Tracking Thyra Zerhusen’s Fairpointe Capital Portfolio - Q4 2016 Update

• Thyra Zerhusen’s 13F portfolio increased from $4.44B to $4.94B this quarter.
• Fairpointe Capital increased Varian, Stericycle & Tegna while reducing United States Steel.
• The largest three positions are Juniper Networks, Time Inc., and Lions Gate Entertainment.

Thyra Zerhusen’s 13F portfolio increased 11% from $4.44B to $4.94B this quarter. Recent 13F reports have shown a total of around 70 individual stock positions in the portfolio. The largest five stakes are Juniper Networks (JNPR), Time Inc. (TIME), Lions Gate Entertainment (LGF.A) (LGF.B), Tegna Inc. (TGNA), and Varian Medical (VAR) and they together add up to ~18% of the portfolio.

Below is a summary:

Stericycle Inc. (SRCL): SRCL is a ~3.3% portfolio stake established in Q2 2016 at prices between $93 and $128 and increased by ~140% last quarter at prices between $77 and $107. There was another ~37% increase this quarter at prices between $71 and $80. The stock currently trades at $81.82. For investors attempting to follow Fairpointe, SRCL is a very good option to consider for further research.

DeVry Education (DV): DV is a 3.30% of the portfolio stake. The original position is from H2 2012 at a cost-basis of ~$20 per share. Q2 2016 saw a ~30% increase at prices between $16 and $20 and the stock is now at $33.20. There was a ~10% trimming last quarter and that was followed with a ~14% trimming this quarter. Fairpointe is harvesting gains.

Lions Gate Entertainment (LGF.A) (LGF.B): LGF is a 3.47% of the portfolio position established in Q1 2016 at prices between $18.50 and $32.50 and increased by just over one-third the following quarter at prices between $19.50 and $23.50. There was a ~8% further increase last quarter and a ~4% increase this quarter. For investors attempting to follow Fairpointe, LGF is a good option to consider for further research.

Office Depot (ODP): ODP is a 2.89% portfolio stake built-up last year at prices between $3 and $7.50. The stock currently trades at $4.62.

Copa Holdings (CPA): CPA is a 3.27% portfolio position. The original stake is from Q2 & Q3 2015 at prices between $41 and $112. There was a ~27% selling last quarter at prices between $52 and $91 and ~17% selling this quarter at prices between $84 and $95. The stock is now at $106.

Tegna Inc. (TGNA): TGNA is a large (top five) 3.40% portfolio stake. It was established in Q2 2015 at prices between $23 and $38. Last two quarters had seen a ~45% increase at prices between $20 and $25 and that was followed with another ~24% increase this quarter at prices between $18 and $23. The stock currently trades at $26.23. For investors attempting to follow Fairpointe, TGNA is a good option to consider for further research.

Note: Reulatory Filings show Fairpointe having significant ownership stakes in the following businesses: 4.1% of Copa Holdings (CPA), 5.5% of CREE Inc. (CREE), 8.4% of DeVry Education (DV), 3.3% of Itron Inc. (ITRI), 6.7% of McDermott Intl. (MDR), 7.4% of New York Times (NYT), 4.4% of Scholastic (SCHL), 10% of TIME Inc. (TIME), 11.5% of Unisys (UIS), and 4.4% of Werner Enterprises (WERN).

Below is a spreadsheet that highlights the changes to Thyra Zerhusen's Fairpointe Portfolio US long stock portfolio as of Q4 2016. For a look at how the portfolio has progressed, see our previous update:

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