Babcock International Group PLC News and Headlines -
Babcock International (LSE:BAB), the U.K. engineering services firm that supports local defense, emergency services and civil nuclear sectors, noted declining profits due to new distancing requirements on ship repair worksites. The stock price slipped further after Babcock announced the end of its long-term contract with Britain's Nuclear Decommissioning Authority.
From [url=https://www.gurufocus.com/StockBuy.php?GuruName=Bernard+Horn]Bernard Horn[/url] ([url=https://www.gurufocus.com/StockBuy.php?GuruName=Bernard+Horn]Trades[/url], [url=https://www.gurufocus.com/holdings.php?GuruName=Bernard+Horn]Portfolio[/url])'s Polaris Global Value Fund 2020 annual report.
Babcock International (LSE:BAB), the U.K. engineering services firm that supports local defense, emergency services and civil nuclear sectors, noted declining profits due to new distancing requirements on ship repair worksites. The stock price slipped further after Babcock announced the end of its long-term contract with Britain's Nuclear Decommissioning Authority to clean up 12 Magnox reactor sites in the U.K.
From [url=https://www.gurufocus.com/StockBuy.php?GuruName=Bernard+Horn]Bernard Horn[/url] ([url=https://www.gurufocus.com/StockBuy.php?GuruName=Bernard+Horn]Trades[/url], [url=https://www.gurufocus.com/holdings.php?GuruName=Bernard+Horn]Portfolio[/url])'s Polaris Global Value Fund third-quarter 2020 letter.
Babcock International (LSE:BAB) (3.9%), the second largest supplier of defence services in the United Kingdom and leader in emergency services through aircraft in Western Europe, Canada and Australia, is a company with clear competitive advantages (unique assets, exchange costs and economies of scale) and scantly cyclical (with 80% of its contracts at long term), which was affected in 2020 by the obligatory stoppages imposed by the governments.
In emergencies, with governments asking their citizens not to leave their homes, the number of accidents fell and the use of salvage, rescue and health services dropped. Consequently, margins will shrink this year,
July 15, 2020
Dear Fellow Shareholder,
The Polaris Global Value Fund (“the Fund”) gained 18.66% in the second quarter of 2020, while the MSCI World Index returned 19.36%. Although underperforming the benchmark, the Fund had admirable results considering the underweight exposure relative to a strong U.S. market. The portfolio’s heavily weighted non-U.S. equities in the U.K., Germany, Sweden, Italy, Canada, Finland, and France outperformed country benchmarks. At the sector level, consumer discretionary, materials and industrials topped results, while utilities and consumer staples lagged.
Portfolio performance was buoyed by a slate of new stocks, purchased in the past four months.
Babcock International (LSE:BAB), a U.K. engineering firm that operates and manages critical infrastructure for the U.K. government, was the largest detractor to the Fund’s performance this quarter. The company’s share price fell in June after management announced it would defer its final dividend and that its fiscal-year earnings were lower than expected. Babcock’s primary weakness has been its oil and gas aviation business. The global oil and gas market has become even more competitive and the significant fall in the price of oil, coupled with coronavirus-related restrictions, has made transport to offshore oil rigs more challenging and has hurt
Our first message is one of encouragement and support for those who have lost a loved one, and for those who are still suffering from the disease: our greatest wish is for our investors and their families and relatives to be in good health. We would also like to thank the health wor-kers and all those people in essential activities who are working in the fight against this pandemic.
The first quarter of 2020 has been one of the hardest I have ever experienced as an investor, both because of the personal situation we all find ourselves in
In industrials, Babcock International (LSE:BAB) had a tangential bump after the U.K. elections, but rose markedly on earnings news. Babcock confirmed full year guidance, pointing to a strong order book that included a new $1.6 billion ship building contract with the U.K. Ministry of Defense.
From [url=https://www.gurufocus.com/StockBuy.php?GuruName=Bernard+Horn]Bernard Horn[/url] ([url=https://www.gurufocus.com/StockBuy.php?GuruName=Bernard+Horn]Trades[/url], [url=https://www.gurufocus.com/holdings.php?GuruName=Bernard+Horn]Portfolio[/url])'s Polaris Global Value Fund fourth-quarter 2019 shareholder letter.
Dear Fellow Shareholder, January 9, 2020
Global equity markets ended the year on a bullish note, with the MSCI World Index up 8.56% in the fourth quarter of 2019. The Polaris Global Value Fund gained 9.09%. U.K. market gains led to outperformance. This was a welcome reversal from the past few years, when overweight positions in the U.K. and other European countries paled in comparison to robust returns in the United States, where the Fund is underweight. In October, the U.K. and European Union reached an agreement on the conditions of the U.K.’s departure from the EU (BREXIT). Then in
With the goal of capital appreciation and strong risk-adjusted returns, the guru’s Boston-based firm invests in discounted but high-quality stocks in developed as well as emerging markets.
