This Mutual Fund Had A Remarkable 2016 And Remains Convinced About Its Top Picks

#4 White Mountains Insurance Group Ltd (NYSE:WTM)

– Shares Held By Goodhaven Capital Management (as of December 31): 17,589

– Value of The Holding (as of December 31): $14.70 Million

White Mountains Insurance Group Ltd (NYSE:WTM) dropped from the third position to fourth position in Goodhaven Capital Management’s equity portfolio during the fourth quarter owing majorly to the fund reducing its stake in the company by 22% during the quarter. Similar to Alphabet, White Mountains Insurance Group Ltd (NYSE:WTM)’s stock is also trading close to its lifetime high, which it reached recently. Goodhaven’s fund managers think that White Mountains Insurance Group Ltd (NYSE:WTM) made a wise decision last year by selling some of its subsidiaries and using the proceeds from those sales to buy its stock at or near tangible book value. They also think that rising interest rates will be beneficial for the company going forward. For its most recent quarter, the insurance company reported a loss from continuing operations of $5.81 per share on revenue of $268.2 million, compared to a loss of $0.47 per share on revenue of $1.36 billion it had posted last year.

#3 Leucadia National Corp. (NYSE:LUK)

– Shares Held By Goodhaven Capital Management (as of December 31): 699,465

– Value of The Holding (as of December 31): $16.26 Million

Moving on, Goodhaven Capital Management lowered its holding in Leucadia National Corp. (NYSE:LUK) by 23% between October and December. The move can be seen as a profit booking exercise as Leucadia National Corp. (NYSE:LUK)’s stock registered a gain of over 25% during the October-December period. The fund upped its stake in the investment holding company earlier in 2016 when its stock was trading at a discount to its tangible book value. According to Goodhaven Fund’s managers, barring Federated Investors most subsidiaries of Leucadia National Corp. (NYSE:LUK) have started performing well and the former will also start doing well once assets migrate back to its money funds amid a rising rate environment. Earlier this month, foreign exchange broker FXCM Inc (NASDAQ:FXCM) was banned from operating in the U.S. on charges of defrauding its retail customers. As part of the deal, FXCM’s U.S. accounts will be sold to Gain Capital and the proceed from this sale will go towards repaying the $300 million loan that Leucadia had extended to FXCM in 2015.