Guru David Herro (Trades, Portfolio), manager of the Oakmark International Fund since 1992, the Oakmark International Small Cap Fund since 1995 and the Oakmark Global Select Fund since 2006, added one new stock to his portfolio in the fourth quarter – Continental AG (CON.Germany), a German manufacturing company emphasizing tires, brake systems, safety, powertrain and chassis components, tachographs and other parts for the automotive and transportation industries.
Herro, who did have shares of Continental in his portfolio until selling the last of his stake in the second quarter of 2014, bought 80,000 shares in the fourth quarter for an average price of $160.02 per share. The purchase had a 0.06% impact on his portfolio.
Signature Select Canadian Fund (Trades, Portfolio) also has shares of Continental in its portfolio.
Herro added to his existing stakes in 14 companies – Melco Crown Entertainment Ltd (MPEL, Financial), Holcim Ltd (HOLN.Switzerland), Prada SpA (01913.Hongkong), BNP Paribas (BNP.France), EXOR Spa (EXO.Italy), Schindler Holding AG (SCHN.Switzerland), Bayerische Motoren Werke AG (BMW.Germany), Adecco SA (ADEN.Switzerland), G4S PLC (GFS.UK), Honda Motor Co Ltd (7267.Japan), CIE FINANCIERE RICHEMONT SA (CFR.Switzerland), Swedish Match AB (SWMA.Sweden), SAP SE (SAP.Germany) and Meggitt PLC (MGGT.UK).
He purchased 8,378,000 shares of Melco Crown Entertainment, a developer, owner and, through its subsidiary, operator of casino gaming and entertainment resort facilities, for an average price of $25.04 per share. The deal had a 0.79% impact on his portfolio.
Six gurus – Mason Hawkins (Trades, Portfolio), Paul Singer (Trades, Portfolio), George Soros (Trades, Portfolio), Leon Cooperman (Trades, Portfolio), Columbia Wanger (Trades, Portfolio) and Jim Simons (Trades, Portfolio) – have shares of Melco in their portfolios. Louis Moore Bacon (Trades, Portfolio) and Value Partners (Trades, Portfolio) sold their stakes in 2014.
Divestitures and reductions
He sold his stakes in four companies – Tesco PLC (TSCO.UK), Givaudan SA (GIVN.Switzerland), Novartis AG (NOVN.Switzerland) and Sanofi (SAN.France).
Herro sold his 72,090,000-share stake in Tesco, a British multinational grocery and general merchandise retailer, for an average price of $1.82 per share. The transaction had a -0.75% impact on his portfolio.
Bestinfond (Trades, Portfolio) owns nearly 13 million shares of Tesco.
Herro sold portions of his existing stakes in 20 companies – Canon Inc (7751.Japan), Toyota Motor Corp (7203.Japan), Olympus Corp (7733.Japan), Heineken Holding NV (HEIO.Netherlands), Hennes & Mauritz AB (HM B.Sweden), Lloyds Banking Group PLC (LLOY.UK), Pernod Ricard NV (RI.France), Publicis Groupe SA (PUB.France), Safran SA (SAF.France), Samsung Electronics Co Ltd (005930.Korea, South), Thomson Reuters Corp (TRI.Canada), Kuehne & Nagel International AG (KNIN.Switzerland), Diageo PLC (DGE.UK), Wolseley PLC (WOS.UK), Check Point Software Technologies Ltd (CHKP), Daimler AG (DAI.Germany), GlaxoSmithKline PLC (GSK.UK), Nestle SA (NESN.Switzerland), AMP Ltd (AMP.Australia) and Koninklijke Ahold NV (AH.Netherlands).
Herro sold 10,973,000 shares of Canon, a Japanese imaging and optical products company, for an average price of $3,620.01 per share. The sale had a -1.25% impact on Herro’s portfolio.
Even though Herro sold a portion of his stake in Lloyds Banking Group, it remained the largest stake in his portfolio by a comfortable margin.
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