The Wasatch International Growth (Trades, Portfolio) Fund, managed by Roger Edgley, gained three new holdings and divested five others during the first quarter.
With $1.455 billion in assets under management, the portfolio is made up of 84 stocks from companies around the world. The fund achieves long-term growth of capital by investing in companies in developed and emerging markets.
The fund’s new purchases include two British companies, ZPG PLC (LSE:ZPG, Financial) and Burford Capital Ltd. (LSE:BUR, Financial) and Canadian company Badger Daylighting Ltd. (TSX:BAD, Financial).
In its largest new purchase for the quarter, the fund bought 2.2 million shares of ZPG for an average price of 3.67 British pounds ($4.76) per share, giving it 0.77% portfolio space.
The British digital media company has a market cap of 1.6 billion pounds; its shares were trading around 3.64 pounds on Wednesday with a price-earnings (P/E) ratio of 51.9, a price-book (P/B) ratio of 7.2 and a price-sales (P/S) ratio of 7.7.
The Peter Lynch chart below illustrates the stock is trading above its fair value.
GuruFocus ranks ZPG’s financial strength 6 of 10 and its profitability and growth 6 of 10. The company’s trailing dividend yield is 1.5%, and its forward dividend yield is 1.02%.
The fund is the only guru invested in the company.
Wasatch bought 671,002 shares of Burford Capital for an average price of 7.04 pounds per share, expanding the portfolio 0.5%.
The U.K.-based finance and asset management company has a market cap of 1.9 billion pounds; its shares were trading around 9.2 pounds on Wednesday with a P/E ratio of 23.02, a P/B ratio of 4.01 and a P/S ratio of 14.4.
According to the Peter Lynch chart below, the stock is trading above its fair value.
GuruFocus ranked Burford’s financial strength 6 of 10 and its profitability and growth 7 of 10. The trailing dividend yield and forward dividend yield are both 0.77%. Over the past five years, the company has grown its dividend at a rate of 26.7% per year.
Wasatch is the only guru invested in Burford.
The fund purchased 365,690 shares of Badger Daylighting for an average price of 32.76 Canadian dollars ($24.27) per share, giving it a portfolio weight of 0.73%.
The Canadian provider of nondestructive hydrovac excavation has a market cap of 882.6 million Canadian dollars; its shares were trading around 23.79 Canadian dollars on Wednesday with a P/E ratio of 30.12, a P/B ratio of 3.14 and a P/S ratio of 2.1.
Based on the Peter Lynch chart below, the stock appears to be trading above its fair value.
GuruFocus ranked the company’s financial strength 7 of 10 and its profitability and growth 8 of 10. The trailing dividend yield and forward dividend yield are both 1.6%. Badger Daylighting has grown its dividend by 2.2% per year for the past five years.
The fund is the only guru invested in Badger Daylighting.
During the quarter, the fund exited its stakes in five companies – Stella-Jones Inc. (TSX:SJ, Financial), Colgate-Palmolive (India) Ltd. (BOM:500830, Financial), Shriram City Union Finance Ltd. (BOM:532498), ARB Corp. Ltd. (ASX:ARB) and NCC Group PLC (LSE:NCC).
The fund established its position in Stella-Jones in second-quarter 2015 with 192,008 shares. After building up the position to 376,181 shares in first-quarter 2016, the fund began to reduce the position in the second quarter. It sold its remaining 376,181 shares for an average price of 40.7 Canadian dollars.
The fund established its Colgate-Palmolive (India) stake in second-quarter 2016. After accumulating 824,438 shares, Wasatch began to reduce the position in fourth-quarter 2016. The fund sold its remaining 818,001 shares for an average price of 918.69 rupees ($14.26) per share.
After purchasing a 291,067-share holding of Shriram City Union in first-quarter 2015, the fund began to reduce the holding in fourth-quarter 2016. It sold its remaining 288,795 shares for an average price of 1,954.7 rupees per share.
Having established a 588,334-share position in ARB in first-quarter 2016, the fund began to reduce the position in the fourth quarter. It sold its remaining 583,741 shares for an average price of 15.8 Australian dollars ($11.93) per share.
Wasatch purchased a 2.8 million-share stake of NCC Group in first-quarter 2016. After adding to the position the following quarter, the fund then began to sell shares in the fourth quarter. It sold its remaining shares for an average price of 1.58 pounds per share.
Disclosure: I do not own any stocks mentioned in the article.
