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.

Here’s What This Big Market Beater Has Been Buying and Selling: Allergan, Inc. (AGN) and Mueller Water Products, Inc. (MWA)

Page 1 of 2

Every quarter, many money managers have to disclose what they’ve bought and sold, via “13F” filings. Their latest moves can shine a bright light on smart stock picks.

Today, let’s look at investment advisory firm Douglass Winthrop Advisors. It’s of interest because it employs a Foolish “low-turnover, buy-and-hold strategy ,” which has served it well. Since its inception roughly a decade ago, its equities investments have averaged annual gains of 8.3%, vs. 7.1% for the S&P 500. Management noted in a recent letter to shareholders, “As committed long-term investors we keep our clients invested through good days and the inevitable bad ones. While this makes for some queasy moments, our clients understand that what really matters are long-term returns net of fees and taxes.”

The company’s reportable stock portfolio totaled $750 million in value as of Dec. 31, 2012.

Allergan, Inc. (NYSE:AGN)

Interesting developments
So what does Douglass Winthrop’s latest quarterly 13F filing tell us? Here are a few interesting details:

The biggest new holdings include Mueller Water Products, Inc. (NYSE:MWA) and Allergan, Inc. (NYSE:AGN). Other new holdings of interest include Walter Energy, Inc. (NYSE:WLT). Walter is a pure play in metallurgical coal, which is needed by the steel industry, among other things. Along with other coal companies, it got a boost from China’s plans for development and growth. Some wonder whether the company will be bought out. After taking a $1.1 billion acquisition-related charge last year, the company’s near-term prospects look a bit murky. Coal consumption in the U.S. isn’t expected to surge, but developing economies are much more promising.

Among holdings in which Douglass Winthrop increased its stake was Enterprise Products Partners L. P. (NYSE:EPD), one of the largest master limited partnerships and a specialist in midstream oil and gas operations. It recently sold out capacity at a new propane dehydrogenation facility, and aims to build more. It’s also working on paying down debt, but that hasn’t kept it from upping its dividend over many years. It had a good year in 2012.

Douglass Winthrop reduced its stake in lots of companies, including Altria Group, Inc. (NYSE:MO) and Devon Energy Corporation (NYSE:DVN). To many people, the future for domestic tobacco giant Altria doesn’t look as rosy as its past, due to a shrinking smoker base in the U.S., coupled with more folks moving to discount cigarettes and rising taxes and regulations. Respected analysts at Steifel Nicolaus recently rated the stock a buy, but my colleague Rich Smith thinks they’re wrong. Altria sports a dividend yield of 5.1%.

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...

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!