David Herro (Trades, Portfolio) of Oakmark International Fund looks for investment opportunities that are trading below intrinsic value, are expected to grow shareholder value and have management teams that think and act as owners would. His approach endured some setbacks in 2014 but enjoyed returns in excess of 20% in the preceding years.
Herro’s largest transaction in the third quarter was his purchase of a 4,683,000-share stake in Baidu Inc. (BIDU, Financial), a Beijing-based web services company, for an average price of $164.85 per share. The deal had a 2.53% impact on Herro’s portfolio.
Baidu has a market cap of $71.23 billion and an enterprise value of $66.31 billion. It has a P/E of 38, a forward P/E of 29.2, a P/B of 8.1 and a P/S of 7.4. GuruFocus has given Baidu a Financial Strength rating of 9/10 and a Profitability and Growth rating of 7/10.
Frank Sands (Trades, Portfolio), Dodge & Cox, First Pacific Advisors (Trades, Portfolio), Manning & Napier Advisors Inc., Jeremy Grantham (Trades, Portfolio), Matthews Pacific Tiger Fund (Trades, Portfolio), Ken Fisher (Trades, Portfolio), John Rogers (Trades, Portfolio), Mason Hawkins (Trades, Portfolio), Jim Simons (Trades, Portfolio), Matthews China Fund (Trades, Portfolio), Chris Davis (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio), Ron Baron (Trades, Portfolio) and First Eagle Investment (Trades, Portfolio) have shares of Baidu in their portfolios.
Baidu sold for $206.1 per share Monday afternoon.
Herro bought a 502,047,000-share stake in PT Bank Mandiri Persero Tbk. (ISX:BMRI, Financial), an Indonesian financial institution, for an average price of IDR 9,127.5 (about 66 cents in U.S. currency) per share. The transaction had a 1.07% impact on Herro’s portfolio.
PT Bank Mandiri Persero has a market cap of $202.42 trillion and an enterprise value of $228.54 trillion. It has a P/E of 10.1, a forward P/E of 8.5, a P/B of 1.8 and a P/S of 3.8. GuruFocus has given PT Bank Mandiri Persero a Financial Strength rating of 6/10 and a Profitability and Growth rating of 8/10.
On Monday PT Bank Mandiri Persero sold for IDR 8,725 (roughly 63 cents in American money) per share.
Herro raised his stake in Glencore PLC (LSE:GLEN, Financial), a Swiss commodities company, by 322% with the purchase of 321,824,000 for an average price of £1.76 (approximately $2.67 in U.S. dollars) per share. The deal had a 1.75% impact on Herro’s portfolio.
Glencore has a market cap of $13.29 billion and an enterprise value of $43.42 billion. It has a P/E of 8, a forward P/E of 8.6, a P/B of 0.4 and a P/S of 0.1. GuruFocus has given Glencore a Financial Strength rating of 7/10 and a Profitability and Growth rating of 6/10.
Glencore sold for £0.9 (about $1.37 in American currency) per share Monday.
Herro increased his stake in Komatsu Ltd. (TSE:6301, Financial), a Tokyo-based heavy equipment company, by more than 271%. Herro bought 25,078,000 shares for an average price of ¥2,147.98 (roughly $17.48 in U.S. money) per share. The deal had a 1.44% impact on Herro’s portfolio.
Komatsu has a market cap of $1.93 trillion and an enterprise value of $2.87 trillion. It has a P/E of 17.6, a forward P/E of 14.1, a P/B of 1.6 and a P/S of 1.0. GuruFocus has given Komatsu a Financial Strength rating of 8/10 and a Profitability and Growth rating of 5/10.
Matthews Japan Fund (Trades, Portfolio) and Causeway International Value (Trades, Portfolio) have shares of Komatsu in their portfolios.
Monday Komatsu sold for ¥2,028.5 (approximately $16.51 in American dollars) per share.
Herro raised his stake in Omron Corp. (TSE:6645, Financial), a Japanese electronics company, by nearly 426%. Hero acquired 11,765,000 shares for an average price of ¥4,653.95 (about $37.88 in U.S. currency) per share. The transaction had a 1.38% impact on Herro’s portfolio.
Omron has a market cap of $999.37 billion and an enterprise value of $902.08 billion. It has a P/E of 18.9, a P/B of 2 and a P/S of 1.2. GuruFocus has given Omron a Financial Stability rating of 9/10 and a Profitability and Growth rating of 8/10.
Matthews Japan Fund (Trades, Portfolio) has shares of Omron in its portfolio.
Omron sold for ¥4,600 (roughly $37.44 in American money) per share Monday.
Herro reduced his stake in Nestle SA (XSWX:NESN, Financial), a Swiss food and beverage company, by nearly 84%, selling 5,427,000 shares for an average price of CHF71.95 (approximately $70.60 in U.S. dollars) per share. The deal had a -1.36% impact on Herro’s portfolio.
Nestle has a market cap of $240.96 billion and an enterprise value of $260.3 billion. It has a P/E of 16.8, a forward P/E of 21.2, a P/B of 3.9 and a P/S of 2.7. GuruFocus has given Nestle a Financial Strength rating of 6/10 and a Profitability and Growth rating of 7/10.
Charles de Vaulx (Trades, Portfolio), Tweedy Browne (Trades, Portfolio) Global Value, IVA International Fund (Trades, Portfolio), MS Global Franchise Fund (Trades, Portfolio), Wintergreen Fund (Trades, Portfolio) and Signature Select Canadian Fund (Trades, Portfolio) have shares of Nestle in their portfolios.
On Monday Nestle sold for CHF76.05 (about $74.62 in American currency) per share.
Herro reduced his stake in Intesa Sanpaolo (MIL:ISP), an Italian financial services company, by more than 44%, selling 81,077,000 shares for an average price of €3.29 (roughly $3.50 in U.S. money) per share. The deal had a -1.03% impact on his portfolio.
Intesa Sanpaolo has a market cap of $49.32 billion and an enterprise value of $49.95 billion. It has a P/E of 19.3, a forward P/E of 12.6, a P/B of 1.1 and a P/S of 2.2. GuruFocus has given Intesa Sanpaolo a Financial Strength rating of 7/10 and a Profitability and Growth rating of 5/10.
Intesa Sanpaolo sold for €3.11 (approximately $3.31 in American dollars) per share Monday.
Herro sold his 3,038,000-share stake in Adecco SA (XSWX:ADEN), a Swiss professional services company, for an average price of CHF81.17 (about $79.64 in U.S. currency) per share. The transaction had a -0.86% impact on Herro’s portfolio.
Adecco has a market cap of $12.09 billion and an enterprise value of $13.46 billion. It has a P/E of 1,056.5, a forward P/E of 13.4, a P/B of 3.5 and a P/S of 0.5. GuruFocus has given Adecco a Financial Strength rating of 8/10 and a Profitability and Growth rating of 6/10.
On Monday Adecco sold for CHF69.7 (roughly $68.39 in American money) per share.
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