Ricky Sandler's hedge fund Eminence Capital has filed a 13G on shares of Fossil Group (FOSL). Per the filing, the hedge fund has disclosed a 5.1% ownership stake in with over 2.7 million shares.
This marks an increase of 854,042 shares since the end of the first quarter. The filing was made due to activity on June 2nd.
You can view other recent portfolio activity from Eminence Capital here.
Per Google Finance, Fossil Group is "a global designer, marketer and distributer company that specializes in consumer fashion accessories. The Company’s offerings include a line of men's and women's fashion watches and jewelry, handbags, small leather goods, belts, sunglasses, soft accessories and clothing. Its products are distributed globally through various distribution channels, including wholesale in countries where it has a physical presence, direct to the consumer through its retail stores and commercial websites and through third-party distributors in countries where the Company do not maintain a physical presence."
Friday, June 13, 2014
Eminence Capital Increases Fossil Group Stake
Julian Robertson Likes Google, Gilead Sciences: Interview
Tiger Management's Julian Robertson made his rare yearly media appearance on CNBC and talked about why investors have piled into stocks and some of his favorite equities these days.
Robertson noted that, "Bonds are so unattractive that people have no alternative to put their money... so they're jamming them into stocks. I wonder what will happen when the bond market turns?"
Robertson continues to hold a large position in Google (GOOG) and thinks the company has such a great moat that "no one can breach it."
He also mentioned he likes Uber and uses it often. He said he'd invest in Uber at twice the price that Google initially bought in at.
The Tiger Management founder also likes Gilead Sciences (GILD), citing their various drugs and management's ability to buy companies at good prices. He sees cashflow ramping up from their Hepatitis C drug.
Robertson was also asked who he thinks is the best investor these days. He replied:
"The man I respect the most in the business is probably Stan Druckenmiller. He's just so smart and so good and so up on everything. I think he's a fantastic investor."
Embedded below is a clip of Robertson's interview:
What We're Reading ~ Hedge Fund Links 6/13/14
Profile on Ray Dalio/Bridgewater: how the largest hedge fund operates [WSJ]
Oaktree Capital said to cut fund as distressed deals diminish [Bloomberg]
Azentus Capital likes India and Maruti [HedgeWorld]
Hedge funds fret student loan reform [HedgeWorld]
Sureview Capital shuts down [FINalternatives]
On derivative reporting in Europe [COOConnect]
Do you know what alternative investments are? Many investors don't [BizJournals]
Wednesday, June 11, 2014
What We're Reading ~ Analytical Links 6/11/14
Sons of Wichita: profile of the Koch Brothers [Daniel Schulman]
On value traps [Aleph Blog]
On the importance of ROIC part 2 [Base Hit Investing]
Comparing golf to investing: leave the driver in the bag [Value & Opportunity]
Lost generation casts shadow over housing market [WSJ]
On the future of cash use [Federal Reserve]
Negative piece on AmTrust Financial Services [Barrons]
On spotting frauds [Glenn Chan]
On the wisdom of crowds [Good Judgment]
Bill Nygren's favorite stocks [Barrons]
Odey Asset Management Boosts Cadiz Positiion
Crispin Odey's hedge fund firm Odey Asset Management has filed a 13G with the SEC regarding shares of Cadiz (CDZI). Per the filing, Odey has revealed a 10.5% ownership stake in CDZI with over 1.7 million shares.
This marks an increase of 720,300 shares since the end of the first quarter. The filing was required due to activity on May 31st.
You can view other activity from Odey here.
Per Google Finance, Cadiz is "engaged in acquiring and developing land and water resources. The Company’s primary asset consists of 45,000 acres of land in three areas of eastern San Bernardino County, California. The Company’s portfolio of water resources is located in proximity to the Colorado River and the Colorado River Aqueduct (CRA), the principal source of imported water for Southern California, and provides the Company with the opportunity to participate in a variety of water supply, water storage, and conservation programs with public agencies and other partners. It owns approximately 34,000 acres of land and the subsurface strata, inclusive of the unsaturated soils and appurtenant water rights in the Cadiz and Fenner valleys of eastern San Bernardino County (the Cadiz/Fenner Property). It also own approximately 10,800 additional acres in the eastern Mojave Desert, including the Piute and Danby Dry Lake properties."
