52-week high and 77.45% above its 52-week low.

GuruFocus gives the stock a profitability and growth rating of 7 out of 10. The ROE of -11.87% and ROA of -7.15% are outperforming 59% of the companies in the Global Oil & Gas Exploration and Production industry. Financial strength has a rating of 5 out of 10. The cash-debt ratio of 0.82 is above the industry median of 0.63.

The largest shareholder among the gurus is Jim Simons (Trades, Portfolio) with 0.24% of outstanding shares, followed by John Griffin (Trades, Portfolio) with 0.22% and Steven Cohen (Trades, Portfolio) with 0.19%, Pioneer Investments with 0.09%, Wallace Weitz (Trades, Portfolio) with 0.09% and Stanley Druckenmiller (Trades, Portfolio) with 0.03%.

Union Pacific Corp. (NYSE:UNP) with a market cap of $87.12 billion has gained 38.1% year to date. It is a rail transporting company. Its operating company is Union Pacific Railroad. It links 23 states in the western two-thirds of the country by rail, providing a critical link in the global supply chain.

It is trading with a P/E ratio of 21.15. Over the last 12 months, the price has risen by 35% and is now trading 0.85% below its 52-week high and 57.63% above its 52-week low. The stock is undervalued with a margin of safety of 20% at the price of $105.71. The DCF calculator gives a fair value of $131.48 and the Peter Lynch earnings line gives a fair value of $75.

GuruFocus gives the stock a profitability and growth rating of 9 out of 10. The ROE of 20.52% and ROA of 7.62% are outperforming 83% of the companies in the Global Railroads industry. Financial strength has a rating of 5 out of 10. The cash-debt ratio of 0.14 is below the industry median of 0.31.

The largest shareholder among the gurus is Dodge & Cox with 1.75% of outstanding shares, followed by First Eagle Investment with 0.73%, PRIMECAP Management with 0.57%, T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.24%, Daniel Loeb (Trades, Portfolio) with 0.15%, Pioneer Investments with 0.13%, NWQ Managers with 0.09% and Cohen with 0.05%.

Chevron Corp. (NYSE:CVX) with a market cap of $223.17 billion has gained 36.2% year to date. The guru's stake represents 0.03% of his total assets.

The company provides administrative, financial, management and technology support to U.S. and international subsidiaries engaged in fully integrated petroleum operations, chemical operations, mining operations, and power and energy services.

Over the last 12 months, the price has risen by 31%. It is now trading 0.66% below its 52-week high and 56.94% above its 52-week low.

GuruFocus gives the stock a profitability and growth rating of 4 out of 10. The ROE of -1.00% and ROA of -0.57% are underperforming 59% of the companies in the Global Oil & Gas Integrated industry. Financial strength has a rating of 5 out of 10. The cash-debt ratio of 0.17 is below the industry median of 0.42.

Barrow, Hanley, Mewhinney & Strauss is the largest shareholder among the gurus with 0.31% of outstanding shares, followed by Ken Fisher (Trades, Portfolio) with 0.19%, Pioneer Investments with 0.16%, T Rowe Price Equity Income Fund with 0.12%, RS Investment Management (Trades, Portfolio) with 0.04%, Dodge & Cox with 0.03%, Jeremy Grantham (Trades, Portfolio) with 0.03% and Mairs and Power (Trades, Portfolio) with 0.02%.

Bank of America Corp. (NYSE:BAC) with a market cap of $228.48 billion has gained 35.8% year to date. The guru's stake represents 0.01% of his total assets.

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 in select international market.

Over the last 12 months, the price has risen by 32% and is now trading 3.33% below its 52-week high and 105.73% above its 52-week low. The stock is overpriced by 68% at $22.61. The DCF calculator gives a fair value of $13.48 and the Peter Lynch earnings line gives a fair value of $18.9.

GuruFocus gives the stock a profitability and growth rating of 4 out of 10. The return on equity (ROE) of 5.16% and return on assets (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 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%, Fisher with 0.35%, First Pacific Advisors (Trades, Portfolio) with 0.33%, Bill Nygren (Trades, Portfolio) with 0.32%, Richard Pzena (Trades, Portfolio) with 0.28% and Andreas Halvorsen (Trades, Portfolio) with 0.25%.

Goldman Sachs Group Inc. (NYSE:GS) with a market cap of $96.06 billion has gained 35.5% year to date. The guru's stake represents 0.01% of his total assets.

The company is an investment banking, securities and investment management firm. Its segments include Investment Banking, Trading and Principal Investments, Asset Management and Securities Services.

It is trading with a P/E ratio of 19.22 and is now trading 1.63% below its 52-week high and 74.79% above its 52-week low. The stock is overpriced by 79% at $241.56. The DCF calculator gives a fair value of $134.63 and the Peter Lynch earnings line gives a fair value of $188.7.

GuruFocus gives the stock a profitability and growth rating of 7 out of 10. The ROE of 6.33% and the ROA of 0.66% are underperforming 59% of the companies in the Global Capital Markets industry. Financial strength has a rating of 5 out of 10. The cash-debt ratio of 0.39 is below the industry median of 6.33.

Dodge & Cox is the largest shareholder among the gurus with 3.84% of outstanding shares, followed by Warren Buffett (Trades, Portfolio) with 2.76%, Fisher with 0.5%, Nygren with 0.43%, Pzena with 0.42%, Hotchkis & Wiley with 0.35% and Spiros Segalas (Trades, Portfolio) with 0.35%.

Disclosure: I do not own any shares of any stocks mentioned in this article.

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About the author:

Tiziano Frateschi
You can read about me on www.theextraincome.info, which gives suggestions on position trading.

Visit Tiziano Frateschi's Website


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