Alan Fournier Invests in Leidos Holdings, Bank of America

The investor's largest 3rd-quarter buys

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Dec 05, 2016
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Alan Fournier (Trades, Portfolio) manages Pennant Master Fund, Pennant Windward Master Fund, Broadway Gate Master Fund Ltd. and Pennant General Partner LLC. During the third quarter the guru’s largest buys were the following:

The investor acquired 1,892,600 shares in Leidos Holdings Inc. (LDOS) with an impact of 2.87% on the portfolio.

It is an applied technology company delivering solutions and services that leverage the power of data analytics, systems integration and cybersecurity across three markets: national security, health and engineering. Third-quarter revenues were $1.87 billion as compared to $1.30 billion in the prior year, and operating income from continuing operations for the quarter was $101 million compared to $94 million in the prior year.

GuruFocus gives the stock a profitability and growth rating of 4 out of 10. The return on equity (ROE) of 12.29% and return on assets (ROA) of 3.93% are outperforming 56% of the companies in the Global Information Technology Services industry. Financial strength has a rating of 4 out of 10 with cash to debt of 0.13 that is below the industry median of 6.46.

The largest shareholder among the gurus is Fournier with 1.26% of outstanding shares followed by Jim Simons (Trades, Portfolio) with 0.68%, Steven Cohen (Trades, Portfolio) with 0.08%, Lee Ainslie (Trades, Portfolio) with 0.05%, Mariko Gordon (Trades, Portfolio) with 0.04% and Paul Tudor Jones (Trades, Portfolio) with 0.02%.

The guru bought 2,251,700 shares in Antero Resources Corp. (AR) with an impact of 2.09% on the portfolio.

The company is engaged in the exploration, development and acquisition of natural gas, NGLs and oil properties located in the Appalachian Basin. During the last quarter net income was $238 million, or 78 cents per share, compared to net income of $534 million, or $1.93 per share, in the prior-year third quarter, and adjusted net income increased 293% compared to the prior-year quarter.

GuruFocus gives the stock a profitability and growth rating of 6 out of 10. The ROE of -3.34% and ROA of -1.46% are outperforming 76% of the companies in the Global Oil & Gas E&P industry.

Seth Klarman (Trades, Portfolio) is the largest shareholder among the gurus with 4.62% of outstanding shares followed by Glenn Greenberg (Trades, Portfolio) with 2.94%, David Swensen (Trades, Portfolio) with 1.1%, Simons with 0.29%, Ron Baron (Trades, Portfolio) with 0.03% and Cohen with 0.01%.

The guru bought 2,266,607 shares in Citizens Financial Group Inc. (CFG) with an impact of 1.96% on the portfolio.

The company through its subsidiaries provides retail and commercial banking products and services. During the first quarter net income increased 1% from a quarter before and 7% from the same quarter of a year before.

GuruFocus gives the stock a profitability and growth rating of 6 out of 10. The ROE of 4.87% and ROA of 0.70% are underperforming 62% of the companies in the Global Banks - Regional - US industry. Financial strength has a rating of 5 out of 10 with cash to debt of 0.25 that is below the industry median of 1.98.

The largest shareholder among the gurus is HOTCHKIS & WILEY with 4.07% of outstanding shares followed by Chris Davis (Trades, Portfolio) with 1.09%, David Tepper (Trades, Portfolio) with 0.5%, Richard Pzena (Trades, Portfolio) with 0.41%, Jones with 0.14%, Robert Olstein (Trades, Portfolio) with 0.12%, Michael Price (Trades, Portfolio) with 0.07% and Charles Brandes (Trades, Portfolio) with 0.04%.

The guru acquired 3,513,600 shares in Bank of America Corp. (BAC) with an impact of 1.92% on the portfolio.

It is a bank holding and a financial holding company. Through its subsidiaries it provides banking and nonbanking financial services and products throughout the U.S. and in selected international markets. Third-quarter revenue increased 3%, and net income grew 7%. The company reported a growth of 8% for earnings per share.

