The Signature Select Canadian Fund (Trades, Portfolio) released its portfolio for the third quarter this week, listing 30 new positions.
The fund, which is part of CI Investments Inc., pursues investments that will generate long-term capital appreciation and dividend income. Its portfolio of 122 holdings is largely composed of securities in the financial services sector. In 2016, the fund returned 13.12%, outperforming the S&P 500’s return of 11.96%.
The fund’s five largest new investments for the quarter were Glencore PLC (LSE:GLEN, Financial), Blackberry Ltd. (BB, Financial), Advanced Micro Devices Inc. (AMD, Financial), SVB Financial Group (SIVB, Financial) and Danaher Corp. (DHR, Financial).
Glencore
The fund invested in 2.08 million shares of Glencore for 3.38 pounds ($4.54) per share, giving it 1.13% portfolio space.
The Swiss mining company has a market cap of 48.08 billion pounds; its shares were trading around 3.34 pounds on Wednesday with a price-earnings (P/E) ratio of 13.94, a price-book (P/B) ratio of 1.35 and a price-sales (P/S) ratio of 0.39.
The Peter Lynch chart below suggests the stock is trading above its fair value.
GuruFocus ranked Glencore’s financial strength 5 of 10 and its profitability and growth 4 of 10. The company’s trailing dividend yield is 1.67% and its forward dividend yield is 1.68%. The dividend payout ratio is 24%.
David Herro (Trades, Portfolio) has the largest position among the gurus, holding 2.36% of the company’s outstanding shares.
Blackberry
Signature bought 802,900 shares of Blackberry for an average price of $9.39 per share, expanding the portfolio 1.06%.
The Canadian manufacturer of mobile communication equipment has a market cap of $5.4 billion; its shares were trading around $10.26 on Wednesday with a P/E ratio of 11.25, a P/B ratio 1.98 and a P/S ratio of 5.29.
According to the Peter Lynch chart below, the stock is trading slightly below its fair value.
GuruFocus ranked Blackberry’s financial strength 6 of 10 and its profitability and growth 3 of 10. The company does not pay a dividend.
With 14.02% of outstanding shares, PRIMECAP Management (Trades, Portfolio) is the company’s largest guru shareholder. Prem Watsa (Trades, Portfolio), Jim Simons (Trades, Portfolio), First Eagle Investment (Trades, Portfolio), Kahn Brothers (Trades, Portfolio), Francis Chou (Trades, Portfolio), Ray Dalio (Trades, Portfolio) and Paul Tudor Jones (Trades, Portfolio) also own the stock.
Advanced Micro Devices
The fund bought 642,700 shares of Advanced Micro Devices for an average price of $12.64 per share, impacting the portfolio by 0.97%.
The California-based semiconductor chip manufacturer has a market cap of $9.62 billion; its shares were trading around $9.97 on Wednesday with a P/B ratio of 18.17 and a P/S ratio of 1.94.
Based on the Peter Lynch chart below, the stock appears to be trading above its fair value.
GuruFocus ranked AMD’s financial strength 5 of 10 and its profitability and growth 3 of 10. The company does not pay a dividend.
With its purchase, the fund became the company’s largest guru shareholder with 0.07% of outstanding shares. John Burbank (Trades, Portfolio) also owns the stock.
SVB Financial
The fund invested in 31,600 shares of SVB Financial for $117.48 per share, giving it 0.7% portfolio space.
The California-based bank holding company has a market cap of $11.94 billion; its shares were trading around $226.34 on Wednesday with a P/E ratio of 25.42, a P/B ratio of 2.93 and a P/S ratio of 6.54.
The Peter Lynch chart below suggests the stock is trading above its fair value.
GuruFocus ranked SVB’s financial strength 5 of 10 and its profitability and growth 6 of 10. The company does not currently pay a dividend.
Of the gurus invested in SVB Financial, Ken Fisher (Trades, Portfolio) has the largest stake with 2.73% of outstanding shares. Columbia Wanger (Trades, Portfolio), Diamond Hill Capital (Trades, Portfolio), Louis Moore Bacon (Trades, Portfolio), Pioneer Investments (Trades, Portfolio) and NWQ Managers (Trades, Portfolio) are also shareholders.
Danaher
Having previously exited a position in Danaher in the third quarter of 2014, Signature Select established a new holding of 67,416 shares. Paying an average price of $83.97 per share, the fund gave it 0.68% portfolio space.
The Washington, D.C.-based industrial products manufacturer has a market cap of $64.52 billion; its shares were trading around $92.75 on Wednesday with a P/E ratio of 27.43, a P/B ratio of 2.54 and a P/S ratio of 3.68.
According to the Peter Lynch chart below, the stock is trading above its fair value.
GuruFocus ranked Danaher’s financial strength 6 of 10 and its profitability and growth 6 of 10. The company’s trailing dividend yield is 0.59% and its forward dividend yield is 0.60%. The payout ratio is 16%.
Among the 20 gurus invested in the company, Dodge & Cox has the largest position with 0.75% of outstanding shares. Other guru shareholders include Daniel Loeb (Trades, Portfolio), Steven Cohen (Trades, Portfolio), Chuck Akre (Trades, Portfolio), First Eagle and John Griffin (Trades, Portfolio).
Other new positions added during the quarter include Wheaton Precious Metals Corp. (TSX:WPM, Financial), Wells Fargo & Co. (WFC, Financial), Nucor Corp. (NUE, Financial), Vulcan Materials Co. (VMC, Financial) and Martin Marietta Materials Inc. (MLM, Financial).
Disclosure: I do not own any stocks mentioned.
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