Mariko Gordon (Trades, Portfolio) founded Daruma Capital, a firm that believes in concentrated portfolios composed of companies that have a reason their price will likely increase, such as sales, earnings or cash flow growth beyond expectations.
Going into the fourth quarter, Gordon said regarding the markets:
“There’s a lot not to like, and it feels like the market is being kept on life support because of central bank policy. Not only is the market long in the tooth in an economic recovery that is taking twice as long than it normally would, but domestic political paralysis and flaring global tensions certainly don’t make for a clear upward path. The US economy continues to grind forward, but in an interdependent world that may not be enough to keep the wolves at bay.”
Gordon’s portfolio at fourth quarter-end contained 50 stocks, at a value of $2.3 billion, with 9% turnover.
In the fourth quarter, she bought three new stocks: On Assignment Inc. (ASGN, Financial), Mattress Firm Holding Corp (MFRM, Financial) and Superior Energy Services Inc. (SPN, Financial).
On Assignment Inc. (ASGN, Financial)
Gordon purchased 1,980,002 shares of On Assignment Inc., a 2.9% portfolio weight. The share price of the company averaged $30 for the quarter.
On Assignment Inc., a Delaware corporation was incorporated on Dec. 30, 1985. On Assignment Inc. has a market cap of $1.96 billion; its shares were traded at around $38.07 with a P/E ratio of 26.80 and P/S ratio of 1.11. On Assignment Inc. had an annual average earnings growth of 51.9% over the past five years.
Mattress Firm Holding Corp (MFRM, Financial)
Gordon purchased 68,694 shares of Mattress Firm Holding Corp, a 0.17% portfolio weight. The company’s share price averaged $62 for the quarter.
Mattress Firm Holding Corp is a Delaware corporation incorporated in January 2007. Mattress Firm Holding Corp has a market cap of $2.18 billion; its shares were traded at around $62.31 with a P/E ratio of 46.80 and P/S ratio of 1.41.
Superior Energy Services Inc. (SPN, Financial)
Gordon purchased 134,437 shares of Superior Energy Services Inc., a 0.12% portfolio weight. The company’s share price averaged $23 for the quarter.
Superior Energy Services Inc. is a Delaware Corporation, was founded in 1989. Superior Energy Services Inc. has a market cap of $3.09 billion; its shares were traded at around $20.65 with a P/E ratio of 12.40 and P/S ratio of 0.71. The dividend yield of Superior Energy Services Inc. stocks is 1.55%.
See more of Gordon’s stocks in her portfolio here. Not a Premium Member of GuruFocus? Try it free for 7 days here.
