Insights from Smead Value Fund (Trades, Portfolio)'s Latest N-PORT Filing
Smead Value Fund (Trades, Portfolio), managed by Smead Capital Management, is known for its commitment to U.S. large-cap value investing. The Fund, steered by Lead Portfolio Manager Bill Smead and Co-Portfolio Managers Tony Scherrer, CFA, and Cole Smead, CFA, aims for long-term capital appreciation. It maintains a concentrated portfolio of about 25-30 companies, selected based on stringent criteria that include economic necessity, competitive advantage, profitability, free cash flow, intrinsic value, shareholder-friendly management, a strong balance sheet, and robust insider ownership.
Summary of New Buys
Smead Value Fund (Trades, Portfolio) expanded its portfolio with three new stocks in the fourth quarter of 2023:
- Western Alliance Bancorp (WAL, Financial) was the most significant new addition, with 1,049,360 shares, accounting for 1.21% of the portfolio and a total value of $53.75 million.
- Fifth Third Bancorp (FITB, Financial) followed, comprising 1,729,502 shares, representing approximately 1.13% of the portfolio, with a total value of $50.07 million.
- M&T Bank Corp (MTB, Financial) was the third addition, with 383,863 shares, accounting for 1.11% of the portfolio and a total value of $49.20 million.
Key Position Increases
The Fund also increased its stakes in four stocks, with notable adjustments including:
- A significant increase in Devon Energy Corp (DVN, Financial), with an additional 614,228 shares, bringing the total to 3,383,280 shares. This represents a 22.18% increase in share count and a 0.62% impact on the current portfolio, with a total value of $152.15 million.
- APA Corp (APA, Financial) also saw an increase, with an additional 666,501 shares, bringing the total to 4,644,794 shares. This adjustment represents a 16.75% increase in share count, with a total value of $167.21 million.
Summary of Sold Out Positions
The Fund completely exited one holding in the fourth quarter of 2023:
- All 1,292,486 shares of Pfizer Inc (PFE, Financial) were sold, resulting in a -0.99% impact on the portfolio.
Key Position Reductions
Significant reductions were made in 20 stocks within the Fund's portfolio. The most impactful changes include:
- A reduction in Occidental Petroleum Corp (OXY, Financial) by 918,825 shares, leading to a -14.99% decrease in shares and a -1.24% impact on the portfolio. The stock traded at an average price of $63.04 during the quarter and has seen a -9.41% return over the past three months and -4.99% year-to-date.
- ConocoPhillips (COP, Financial) shares were reduced by 453,520, resulting in a -20.98% reduction and a -1.16% impact on the portfolio. The stock's average trading price was $119.31 during the quarter, with a -10.55% return over the past three months and -6.96% year-to-date.
Portfolio Overview
As of the fourth quarter of 2023, Smead Value Fund (Trades, Portfolio)'s portfolio included 27 stocks. The top holdings were 6.95% in Occidental Petroleum Corp (OXY), 6.93% in Lennar Corp (LEN, Financial), 6.64% in D.R. Horton Inc (DHI, Financial), 5.98% in Merck & Co Inc (MRK, Financial), and 5.76% in American Express Co (AXP, Financial). The holdings are mainly concentrated in nine of the eleven industries, including Consumer Cyclical, Energy, Financial Services, Healthcare, Real Estate, Consumer Defensive, Industrials, Communication Services, and Technology.
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.
