Chris Davis Peppers Portfolio With 4 Small Positions in 2nd Quarter

A tech and financials-loving firm on Wednesday reported adding to some of its less highly weighted sectors, with four new positions opened.

Davis Funds, led by Chris Davis (Trades, Portfolio), introduced Alleghany Corp. (NYSE:Y), Tarena International Inc. (NASDAQ:TEDU), Concho Resources Inc. (NYSE:CXO), Dow Chemical Co. (NYSE:DOW) and FedEx Corp. (NYSE:FDX) in the second quarter. Each of the new positions occupied less than 1% of all of Davis’ stock holdings. About half of the portfolio is tied up in financial services (36%) and technology (15.7%), with top holdings of Amazon.com (NASDAQ:AMZN), Wells Fargo & Co. (NYSE:WFC), JPMorgan (NYSE:JPM), Alphabet (NASDAQ:GOOG) and Berkshire Hathaway (NYSE:BRK.A).

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Founded in 1969, Davis Funds had roughly $25 billion in assets under management as of Dec. 31. Its guiding principle is to think of stocks as long-term investments in real businesses.

Overview of new second-quarter holdings

Alleghany Corp.

Davis added 77,950 shares of Alleghany stock in the second quarter, when its price averaged $595 million. Alleghany reflects 0.2% of the stock portfolio.

Alleghany Corp. has a market cap of $9.23 billion; its shares were traded around $598.40 with a P/E ratio of 19.37 and P/S ratio of 1.51. Alleghany Corp. had an annual average earnings growth of 10.3% over the past 10 years.

Tarena International Inc.

Davis purchased 793,502 shares of Tarena International in the second quarter when its price averaged $19. The holding reflects 0.06% of the portfolio.

Tarena International Inc. has a market cap of $1.01 billion; its shares were traded around $18.07 with a P/E ratio of 30.12 and P/S ratio of 4.35. The trailing 12-month dividend yield of Tarena International Inc. is 1.77%. The forward dividend yield of Tarena International Inc. is 1.70%. Tarena International Inc had an annual average earnings growth of 16.8% over the past five years.

Concho Resources Inc.

Davis purchased 54,398 shares of Concho Resources in the second quarter, when it had an average share price of $126. Concho Resources occupied 0.03% of the portfolio at quarter-end.

Concho Resources Inc. has a market cap of $17.49 billion; its shares were traded around $117.58 with a P/E ratio of 27.08 and P/S ratio of 7.94.

Dow Chemical Co.

Davis purchased 13,810 shares of Dow Chemical in the second quarter, when its price averaged around $62. The position makes up less than 0.01% of his portfolio.

Dow Chemical Co. has a market cap of $77.09 billion; its shares were traded around $63.01 with a P/E ratio of 26.37 and P/S ratio of 1.39. The trailing 12-month dividend yield of Dow Chemical Co. is 2.92%. The forward dividend yield of Dow Chemical Co. is 2.9%. Dow Chemical Co. had an annual average earnings growth of 3.4% over the past 10 years.

See Chris Davis (Trades, Portfolio)’ portfolio here.

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