Murray Stahl’s Top Picks for 2013: Liberty Media Corp (LMCA), Howard Hughes Corp (HHC), Jarden Corp (JAH)

Page 1 of 2

At Insider Monkey, we track 450 of the world’s most elite hedge funds. By focusing on their best investments, we’ve developed strategies that have generated market-beating returns, historically speaking. For more than a decade, our small-cap strategy beat the market by 18% in our back tests, and since sharing these picks with the public six months ago, it has outpaced the S&P 500 by more than 20% (learn how to use this strategy yourself).

With that in mind, it’s also important to perform a fund-by-fund analysis of the smart money’s world. Since fourth quarter 13F filings have been released, we’ve analyzed more than 100 money managers, but one that we haven’t taken a look at yet is Murray Stahl’s Horizon Asset Management. Stahl adheres to a research-based, long-term contrarian investment philosophy focused on fundamental valuation, and his elongated time horizon sets him apart from many of his peers. Let’s take a look at what his top five equity holdings were at the end of Q4, to see how he’s preparing for 2013 and beyond.

Liberty Media Corp

Liberty Media Corp (NASDAQ:LMCA) is the top overall holding in Stahl’s equity portfolio, a spot it has held for five consecutive quarters. In the fourth quarter, the hedge fund manager cut his stake by 8%, though it’s worth noting that the industry’s aggregate interest in this stock increased by 2%. In terms of total value, Stahl’s $317 million position in the media giant is the third largest of the funds we track, behind Tiger Global Management and Warren Buffett (see Buffett’s newest picks here).

Liberty Media has had an eventful 2013, spinning off Starz and upping its stake in Sirius XM above 50% in mid-January. Since these moves, shares of Liberty Media have remained essentially flat, but at a book valuation nearly half that of its industry’s average and an earnings multiple below 9.0x, there’s obvious long-term value here. This is likely what Stahl is looking at.

Howard Hughes Corp (NYSE:HHC) sits at No. 2 in the hedgie’s equity portfolio, where it has for four straight quarters. Other prominent Howard Hughes bulls include Whitney Tilson and Bill Ackman (see Ackman’s stock picks), and the key bullish thesis behind this real estate operator is its value. As we’ve discussed before, many of Howard Hughes’s properties are generating little cash flow, making a proper valuation tricky. A few particular areas that look attractive are its properties in Las Vegas, Houston, South Street Seaport, and Honolulu, Hawaii, and at 1.3 times their book, the company’s shares are trading at a 19% discount to their industry’s average.

Jarden Corp (NYSE:JAH) and AutoNation, Inc. (NYSE:AN), meanwhile, sit at No.’s 3 and 4 in Stahl’s equity portfolio, and the size of each position was downsized by an average of 9% last quarter. Jarden, a diversified consumer products company, calls Stahl its largest “smart money shareholder” of the hedge funds we track, he has the second largest position in auto dealer AutoNation.

Why is this the case?

Page 1 of 2
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 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

The 20 Most Underrated Movies of All Time

The 10 Fastest Growing Companies in America

The 10 Biggest Outlet Malls in USA

The 5 Most Popular Rap Songs of All Time

The 10 Countries that Eat the Most Meat

The10 Most Expensive Countries to Fly To

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!