Here’s What ACR Alpine Capital Has Been Buying and Selling

in INVESTING IDEAS by

ACR Alpine Capital Research LLC just released their quarterly 13F filing with the SEC. Here’s what the firm with more than $2.1 billion assets under management (Form ADV) has been up to.


ACR Alpine Capital’s Largest Holdings

On February 9th, ACR Alpine Capital filed their quarterly Form 13F regulatory filing and I reviewed the holdings in firm’s large portfolio.

ACR Alpine Capital’s stock portfolio totals $1.8 billion according to the latest filing. The list value of stock holdings is down -4.0% when compared to the last quarter. As a benchmark, the S&P 500 was up 6.1% over the same period.

Quarter-over-Quarter Turnover (QoQ Turnover) measures the level of trading activity in a portfolio. ACR Alpine Capital’s QoQ Turnover for the latest quarter was 20.0%, so the firm appears to trade a fair amount of its portfolio each quarter.

The Ideas section of finbox.io tracks top investors and trending investment themes. You can get the latest data on the holdings discussed below at the ACR Alpine Capital page. The following table summarizes his firm’s largest holdings reported in the last filing:

ACR Alpine Capital Largest Holdings
Ticker Name Holding ($mil) % Of Portfolio
GBIL GOLDMAN SACHS ETF TR $507.4 28.5%
MSFT MICROSOFT CORP $136.8 7.7%
ESRX EXPRESS SCRIPTS … $133.6 7.5%
AAP ADVANCE AUTO PAR… $132.2 7.4%
LBTYA LIBERTY GLOBAL PLC $122.7 6.9%
VOD VODAFONE GROUP P… $122.1 6.9%
JNJ JOHNSON & JOHNSON $113.7 6.4%

 

The seven positions above represent 71.3% of the hedge fund’s total portfolio. It was interesting to see 28.5% of the portfolio was in a Goldman Sachs ETF that mirrors the US Treasury 0-1 Year Composite Select Index. This is virtually a low-risk cash holding.


ACR Alpine Capital’s 7 Largest Purchases

I also used finbox.io to find ACR Alpine Capital’s largest buys last quarter. Here’s the list of the biggest stock purchases determined by comparing the last two filings:

ACR Alpine Capital 7 Largest Purchases
Ticker Name Purchased ($mil) % Of Portfolio
LBTYA LIBERTY GLOBAL PLC $122.7 6.9%
VOD VODAFONE GROUP P… $122.1 6.9%
CTL CENTURYLINK INC $70.5 4.0%
AAP ADVANCE AUTO PAR… $40.7 7.4%
ESRX EXPRESS SCRIPTS … $5.0 7.5%
RFP RESOLUTE FST PRO… $0.6 3.2%
BSV VANGUARD BD INDE… $0.3 0.2%

 

Here’s the list of biggest position reductions determined by comparing the last two filings:

ACR Alpine Capital 7 Biggest Sells
Ticker Name Sold ($mil) % Of Portfolio
LVLT Level 3 Communic… $107.1 5.8%
INTC INTEL CORP $86.1 0.0%
GBIL GOLDMAN SACHS ETF TR $21.6 28.5%
MSFT MICROSOFT CORP $18.5 7.7%
JNJ JOHNSON & JOHNSON $2.9 6.4%
BRK.B BERKSHIRE HATHAW… $2.4 5.6%
FLOW SPX FLOW INC $2.1 6.2%

 


ACR Alpine Capital’s Most Undervalued Holdings

According to its website, ACR Alpine Capital Research is a fundamental valuation-based asset management firm with an investment philosophy rooted in principles essential for successfully evaluating fundamental value and risk. Therefore, I attempted to find which stocks in the portfolio could be most undervalued based on fundamental valuation analyses.

To determine which stocks are trading below their intrinsic value, aka “fair value” I used the finbox.io Fair Value estimates. I also wanted to blend in some indication of which stocks might be ready to make a move up soon because they’re popular with Wall Street analysts.

I calculated an average using the finbox.io fair value upside and analyst upside to create a blended upside which I then used to rank the most undervalued holdings.

Here are the top 7 stocks based on my calculations:

ACR Alpine Capital Most Undervalued Holdings
Ticker Name Upside (finbox.io) Upside (Analyst Target) Blend Upside
CRK COMSTOCK RES INC 65.9% 38.3% 52.1%
RFP RESOLUTE FST PRO… 69.6% 29.1% 49.3%
VOD VODAFONE GROUP P… 44.2% 30.6% 37.4%
MRK MERCK & CO INC 24.2% 22.1% 23.1%
DVMT DELL TECHNOLOGIE… -7.2% 48.6% 20.7%
ESRX EXPRESS SCRIPTS … 19.3% 14.2% 16.7%
SPXC SPX CORP 22.7% 4.5% 13.6%

 

Managers with more than $100 million in qualifying assets under management are required to disclose their holdings to the SEC each quarter via 13F filings. Qualifying assets include long positions in U.S. equities and ADRs, call/put options, and convertible debt securities. Shorts, cash positions, foreign investments and other assets are not included. It is important to note that these filings are due 45 days after the quarter end date. Therefore, ACR Alpine Capital’s holdings above represent positions held as of December 31st and not necessarily reflective of the fund’s current stock holdings.

However, most can agree that with thousands of stocks traded on U.S. exchanges, doing thorough research on each one is nearly impossible for smaller investors. Leveraging the resources of the largest hedge funds on Wall Street can be a powerful way to narrow down the list.


Author: Andy Pai

Expertise: financial modeling, mergers & acquisitions

Andy is a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to do investment research. Andy’s background is in investment banking where he led the analysis on over 50 board advisory engagements involving mergers and acquisitions, fairness opinions and solvency opinions. Some of his board advisory highlights:

  • Sears Holdings Corp.’s $620 mm spin-off via rights offering of Sears Outlet, Hometown Stores and Sears Hardware Stores.
  • Cerberus Capital Management’s $3.3 bn acquisition of SUPERVALU Inc.’s New Albertsons, Inc. assets.

Andy can be reached at andy@finbox.io.

As of this writing, I did not hold a position in any of the aforementioned securities and this is not a buy or sell recommendation on any security mentioned.

Expertise: financial modeling, mergers & acquisitions. Andy is also a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to do investment research. Andy’s background is in investment banking where he led the analysis on over 50 board advisory engagements involving mergers and acquisitions, fairness opinions and solvency opinions. Some of his board advisory highlights: - Sears Holdings Corp.’s $620 mm spin-off via rights offering of Sears Outlet, Hometown Stores and Sears Hardware Stores. - Cerberus Capital Management’s $3.3 bn acquisition of SUPERVALU Inc.’s New Albertsons, Inc. assets. Andy can be reached at andy@finbox.io or at +1 (516) 778-6257.

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