Prem Watsa Bought Kennedy-Wilson, Cut Dresser-Rand in Second Quarter

During second quarter he focused on buys rather than sales

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Oct 07, 2015
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Fairfax Financial Holdings Limited was founded in 1985 by the present chairman and chief executive officer, Prem Watsa (Trades, Portfolio). Fairfax is a holding company which, through its subsidiaries, is engaged in property and casualty insurance and reinsurance and investment management.

Prem Watsa (Trades, Portfolio) manages a portfolio composed of 49 stocks with a total value of $1,364 million; during the second quarter he bought eight new stocks, increased two and reduced two of his existing stakes and sold out two stocks. The following are the most heavily weighted trades:

He increased his stake in Kennedy-Wilson Holdings Inc. (KW) by 2,138.74% with an impact of 15.43% on his portfolio.

It is a vertically integrated real estate investment and services company. Its operations are defined by two core business units: KW Investments and KW Services.

During the last quarter Kennedy-Wilson acquired a 61% equity interest in Vintage Housing Holdings, LLC and it sold its Japanese multifamily portfolio generating. Kennedy-Wilson reported second-quarter revenues with a growth of 8.3% for multifamily and 1.1% for commercial while net operating income grew 10.7% and 1.9%.

The stock is trading with a forward P/E ratio of 14.14 and has been as high as $28.33 and as low as $21.88 in the past year. It is currently 18.36% below its 52-week high and 5.71% above its 52-week low.

Prem Watsa (Trades, Portfolio) is the company's main shareholder among the gurus with 7.93% of outstanding shares followed by Ron Baron (Trades, Portfolio) with 1.27% and Chuck Royce (Trades, Portfolio) with 4.25%.

He bought 34,000 shares of Polypore International Inc. (PPO) with an impact of 0.15% on his portfolio.

It is a high technology filtration company that develops, manufactures and markets specialized microporous membranes used in separation and filtration processes. Also Polypore now operate as a core operating company of the Asahi Kasei Grou after it closed the the acquisition of Polypore by Asahi Kasei Corporation. Recently it closed the sale of its Separations Media business segment to 3M Company (MMM).

The stock is trading with a P/E ratio of 54.40. According to the DCF calculator, the company currently looks overpriced by 266%.

PRIMECAP Management (Trades, Portfolio) is the main hedge fund of the company with 11.35% of outstanding shares followed by Jim Simons (Trades, Portfolio) with 1.41% and Mario Gabelli (Trades, Portfolio) with 0.56%.

He bought 75,000 shares of Lumenis Ltd. (LMNS) with an impact of 0.08% on his portfolio.

The company is a provider of energy-based, minimally invasive clinical solutions for both medically necessary and elective procedures for the aging population. During the last quarter the company’s revenue was up by 9.3% year over year, and the outlook says it will continue to report solid revenue growth year over year driven by the combination of successful sales execution and the early adoption of newly launched products. Even adjusted EBITDA grew with 31.1% year-over-year increase.

The stock is trading with a P/E ratio of 28.04 and has been as high as $13.97 and as low as $8.45 in the past year. It is currently 1.86% below its 52-week high and 62.25% above its 52-week low. According to the DCF calculator, the company currently looks overpriced by 90%

Paul Tudor Jones (Trades, Portfolio) is the main shareholder with 2.78% of outstanding shares, then Jim Simons (Trades, Portfolio) with 0.51% and Prem Watsa (Trades, Portfolio) with 0.21% of outstanding shares of the company which is 0.08% of his total assets.

He reduced his stake in Dresser-Rand Group Inc. (DRC) by 75.31% and with an impact of 0.07% on his portfolio.

The company is a supplier of custom-engineered rotating equipment solutions for long-life, critical applications in the oil, gas, chemical, petrochemical, process, power generation, military and other industries in various countries.

The stock is trading with a P/E ratio of 79.90. According to the DCF calculator, the company currently looks overpriced by 180%

HOTCHKIS & WILEY is the company's main shareholder among the gurus with a stake of 2.27% of outstanding shares, followed by George Soros (Trades, Portfolio) with 0.64% and Jim Simons (Trades, Portfolio) with 0.18%.

He bought 16,500 shares of Catamaran Corp. (CTRX) with an impact of 0.07% on his portfolio.

It is a provider of pharmacy benefit management services PBM and healthcare IT solutions to the healthcare benefit management industry. During the last quarter, its revenue increased by 22% from the same quarter of a year before and gross profit increased 20% from the first quarter of 2014. Adjusted EPS and net income had 18% and 37% increases compared to 1Q14.

The stock is trading with a P/E ratio of 42.60 and has been as high as $80.46 and as low as $44.17 in the past year. It is currently 0.35% below its 52-week high and 81.53% above its 52-week low. According to the DCF calculator, the company currently looks overpriced by 32%

Eric Mindich (Trades, Portfolio) is the company's main shareholder among the gurus with 2.73% of outstanding shares followed by Jim Simons (Trades, Portfolio) with 0.42% and Diamond Hill Capital (Trades, Portfolio) with 0.31%.

He bought 53,200 shares of Wendy's Co. (WEN) with an impact of 0.04% on his portfolio.

The Wendy’s Company is the world’s third-largest quick-service hamburger company. The Wendy’s system includes more than 6,500 franchise and company restaurants in the U.S. and 29 other countries and U.S. territories worldwide. The second-quarter results demonstrate continued progress with Wendy's brand transformation as company-operated restaurant margin increases to 18.2% and achieved a 170 basis-point improvement in adjusted EBITDA margin. Also the company increased outlook for 2015 Adjusted EBITDA to $385 to $390 million from previous range of $375 to $385 million

The stock is trading with a P/E ratio of 28.51 and has been as high as $11.71 and as low as $7.61 in the past year. It is currently 26.13% below its 52-week high and 13.67% above its 52-week low.. According to the DCF calculator, the company currently looks overpriced by 125%

Murray Stahl (Trades, Portfolio) is the company's main shareholder among the gurus with 9.69% of outstanding shares of the company followed by David Abrams (Trades, Portfolio) with 1.46% and Jim Simons (Trades, Portfolio) with 0.80%.