Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Amid Portfolio Cuts, Edinburgh Partners Remains Resolute On Favorite Stocks

Page 1 of 2

Edinburgh Partners, one of Scotland’s biggest independent fund management houses, was co-founded by fund management industry veteran Sandy Nairn in 2003. The Edinburgh-based asset manager invests on behalf of a range of clients including pension funds, financial institutions and endowments, with an emphasis on absolute returns over a long-term time horizon. Edinburgh Partners attempts to identify and buy undervalued companies, and then hold these equity investments until share prices reflect those companies’ long-term earnings potential.

As Edinburgh Partners runs a number of long-only, unconstrained equity strategies and employs a long-term and often contrarian approach to investing, retail investors may find it relatively straightforward to mimic this investment firm’s moves. The Edinburgh-based asset manager recently submitted its 13F filing for the second quarter reporting period, which showed that Edinburgh Partners reduced the size of 12 of its positions, while boosting the size of just one position and adding one new addition to its portfolio during the June quarter. As a result, the overall value of the investment firm’s U.S.-focused equity portfolio decreased to $659.36 million from $887.77 million quarter-over-quarter. Are investors pulling money out of the Edinburgh-based asset manager? We can’t say for sure, but what we do know is that the portfolio cuts have not impacted Mr. Nairn’s confidence in his equity positions. With that said, let’s have a look at the asset manager’s five largest equity holdings as of the end of the June quarter, and discuss their performance of late.

At Insider Monkey, we track around 765 hedge funds and institutional investors. Through extensive backtests, we have determined that imitating some of the stocks that these investors are collectively bullish on can help retail investors generate double digits of alpha per year. The key is to focus on the small-cap picks of these funds, which are usually less followed by the broader market and allow for larger price inefficiencies (see more details).

Sandy Nairn

#5. PerkinElmer Inc. (NYSE:PKI)

 – Shares Owned by Edinburgh Partners (as of June 30): 1.23 Million

 – Value of Edinburgh Partners’ Holding (as of June 30): $64.41 Million

Edinburgh Partners trimmed its position in PerkinElmer Inc. (NYSE:PKI) by 29% during the June quarter to 1.23 million shares. The reduced position was valued at $64.41 million at the end of the quarter and accounted for 9.8% of the value of the investment firm’s U.S. equity portfolio. The provider of products, services and solutions to the diagnostics research, environmental, industrial, and laboratory services markets has seen the value of its shares advance by 4% since the beginning of 2016. PerkinElmer’s overall revenue for the first three months of 2016 increased by 2% year-over-year to $538.7 million, reflecting higher revenue driven by its OneSource service offerings within the research market, increased demand in the company’s newborn screening business, as well as an increase in demand in its laboratory services business, and food and environmental business. In late July, the company’s Board of Directors declared a quarterly dividend of $0.07 per share, which equates to an annual dividend yield of 0.50%. Ken Fisher’s Fisher Asset Management owns 685,785 shares of PerkinElmer Inc. (NYSE:PKI) as of the end of the June quarter.

Follow Perkinelmer Inc (NYSE:PKI)
Trade (NYSE:PKI) Now!

#4. Johnson Controls Inc. (NYSE:JCI)

 – Shares Owned by Edinburgh Partners (as of June 30): 1.48 Million

 – Value of Edinburgh Partners’ Holding (as of June 30): $65.39 Million

The Scottish independent fund management firm reduced its holding in Johnson Controls Inc. (NYSE:JCI) by 470,088 shares during the April-to-June period, ending the second quarter with 1.48 million shares valued at $65.39 million. In late January, Johnson Controls, a global diversified technology and industrial leader offering heating, ventilation and air-conditioning tools, agreed to merge with Ireland-based fire and security provider Tyco International plc (NYSE:TYC). The soon-to-be combined company will maintain Tyco’s Irish legal domicile. The merger is anticipated to be consummated on September 2, sooner than previously planned. The new Treasury Department rules that blocked the mega-merger between Pfizer Inc. (NYSE:PFE) and Allergan plc (NYSE:AGN) were not an impediment to Johnson Controls’ proposed inversion. The combined provider of commercial-building systems will be renamed Johnson Controls International plc. Johnson’s stock has gained 14% year-to-date. John Zaro’s Bourgeon Capital has nearly 89,000 shares of Johnson Controls Inc. (NYSE:JCI) among its holdings as of the end of the second quarter.

Follow Johnson Controls Inc (NYSE:JCI)
Trade (NYSE:JCI) Now!

The second page of this article will discuss Edinburgh Partners’ three-largest equity holdings as of the end of June.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...
X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!