Value investor Ronald Muhlenkamp (Trades, Portfolio), founder and president of Muhlenkamp & Company, Inc., and portfolio manager for the company's self-named mutual fund (MUHLX), has a reputation for being patient, for being willing to give an investment time to pay off.
Nevertheless, there are limits to his patience, and he usually sells some of his stakes, as he did in the first quarter. He doesn’t always sell as many as he did in the first quarter, though.
Muhlenkamp sold seven of his stakes in the first quarter. Four – Citigroup Inc (C, Financial), American International Group Inc (AIG, Financial), Directv (DTV, Financial) and Oracle Corporation (ORCL, Financial) – had impacts on his portfolio exceeding -1%.
Muhlenkamp sold his 279,400-share stake in Citigroup, a Manhattan-based banking and financial services company, for an average price of $50.92 per share. The deal had a -3% impact on his portfolio.
Muhlenkamp also sold his 251,950-share stake in American International Group, a New York-based insurance corporation, for an average price of $53.62 per share. That transaction had a -2.8% impact on his portfolio.
Muhlenkamp parted with his 143,343-share stake in Directv, a California-based broadcast satellite service provider, for an average price of $86.38 per share. The divestiture had a -2.5% impact on his portfolio.
And he sold his 143,255-share stake in Oracle Corporation, a computer technology corporation headquartered in California, for an average price of $43.34 per share. That sale had a -1.3% impact on his portfolio.
Muhlenkamp also sold his stakes in Lattice Semiconductor Corp (LSCC, Financial), International Business Machines Corp (IBM, Financial) and Career Education Corp (CECO, Financial).
New buys
Muhlenkamp made seven new buys in the first quarter, two of which – Medtronic PLC (MDT, Financial) and Baker Hughes Inc (BHI, Financial) – had an impact on his portfolio that exceeded 1%.
Muhlenkamp bought 173,653 shares of Medtronic, an Irish medical device company, for an average price of $75.79 per share. The transaction had a 2.85% impact on his portfolio.
Medtronic has a market cap of $108.58 billion and an enterprise value of $106.26 billion. It has a P/E of 24.1, a Price/Book of 5.3 and a Price/Sales of 4.3. Eleven gurus – Mario Gabelli (Trades, Portfolio), Ray Dalio (Trades, Portfolio), Vanguard Health Care Fund (Trades, Portfolio), John Hussman (Trades, Portfolio), James Barrow (Trades, Portfolio), First Eagle Investment, Dodge & Cox, John Keeley (Trades, Portfolio), PRIMECAP Management (Trades, Portfolio), Ruane Cunniff (Trades, Portfolio) and Joel Greenblatt (Trades, Portfolio) – have shares of Medtronic in their portfolios.
Muhlenkamp acquired 111,165 shares of Baker Hughes, a Houston-based oilfield services company, for an average price of $60.33 per share. The purchase had a 1.49% impact on Muhlenkamp’s portfolio.
Baker Hughes has a market cap of $28.56 billion and an enterprise value of $31.11 billion. It has a P/E of 36.4, a Price/Book of 1.6 and a Price/Sales of 1.2. Michael Price (Trades, Portfolio), First Eagle Investment, Mario Gabelli (Trades, Portfolio), Jeff Ubben (Trades, Portfolio), Glenn Greenberg (Trades, Portfolio), Leon Cooperman (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio), Dodge & Cox and George Soros (Trades, Portfolio) have shares of Baker Hughes in their portfolios.
Other new buys in Muhlenkamp’s portfolio are Epizyme Inc (EPZM, Financial), Cigna Corp (CI, Financial), Noble Corp PLC (NE, Financial), Genworth Financial Inc (GNW) and Athersys Inc (ATHX).
Muhlenkamp added to his existing stakes in 23 companies. The addition with the largest impact to his portfolio (1.93%) was his investment in ON Semiconductor Corp (ON), a Phoenix, Arizona-based semiconductor supplier. He bought 758,900 shares for an average price of $11.46.
ON Semiconductor has a market cap of $5.33 billion and an enterprise value of $6.09 billion. It has a P/E of 29.6, a Price/Book of 3.5 and a Price/Sales of 1.6. Ray Dalio (Trades, Portfolio) also has shares of ON Semiconductor in his portfolio.
Muhlenkamp also bought 100,000 shares of Halliburton Co (HAL), an Oklahoma-based oilfield services and equipment company, for an average price of $41.69 per share. The transaction had a 0.93% impact on his portfolio.
Halliburton has a market cap of $39.63 billion and an enterprise value of $45.21 billion. It has a P/E of 17.8, a Price/Book of 2.6 and a Price/Sales of 1.2. Fourteen gurus – Arnold Van Den Berg (Trades, Portfolio), David Dreman (Trades, Portfolio), Dodge & Cox, Glenn Greenberg (Trades, Portfolio), Jeff Ubben (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio), John Keeley (Trades, Portfolio), Lee Ainslie (Trades, Portfolio), Mario Gabelli (Trades, Portfolio), Michael Price (Trades, Portfolio), Ron Baron (Trades, Portfolio), Scott Black (Trades, Portfolio), Tom Gayner (Trades, Portfolio) and Tweedy Browne (Trades, Portfolio) – have Halliburton in their portfolios. John Burbank (Trades, Portfolio) and Leon Cooperman (Trades, Portfolio) sold their stakes in Halliburton in the fourth quarter of 2014.
Muhlenkamp also added to his stakes in Microsoft Corp (MSFT), Discover Financial Services (DFS), WCI Communities Inc (WCIC), NeuStar Inc (NSR), Macrogenics Inc (MGNX), Spirit Airlines Inc (SAVE), Universal Display Corp (OLED), American Capital Ltd (ACAS), Celanese Corp (CE), Delta Air Lines Inc (DAL), Bellatrix Exploration Ltd (BXE), Apple Inc (AAPL), General Motors Co (GM), Lincoln National Corp (LNC), Magnum Hunter Resources Corporation (MHR.PRD), Morgan Stanley (MS), Quicklogic Corp (QUIK), Rex Energy Corp (REXX), Rush Enterprises Inc (RUSHB), Teva Pharmaceutical Industries Ltd (TEVA) and American Airlines Group Inc (AAL).
Reductions
Muhlenkamp reduced his stakes in 24 companies – Allegiant Travel Co LLC (ALGT), EZChip Semiconductor Ltd (EZCH), Magnum Hunter Resources Corporation (MHR), Sonic Automotive Inc (SAH), American Axle & Mfg Holdings Inc (AXL), Quantum Fuel Systems Technologies Worldwide (QTWW), JPMorgan Chase & Co (JPM), Asbury Automotive Group Inc (ABG), Boardwalk Pipeline Partners LP (BWP), Celgene Corp (CELG), Innovative Solutions and Support Inc (ISSC), ARRIS Group Inc (ARRS), Alliance Data Systems Corp (ADS), Berkshire Hathaway Inc (BRK.B), Zix Corp (ZIXI), DSP Group (DSPG), General Electric Co (GE), Gilead Sciences Inc (GILD), Teekay Tankers Ltd (TNK), Hanesbrands Inc (HBI), Annaly Capital Management Inc (NLY), PulteGroup Inc (PHM) and State Street Corp (STT).
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