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.
This month, we found several good funds had bought stocks or increased positions in their holdings. We are drawing data from three managers:
- Thornburg Value Fund (AUM = $907mm)
- Bill Nygren at Oakmark Select Value Fund (AUM = $5.8B)
- Meridian Contrarian Fund (AUM = $610mm)
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.
This month, however, we have refined these criteria somewhat. Rather than selecting any purchase transaction, we will list only newly opened positions or significant (20%+) increases in existing positions. As such, you will see a new column on this sheet labeled “Transaction”. “Buy” means a new position and “+114%” means an increase in an existing position of 114%. We believe the willingness to take a new large position or to significantly increase one’s position size has greater information content than simple “bookkeeping” transactions.
In addition, we have added two new columns that lists the 52-week high and low stock prices for the company shown. The additional columns make the print a little smaller on the PDF, but I hope you will find the new additions helpful.
There is one stock on the list that did not have options listed on a US market — RPC Group (RPCGF) — an English maker of food and medical packaging and a new purchase for the Thornburg fund. We left it in in the thought that some of you might be interested in a straight stock investment as well.
You can find the spreadsheet here:
June 2018 Covered Call Corner Spreadsheet 
A PDF copy of the spreadsheet is embedded below. Please reach out if you have any questions about these materials!
Loading...
Reload document 
Open in new tab