You know those television commercials that depict some character and/or situation and the narrator observes, “It’s what you do” in a tone of voice that suggests that it would be silly to say otherwise? That’s the kind of thing an observer could say about Chuck Royce (Trades, Portfolio), Royce & Associates’ president, co-chief investment officer and portfolio manager.
Royce makes more than 1,000 transactions every quarter. It’s what he does. In the second quarter of 2015, Royce added 59 new stakes to his portfolio. Individually, few of the buys probably would raise any eyebrows among the gurus, but, collectively, they add up to a considerable investment.
His largest buy was a 1,196,344-share stake in Saia Inc. (SAIA, Financial), a Georgia-based trucking company, for an average price of $41.38 per share. The purchase had a 0.2% impact on Royce’s portfolio.
Saia has a market cap of $1.07 billion and an enterprise value of $1.22 billion. It has a P/E of 17.7, a Price/Book of 2.7 and a Price/Sales of 0.9. Paul Tudor Jones (Trades, Portfolio) has shares of Saia in his portfolio.
Royce acquired a 1,139,305-share stake of Werner Enterprises Inc. (WERN, Financial), a freight carrier and transportation company based in Omaha, Nebraska, for an average price of $28.47 per share. The buy had a 0.13% impact on Royce’s portfolio.
Werner Enterprises has a market cap of $2.03 billion and an enterprise value of $2.1 billion. It has a P/E of 18.0, a Price/Book of 2.3 and a Price/Sales of 1.0. Royce is the leading Werner Enterprises shareholder among the gurus, but James Barrow (Trades, Portfolio), Jim Simons (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio) and Murray Stahl (Trades, Portfolio) also have shares of Werner Enterprises in their portfolios.
Royce bought 644,000 shares of Integrated Device Technology Inc. (IDTI, Financial), a semiconductor company based in San Jose, California, for an average price of $21.55 per share. The transaction had a 0.06% impact on Royce’s portfolio.
Integrated Device Technology has a market cap of $3.06 billion and an enterprise value of $2.39 billion. It has a P/E of 28.9, a Price/Book of 3.8 and a Price/Sales of 5.2. Jim Simons (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio), NWQ Managers (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio) and Lee Ainslie (Trades, Portfolio) have shares of Integrated Device Technology in their portfolios.
Royce added a 1,114,600-share stake in Fenix Parts Inc. (FENX, Financial), an Illinois-based recycler and reseller of automotive products, to his portfolio. Royce paid an average price of $10.44 per share. The acquisition had a 0.05% impact on Royce’s portfolio.
Fenix Parts has a market cap of $194.11 million and an enterprise value of $16.82 million.
Royce acquired 459,728 shares of Virgin America Inc. (VA, Financial), a California-based airline, for an average price of $28.98 per share. The deal had a 0.05% impact on Royce’s portfolio.
Virgin America has a market cap of $1.52 billion and an enterprise value of $1.11 billion. It has a P/E of 5.3, a Price/Book of 2.8 and a Price/Sales of 0.2. PRIMECAP Management (Trades, Portfolio) has shares of Virgin America in its portfolio.
Royce invested in a 496,000-share stake in MasTec Inc. (MTZ, Financial), a Coral Gables, Florida-based engineering and construction company, for an average price of $18.7 per share. The transaction had a 0.04% impact on Royce’s portfolio.
MasTec has a market cap of $1.4 billion and an enterprise value of $2.7 billion. It has a P/E of 16.1, a Price/Book of 1.4 and a Price/Sales of 0.3. Jim Simons (Trades, Portfolio), Murray Stahl (Trades, Portfolio) and Paul Tudor Jones (Trades, Portfolio) have shares of MasTec in their portfolios.
Royce purchased a 246,544-share stake in Northrim BanCorp Inc. (NRIM, Financial), an Alaska-based bank, for an average price of $25.06 per share. The deal had a 0.03% impact on Royce’s portfolio.
Northrim BanCorp has a market cap of $177.11 million and an enterprise value of $168.93 million. It has a P/E of 9.8, a Price/Book of 1.0 and a Price/Sales of 2.1. Private Capital (Trades, Portfolio) and Jim Simons (Trades, Portfolio) have shares of Northrim BanCorp in their portfolios.
Royce acquired 458,600 shares of BioDelivery Sciences International Inc. (BDSI, Financial), a North Carolina-based pharmaceutical company, for an average price of $8.62 per share. The transaction had a 0.02% impact on Royce’s portfolio.
BioDelivery Sciences International has a market cap of $354.78 million and an enterprise value of $364.74 million. It has a Price/Book of 7.1 and a Price/Sales of 10.9. Steven Cohen (Trades, Portfolio) and Julian Robertson (Trades, Portfolio) have shares of BioDelivery Sciences International in their portfolios.
Among the other new stakes in Royce’s portfolio are Amicus Therapeutics Inc. (FOLD, Financial), Healthways Inc. (HWAY, Financial) and Dun & Bradstreet Corp. (DNB, Financial).
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