LUMINUS MANAGEMENT LLC recently filed their 13F report for the third quarter of 2022, which ended on 2022-09-30.
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.
Luminus Management LLC is a hedge fund sponsor based out of New York City, New York. The company was originally established in 2002 by founder Paul Segal, who, although not actively involved with the company anymore, has placed Radion N. Segal as the trustee of the company. Luminus Management has grown from its inception to now have an additional office in Houston, Texas and has expanded to 25 employees of which 17 are investment professionals. The company utilizes a long short strategy to “capitalize on investment opportunities across the capital structure of companies primarily in power, utility and related subsectors by taking positions in securities including, but not limited to, equities, bonds, convertibles, preferred securities, and bank debt.” The firm seeks to locate inefficiencies primarily in the power sector to analyze the complex industry situations, utilizing a fundamental investment methodology with a macro sector overlay while managing risks. Luminus Management invests most heavily in the utilities and telecommunications sector, which alone makes up half of its total asset allocations, and also invests in the energy, materials, transports, industrials, and finance sectors, among other sectors to a lesser degree, in order of decreasing allocations. The company keeps its holdings an average of 2.45 quarters and, in the most recent quarter, had a turnover rate of approximately 65.3%. Luminus Management manages over $5.4 billion in total assets under management spread across 8 total accounts, all of which are discretionary accounts. Although the company’s total number of accounts has been somewhat volatile in recent years, its total assets under management has been increasing, growing significantly from $1.1 billion back in 2011 to approaching five times that amount today. Luminus Management currently caters solely to pooled investment vehicles and takes advisory fees in the form of a percentage of assets and various performance based fees.
As of the latest 13F report, the guru’s equity portfolio contained 26 stocks valued at a total of $287.00Mil. The top holdings were BATL(25.53%), ARCH(11.82%), and ASH(10.80%).
According to GuruFocus data, these were LUMINUS MANAGEMENT LLC’s top five trades of the quarter.
Arch Resources Inc
LUMINUS MANAGEMENT LLC reduced their investment in NYSE:ARCH by 126,161 shares. The trade had a 5.56% impact on the equity portfolio. During the quarter, the stock traded for an average price of $138.36.
On 11/15/2022, Arch Resources Inc traded for a price of $150.276 per share and a market cap of $2.70Bil. The stock has returned 84.56% over the past year.
GuruFocus gives the company a financial strength rating of 8 out of 10 and a profitability rating of 5 out of 10.
In terms of valuation, Arch Resources Inc has a price-earnings ratio of 2.83, a price-book ratio of 2.28, a EV-to-Ebitda ratio of 1.90 and a price-sales ratio of 0.85.
The price-to-GF Value ratio is 1.53, earning the stock a GF Value rank of 1.
Tronox Holdings PLC
During the quarter, LUMINUS MANAGEMENT LLC bought 762,581 shares of NYSE:TROX for a total holding of 2,439,517. The trade had a 3.26% impact on the equity portfolio. During the quarter, the stock traded for an average price of $14.84.
On 11/15/2022, Tronox Holdings PLC traded for a price of $15.14 per share and a market cap of $2.34Bil. The stock has returned -35.91% over the past year.
GuruFocus gives the company a financial strength rating of 4 out of 10 and a profitability rating of 6 out of 10.
In terms of valuation, Tronox Holdings PLC has a price-earnings ratio of 4.03, a price-book ratio of 1.03, a price-earnings-to-growth (PEG) ratio of 0.11, a EV-to-Ebitda ratio of 5.89 and a price-sales ratio of 0.65.
The price-to-GF Value ratio is 0.89, earning the stock a GF Value rank of 7.
Berry Global Group Inc
During the quarter, LUMINUS MANAGEMENT LLC bought 172,400 shares of NYSE:BERY for a total holding of 231,400. The trade had a 2.79% impact on the equity portfolio. During the quarter, the stock traded for an average price of $54.71.
On 11/15/2022, Berry Global Group Inc traded for a price of $53.285 per share and a market cap of $6.77Bil. The stock has returned -20.94% over the past year.
GuruFocus gives the company a financial strength rating of 4 out of 10 and a profitability rating of 9 out of 10.
In terms of valuation, Berry Global Group Inc has a price-earnings ratio of 9.68, a price-book ratio of 2.18, a price-earnings-to-growth (PEG) ratio of 0.78, a EV-to-Ebitda ratio of 8.02 and a price-sales ratio of 0.51.
The price-to-GF Value ratio is 0.76, earning the stock a GF Value rank of 10.
iShares Expanded Tech-Software Sector ETF
The guru established a new position worth 20,000 shares in BATS:IGV, giving the stock a 1.74% weight in the equity portfolio. Shares traded for an average price of $284.17 during the quarter.
On 11/15/2022, iShares Expanded Tech-Software Sector ETF traded for a price of $275.81 per share and a market cap of $4.92Bil. The stock has returned -37.31% over the past year.
There is insufficient data to calculate the stock’s financial strength and profitability ratings.
In terms of valuation, iShares Expanded Tech-Software Sector ETF has a price-earnings ratio of 41.10 and a price-book ratio of 6.05.
Olin Corp
The guru sold out of their 120,600-share investment in NYSE:OLN. Previously, the stock had a 1.72% weight in the equity portfolio. Shares traded for an average price of $50.66 during the quarter.
On 11/15/2022, Olin Corp traded for a price of $61.22 per share and a market cap of $8.36Bil. The stock has returned -2.95% over the past year.
GuruFocus gives the company a financial strength rating of 5 out of 10 and a profitability rating of 7 out of 10.
In terms of valuation, Olin Corp has a price-earnings ratio of 6.56, a price-book ratio of 3.28, a EV-to-Ebitda ratio of 4.18 and a price-sales ratio of 0.96.
The price-to-GF Value ratio is 1.12, earning the stock a GF Value rank of 3.
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.
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