Insight into the Investment Shifts of a Veteran Portfolio Manager
Steven Scruggs (Trades, Portfolio), a seasoned portfolio manager at Bragg Financial Advisors since 1999, recently disclosed his investment activities for the third quarter of 2024 through the latest N-PORT filing. Scruggs, who also serves as the Director of Research and a member of the Investment Committee at BFA, applies a meticulous, fundamental, bottom-up analysis approach to investing. His strategy, deeply rooted in the principles of Benjamin Graham, focuses on uncovering small-cap value stocks that are trading below their intrinsic value. This method involves a comprehensive evaluation of quantitative and qualitative aspects, balance sheets, valuation metrics, management quality, and sector and industry conditions.
Summary of New Buys
During the third quarter of 2024, Steven Scruggs (Trades, Portfolio) made a notable new addition to his portfolio:
- Advance Auto Parts Inc (AAP, Financial) emerged as a significant new holding, with Scruggs purchasing 192,479 shares. This investment now constitutes 1.1% of his portfolio, with a total value of $7.5 million.
Key Position Increases
Scruggs actively increased his stakes in several companies:
- Equity Commonwealth (EQC, Financial) saw an addition of 60,418 shares, bringing the total to 393,071 shares. This adjustment marks an 18.16% increase in share count and a 0.18% impact on the current portfolio, valued at $7,822,110.
- Littelfuse Inc (LFUS, Financial) also experienced a significant boost with an additional 4,300 shares, resulting in a total of 13,742 shares. This represents a 45.54% increase in share count, with a total value of $3,645,070.
Summary of Sold Out Positions
Scruggs also made decisive exits from certain investments in the third quarter:
- The Aarons Co Inc (AAN, Financial): All 297,054 shares were sold, impacting the portfolio by -0.47%.
Key Position Reductions
Reductions were made in several key holdings:
- Sprouts Farmers Market Inc (SFM, Financial) was reduced by 48,925 shares, leading to a 13.83% decrease in shares and a -0.65% portfolio impact. The stock traded at an average price of $95.38 during the quarter and has seen a return of 40.39% over the past three months and 134.73% year-to-date.
- Horace Mann Educators Corp (HMN, Financial) saw a reduction of 75,000 shares, resulting in a 17.01% decrease and a -0.39% impact on the portfolio. The stock's average trading price was $34.15 during the quarter, with a return of 7.22% over the past three months and 9.39% year-to-date.
Portfolio Overview
As of the third quarter of 2024, Steven Scruggs (Trades, Portfolio)'s portfolio comprised 49 stocks. The top holdings included 5.72% in InterDigital Inc (IDCC, Financial), 5% in TD Synnex Corp (SNX, Financial), 4.93% in Sprouts Farmers Market Inc (SFM), 4.58% in Fabrinet (FN, Financial), and 4.53% in Servisfirst Bancshares Inc (SFBS, Financial). The investments are predominantly concentrated across nine industries: Technology, Financial Services, Industrials, Consumer Cyclical, Consumer Defensive, Utilities, Communication Services, Basic Materials, and Real Estate.
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.
