"We strive to conduct our business with the highest level of integrity and honesty, and we believe that investing our reputation is as important as investing our capital" Michael Dell (Trades, Portfolio)'s MSD Capital firm says in its "About Me".
The firm sees itself as a partial owner of a company when investing. MSD Capital looks for companies that will provide sustainable returns over the long term and the management team has to be honest, astute and think like shareholders.
Here's a look at Dell's top growth stocks in his portfolio and their current performances.
Dell owns 463,118 shares of WEX, with a total value of $45,812,000. The stock consists of 5.9% of his portfolio.
WEX Inc is a provider of corporate card payment solutions. The company was incorporated in 1998 and was formerly named Wright Express Corporation.
WEX is the top growth stock in his portfolio, with a 10-year EBITDA growth rate of 15.80% and a business predictability rating of 3.5 stars out of 5.
The annual Return on Invested Capital (ROIC) as of December 2014 was 7.99% and the current weighted average cost of capital is 14.19%. The current ROIC is 12.63%.
According to the DCF calculator, WEX's intrinsic value is $128.34 with a margin of safety at 19%. The stock is currently trading at $103.91, so the stock may be undervalued.
Dell currently had 794,101 shares of PVH in his portfolio, valued at $101,780,000. PVH is 13.2% of his portfolio.
PVH Corp is a branded apparel company that was founded in 1881 and incorporated in 1976. The company's brand portfolio includes Calvin Klein, Tommy Hilfiger, Van Huesen, Olga and Eagle, Sean John and Kenneth Cole New York.
PVH is the second top growth stock in Dell's portfolio, with a 10-year EBITDA growth rate of 11.80% and a business predictability ranking of 2 stars out of 5.
The company's annualized ROIC as of October 2014 was 12.54% and the current weighted average cost of capital is 6.35% and the current ROIC is 5.31%.
According to the DCF calculator, PVH has a fair value of $61.81 and a margin of safety at -64%. The stock is currently trading at $101.63 and may be overvalued.
Esterline Technologies (ESL, Financial)
There are currently 1,624,578 shares of ESL in Dell's portfolio, valued at $178,184,000. The stock consists of 23.1% of his portfolio.
Esterline designs, manufactures and markets highly engineered products that mainly caters to aerospace and defense customers. The corporation was formed in 1967.
ESL is the third top growth stock in Dell's portfolio, with a 10-year EBITDA growth rate of 11.40% and a business predictability rating of 3.5 stars out of 5.
As of January 2015, the ROIC was 5.11% and the weighted average cost of capital is 9.41% and the current ROIC is 7.81%.
According to the DCF calculator, ESL's intrinsic value is $85 with a margin of safety at -34%. The stock is currently trading at $113.80, which means it may be overvalued.
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