Tracking Michael Dell’s MSD Capital Portfolio - Q3 2016 Update

• Michael Dell’s portfolio increased this quarter from $400M to $403M.
• PVH Corporation was substantially reduced.
• MSD Capital 13F portfolio has just six positions.

Michael Dell’s MSD Capital 13F portfolio increased marginally this quarter from $400M to $403M. The major activity in the quarter was a reduction in PVH Corp. It is still a large 15.75% portfolio stake.

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Below is a summary of  the portfolio:

Asbury Automotive Group (ABG): ABG is currently the largest 13F position at 27.62% of the portfolio. It is a long-term position that has been in the portfolio since 2008. MSD’s cost-basis is very low as they picked up the original position during the market lows of 2008 when ABG traded in the low-single-digits. Last quarter saw a ~10% trimming at prices between $52 and $63 and the stock is now at $62.45.

Note: MSD Capital owns ~9% of ABG.

PVH Corporation (PVH): PVH is a large 15.75% of the portfolio position. It saw a ~16% reduction last quarter at prices between $83 and $103 and that was followed with another ~28% selling this quarter at prices between $92 and $110. The last significant buying happened in Q4 2015 when there was a one-third increase at prices between $73 and $103. The original position was established in 2012: they had convertible notes ($47.74 strike) as PVH issued them to raise capital for their Tommy Hilfiger Group acquisition in 2010. The stock is now at $92.

WEX Inc. (WEX): WEX was a 4.24% portfolio stake as of Q1 2016. It was reduced by ~85% last quarter at prices between $79 and $96 and eliminated this quarter at prices between $88 and $108. Q1 2016 had also seen a ~30% reduction. WEX was first purchased in Q2 2008 at a cost-basis of ~$30 when the business was named Wright Express Corp. The stock is now at $110. MSD Capital harvested huge long-term gains.

Northstar Asset Management Group (NSAM) and Wesco Aircraft (WAIR) saw very minor adjustments this quarter.

Below is a spreadsheet that highlights the changes to Michael Dell's MSD Capital US long stock portfolio. For a look at how his portfolio has progressed, see our previous update:

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