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Sydnee Gatewood
Sydnee Gatewood
Articles (331) 

Arnold Schneider Gains 5 New Holdings in 3rd Quarter

Newly public company among guru’s investments

Schneider Capital Management leader Arnold Schneider (Trades, Portfolio) disclosed establishing five new positions in the third quarter.

Managing a fairly concentrated portfolio of 56 stocks, Schneider focuses on deep value equity by investing in companies with market capitalizations within the range of the relevant benchmark index. With $642 million in assets under management as of Sept. 30, he invests largely in the energy and financial services sectors.

Schneider invested in Venator Materials PLC (NYSE:VNTR), Mallinckrodt PLC (NYSE:MNK), HomeStreet Inc. (NASDAQ:HMST), RenaissanceRe Holdings Ltd. (NYSE:RNR) and Commercial Vehicle Group Inc. (NASDAQ:CVGI) during the quarter.

Venator Materials

Schneider purchased 341,554 shares of Venator Materials for an average price of $20.74 per share, giving it 1.39% portfolio space.

The U.K.-based chemical company, which went public in August after being spun off by Huntsman Corp. (NYSE:HUN), has a market cap of $2.46 billion; its shares were trading around $23.10 on Tuesday with a forward price-earnings (P/E) ratio of 8.32, a price-book (P/B) ratio of 2.44 and a price-sales (P/S) ratio of 1.02.

The trend in the stock price since the company’s initial public offering is illustrated in the chart below.

138002115.png

GuruFocus ranked Venator’s financial strength 5 of 10 and its profitability and growth 2 of 10.

Schneider is the only guru invested in Venator.

Mallinckrodt

The investor bought 159,400 shares of Mallinckrodt for an average price of $39.86 per share, expanding the portfolio 1.07%.

The U.K.-based biopharmaceutical company has a market cap of $2.07 billion; its shares were trading around $21.76 on Tuesday with a P/E ratio of 5.88, a P/B ratio of 0.41 and a P/S ratio of 0.68.

The Peter Lynch chart below shows the stock is trading above its fair value.

1510671658194.png

GuruFocus ranked Mallinckrodt’s financial strength 4 of 10 and its profitability and growth 5 of 10.

Of the seven gurus invested in Mallinckrodt, John Paulson (Trades, Portfolio) has the largest holding with 7.25% of outstanding shares. Hotchkis & Wiley, Steven Cohen (Trades, Portfolio), Mario Gabelli (Trades, Portfolio), First Eagle Investment (Trades, Portfolio) and David Dreman (Trades, Portfolio) are also shareholders.

HomeStreet

Having previously exited a position in HomeStreet in the third quarter of 2016, Schneider established a new holding of 190,199 shares for an average price of $26.04 per share. The trade had an impact of 0.92% on the portfolio.

The Seattle-based financial services company has a market cap of $760.94 million; its shares were trading around $28.3 on Tuesday with a P/E ratio of 21.42, a P/B ratio of 1.14 and a P/S ratio of 1.49.

According to the Peter Lynch chart below, the stock is trading above its fair value.

1510673472482.png

GuruFocus ranked HomeStreet’s financial strength 3 of 10 and its profitability and growth 5 of 10.

With 4.91% of outstanding shares, NWQ Managers (Trades, Portfolio) is HomeStreet’s largest guru shareholder. Ken Fisher (Trades, Portfolio) also owns the stock.

RenaissanceRe

Schneider invested in 36,410 shares of RenaissanceRe for an average price of $140.8 per share. The trade had an impact of 0.89% on the portfolio.

The Bermuda-based reinsurance company has a market cap of $5.54 billion; its shares were trading around $138.22 on Tuesday with a P/E ratio of 15.04, a P/B ratio of 1.39 and a P/S ratio of 2.82.

Based on the Peter Lynch chart below, the stock appears to be trading below its fair value.

1510674190370.png

GuruFocus ranked RenaissanceRe’s financial strength 4 of 10 and its profitability and growth 6 of 10.

Of the gurus invested in RenaissanceRe, Jim Simons (Trades, Portfolio) has the largest position with 1.78% of outstanding shares. Cohen, Paul Tudor Jones (Trades, Portfolio) and Caxton Associates (Trades, Portfolio) are also shareholders.

Commercial Vehicle Group

After exiting a position in Commercial Vehicle Group in the second quarter, Schneider established a new 219,254-share holding for an average price of $7.31 per share. The position was given 0.29% portfolio space.

The Ohio-based manufacturer of commercial vehicle and heavy equipment parts has a market cap of $305.97 million; its shares were trading around $9.98 on Tuesday with a P/E ratio of 52.53, a P/B ratio of 3.80 and a P/S ratio of 0.42.

According to the Peter Lynch chart below, the stock is trading above its fair value.

1510675087529.png

GuruFocus ranked Commercial Vehicle’s financial strength 5 of 10 and its profitability and growth 4 of 10.

With 6.56% of outstanding shares, Chuck Royce (Trades, Portfolio) is the company’s largest guru shareholder. Simons and Jones also own the stock.

Schneider also added to several other positions during the quarter, including QEP Resources Inc. (NYSE:QEP), Adient PLC (NYSE:ADNT), Whiting Petroleum Corp. (NYSE:WLL) and NOW Inc. (NYSE:DNOW).

Disclosure: I do not own any stocks mentioned.

About the author:

Sydnee Gatewood
I am an editorial assistant at GuruFocus. I have a BA in journalism and an MA in mass communications from Texas Tech University. I have lived in Texas most of my life, but also have roots in New Mexico and Colorado. Follow me on Twitter! @gurusydneeg

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