Humans are believed to have inhabited the continent of Australia for more than 40,000 years, but people in the rest of the world have only been aware of it for about four centuries.
Today Australia has the 12th-wealthiest economy in the world; judging from the fourth-quarter investment activity, though, it remains a mysterious continent for many – but not for guru David Herro (Trades, Portfolio)’s Oakmark International Small Cap.
Oakmark added to existing holdings in two Australian companies – Transpacific Industries Group Ltd (ASX:TPI, Financial) and Incitec Pivot Ltd (ASX:IPL, Financial) – and sold portions of its stakes in three others – Myer Holdings Ltd (ASX:MYR, Financial), Goodman Fielder Ltd (ASX:GFF, Financial) and Primary Health Care Ltd (ASX:PYR, Financial) – in the fourth quarter.
No other gurus hold shares in any of those companies.
The firm bought 16,195,000 shares of Transpacific Industries Group, a recycling, waste management and industrial services company based in Brisbane, for an average price of $0.87 per share in Australian dollars (roughly $0.67 in U.S. dollars). The purchase had a 0.4% impact on Oakmark’s portfolio.
Transpacific Industries Group has a P/E of 77.0 and a Price/Book of 0.7.
Oakmark also purchased 1,846,000 shares of Incitec Pivot, an Australian company that provides fertilizer, explosives, chemicals and mining service, for an average price of $2.93 per share in Australian dollars (about $2.24 in American currency). The acquisition had a 0.17% impact on Oakmark’s portfolio.
Incitec Pivot has a P/E of 26.5 and a Price/Book of 1.5.
Reductions
Oakmark sold 5,678,000 shares of Myer Holdings, an Australian department store chain, for an average price of $1.7 per share in Australian dollars (a little more than $1.30 in American money). The sale had a -0.35% impact on Oakmark’s portfolio.
Myer Holdings has a P/E of 10.2 and Price/Book of 1.1.
Oakmark sold 16,798,000 shares of Goodman Fielder, an Australian distributor of bread, small goods, dairy products, margarine, oil, dressings and various food ingredients, for an average price of $0.63 per share in Australian dollars ($0.48 in American dollars). The transaction had a -0.32% impact on Oakmark’s portfolio.
Goodman Fielder has a P/E of 0 and a Price/Book of 1.2.
Oakmark also sold 1,750,000 shares of Primary Health Care Ltd, a Sydney-based service provider to a wide range of health care professionals, for an average price of $4.53 per share in Australian dollars (nearly $3.47 in U.S. dollars). The sale had a -0.24% impact on Oakmark’s portfolio.
Primary Health Care’s P/E is 15.5, and its Price/Book is 1.0.
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