Tracking Michael Dell’s MSD Capital Portfolio – Q2 2017 Update

• Michael Dell’s portfolio value decreased this quarter from $275M to $255M.
• The PVH Cop positon saw a minor reduction.
• MSD Capital 13F portfolio has just five positions.

Michael Dell’s MSD Capital 13F portfolio value dropped ~7% this quarter from $275M to $255M: The PVH Corp position was reduced. Regulatory filings after the quarter ended show a small reduction in Asbury Automotive and a small increase in DineEquity.

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Below is a summary:

Asbury Automotive Group (ABG): ABG is currently the largest 13F position at ~44% of the portfolio. It is a long-term stake 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. Q2 2016 saw a ~10% trimming at prices between $52 and $63 and the stock is now at $52.15.

Note: MSD Capital owns ~9% of ABG.

PVH Corporation (PVH): PVH is a ~16% of the portfolio position. It saw a ~16% reduction in Q2 2016 at prices between $83 and $103 and that was followed with another ~28% selling the following quarter at prices between $92 and $110. Q4 2016 also saw another ~23% reduction at prices between $90 and $114. There was a ~15% further selling last quarter at prices between $85 and $104 and that was followed with a ~7% trimming this quarter. 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 $126.

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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