ADVISORY RESEARCH INC 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.
Advisory Research is a private investment management company based out of Chicago. The company was founded in 1974 on the “principles of value investing and the commitment to provide premier investment strategies and the best in client service,” continuing to expand and improve its investment management capabilities throughout its history. The company utilizes a fundamental analysis and a bottom up investment approach to make its asset allocation decisions. Advisory Research conducts its research in house, investing in the value stocks of companies across all value caps with an emphasis on micro-cap companies with capitalizations below $300 million and international investments with those below a $4 billion market capitalization. The firm operates as a subsidiary of Piper Jaffray Asset Management Inc. and is currently headed by Chris D. Crawshaw, who acts as the company’s CEO, CIO, CCO, and chairman. Advisory Research invests most heavily in the energy sector, which alone makes up over half of its total asset allocations, and also invests in the finance, consumer discretionary, utilities and telecommunications, and industrials sectors, among others to a lesser degree, in order of decreasing allocation. The company currently holds approximately $12 billion in total assets under management spread across 1350 accounts with all but 4 of the accounts being discretionary. Although its total number of accounts has only seen moderate growth in recent years, its total assets under management has grown significantly, increasing from $4.5 billion back in 2010 to well over twice that amount today. Advisory Research caters mainly to high net worth individuals, which alone makes up over half of its client base, and also caters to individuals, investment advisors, corporations, pooled investment vehicles, charities, and others. The company currently has 71 employees with 3 investment professionals and 9 broker dealer representatives. Advisory Research’s mutual fund offerings include its All Cap Value, Strategic Income, International All Cap Value, and Emerging Markets Opportunities funds.
As of the latest 13F report, the guru’s equity portfolio contained 354 stocks valued at a total of $1.02Bil. The top holdings were DEN(6.83%), SM(5.40%), and OVV(4.86%).
According to GuruFocus data, these were ADVISORY RESEARCH INC’s top five trades of the quarter.
Denbury Inc
ADVISORY RESEARCH INC reduced their investment in NYSE:DEN by 370,873 shares. The trade had a 2.17% impact on the equity portfolio. During the quarter, the stock traded for an average price of $76.64.
On 11/16/2022, Denbury Inc traded for a price of $93.34 per share and a market cap of $4.65Bil. The stock has returned 10.55% over the past year.
GuruFocus gives the company a financial strength rating of 7 out of 10 and a profitability rating of 8 out of 10.
In terms of valuation, Denbury Inc has a price-earnings ratio of 9.66, a price-book ratio of 3.20, a EV-to-Ebitda ratio of 6.57 and a price-sales ratio of 3.07.
Antero Resources Corp
ADVISORY RESEARCH INC reduced their investment in NYSE:AR by 609,446 shares. The trade had a 1.82% impact on the equity portfolio. During the quarter, the stock traded for an average price of $36.92.
On 11/16/2022, Antero Resources Corp traded for a price of $35.44 per share and a market cap of $10.64Bil. The stock has returned 77.02% over the past year.
GuruFocus gives the company a financial strength rating of 5 out of 10 and a profitability rating of 5 out of 10.
In terms of valuation, Antero Resources Corp has a price-earnings ratio of 5.75, a price-book ratio of 1.73, a EV-to-Ebitda ratio of 4.48 and a price-sales ratio of 1.42.
The price-to-GF Value ratio is 1.54, earning the stock a GF Value rank of 1.
Imperial Oil Ltd
The guru sold out of their 250,481-share investment in AMEX:IMO. Previously, the stock had a 1.15% weight in the equity portfolio. Shares traded for an average price of $45.65 during the quarter.
On 11/16/2022, Imperial Oil Ltd traded for a price of $56.62 per share and a market cap of $34.11Bil. The stock has returned 61.44% over the past year.
GuruFocus gives the company a financial strength rating of 8 out of 10 and a profitability rating of 7 out of 10.
In terms of valuation, Imperial Oil Ltd has a price-earnings ratio of 7.48, a price-book ratio of 2.06, a EV-to-Ebitda ratio of 4.38 and a price-sales ratio of 0.88.
The price-to-GF Value ratio is 1.04, earning the stock a GF Value rank of 5.
AbbVie Inc
ADVISORY RESEARCH INC reduced their investment in NYSE:ABBV by 64,236 shares. The trade had a 0.96% impact on the equity portfolio. During the quarter, the stock traded for an average price of $143.5.
On 11/16/2022, AbbVie Inc traded for a price of $151.87 per share and a market cap of $268.58Bil. The stock has returned 35.29% over the past year.
GuruFocus gives the company a financial strength rating of 4 out of 10 and a profitability rating of 10 out of 10.
In terms of valuation, AbbVie Inc has a price-earnings ratio of 20.28, a price-book ratio of 16.80, a price-earnings-to-growth (PEG) ratio of 1.42, a EV-to-Ebitda ratio of 12.96 and a price-sales ratio of 4.64.
The price-to-GF Value ratio is 1.14, earning the stock a GF Value rank of 3.
Equinor ASA
During the quarter, ADVISORY RESEARCH INC bought 273,475 shares of NYSE:EQNR for a total holding of 290,125. The trade had a 0.89% impact on the equity portfolio. During the quarter, the stock traded for an average price of $36.08.
On 11/16/2022, Equinor ASA traded for a price of $35 per share and a market cap of $107.92Bil. The stock has returned 32.52% 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, Equinor ASA has a price-earnings ratio of 4.62, a price-book ratio of 2.47, a price-earnings-to-growth (PEG) ratio of 0.31, a EV-to-Ebitda ratio of 1.12 and a price-sales ratio of 0.80.
The price-to-GF Value ratio is 0.78, earning the stock a GF Value rank of 10.
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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