John Shapiro’s Value Investing Picks Pay Off Big Time In First Quarter

The star performer in Chieftain’s portfolio was its second largest holding, Hanesbrands Inc. (NYSE:HBI), which rose by 20.5% over the first quarter. The fund held 2.27 million shares valued at $253.82 million in the $13.48 billion company, which has apparel brands like Maidenform, Just My Size, Wonderbra and Gear for Sports in its portfolio. Hanesbrands Inc. (NYSE:HBI)’s latest acquisition of Knight Capital will expand its portfolio of licensed college apparel. Its “Gear for Sports” brand is already a leader in the sale of such apparel in university bookstores. Two other funds with prominent stakes in Hanesbrands Inc. (NYSE:HBI) are Alexander Mitchell‘s Scopus Asset Management and Robert Bishop’s Impala Asset Management.

Sensata Technologies Holding N.V. (NYSE:ST)‘s 9.62% first quarter return also helped to tick Chieftain’s returns in the right direction. The fund held some 4.48 million shares valued at $235 million of the technology company, according to the investor’s latest 13F filing. The manufacturer of sensors and controls has also earned the confidence of John Griffin as he holds some 6.59 million shares of Sensata Technologies Holding N.V. (NYSE:ST) in his fund, Blue Ridge Capital’s portfolio. The company expanded its tire pressure monitoring sensors division last year by acquiring the Schrader group of companies, which is headquartered in Denver, Colorado.

UnitedHealth Group Inc. (NYSE:UNH) was another strong performer during the quarter as it appreciated by 17.41%. Chieftain’s stake in the company amounted to 1.66 million shares valued at $167.92 million. The healthcare company was recently upgraded to a buy rating by Jeffries and its price target was raised to $141. Another prominent stockholder of UnitedHealth Group Inc. (NYSE:UNH) is Boykin Curry’s Eagle Capital Management.

American International Group Inc (NYSE:AIG) slightly weighed down Chieftain’s gains for the first quarter as the stock fell by about 1.97% during the period. The fund initiated a position in the insurance provider during the second quarter of 2014, which was raised by 28% and 5% in the next subsequent quarters to 3.84 million shares valued at $214.85 million. American International Group Inc (NYSE:AIG) has recently been granted FAA’s permission to use drones instead of insurance inspectors in risky disaster struck areas in order to assess the damage and process insurance claims. Richard Perry’s Perry Capital held 10.33 million shares valued at $578.3 million at the end of 2014.

Disclosure: None