5 Stocks Added to Swift Run Capital’s Portfolio in Q2

Goldman Sachs Group Inc (NYSE:GS)

 – Shares Owned by Swift Run Capital Management (as of June 30): 21,228

 – Value of Holding (as of June 30): $3.15 Million

Moving on, Goldman Sachs Group Inc (NYSE:GS) made its entry into Swift Run Capital’s equity portfolio at the 17th overall spot in terms of value as of June 30. The investment banking giant lost a chunk of its market capitalization at the beginning of this year, which it hasn’t been able to recoup yet, as its shares have been trading in a range for more than six months. On August 1, the Wall Street Journal reported that U.S. authorities have issued a subpoena to Goldman Sachs Group Inc (NYSE:GS) related to its fundraising for Malaysian state fund 1MDB. Two days later, some of the bank’s dirty laundry was resolved when it agreed to pay $36.3 million to settle a case in which one of its former employees allegedly used confidential information to win clients. On August 5, Goldman Sachs revealed in a regulatory filing that the Brexit vote could force the company  to “restructure” some of its operations in the United Kingdom. Following the second quarter earnings and revenue beat by the company last month, several analysts upped their price target on its stock, including analysts at BMO Capital Markets, who raised their target to $214 from $197 on July 27, while keeping their rating on it unchanged at ‘Outperform’. Steve Leonard‘s Pacifica Capital Investments reduced its stake in Goldman Sachs by 2% to 150,320 shares during the second quarter.

Stericycle Inc (NASDAQ:SRCL)

 – Shares Owned by Swift Run Capital Management (as of June 30): 36,760

 – Value of Holding (as of June 30): $3.83 Million

Stericycle Inc (NASDAQ:SRCL) was the only stock from the industrials sector in which Swift Run Capital initiated a stake during the second quarter. Shares of the specialized waste management company suffered beatings this year after the reporting of its quarterly numbers in both April and July. Owing largely to those declines, Stericycle Inc (NASDAQ:SRCL)’s stock is currently trading down by 26.52% year-to-date. Several analysts who track the stock think that it could yet fall further, as the company’s core medical waste business is not growing at a reasonable pace and the strategy it has been following so far of acquiring low-quality businesses at high multiples seems to be backfiring. On July 25, analysts at Imperial Capital downgraded the stock to ‘Underperform’ from ‘In-Line’ and also reduced their price target on it to $93.50 from $100, which is very close to the level at which the stock is currently trading. Tom Gayner‘s Markel Gayner Asset Management also initiated a stake in the company during the second quarter, purchasing 7,000 Stericycle shares.

Energy Transfer Partners LP (NYSE:ETP)

 – Shares Owned by Swift Run Capital Management (as of June 30): 123,320

 – Value of Holding (as of June 30): $4.7 Million

In terms of value, Energy Transfer Partners LP (NYSE:ETP) was the largest stake that Swift Run Capital initiated during the second quarter. Like Williams Partners, Energy Transfer Partners is also a master limited partnership (MLP) whose shares have seen robust gains this year, of 32.17%, owing to the rally in natural gas prices. The MLP currently pays a quarterly distribution of $1.06 per share, which translates into an annual dividend yield of almost 10%. On July 29, analysts at Baird included Energy Transfer Partners in a published list of 14 MLPs whose stocks could see a quick price boost following a distribution cut. For its second quarter, Energy Transfer Partners LP (NYSE:ETP) reported EPS of $0.10 on revenue of $5.29 billion, significantly lower than the EPS of $0.67 on revenue of $11.54 billion that it had reported for the same quarter of last year. Energy Transfer Partners’ stock currently sports an average rating of ‘Overweight’ and an average price target of $45.19 from the 18 leading analysts and research firms on Wall Street who cover it. David Atterbury‘s Whetstone Capital Advisors sold off its entire stake in the company during the second quarter.

Disclosure: None