Gregg Powers, who became CEO of Private Capital (Trades, Portfolio) Management when founder Bruce Sherman retired five years ago, began his career as a healthcare analyst at Raymond James Financial. Consequently, it should come as no surprise that healthcare stocks represent a little more than one-fifth of the content of the firm’s portfolio.
But you might be surprised to know how few of the stocks in which Private Capital (Trades, Portfolio) traded during the third quarter are directly involved in healthcare. A portion of them, perhaps all, may do some business in the healthcare sector, but less than 16% of the stocks in which Private Capital (Trades, Portfolio) traded in the last quarter do business directly in the healthcare sector, and Private Capital (Trades, Portfolio) either divested or reduced its holdings in nearly all.
Private Capital (Trades, Portfolio) added two companies to its portfolio – GNC Holdings Inc (GNC, Financial) and Stoneridge Inc (SRI, Financial).
Private Capital (Trades, Portfolio) acquired 420,786 shares of GNC Holdings, a holding company for Pittsburgh-based GNC, a health and wellness company, at an average price of $36.28 per share. The deal had a 1.9% impact on Private Capital (Trades, Portfolio)’s portfolio.
The firm purchased 254,160 shares of Stoneridge, an Ohio-based auto parts company, for an average price of $11.69 per share. The transaction had a 0.34% impact on the firm’s portfolio.
Private Capital (Trades, Portfolio) added to its existing stakes in eight companies – GenCorp Inc (GY, Financial), Ascena Retail Group Inc (ASNA, Financial), INTL FCStone Inc (INTL, Financial), QuinStreet Inc (QNST, Financial), Seacoast Banking Corp (SBCF, Financial), American Public Education Inc (APEI, Financial), Imation Corp (IMN, Financial) and State Bank Financial Corp (STBZ, Financial).
The addition of 732,114 shares of GenCorp, a California-based tire and rubber company, cost an average price of $17.98 per share. The deal had a 1.35% impact on Private Capital (Trades, Portfolio)’s portfolio.
Private Capital (Trades, Portfolio) purchased 432,656 shares of Ascena Retail Group, a New Jersey-based apparel retailer, for an average price of $16.44 per share. The transaction had a 0.68% impact on the firm’s portfolio.
The firm’s purchase of 307,077 shares of INTL FCStone, a New York-based financial services company, for an average price of $19.08 per share had a 0.62% impact on Private Capital (Trades, Portfolio)’s portfolio.
The acquisition of 1,177,074 shares of QuinStreet, an online marketing company based in California, for an average price of $4.93 per share had a 0.58% impact on Private Capital (Trades, Portfolio)’s portfolio.
Private Capital (Trades, Portfolio) purchased 416,526 shares of Seacoast Banking, a Florida-based bank holding company, for an average price of $10.55 per share. The deal had a 0.54% impact on the firm’s portfolio.
The remaining acquisitions each had an impact of less than 0.50% on Private Capital (Trades, Portfolio)’s portfolio.
Divestitures and reductions
Private Capital (Trades, Portfolio) sold its stakes in seven companies – Leidos Holdings Inc (LDOS, Financial), Bank of Hawaii Corp (BOH), Federated Investors, Inc. (FII), Glacier Bancorp Inc (GBCI), Golar LNG Partners LP (GMLP), Independent Bank Corp (INDP) and International Business Machines Corp (IBM).
Private Capital (Trades, Portfolio) sold 170,976 shares of Leidos Holdings, a Virginia-based defense company (as of 2012, the fourth-largest contractor for the U.S. Department of Defense), for an average price of $36.86. The sale had a -0.75% impact on Private Capital (Trades, Portfolio)’s portfolio.
Private Capital (Trades, Portfolio) also sold 104,431 shares of Bank of Hawaii, a commercial bank based in Honolulu, for an average price of $57.89. That transaction had a -0.7% impact on Private Capital (Trades, Portfolio)’s portfolio.
The other divestitures had impacts of less than -0.5% on the firm’s portfolio.
Private Capital (Trades, Portfolio) sold portions of its holdings in nine companies in the third quarter – Universal Health Services Inc (UHS), Golar LNG Ltd (GLNG), Covidien PLC (COV), Vasco Data Security International Inc (VDSI), Zimmer Holdings Inc (ZMH), Pope Resources LP (POPE), Actavis PLC (ACT), Air Transport Services Group Inc (ATSG) and Marcus Corp (MCS).
Private Capital (Trades, Portfolio) sold 138,202 shares of Universal Health Services, a Pennsylvania-based hospital management company, for an average price of $106.27. The sale had an impact of -1.51% on Private Capital (Trades, Portfolio)’s portfolio.
Private Capital (Trades, Portfolio) sold 157,545 shares of Golar LNG Ltd, a natural gas shipping company based in London, for an average price of $63.38 per share. That sale had a -1.08% impact on the firm’s portfolio.
The remaining sales had impacts of less than -1% on Private Capital (Trades, Portfolio)’s portfolio.
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