Tiger Global Raises Restoration Hardware Stake
Chase Coleman and Feroz Dewan's hedge fund Tiger Global has filed a 13G with the SEC regarding shares of Restoration Hardware (RH). Per the filing, Tiger Global has revealed a 6.4% ownership stake in RH with over 3.19 million shares.
This marks an increase of over 1.25 million shares since the end of the first quarter. The filing was made due to activity on June 2nd.
You can view additional recent portfolio activity from Tiger Global here.
Per Google Finance, Restoration Hardware is "a holding company. The Company is merchants of home furnishings. Restoration Hardware Holdings offers merchandise assortments across a number of categories, including furniture, lighting, textiles, bath ware, decor, outdoor, garden, and baby and child products. The Company’s business is integrated across its multiple channels of distribution, consists of its stores, catalogs and Websites."
Carl Icahn Takes Family Dollar Stake, Company Adopts Poison Pill
Activist investor Carl Icahn has taken a 9.39% stake in Family Dollar (FDO) per a filing with the SEC. After disclosing his stake, shares jumped over 14%.
It seems Icahn's plan here is to get the company sold. While private equity firms or Dollar General (DG) could be logical suitors, Family Dollar announced that they've adopted a shareholder rights plan.
Icahn is looking to talk to FDO's board so we'll see what comes of his activism. While dollar stores have been popular plays among hedge funds, many long/short managers have preferred shares of DG (such as Lone Pine, Tiger Global, Glenview, Senator, Corvex and more).
That said, Family Dollar's largest shareholder list as of the end of Q1 included Nelson Peltz's Trian Fund as well as Paulson & Co.
Tuesday, June 10, 2014
Notes From Berkshire Hathaway's Annual Meeting 2014
Berkshire Hathaway's 2014 annual meeting has come and gone. While many of you have undoubtedly already read synopses of the event, here's a set of detailed notes for a further glimpse into the minds of Warren Buffett and Charlie Munger.
Berkshire Hathaway Annual Meeting 2014 Notes
The meeting started out with Warren Buffett (WB) discussing the results from the first quarter. $77B in float. Insurance business is great. Insurance earnings dragged down operating income, but a lot of that was foreign exchange.
Resolutions for dividend. 97% of the 'A' share voted against with 1% voting for. Almost the exact percentages of the 'B' shares as well, 97% to 2%. Almost as many people voted for WB as they voted not to put a dividend in place.
Q&A Session
WB - Both Rail and Utility could do more with debt. If they were younger, they'd probably do it. Good idea. They'd do it if a deal came along. Should not have used BRK stock in BNSF.
SH - Question about 0% interest rates.
CM - In Japan no one would have expected low rates in 20 years. Very confusing to economics professors. If not confused, then didn't understand.
WB - Collection of businesses has worked well for America. Thinks business plan is good. System for allocating capital. As if conglomerate is buying using cash or stock.
CM - They have more investment options than others. Can buy companies, insurance companies, marketable securities, etc.
JB - Forest River vs. Thor for recreational vehicles?
WB - Bought Forest River about 10 years ago. Pete sold it to PE firm in 90s. PE firm created hell for him. He quit, it went BK. Pete bought it out of BK and sold it to BRK 10 years ago. WB doesn't know the RV business and no one else at BRK does. Talks to Pete once every couple years. His company. Six IT people.
WB - Business in Marmon does business with Oil Sands. Owns some XOM with business in oil sands. Also has BNSF moving oil. Rail moves oil 2x faster than pipelines. Oil sands are important for mankind over centuries to come.
CM - Economic if NatGas is cheap and oil expensive.
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2ND HALF
WB - Sent out 11,000 more tickets this year compared to prior year.
BQ - Question about Energy Future Holdings. Also, other companies in umbrella of similar risk.
WB - He gets credit on Energy Future Holdings. Business models can be at risk. Geico - Mail - Phone - Internet. When change from government employees at one point they almost went broke.
CM - Remove your ignorance, scramble out of mistakes.
