Renowned value investor Mason Hawkins recently disclosed his firm's portfolio updates for the second quarter of 2023, which ended on June 30, 2023. Known for his long-term, value-oriented investment philosophy, Hawkins' portfolio contained 43 stocks with a total value of $2.84 billion. The top holdings for this period were CNX (7.60%), MAT (6.43%), and FDX (5.78%).
Top Three Trades of the Quarter
The following are the top three trades made by Hawkins during the quarter, including new positions, additions, and reductions.
New Position: Bio-Rad Laboratories Inc (NYSE:BIO)
Hawkins established a new position in Bio-Rad Laboratories Inc (NYSE:BIO), purchasing 325,519 shares. This gave the stock a 4.35% weight in the equity portfolio. The shares traded for an average price of $408.09 during the quarter. As of August 14, 2023, BIO's price was $395.05 with a market cap of $11.47 billion. The stock has returned -28.01% 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, BIO has a price-book ratio of 1.36, a EV-to-Ebitda ratio of -33.22, and a price-sales ratio of 4.22.
Addition: Live Nation Entertainment Inc (NYSE:LYV)
During the quarter, Hawkins bought an additional 969,716 shares of Live Nation Entertainment Inc (NYSE:LYV), bringing the total holding to 1,285,786 shares. This trade had a 3.11% impact on the equity portfolio. The stock traded for an average price of $77.93 during the quarter. As of August 14, 2023, LYV's price was $86.32 with a market cap of $19.84 billion. The stock has returned -11.88% over the past year. GuruFocus gives the company a financial strength rating of 5 out of 10 and a profitability rating of 4 out of 10. In terms of valuation, LYV has a price-earnings ratio of 83.68, a EV-to-Ebitda ratio of 13.91, and a price-sales ratio of 1.07.
Reduction: Alphabet Inc (NAS:GOOG)
Hawkins reduced his investment in Alphabet Inc (NAS:GOOG) by 829,951 shares, impacting the equity portfolio by 2.92%. The stock traded for an average price of $115.57 during the quarter. As of August 14, 2023, GOOG's price was $131.24 with a market cap of $1,646.99 billion. The stock has returned 6.95% over the past year. GuruFocus gives the company a financial strength rating of 9 out of 10 and a profitability rating of 10 out of 10. In terms of valuation, GOOG has a price-earnings ratio of 27.74, a price-book ratio of 6.16, a price-earnings-to-growth (PEG) ratio of 1.09, a EV-to-Ebitda ratio of 17.43, and a price-sales ratio of 5.90.
In conclusion, Mason Hawkins (Trades, Portfolio)' Q2 2023 portfolio update reveals a strategic mix of new positions, additions, and reductions. His investment decisions reflect a careful evaluation of each company's financial strength, profitability, and valuation metrics, consistent with his value-oriented investment philosophy.
