James Barrow (Trades, Portfolio), executive director of Dallas-based investment firm Barrow, Hanley, Mewhinney & Strauss, the lead portfolio manager for the Vanguard Windsor II and Selected Value Funds, was busy in the third quarter, investing in 20 stocks and selling holdings in 23 others.
Barrow’s Vanguard Windsor II has been on an upward trajectory, showing a 42.04% return in 2013, up from its 15.25% return in 2012 and a 0.82% return in 2011.
New buys
Barrow added six stocks to his portfolio: Spirit AeroSystems Holdings Inc (SPR, Financial), SeaWorld Entertainment Inc (SEAS, Financial), Vitamin Shoppe Inc (VSI, Financial), Texas Capital Bancshares Inc (TCBI, Financial), Xcerra Corp (XCRA, Financial) and Meredith Corp (MDP, Financial).
Spirit AeroSystems Holdings and SeaWorld Entertainment had the greatest impact on his portfolio. The other new buys all had an impact on his portfolio of 0.07% or less.
Spirit, based in Wichita, Kansas, provides manufacturing and design expertise of products and services for aircraft original equipment manufacturers and operators through its subsidiary, Spirit AeroSystems, Inc. Barrow bought 5,029,573 shares at an average price of $36.69 with an impact on his portfolio of 0.26%.
Barrow bought 9,011,740 shares of SeaWorld Entertainment, a family entertainment theme park company headquartered in Orlando, Florida, at an average price of $16.85 with an impact of 0.24% on his portfolio.
Adding to his stake
Barrow added to his existing holdings in 14 companies: Johnson Controls Inc (JCI, Financial), CRH PLC (CRH, Financial), Seadrill Ltd (SDRL, Financial), Public Service Enterprise Group Inc (PEG, Financial), Walmart Stores Inc (WMT, Financial), Gap Inc (GPS), Pinnacle West Capital Corp (PNW), Xcel Energy Inc (XEL), Loews Corp (L), General Electric Co (GE), Lennar Corp (LEN), Rio Tinto PLC (RIO), Cisco Systems Inc (CSCO) and Gran Tierra Energy Inc (GTE).
The acquisition of 13,156,891 shares of Johnson Controls, a Dallas-based company that manufactures, installs and services automatic temperature regulation systems for buildings, at an average price of $48.13 more than doubled his stake and had a 0.77% impact on his portfolio.
Barrow bought 8,902,518 shares in Dublin-based CRH PLC, a manufacturer and distributer of a range of building materials products, at an average price of $24.14. The purchase had a 0.28% impact on his portfolio.
Barrow also acquired 6,005,890 shares of Seadrill, an offshore drilling contractor headquartered in Bermuda, at an average price of $35.38, raising his stake to more than 30.5 million shares. The purchase had a 0.22% impact on his portfolio.
Divestitures and reductions
Barrow sold all his holdings in a dozen companies: MMC Norilsk Nickel JSC (NILSY), McDonald’s Corp (MCD), Ecopetrol SA (EC), Pentair PLC (PNR), National Oilwell Varco Inc (NOV), Tyco International Ltd (TYC), Tata Motors Ltd (TTM), Janus Capital Group Inc (JNS), Bank of New York Mellon Corp (BK), Hewlett-Packard Co (HPQ), Noble Corp PLC (NE) and Paragon Offshore PLC (PGN).
Barrow’s divestiture of his holdings (3,184,964 shares) in Pentair, an industrial machinery company headquartered in Switzerland, had the greatest impact on his portfolio (-0.31%).
Barrow reduced his holdings in 11 companies: Marathon Oil Corp (MRO), Intel Corp (INTC), Diageo PLC (DEO), Johnson & Johnson (JNJ), American Express Co (AXP), Rockwood Holdings Inc (ROC), WellPoint Inc (WLP), Plexus Corp (PLXS), Walgreen Co (WAG), Littelfuse Inc (LFUS) and Murphy USA Inc (MUSA).
Barrow’s sale of 9,403,064 shares of Houston-based Marathon (nearly 74% of his stake in the company) at an average price of $39.69 had an impact of -0.5% on his portfolio. Marathon is involved in the exploration, production and marketing of liquid hydrocarbons and natural gas, production and marketing of products manufactured from natural gas and oil sands mining.
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