Top Five Stock Picks from Natixis Global Asset Management’s Harris Associates’ 13F

Harris Associates is a Chicago-based fund, which is wholly owned by Natixis Global Asset Management, a French financial services company, whose principal owner is BPCE, one of the largest banking groups in France. With $125 billion in assets under management, the fund invests primarily in companies that they consider to be trading at significant discounts and, therefore, can deliver more value carrying a big profit potential. In the latest 13F, Harris Associates disclosed its equity portfolio as at the end of the first quarter, which has a value of $55.84 billion and contains over 200 positions. In this article we will take a closer look at the top five equity positions from Harris’ latest 13F.

Natixis Global Asset Management

Harris Associates has been bullish on the top holdings from its equity portfolios, with some of them climbing a couple of positions over the quarter. On the first spot is Oracle Corporation (NYSE:ORCL), of which the fund owns 68.46 million shares, with an aggregate value of $2.8 billion. Harris has been consistently solidifying its exposure to Oracle, which has been its largest holding, and during the January-March period they added other 381,600 shares to the stake. Boykin Curry‘s Eagle Capital Management also holds a big position in the company, which contains 44.13 million shares as of the end of 2013. The stock of Oracle trails a P/E of around 16, below the industry average of 34. The company reported net income of $2.68 per share for the last year, slightly above from a year earlier. For the current year, Oracle Corporation (NYSE:ORCL) is expected to deliver EPS of $2.90.

The next on the list is General Motors Company (NYSE:GM), in which Harris Associates reported a $2.19 billion stake, which contains 64.54 million shares, up by around 3.34 million shares in comparison with the previous quarter. The stock of the company declined by 17% since the beginning of the year, while the whole industry of auto manufacturers edged down by 7% during the same period. General Motors Company (NYSE:GM) reported EPS of $3.18 per share, versus a consensus estimate of $3.39, and revenues of $155 billion, slightly above the estimates. Aside from Harris Associates, a big shareholder of the company is Warren Buffet‘s Berkshire Hathaway, which held 40.0 million shares at the end of 2013.

Bank of America Corp (NYSE:BAC) is the third-largest holding in Harris Associates’ latest 13F. The fund reported ownership of 108.16 million shares of the bank holding company, with a total value of $1.86 billion, raising the stake by some 2.57 million shares. Recently, Bank of America announced that it will halt it previously disclosed capital actions. The company also suspended its buyback plans and has revised its regulatory capital amounts and ratios due to an incorrect adjustment linked to the treatment of certain structured notes assumed in the acquisition of Merrill Lynch in 2009. On the back of this announcement, the stock of Bank of America Corp (NYSE:BAC) plunged by over 6% in Monday trading.

In Wells Fargo & Co (NYSE:WFC), Natixis’ fund disclosed a $1.74 billion stake, which contains 34.98 million shares, up by over 10% over the quarter. Warren Buffett also holds a significant amount of Wells Fargo shares, his stake containing 463.46 million shares. Wells Fargo’s stock trails a P/E of around 161, which is one of the highest among money center banks, and is almost ten times above the industry average. For the first quarter of 2014, the company reported an annual increase of diluted EPS by 14% to $1.05, and a return on equity of over 14%, which is up by 76 basis points.

The fifth-largest holding is Intel Corporation (NASDAQ:INTC), of which Harris Associates owns 66.86 million shares, with an aggregate value of $1.73 billion. In the first quarter, Intel’s EPS declined by 5% to $0.38 and its revenue fell by 8% to $12.8 billion. The stock of Intel, inched up by around 2% year-to-date and sports a P/E of around 17, which is slightly below the industry average of 21.00. Jean-Marie Eveillard‘s First Eagle Investment Management is another shareholder of Intel, owning 35.15 million shares as of the end of 2013.

Disclosure: none

Recommended Reading:

Algert Colderon Top Bullish Moves During Q1

Constantinos Christofilis, Archon Capital Management Boost Stakes In iCAD Inc (ICAD) and Procera Networks Inc (PKT)

Beech Hill Partners Top Five Holdings at the End of March

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

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

Top 6 Cities For The Ultra Rich to Live in Comfort

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How 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

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!