Insights into the Investment Shifts of a Prominent Value Investor
Alan Fournier (Trades, Portfolio), the seasoned investor behind the transformation of his hedge fund into a family office, has recently disclosed his portfolio updates for the second quarter of 2024. Fournier, who began his career at Sanford C. Bernstein and later contributed significantly at Appaloosa Management, is known for his unique investment approach that blends growth and value investing with sophisticated strategies like hedging and short-selling. His latest 13F filing reveals significant changes, including new buys, increased stakes, and notable exits, providing valuable insights into his current investment strategy.
Summary of New Buys
Alan Fournier (Trades, Portfolio)'s portfolio welcomed a total of six new stocks in the recent quarter. Key additions include:
- Valmont Industries Inc (VMI, Financial), with 40,000 shares, making up 2.87% of the portfolio and valued at $10.98 million.
- GE Vernova Inc (GEV, Financial), comprising 60,000 shares or approximately 2.69% of the portfolio, with a total value of $10.29 million.
- Vertiv Holdings Co (VRT, Financial), holding 115,000 shares, accounting for 2.6% of the portfolio and valued at $9.96 million.
Key Position Increases
Alan Fournier (Trades, Portfolio) also strategically increased his stake in existing holdings:
- Micron Technology Inc (MU, Financial) saw an addition of 125,000 shares, bringing the total to 431,000 shares. This adjustment represents a significant 40.85% increase in share count and a 4.3% impact on the current portfolio, valued at $56.69 million.
Summary of Sold Out Positions
The second quarter also saw Fournier exiting several positions:
- Enovis Corp (ENOV, Financial), where he sold all 400,000 shares, impacting the portfolio by -6.19%.
- Agenus Inc (AGEN, Financial), with all 23,480 shares liquidated, causing a -0.07% impact on the portfolio.
Key Position Reductions
Reductions were also part of the strategy, with significant cuts in:
- Microsoft Corp (MSFT, Financial) by 32,000 shares, resulting in a -28.57% decrease in shares and a -3.34% impact on the portfolio. The stock traded at an average price of $422.32 during the quarter.
- TransDigm Group Inc (TDG, Financial) by 9,629 shares, marking a -22.93% reduction in shares and a -2.94% impact on the portfolio. The stock traded at an average price of $1,282.14 during the quarter.
Portfolio Overview
As of the second quarter of 2024, Alan Fournier (Trades, Portfolio)'s portfolio included 46 stocks. The top holdings were:
- 14.82% in Micron Technology Inc (MU, Financial)
- 12.12% in Amazon.com Inc (AMZN, Financial)
- 10.81% in TransDigm Group Inc (TDG, Financial)
- 10.02% in EchoStar Corp (SATS, Financial)
- 9.35% in Microsoft Corp (MSFT, Financial)
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