WB - He will be filing public statements. Has historically had 15% margins and expects those to go up over time.
SH - Expand on thoughts of investment opportunity. Why buy some companies vs others? Example, ones he bought vs. KO or Moody's.
WB - Bought a bit early in Fall of 2008 vs. early 2009. Did reasonably well overall. Plus they did get BNSF in Fall of 2009. Want to buy good businesses for reasonable prices over time.
CM - Private businesses more ideal target than stocks, and guesses that will continue, right Warren?
CM - Love buying transmission lines in Alberta. Have to adapt to BRK.
WB - Have bought a fair amount of Wells Fargo last couple years. Weak banks have bounced back the most.
AS - Geico and usage based pricing and impact on auto industry and Geico. Also, self-driving cars. Would you sell Geico if need for auto insurance went away?
WB - Won't sell. Underwriting in auto a bit different than life. Different variables. Feels very good about Geico, the management, and ability to manage risk. Self-Driving cars will be good for society and bad for auto insurers.
CM - Things can take long time. Example is movies on demand. Thinks self-driving cars will take a while.
WB - No preference for US businesses, but that seems to be where the deals are coming from. More recognition in the US. Some awareness. Lots of great things to say about Iscar. April had record sales.
SH - Circle of competency. How does one know what their circle of competency is?
WB - Good question. Need to be self-realistic. Was out of his circle of competency when he bought Berkshire Hathaway. Has also stretched in the area of retail. Ms. B (of Nebraska Furniture Mart) didn't take BRK stock because it wasn't in her circle of competency. Her areas were cash, retail, and real estate.
CM - Not that different. Someone that's 5'2" probably isn't going to be great at basketball and someone that's 350 pounds probably not going to be great at ballet. 95 year old probably not going to get the leading role in a romantic movie. Circle of competence can be a relative concept. I need to compete against idiots and there's a large supply.
CL - Question about the logic of comparing the annual change in Berkshire's Book Value vs. S&P 500.
CM - (Charlie interrupted Buffett from answering) - Doesn't make any sense. It's insane and doesn't make sense, but WB likes impossible challenges.
WB - Given that wishy washy answer, Buffett won't add to it.
JB - Question about Prices on Marmon and Iscar.
WB - Iscar was 80% then put the rest. Marmon was an installment sale with 64% was first, then 36% was 2nd and 3rd installment.
CM - Price went up as value went up.
WB - With both transactions, all feelings are good.
SH - What non-tech thing would you do if you were 23?
WB - I'd probably do what I did, go into investment business. One question he'd ask if they had to put all money in one business (not their own) for 10 years, what would it be?
CM - Larry Bird trick - asked every agent, if I don't go with you, who's the 2nd best I'd go with?
BQ - Capitalism vs. Rooms given his comments about people using AirBnB.
WB - Omaha can't size itself to the event. Doesn't like 3-day minimum rule.
CM - Nothing to add.
JG - Question about Geico. Allstate's share = 10%, State Farm's = 19%.
WB - Passing Allstate this year. State Farm is a great company. Recommends "The Farmer from Merna". Says he thinks Geico will be number one by time he's 100. Tells Geico he'll do his part.
CM - Geico is like Costco in that cost is part of its soul. Easy to talk the game, but they can back it up.
WB - Bought house in 1958. CM bought his in 1960. Life would be worse with more. At certain point there is inverse correlation.
CM - It'd be crazy.
GW - Union Pacific moving freight to Mexico, thoughts relative to BNSF?
WB - UP has edge in Mexico. KSU has good presence in Mexico, but also good prospects elsewhere.
SH - Intrinsic value difference and what are competitors to Berkshire?
WB - Intrinsic value is present value of all future cash. Aesop bird in the hand is equal to two birds in a bush. Sees no competition to Berkshire.
CM - Too tough to replicate and no one teaches it.
CL - Question about inflation from Goodhaven.
WB - Berkshire would be worse off. EPS would go up. Intrinsic value would go up in dollar terms.
WB - Having a corporate acquisition team is bad because they always want to do acquisitions.
CM - Fault goes to parents. Very hard to fix people with bad parents. Lots of problems with college business schools and economics departments.