Based on these criteria, the guru opened positions in The Toronto-Dominion Bank (TSX:TD) and Mondi PLC (LSE:MNDI) during the quarter. He also exited his Standard Chartered PLC (LSE:STAN) and Teva Pharmaceutical Industries Ltd. (TEVA) holdings.
Horn invested in 102,800 shares of Toronto-Dominion, allocating 1.39% of
The title of this seminar, “The Renaissance of Value,” implies that the concept of value had previously been in eclipse in Wall Street. This eclipse may be identified with the virtual disappearance of the once well-established distinction between investment and speculation. In the last decade everyone became an investor – including buyers of stock options and odd-lot short sellers. In my own thinking the concept of value, along with that of margin of safety, has always lain at the heart of true investment, while price expectations have been at the center of speculation.
– Benjamin Graham,
“The Renaissance of Value”
Global equity markets finished the third quarter up modestly in local currency, but faced a good bit of volatility along the way largely due to ongoing trade tensions with China and increasing evidence of slowing economic growth. In this increasingly volatile environment, the Tweedy, Browne Funds finished the quarter in the red and trailed their respective benchmark indices. However, year-to-date through September 30, our Funds are up between 7.59% and 11.30%. While the quarter was modestly challenging from a stock price perspective, the bulk of our Funds’ portfolio companies continued to make fundamental financial progress, and we remain encouraged by
Babcock International (LSE:BAB) was the top overall contributor in the portfolio, up more than 20% during the quarter. The company recovered from a negative short seller research report rife with inaccuracies about future business prospects. Polaris research analysts conducted in-depth work on the company, visiting the Davenport facility in the U.K. and meeting with management. Polaris determined that concerns about a deteriorating relationship with the U.K.’s Ministry of Defense were unfounded. In a Babcock trading update, the company reported increased activity across the UK warship support program, and was the preferred bidder on a new warship build.
Dear Fellow Shareholder,Â Â Â October 11, 2019
Global equity markets had modest gains after considerable trade friction and geopolitical volatility during the third quarter of 2019. The MSCI World Index returned 0.53%, while the Polaris Global Value Fund (“the Fund”) returned -1.16%, underperforming the benchmark.
The Fund’s significant underweight in the U.S. relative to the benchmark continued to impact results, as the U.S. was one of the few developed countries in positive territory for the quarter. The United Kingdom, Austria, Germany and Israel had negative returns at the Index level; however, the Fund’s holdings in those countries outperformed. In
The $8.2 billion firm invested in several of its favored countries, buying U.K.-based Babcock International Group PLC (LSE:BAB), Japan’s Zeon Corp. (TSE:4205) and France’s Bollore (XPAR:BOL). At fourth quarter-end, the largest country allocations in the Global Value strategy were the U.K. at 18.06%, France at 15.69% and Switzerland at 14.81%. Japan composed only 1.63% of holdings.
The fund ended the quarter with 91 stocks valued at
According to GuruFocus top-10 holdings data, Francisco Garcàa Paramés’ top five holdings as of the third quarter are Aryzta AG (XSWX:ARYN), Teekay LNG Partners LP (TGP), Teekay Corp. (TK), International Seaways Inc. (INSW) and Babcock International Group PLC (LSE:BAB).
Paramés, chairman and chief investment officer of Cobas Asset Management, is a self-taught follower of Berkshire Hathaway Inc. (BRK.A)(BRK.B) CEO Warren Buffett (Trades, Portfolio)’s investment approach. The former Bestinfond (Trades, Portfolio) manager strictly applies the principles of value investing within the framework of the Austrian business cycle
The Oakmark International Small Cap Fund disclosed it established two new positions when it released its first-quarter portfolio last week.
With the goal of capital appreciation, the $2.9 billion fund, which is managed by David Herro (Trades, Portfolio), invests in foreign, small-cap companies that are trading at a discount to the firm’s estimate of intrinsic value.
The two stocks the fund opened positions in were Babcock International Group PLC (LSE:BAB) and Dignity PLC (LSE:DTY), which are both British companies.
The fund invested in 4.9 million shares of Babcock International for an average price of 6.79
With the goal of capital appreciation and strong risk-adjusted returns, Polaris’ website says its portfolio managers invest in discounted but high-quality stocks in both developed and emerging markets.
Horn’s new positions for the quarter were L Brands Inc. (LB), Babcock International Group PLC (LSE:BAB), Cineworld Group PLC (LSE:CINE) and SK Hynix Inc. (XKRX:000660).
The guru invested in 114,400 shares of L Brands for an average price of $49.89 per share, giving
Francisco Parames has often drawn comparisons to Warren Buffett (Trades, Portfolio) for his dedication to value investing and stellar record. At his former fund, Bestinver, he accumulated 16% in annual returns over his 25-year tenure. Last October, he opened his own Madrid-based investment manager called Cobas Asset Management, where his main fund is Cobas Seleccion FI.
In a fund document, Cobas describes its value investing philosophy for the fund as, “The purchase of good businesses, with sustainable competitive advantage, managed by good professionals and that are priced well below their intrinsic value, thus offering significant long-term upside.”
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