Liberty Media, AutoNation Among Murray Stahl’s Top Stock Picks

Murray Stahl founded Horizon Kinetics, the parent company of Horizon Asset Management, in 1985. Prior to that he spent 16 years at Bankers Trust Company as a senior portfolio manager and research analyst. Murray Stahl holds a B.A. and an M.A. from Brooklyn College and an M.B.A. from Pace University.

Horizon Asset Management LLC, a subsidiary of Horizon Kinetics LLC, is an investment firm that was formed in 2011 by the merger of Horizon Asset Management, Inc. (founded in 1994) and Kinetics Asset Management, Inc. (founded in 1996). Horizon Kinetics adheres to a research-based, long-term contrarian fundamental-value investment philosophy.

Warren Buffett

Murray Stahl and Horizon Asset Management’s top five 2Q 13F holdings are unique finds. Stahl’s top five holdings make up around 30% of the entire 2Q 13F portfolio, and there were no shakeups in the second quarter, with no new additions, and only modest declines in ownership percentages with no ownership increases; see all of Horizon’s holdings.

Liberty Media Corp (NASDAQ:LMCA) owns subsidiaries that are engaged in the media, communications and entertainment industry. The company has affiliates including Sirius XM Radio Inc (NASDAQ:SIRI) and Live Nation Entertainment, Inc. (NYSE:LYV). In 2011 the company acquired 17% of Barnes & Noble, Inc. (NYSE:BKS). Liberty has made sacrifices to make bets on Sirius, and announced intentions to acquire more than 50% of the company to take full control of the Board. Sirius’s 2Q results showed all-time highs in revenue, EBITDA, free cash flow and net subscriber addition. Horizon keeps very good company with its Liberty ownership, as Warren Buffet owns the most shares of any of the hedge funds we track, owning 5.5 million shares or around 4.6% of Liberty. Liberty has been Horizon’s top holding since 4Q 2011 and currently makes up 8.8% of the firm’s 13F portfolio. However, as the company’s stock has showed strong performance over the last three months, up over 17%, five insiders have chosen to get out.

Howard Hughes Corp (NYSE:HHC), a developer and operator of master planned communities and mixed-use properties, makes up 6.5% of Horizon’s 13F portfolio. The company trades at a trailing P/E of 177 and a forward P/E of 182. The company’s P/E appears high, and when comparing it to its top peers, who have posted recent negative EPS, the prospects are even less appealing. Howard Hughes has showed strong price performance year to date, up almost 65%; however, other key funds have taken this as opportunity to take profits. Whitney Tilson of T2 partners reduced his position by 95% and John Paulson of Paulson & Co reduced his by 51% in the second quarter.

Horizon’s third largest holding is Jarden Corporation (NYSE:JAH). At 5.34% of Horizon’s 13F portfolio, Jarden is a global consumer products company, with such products as CrockPot, FoodSaver, Mr. Coffee, Oster and Sunbeam. Jarden also calls Ken Fisher of Fisher Asset Management a shareholder, and the second largest hedge fund owner at 1.2 million shares, behind only Murray Stahl. Jarden is up big on the year, over 75% year to date on 2Q results that showed net income up 27% for the first half of the year. The company trades at a trailing P/E of 19, while the forward P/E is 11.

Brookfield Asset Management Inc. (NYSE:BAM) is a global alternative asset manager with around $150 billion of AUM at the end of 2011. Brookfield is Horizon’s fourth largest 13F holding. Brookfield reported 2Q 2012 funds from operations of $0.34, missing the consensus estimate of $0.44, but FFO from the asset management showed a positive increase, reporting FFO of $108 million versus $99 million in 2Q 2011. The weakness of 2Q appeared to be a result of foreign exchange moves and anomalous issues related to water flow to its power business. The company’s peers do not have a measurable P/E given negative EPS, but Brookfield trades at a trailing P/E of 18.

AutoNation, Inc. (NYSE:AN) is the largest U.S. retail auto detailer and during 3Q 2011 was Horizon’s top holding for its 13F portfolio, but has since fallen to fifth and now makes up 4.4% of their 13F holdings. AutoNation had very strong 2Q numbers, with EPS up 35% year over year, and EBIT up 16% year over year. However, global economic headwinds have limited the company, whose stock is up only 11% year to date, versus the S&P 500, which is up 16% year to date. AutoNation has a beta of 1.2. Nonetheless, Bill Gates continues to be a buyer, having made several purchases throughout the first half of the year through his investment company, Cascade Investment LLC. Additionally, Edward Lambert’s ESL Investments still owns over 40% of Autonation, which makes up 30% of ESL Investments’ 2Q 13F portfolio.

For a longer look at Murray Stahl’s holdings, continue reading here.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Best States To Practice Medicine

The 10 Best States to Have a Business

The 12 Most Expensive Apple (AAPL) Apps in the Market

The 10 Richest Billionaires in the World

10 Biggest Kickstarter Failures

The 10 Best Places to Work At

The Top 10 of Google Inc (GOOGL)’s Most Expensive Acquisitions

13 Best Cities to Visit in South America

10 Most Expensive Works of Art of All Time

The 10 Richest Banks in the World

The 10 Best-Paying Jobs in America (2014)

7 Most Expensive Foods in the World

The World’s Top 10 Earning Authors

Five Wicked and Very Expensive Items (and Other “Stuff”) Sold on eBay

10 Biggest Celebrity Bankruptcies

The Top 10 Highest Paid CEOs in 2014

The 10 Most Expensive Real Estate Cities in America

10 Most Expensive States To Live In America

The 10 Best Airlines in the World

The 10 Best-Selling Cars in 2014

The 10 Best Industries to Invest In

The 10 Most Expensive States to Own a Car In

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top 6 Tax Scams and How to Protect Yourself

Top Businesses to Invest In

Subscribe

Enter your email:

Delivered by FeedBurner

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 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!