Ex-Blackstone Investor Bullish on This ‘Fab Five,’ Including Delphi Automotive PLC (DLPH)

At last but not least is Quad/Graphics, Inc. (NYSE:QUAD). Since the end of 2010, Centerbridge has increased its holdings in Quad/Graphics, Inc. (NYSE:QUAD) by 28% to 2.3 million shares. The stock currently trades at 1 times book value versus an industry average of 3.5x.  The stock rallied 11% following what was generally considered a bullish earnings report, although revenue was down 2.3%, net income rose from a loss of $47 million to a gain of $87.4 million, and shares have held onto most of their gains thanks to expectations for positive revenue growth.

With 90% of its equity portfolio invested in only five companies, Centerbridge’s strategy seems risky, at least on the long side. However, the fundamentals and recent performance of these stocks suggests that Gallogly has enough confidence this group to pass up a more diversified strategy, and suggests that he’s worth a further look. Learn about his full equity portfolio, on Insider Monkey.

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