David Winters, manager of $2.3 billion at Wintergreen Advisors, has a clear strategy for 2014: Asia. Winters told CNBC yesterday:
“We think the big undervaluations, going back to Graham and Dodd… are overseas. And that’s where you can make a lot of money next year. Ultimately, we think Asia’s the place to be focused because you’ve got billions of people who want what we have, and our task is, how do we play it in a low-risk manner, with a lot of upside. So, we think we’ve found a way at Wintergreen to do that. And we think there’s a lot of money to be made.”
Winters’ top picks for the region were Wynn Macau (HKSE:01128, Financial) and Richemont (VTX:CFR, Financial). According to GuruFocus’ All-in-One screener, the most-held Asian stocks of the 15 international gurus tracked are: Astellas Pharma Inc. (TSE:4503, Financial), Hang Lung Group Ltd. (HKSE:00010, Financial), Daiwa Securities Co. Ltd. (TSE:8601, Financial) and Nintendo Co. Ltd. (TSE:7974) and Toyota Industries Corp. (TSE:6201).
Astellas Pharma Inc. (TSE:4503, Financial)
Three gurus hold Astellas Pharma: the Vanguard Health Care Fund, with 3.26% of shares outstanding at 2.5% of its total assets managed; Charles de Vaulx with 1.16% of shares outstanding and 5.3% of his assets managed; and the IVA International Fund with 0.45% of shares outstanding at 5.6% of its total assets managed. None of the funds traded the stock in the third quarter.
Astellas Pharma is a manufacturer, marketer, and importer and exporter of pharmaceuticals. Year to date, its stock traded up almost 54% toward a five-year high at 5,960 yen per share.
Astellas Pharma has a market cap of $2539.82 billion; its shares trade with a P/E ratio of 36 and P/S ratio of 2.41, both near five-year highs. The dividend yield of Astellas Pharma stocks is 2.02%, also close to a five-year high.
Hang Lung Group Ltd. (HKSE:00010, Financial)
Three gurus also hold Hang Lung Group Ltd. The Matthews Pacific Tiger Fund own 2.1% of shares outstanding at 2.1% of its assets managed; Martin Whitman holds 1.31% of shares outstanding at 4% of his assets managed; and Matthews China Fund owns 0.36% of shares outstanding, at 1.8% of his assets managed.
Hang Lung Group develops top-tier properties in Hong Kong and builds and manages commercial complexes in China. Year to date, the company’s stock price came down 13% to 38.15 Hong Kong dollars.
Hang Lung Group Ltd. has a market cap of $51.29 billion; its shares trade with a P/E ratio of 9.80, near a two-year low; a P/B ratio of 0.4, near a 10-year low; and a P/S ratio of 7.32, near a two-year low. The dividend yield of Hang Lung Group Ltd. stocks is 2.08%, near a three-year high. Hang Lung Group Ltd. had an annual average earnings growth of 3.90% over the past 10 years.
Daiwa Securities Co. Ltd. (TSE:8601, Financial)
Two gurus hold Daiwa Securities Co. Ltd. David Herro holds 62,492,000 shares, at 2.4% of his assets managed; Martin Whitman holds 12,043,700 shares, at 4.5% of his assets managed.
Daiwa Securities is a financial services firm in Asia, with divisions consisting of Retail, Global Markets, Global Investment Banking, Asset Management and Investment. This year, its stock price has risen 105% to 974 yen, near a five-year high.
Daiwa Securities Co. has a market cap of $1645.98 billion; its shares trade with a P/E ratio of 11.50, P/B ratio of 1.44 and P/S ratio of 4.25. The dividend yield of Daiwa Securities Co. Ltd. stocks is 1.39%.
Nintendo Co. Ltd. (TSE:7974)
Two gurus hold Nintendo. Charles de Vaulx holds 0.08% of shares outstanding, at 0.22% of his assets managed; IVA International Fund holds 0.04% of shares outstanding, at 0.36% of its assets managed. Both managers in the third quarter reduced their position by more than half.
Nintendo is involved in the video game market and competes against Microsoft and Sony. Its stock this year has gained almost 44%, to reach 13,030 yen per share, close to a one-year high.
Nintendo Co. Ltd. has a market cap of $1616.36 billion; its shares trade with a P/E ratio of 45.2, P/B ratio of 1.31 and P/S ratio of 2.56. The dividend yield of Nintendo stock is 0.71%.
Toyota Industries Corp. (TSE:6201)
Two gurus hold Toyota Industries Corp. Martin Whitman holds 0.99% of shares outstanding, at 5.5% of his assets managed; and the T. Rowe Price Japan Fund holds 0.02% of shares outstanding, at 1% of its assets managed. In the third quarter, Martin Whitman reduced his position, and the T. Rowe Price Japan increased its holding.
Japan-based Toyota Industries manufactures and sells textile machinery, automobiles and materials handling equipment, and engages in the logistics business. Its stock year to date traded up 64%, to 4,490 yen per share, near a five-year high.
Toyota Industries has a market cap of $1390.89 billion; its shares trade with a P/E ratio of 19.6, P/B ratio near a one-year low at 0.45 and P/S ratio near a two-year high at 0.76. The dividend yield of Toyota Industries stock is 1.11%. Toyota Industries had an annual average earnings growth of 12.50% over the past five years.
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