Apologies all, I made a sorting error in the put section when I posted this CCC. Thanks to member Kevin T. for catching my mistake. I have posted the corrected version of the pdf and the final spreadsheet below.
Each month, we screen for attractive “bond replacement” investment candidates by looking up the reports of investments purchased by “Superinvestors” covered by the Dataroma site. Dataroma follows 64 managers that are all using value-based strategies.
Again in July, we found several good funds had bought stocks or increased positions in their holdings. We are drawing data from two well known value managers with outstanding track records:
In the past, we had looked for any transactions that met the following criteria:
- Stocks listed represented more than 2% of the portfolio’s value
- Stocks listed had been bought by the fund in the reported quarter
These conditions were designed to screen for the stocks in which the managers had demonstrated the most confidence (by portfolio weight) and about which they had made an active decision to invest. As we explain in our video introduction to “Bond Replacement” investments, we are using these portfolio managers’ actions as an indication of undervaluation.
You may remember that in June 2018 we refined these criteria by listing only newly opened positions or significant (20%+) increases in existing positions.
Weitz and Pzena both had some interesting adds and buys that were already on our radar here at Framework; General Electric (GE) and Facebook (FB) as well as some very well run companies with strong performance track records, including MetLife (MET) and household furnishings leader Mohawk Industries (MHK).
You can find the corrected (7.15.18) spreadsheet for July here inclusive of all the criteria changes we made in June: