Golub Group’s Latest Form 13F Filing
According to Golub Group’s website, the investment firm focuses on buying quality investments that provide what Benjamin Graham calls “Margin of Safety” in order to limit risk. The firm also looks to properly diversify holdings across sectors and exercises patience in its positions. John Dowling currently serves as Golub Group’s Chief Investment Officer.
On February 12th, Golub Group released its quarterly Form 13F regulatory filing. I reviewed the filing to gain a glimpse into the firm’s large portfolio.
Golub Group’s stock portfolio totals $1.1 billion according to the latest filing. The list value of stock holdings is down -1.0% when compared to the last quarter. As a benchmark, the S&P 500 was up 6.1% over the same period.
Quarter-over-Quarter Turnover (QoQ Turnover) measures the level of trading activity in a portfolio. Golub Group’s QoQ Turnover for the latest quarter was 7.7%, so the firm likely has high conviction in these holdings as indicated by the low turnover ratio.
Golub Group’s Largest Holdings
The Ideas section of finbox.io tracks top investors and trending investment themes. You can get the latest data on the holdings discussed below at the Golub Group page. The following table summarizes his firm’s largest holdings reported in the last filing:
|Ticker||Name||Holding ($mil)||% Of Portfolio|
|BRK.B||BERKSHIRE HATHAWAY INC DEL||$75.8||7.1%|
|BAC||BANK AMER CORP||$41.5||3.9%|
The seven positions above represent 36.1% of the fund’s total portfolio.
Golub Group’s 7 Largest Purchases
I also used finbox.io to find Golub Group’s largest buys last quarter. Here’s the list of the biggest stock purchases determined by comparing the last two filings:
|Ticker||Name||Purchased ($mil)||% Of Portfolio|
|EXPE||EXPEDIA INC DEL||$11.0||2.6%|
|OI||OWENS ILL INC||$6.2||3.4%|
|CMG||CHIPOTLE MEXICAN GRILL INC||$4.2||2.7%|
The largest stock purchase for the quarter was Allergan. Golub Group increased its position in the company by $45.0 million and the shares now represents 4.3% of the firm’s portfolio.
Golub Group’s Most Undervalued Holdings
To determine which stocks are trading below their intrinsic value, aka “fair value” I used the finbox.io Fair Value estimates. I also wanted to blend in some indication of which stocks might be ready to make a move up soon because they’re popular with Wall Street analysts.
I calculated an average using the finbox.io fair value upside and analyst upside to create a blended upside which I then used to rank the most undervalued holdings.
Here are the top 7 stocks based on my calculations:
|Ticker||Name||Upside (finbox.io)||Upside (Analyst Target)||Blend Upside|
|OI||OWENS ILL INC||46.4%||24.6%||35.5%|
|EXPE||EXPEDIA INC DEL||8.4%||47.8%||28.1%|
|CMG||CHIPOTLE MEXICAN GRILL INC||29.4%||18.7%||24.0%|
|LH||LABORATORY CORP AMER HLDGS||26.9%||12.0%||19.5%|
|GE||GENERAL ELECTRIC CO||8.5%||28.2%||18.4%|
|CVX||CHEVRON CORP NEW||17.2%||18.5%||17.9%|
Owens-Illinois, Inc. (NYSE: OI) appears to be the most undervalued stock in the fund. The company has a blended upside of 35.5% relative to its current trading price. Value investors may want to dig deeper into the valuation of the company.
Golub Group’s Low P/E Ratio Stocks
The P/E Ratio indicates the multiple of earnings stock investors are willing to pay for one share of the company. A low P/E can indicate either that a company may currently be undervalued or that the company is doing exceptionally well relative to its past trends. The following table summarizes the firm’s holdings with the lowest P/E multiple.
|Ticker||Name||Holding ($mil)||% Of Portfolio|
|IBM||INTERNATIONAL BUSINESS MACHS||12.2x||0.1%|
|VZ||VERIZON COMMUNICATIONS INC||12.8x||0.1%|
|OI||OWENS ILL INC||14.1x||3.4%|
|BXMT||BLACKSTONE MTG TR INC||15.0x||0.2%|
The cheapest stock that Golub Group owns is McKesson Corporation (NYSE: MCK) which currently trades at 6.8x earnings.
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, Golub Group’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 email@example.com.
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.