Renowned investment guru, Mark Hillman, recently filed his 13F report for the second quarter of 2023, which concluded on June 30, 2023. Hillman is known for his strategic investment approach, focusing on long-term value creation and capital preservation. His portfolio for the quarter under review comprised 55 stocks with a total value of $283 million.
The top holdings in Hillman's portfolio were Microsoft Corp (MSFT) with a 4.20% stake, Amazon.com Inc (AMZN) at 3.60%, and Taiwan Semiconductor Manufacturing Co Ltd (TSM) at 3.53%.
Top Three Trades of the Quarter
The following were Hillman's top three trades for the quarter:
International Flavors & Fragrances Inc (NYSE:IFF)
Hillman established a new position in International Flavors & Fragrances Inc (NYSE:IFF), purchasing 73,000 shares. This gave the stock a 2.05% weight in the equity portfolio. The shares traded for an average price of $86.14 during the quarter. As of August 14, 2023, IFF had a market cap of $16.53 billion and a stock price of $64.56, reflecting a -46.06% return over the past year. GuruFocus assigned the company a financial strength rating of 4 out of 10 and a profitability rating of 7 out of 10. IFF's valuation ratios include a price-book ratio of 0.94, a EV-to-Ebitda ratio of -63.95, and a price-sales ratio of 1.38.
Salesforce Inc (NYSE:CRM)
Hillman reduced his investment in Salesforce Inc (NYSE:CRM) by 13,111 shares, impacting the equity portfolio by 0.99%. The stock traded for an average price of $204.06 during the quarter. As of August 14, 2023, CRM had a market cap of $206.13 billion and a stock price of $210.6644, reflecting an 11.13% return over the past year. GuruFocus assigned the company a financial strength rating of 7 out of 10 and a profitability rating of 7 out of 10. CRM's valuation ratios include a price-earnings ratio of 556.92, a price-book ratio of 3.60, a price-earnings-to-growth (PEG) ratio of 20.78, a EV-to-Ebitda ratio of 28.59, and a price-sales ratio of 6.54.
Warner Bros. Discovery Inc (NAS:WBD)
During the quarter, Hillman purchased 133,936 shares of Warner Bros. Discovery Inc (NAS:WBD), bringing his total holding to 693,388 shares. This trade had a 0.59% impact on the equity portfolio. The stock traded for an average price of $13.01 during the quarter. As of August 14, 2023, WBD had a market cap of $32.92 billion and a stock price of $13.4606, reflecting a -1.46% return over the past year. GuruFocus assigned the company a financial strength rating of 3 out of 10 and a profitability rating of 8 out of 10. WBD's valuation ratios include a price-book ratio of 0.72, a EV-to-Ebitda ratio of 4.00, and a price-sales ratio of 0.79.
In conclusion, Mark Hillman (Trades, Portfolio)'s Q2 2023 13F filing reveals a strategic mix of new investments, reductions, and additions to existing holdings. His top trades reflect a balanced approach to value investing, with a focus on companies with strong financial strength and profitability ratings.