GuruFocus gives the stock a profitability and growth rating of 4 out of 10. The ROE of 5.16% and ROA of 0.70% are underperforming 73% of the companies in the Global Banks - Global industry. Financial strength has a rating of 5 out of 10 with cash to debt of 0.60 that is below the industry median of 1.98.

Dodge & Cox is the largest shareholder among the gurus with 2.26% of outstanding shares followed by Barrow, Hanley, Mewhinney & Strauss with 0.79%, HOTCHKIS & WILEY with 0.55%, Ken Fisher (Trades, Portfolio) with 0.35%, First Pacific Advisors (Trades, Portfolio) with 0.33%, Bill Nygren (Trades, Portfolio) with 0.33%, Pzena with 0.28% and Andreas Halvorsen (Trades, Portfolio) with 0.25%.

The investor bought 2,894,500 shares in Huntsman Corp. (HUN) with an impact of 1.65% on the portfolio.

The company is a manufacturer of differentiated organic chemical products and of inorganic chemical products. It operates in five segments: Polyurethanes, Performance Products, Advanced Materials, Textile Effects and Pigments and Additives. Third-quarter net income was $64 million compared to $63 million in the prior-year period and $94 million in the prior quarter. Adjusted EBITDA was $272 million compared to $311 million in the same quarter of a year before.

GuruFocus gives the stock a profitability and growth rating of 6 out of 10. ROE is 13.18% and ROA is 2.05% and is underperforming 63% of the companies in the Global Chemicals industry. Financial strength has a rating of 4 out of 10 with cash to debt of 0.10 that is below the industry median of 0.60.

The largest shareholder among the gurus is Tepper with 2.66% of outstanding shares followed by Simons with 0.55%, Joel Greenblatt (Trades, Portfolio) with 0.5%, Chuck Royce (Trades, Portfolio) with 0.45%, Cohen with 0.17%, Keeley Asset Management Corp (Trades, Portfolio) with 0.16%, Caxton Associates (Trades, Portfolio) with 0.14% and Mario Gabelli (Trades, Portfolio) with 0.13%.

The guru bought 1,111,400 shares in CBRE Group Inc. (CBG) with an impact of 1.09% on the portfolio.

The company offers real estate and investment services such as facilities management, property management, mortgage loan servicing and investment management to owners, lenders and investors in office, multifamily and other types of commercial real estate. Third-quarter revenue increased 18%, and net income and earnings per diluted share decreased to $104.2 million and 31 cents per share.

GuruFocus gives the stock a profitability and growth rating of 7 out of 10. The ROE of 17.60% and ROA of 4.77% are outperforming 69% of the companies in the Global Real Estate Services industry. Financial strength has a rating of 5 out of 10 with cash to debt of 0.10 that is below the industry median of 0.31.

Jeff Ubben (Trades, Portfolio) is the largest shareholder among the gurus with 10.26% of outstanding shares followed by Baron with 1.33%, John Rogers (Trades, Portfolio) with 1.14% and Cohen with 0.05%.

The guru raised his stake in Acadia Healthcare Co. Inc. (ACHC) by 23.27% with an impact of 0.66% on the portfolio.

The company develops and operates inpatient psychiatric facilities, residential treatment centers, substance abuse facilities and facilities providing outpatient behavioral health care services to serve behavioral health and recovery needs. Third-quarter revenue increased 53.1% from the same quarter of a year before and loss from continuing operations attributable to Acadia stockholders was $117.8 million, or $1.36 per diluted share, compared with income from continuing operations of $29.5 million, or 42 cents per diluted share, for the prior-year third quarter.

GuruFocus gives the stock a profitability and growth rating of 7 out of 10. The ROE of -0.05% and ROA of -0.02% are underperforming 76% of the companies in the Global Medical Care industry. Financial strength has a rating of 4 out of 10 with cash to debt of 0.01 that is below the industry median on 0.33.

The largest shareholder among the gurus is Vanguard Health Care Fund (Trades, Portfolio) with 3.02% of outstanding shares followed by RS Investment Management (Trades, Portfolio) with 0.74%, Cohen with 0.58% and Manning & Napier Advisors Inc. with 0.32%.

Disclosure: I do not own any shares of any stocks mentioned in this article.

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