Mason Hawkins (Trades, Portfolio)’ Southeastern Asset Management released its first-quarter portfolio on Tuesday, listing three new positions: Comcast Corp. (CMCSA, Financial), Solaris Oilfield Infrastructure Inc. (SOI, Financial) and Alta Mesa Resources Inc. (AMR, Financial).
The firm invests in companies with three key characteristics: “good business, good people and a good price.”
Comcast
Southeastern disclosed a 14,690,426-share stake in Comcast, dedicating 6.17% of the firm’s portfolio to the position. The Philadelphia-based media company averaged $38.79 a share during the quarter.
Comcast CEO Brian Roberts said on April 25 that revenues increased 10%, driven by strong growth in the company’s two operating businesses, Comcast Cable and NBCUniversal. The latter’s revenues increased 23% year over year primarily due to successful broadcasts of the 2018 Super Bowl and the 2018 Winter Olympics.
GuruFocus lists six positive investing signs for Comcast, including expanding operating margins, consistent revenue growth and a dividend yield near a 10-year high of 2.18%. The company has a business predictability rank of 3.5 stars out of five.
Solaris Oilfield Infrastructure
Southeastern invested in 375,000 shares of Solaris Oilfield Infrastructure for an average price of $18.82. The position represents 0.08% of the firm’s portfolio.
Houston-based Solaris Oilfield Infrastructure provides cost-effective oilfield products, services and infrastructure to enhance efficiency and safety in North American shale plays. The company has a strong financial strength rank of 8, driven by robust interest coverage and cash-to-debt ratios.
Solaris’ operating margin of 34.66% outperforms 95% of global competitors, suggesting good growth potential relative to peers. The company’s return on equity ranks higher than 85% of energy services companies, which include Schlumberger Ltd. (SLB) and Halliburton Co. (HAL).
Alta Mesa Resources
The firm invested in 197,000 shares of Alta Mesa for an average price of $9.05, impacting the portfolio 0.01%.
CEO Hal Chappelle said on May 14 that Alta Mesa “generated solid results” as the company scales up and realizes additional operating efficiencies. Chappelle highlighted several initiatives, including continued activity in the STACK play and the addition of an eighth oil rig.
GuruFocus lists two positive investing signs for Alta Mesa, including robust interest coverage and a price near a two-year low. Alta Mesa’s return on equity of 47.35% outperforms 96% of global competitors.
Disclosure: No positions.
