Tracking Francis Chou’s Chou Associates Portfolio – Q3 2018 Update

·         Chou’s 13F portfolio value increased from $264M to $298M during the quarter.

·         Chou increased Endo International while reducing Goldman Sachs.

·         Resolute Forest Products at ~22% of the portfolio is the largest position.

Francis Chou’s Chou Associates portfolio value increased ~13% from $264M to $298M during the quarter. The portfolio continues to be very concentrated with just 23 positions. Below is a summary:

1. Resolute Forest Products (RFP): The ~22% RFP position has been in the portfolio since 2010 (Abitibibowater at the time) and the cost-basis is much higher compared to the current price. Q2 2013 saw a one-third increase at prices between $13 and $16. The five quarters through Q1 2016 also saw a ~20% combined increase at progressively lower prices between $4 and $19. The stock is now at $12.33. There was a ~7% trimming in Q4 2017 while last quarter saw a marginal increase. That was followed with a ~9% stake increase this quarter.

2. Berkshire Hathaway (BRK.A): The ~16% portfolio position is the second-largest 13F equity stake. The last major activity was a 50% reduction in Q1 2016 at prices between $187,000 and $214,000. The stock is now at $328,300.   

3. Bausch Health (BHC) previously Valeant: BHC was the largest position at ~15% of the portfolio as of Q3 2017. The stake was almost eliminated in Q4 2017 at prices between $11 and $22. The original position was from Q1 2016 at prices between $26 and $102 and increased by ~48% the following quarter at prices between $19 and $36. There was another ~35% increase in Q4 2016 at prices between $13.50 and $24.50 and that was followed with a ~20% increase the following quarter at prices between $10.50 and $17. Q2 2017 saw another ~30% increase at prices between $8.50 and $17.30. There was a ~10x stake increase in Q1 2018 at prices between $15 and $24. The stock currently trades at $27.10. Chou realized losses and rebuilt the stake at lower prices.

Below is a spreadsheet that highlights the changes to the portfolio as of Q3 2018. Please check out our previous update to have an idea on how the portfolio is progressing:

To learn more about how to profit from a strategy of cloning hedge fund picks, check out our book Profiting from Hedge Funds: Winning Strategies for the Little Guy .

Tracking Guy Spier's Aquamarine Capital Portfolio – Q3 2018 Update

• Aquamarine Capital’s 13F portfolio value decreased from $213M to $208M during the quarter.
• They increased Seritage Growth Properties while dropping Citigroup.
• Berkshire Hathaway and Fiat Chrysler are the largest two positions.

Guy Spier’s Aquamarine Capital Portfolio value decreased ~2% from $213M to $208M during the quarter. The portfolio is very concentrated with just 12 positions. The largest five positions are Berkshire Hathaway (BRK.A), Fiat Chrysler Auto (FCAU), Ferrari NV (RACE), American Express (AXP), and Bank of America (BAC). They together add up to ~72% of the entire portfolio. Most of the top positions have remained steady in recent quarters.

Below is a spreadsheet that highlights the changes to the portfolio as of Q3 2018. Please check out our previous update to have an idea on how the portfolio is progressing:

To learn more about how to profit from a strategy of cloning hedge fund picks, check out our book Profiting from Hedge Funds: Winning Strategies for the Little Guy.    

Tracking Thomas Gayner's Markel Portfolio – Q3 2018 Update

·         Gayner’s portfolio increased from $5.45B to $5.93B during the quarter.

·         Markel disposed W. P. Carey during the quarter.

·         Berkshire Hathaway at ~11% of the portfolio is by far the largest position.

Thomas Gayner’s Markel Investment Portfolio value increased ~9% from $5.45B to $5.93B during the quarter. The portfolio continues to have around 100 different positions although only around 50 are significantly large (more than 0.5% of the portfolio each). The top-five stakes are Berkshire Hathaway (BRK.A) (BRK.B), CarMax Corporation (KMX), Brookfield Asset Management (BAM), Walt Disney (DIS), and Marriott International (MAR).

Markel Corporation (MKL) is currently trading at around 1.6-times Book Value (BV) at $1080 per share - BV is around $670.

Positions being built actively include Analog Devices (ADI), Watsco Inc. (WSO), and Blackstone Group (BX).

Below is a spreadsheet that highlights the changes to the portfolio as of Q3 2018. Please check out our previous update to have an idea on how the portfolio is progressing:

To learn more about how to profit from a strategy of cloning hedge fund picks, check out our book Profiting from Hedge Funds: Winning Strategies for the Little Guy.