Tracking Wilbur Ross’s Holdings – Q1 2012 Update


This article is the first of a series that provides ongoing analysis of the changes made to Wilbur Ross’s US stock portfolio on a quarterly basis. The WL Ross & Co unit of Invesco is a specialized outfit that looks to invest in and turnaround financially distressed companies. WL Ross & Co was established in 2000 and in the mid-2000s bought several bankrupt steel companies to form International Steel Group. After executing a turnaround, ISG was sold to Arcelor Mittal in 2005 for a $2.5B profit. More recently, Wilbur Ross along with Fairfax Financial Holdings took a large stake in Bank of Ireland, thereby “saving” the company from nationalization.

The spreadsheet below highlights changes to Ross's US stock holdings in Q1 2012:



The portfolio remained largely unchanged with a few minor adjustments. Also, new stakes were established on Bioscrip Inc (BIOS), Delta Air Lines (DAL), and Key Energy Resources (KEG). However, the stakes do not indicate a bullish bias – combined, they accounted for only around 0.5% of the portfolio and so the stakes are insignificant.

Bullish: The big 20% stakes in Assured Guaranty (AGO) and Bankunited Inc (BKU) along with the huge 30% stake in Bank of Ireland returned well into the double-digits. They were held steady indicating a clear bullish bias. Exco Resources (XCO) was a large ~21% stake as of Q4 2011. The stake was increased marginally during the quarter in the face of a sharp correction. The increase in stake indicates a clear bullish bias. Wilbur Ross is on record saying natural gas is a good intermediate step for the United States between dirty fossil fuels (coal and oil) and renewable energy – it should help with the balance of payment and reduce the dependency on Arab nations for fuel.

Bearish: The 0.5% stake in United Airlines (UAL) was reduced by over 35% during the quarter indicating a mild bearish bias.

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