Brandywine Global Investment Management, LLC recently filed their 13F report for the fourth quarter of 2022, which ended on 2022-12-31.
The 13F report details which stocks were in a guru’s equity portfolio at the end of the quarter, though investors should note that these filings are limited in scope, containing only a snapshot of long positions in U.S.-listed stocks and American depository receipts as of the quarter’s end. They are not required to include international holdings, short positions or other types of investments. Still, even this limited filing can provide valuable information.
Brandywine Global Investment Management is a private investment management company. The company can trace its history back to 1986 when it was incorporated as Brandywine Asset Management. Brandywine began with offering large and small cap domestic value strategies and expanded to fixed income and balanced strategies in 1992. The company continued to grow until it was acquired by Legg Mason in 1998, becoming a wholly owned by independent subsidiary of the company. The company’s $6 billion in assets has grown significantly to its amount today, and a variety of subsidiaries were created including Brandywine Global Investment Management (Asia) Pte. in 2003 and Global Investment Management (Europe) Limited in 2007, also changing its name to its current Brandywine Global Investment Management that year after relocating to its current headquarters in Cira Center, Philadelphia. The company focuses on value investing and has found that “value-style investing—whether in equity or fixed income markets, domestically or internationally—may provide excellent risk-adjusted returns over full investment cycles” through research and experience. Today the company has over $66 billion in total assets under management spread across over 2,000 accounts. Most of its assets are focused in fixed income, which alone makes up over three quarters of its assets, and the company also allocates assets in diversified value equity, large cap equity, absolute value equity, and multi asset equity, in order of decreasing portfolio allocation. The majority of Brandywine Global Investment Management’s clients are sub advisory companies, which alone makes up almost half of its total client base, and also includes employee benefits, government and municipal entities, public retirement, endowments and foundations, corporations, Taft-Hartley, and individual investors, in order of decreasing clientele. Some of the mutual funds that the company currently offers include the Global Opportunistic Fixed Income, Global High Yield, International Opportunistic Fixed Income (Non-U.S.), Global Opportunistic Absolute Return, and Dynamic Large Cap Value Equity Funds.
As of the latest 13F report, the guru’s equity portfolio contained 714 stocks valued at a total of $12.73Bil. The top holdings were JPM(2.85%), XOM(2.33%), and PFE(2.02%).
According to GuruFocus data, these were Brandywine Global Investment Management, LLC’s top five trades of the quarter.
Oracle Corp
The guru sold out of their 2,575,535-share investment in NYSE:ORCL. Previously, the stock had a 1.48% weight in the equity portfolio. Shares traded for an average price of $76 during the quarter.
On 02/10/2023, Oracle Corp traded for a price of $87.14 per share and a market cap of $234.95Bil. The stock has returned 8.09% over the past year.
GuruFocus gives the company a financial strength rating of 3 out of 10 and a profitability rating of 9 out of 10.
In terms of valuation, Oracle Corp has a price-earnings ratio of 27.32, a price-earnings-to-growth (PEG) ratio of 3.59, a EV-to-Ebitda ratio of 17.75 and a price-sales ratio of 5.25.
The price-to-GF Value ratio is 1.00, earning the stock a GF Value rank of 5.
Applied Materials Inc
During the quarter, Brandywine Global Investment Management, LLC bought 884,191 shares of NAS:AMAT for a total holding of 1,251,084. The trade had a 0.68% impact on the equity portfolio. During the quarter, the stock traded for an average price of $95.95.
On 02/10/2023, Applied Materials Inc traded for a price of $114.77 per share and a market cap of $96.76Bil. The stock has returned -17.16% over the past year.
GuruFocus gives the company a financial strength rating of 7 out of 10 and a profitability rating of 10 out of 10.
In terms of valuation, Applied Materials Inc has a price-earnings ratio of 15.43, a price-book ratio of 7.94, a price-earnings-to-growth (PEG) ratio of 0.84, a EV-to-Ebitda ratio of 12.21 and a price-sales ratio of 3.89.
The price-to-GF Value ratio is 0.94, earning the stock a GF Value rank of 6.
Lockheed Martin Corp
The guru sold out of their 185,972-share investment in NYSE:LMT. Previously, the stock had a 0.68% weight in the equity portfolio. Shares traded for an average price of $464.67 during the quarter.
On 02/10/2023, Lockheed Martin Corp traded for a price of $480.83 per share and a market cap of $122.75Bil. The stock has returned 27.70% over the past year.
GuruFocus gives the company a financial strength rating of 6 out of 10 and a profitability rating of 9 out of 10.
In terms of valuation, Lockheed Martin Corp has a price-earnings ratio of 22.15, a price-book ratio of 13.18, a price-earnings-to-growth (PEG) ratio of 3.21, a EV-to-Ebitda ratio of 15.31 and a price-sales ratio of 1.91.
The price-to-GF Value ratio is 1.14, earning the stock a GF Value rank of 5.
Deere & Co
The guru sold out of their 211,360-share investment in NYSE:DE. Previously, the stock had a 0.66% weight in the equity portfolio. Shares traded for an average price of $406.45 during the quarter.
On 02/10/2023, Deere & Co traded for a price of $417.79 per share and a market cap of $124.15Bil. The stock has returned 7.47% over the past year.
GuruFocus gives the company a financial strength rating of 4 out of 10 and a profitability rating of 8 out of 10.
In terms of valuation, Deere & Co has a price-earnings ratio of 17.91, a price-book ratio of 6.16, a price-earnings-to-growth (PEG) ratio of 0.93, a EV-to-Ebitda ratio of 15.66 and a price-sales ratio of 2.49.
The price-to-GF Value ratio is 0.96, earning the stock a GF Value rank of 7.
ConocoPhillips
During the quarter, Brandywine Global Investment Management, LLC bought 682,467 shares of NYSE:COP for a total holding of 1,580,463. The trade had a 0.63% impact on the equity portfolio. During the quarter, the stock traded for an average price of $121.55.
On 02/10/2023, ConocoPhillips traded for a price of $115.06 per share and a market cap of $140.82Bil. The stock has returned 29.12% over the past year.
GuruFocus gives the company a financial strength rating of 7 out of 10 and a profitability rating of 7 out of 10.
In terms of valuation, ConocoPhillips has a price-earnings ratio of 7.93, a price-book ratio of 2.99, a price-earnings-to-growth (PEG) ratio of 0.32, a EV-to-Ebitda ratio of 3.86 and a price-sales ratio of 1.86.
The price-to-GF Value ratio is 0.83, earning the stock a GF Value rank of 10.
Please note, the numbers and facts quoted are as of the writing of this article and may not factor in the latest trading data or company announcements.
When GuruFocus covers insider information, we only track open market or the private purchase and sale of common stock with the transaction code of P or S. Therefore, all the transactions mentioned in this article are only the ones with transaction code of P or S.
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