Tracking Mick McGuire’s Marcato Capital Management Portfolio - Q2 2016 Update

• Mick McGuire’s 13F portfolio decreased from $1.46B to $1.23B this quarter.
• Marcato Capital Management added Signet Jewelers and Computer Sciences Corp. while reducing Bank of New York Mellon and dropping Realogy Holdings.
• The largest three individual stock positions are Bank of New York Mellon, Sotheby’s, and Goodyear Tire & Rubber and they add up to ~55% of the portfolio.

Mick McGuire’s 13F portfolio decreased ~15% from $1.46B to $1.23B this quarter. Recent 13F reports show ~20 individual stock positions. The top five stakes are Bank of New York Mellon (BK), Sotheby’s (BID), Goodyear Tire & Rubber (GT), Signet Jewelers (SIG), and United Rentals (URI) and they add up to ~73% of the 13F portfolio.

Below is a look at the significant moves this quarter:

Bank of New York Mellon (BK): BK is by far the largest position at almost one-third the entire portfolio. It was established in Q3 2014 at prices between $38 and $40. This quarter saw a ~43% reduction at prices between $35.49 and $42.39. The stock is now at $40.18.

Signet Jewelers (SIG) and Computer Sciences Corp. (CSC): These are fairly large new stakes established this quarter. The 9.10% of the portfolio SIG position was purchased at prices between $79 and $124 and the stock currently trades at $75.52. For investors attempting to follow Marcato Capital, SIG is a good option to consider for further research. CSC is a 5.42% portfolio stake established at prices between $32.70 and $52.50 and it currently trades at $49.31. The stock spiked in May following the announcement of the merger with Enterprise Service Segment of Hewlett Packard Enterprise (HPE).

Realogy Holdings (RLGY): RLGY was a medium-sized ~4% position established last quarter at prices between $28 and $37 and disposed of this quarter at around the same price-range. The stock is now at $25.73.

Other activities in the quarter include significant reductions in the large stakes in Sotheby’s (BID), United Rentals (URI), and Macys (M). Below is a spreadsheet that shows the changes to Mick McGuire's Marcato Capital US long portfolio holdings as of Q2 2016. For a look at how the portfolio has progressed, see our previous update:

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