David Herro (Trades, Portfolio), who manages the Oakmark International Fund and Oakmark International Small Cap Fund, bought one new European stock and added to 20 existing holdings in the fourth quarter.
Herro prizes stocks with low valuations in unloved sectors and told Barron’s this week that he found parts of Europe attractive. The guru is currently taking GuruFocus reader questions here and will post responses in upcoming weeks.
Herro’s international fund has 57 stocks in total, valued at $26.96 billion, with the highest allocation vested in Consumer Cyclical stocks at 28% of the portfolio, followed by Financial Services at 27.3%.
His one new stock picks of the fourth quarter was Continental AG (XTER:CON, Financial), and the largest new increases were: G4S PLC (LSE:GFS, Financial), Melco Crown Entertainment Ltd. (MPEL, Financial) and EXOR Spa (MIL:EXO, Financial).
Continental AG (XTER:CON, Financial)
Herro purchased 80,000 shares of Continental AG in the fourth quarter, a holding that reflected 0.063% of the portfolio. The stock’s average price per share in the fourth quarter was €209.
Continental AG is engaged in developing technologies for mobility, transport and processing. Continental Ag has a market cap of $41.8 billion; its shares were traded at around €209.00 with a P/E ratio of 22.30 and P/S ratio of 1.29. The dividend yield of Continental AG stocks is 1.20%. Continental AG had an annual average earnings growth of 25.70% over the past five years.
Herro increased his holding of G4S PLC by 991.6% to 16,963,000 shares. The holding represents 0.27% of the portfolio after the increase. Its fourth quarter share price averaged £3.
G4S PLC was incorporated on November 12, 2003. The company, together with its subsidiaries, is an integrated security company, specializing in the provision of security products, services and solutions. G4s Plc has a market cap of $4.64 billion; its shares were traded at around £2.99 with and P/S ratio of 0.58. The dividend yield of G4S PLC stocks is 2.99%. G4S PLC had an annual average earnings growth of 3.20% over the past 10 years.
Melco Crown Entertainment Ltd. (MPEL, Financial)
Herro increased his holding of Melco Crown Entertainment by 112% to 15,860,000 shares. The holding represented 1.5% of the portfolio after the increase. Its quarterly share price averaged $25.
Melco Crown Entertainment Ltd. was incorporated under the name of Melco PBL Entertainment (Macau) Limited on Dec. 17, 2004. Melco Crown Entertainment Ltd. has a market cap of $13.36 billion; its shares were traded at around $24.25 with a P/E ratio of 18.90 and P/S ratio of 2.70. The dividend yield of Melco Crown Entertainment Ltd. stocks is 1.10%.
Herro increased his shareholding of EXOR Spa by 72.5% to 5,127,000 shares, a 0.78% portfolio holding. The stock’s quarterly average share price was €3.
EXOR Spa was oncorporated on March 1, 2009 after the merger of IFIL with IFI, which changed its name to EXOR Spa. EXOR Spa has a market cap of $8.83 billion; its shares were traded at around $39.71 with a P/E ratio of 18.60 and P/S ratio of 0.05. The dividend yield of EXOR Spa stocks is 0.84%. EXOR Spa had an annual average earnings growth of 53.0% over the past 10 years.
See more of David Herro (Trades, Portfolio)’s latest stock picks at his portfolio here. Not a Premium Member of GuruFocus? Try it free for 7 days here.
