What to Learn From Columbus Circle Investors’ Big Buys? Express Scripts Holding Company (ESRX), Whirlpool Corporation (WHR)

Page 1 of 2

Columbus Circle Investors is an equity investment manager based in Stamford, Connecticut. It implements a bottom-up philosophy in its investments, with special focus on companies with sound fundamentals that are able to exceed expectations.  Based on annualized performance of its products within the ten years through the end of September 2012, its small cap, technology, and SMID products have outperformed the benchmarks by as high as 5.6 points (net of fees).

Express Scripts Holding CompanyAs of the end of 2012, CCI had a total of $12.291 billion worth of assets under management according to data compiled by whalewisdom.com.  Its portfolio is largely composed of services, technology, and healthcare investments with an aggregate share of around 60 percent of the firm’s portfolio. The biggest buys of CCI are The Procter & Gamble Company (NYSE:PG), Facebook Inc (NASDAQ:FB)Hertz Global Holdings, Inc. (NYSE:HTZ)Express Scripts Holding Company (NASDAQ:ESRX), and Whirlpool Corporation (NYSE:WHR).. Let’s check how these stocks fare.

Sources: finviz.com and whalewisdom.com; as of February 1, 2013

The Procter & Gamble Company (NYSE:PG)

CCI has gone with the flow by purchasing a new stake in Procter & Gamble worth about $138.8 million. The company has performed well in the past couple of quarters. It has a growing margin and its EPS is expected to grow by 8.44% annually in the next 5 years. P&G’s strong market share and growing overseas reach show that indeed there is more to expect from the company. In fact, about 60 percent of its revenues come from outside the US and the latest report shows that its  sales in emerging markets and the BRIC area grew by 7 and 11 percent, respectively. As a result, P&G is enjoying robust stock performance. The price has gone very high, enough for analysts to notice that the stock is becoming quite expensive. However, given the trends in the global market, wherein P&G enjoys a substantial exposure, I believe that the company is poised to deliver more surprises in the future.

Facebook Inc (NASDAQ:FB)

The growth expectation for Facebook is high; its EPS growth for next year is at 26.92 percent while the long-term estimate is even higher at 29.48 percent. This must have driven CCI to initiate a position composed of over 4.5 million shares, roughly amounting to $120 million according to the compilation of whalewisdom.com. Facebook is doing surprisingly well in terms of revenue growth. As the chart below shows, the quarterly revenues have grown year-on-year by an average rate of 50.88% within the last 7 quarters where growth data can be calculated. Though the trend is going down, the rate of increase is at a high magnitude.

Recently, Facebook sued Profile Technology Ltd., an application developer, after the latter continued to display users’s information on a social-networking site despite having an agreement with Facebook to delete the data it had accessed and displayed earlier. Facebook is taking a competitive stance by boosting its privacy policy. Whether this is good or bad will have to depend on Facebook’s ability to turn all these data on its hand to create a situation that can lure investors to its side. In the meantime, investors must take advantage of the juicy growth prospects that the company currently enjoys.

Hertz Global Holdings, Inc. (NYSE:HTZ)

Hertz Global Holdings is vying to be number 1 in market share for car rental at U.S. airports with its successful buyout of Dollar Thrifty Automotive Group in November last year. This now allows Hertz to compete not only in the premium market where it has already established a name but also in the budget category. Indeed, the EPS growth for next year is placed at 35.34% and the long-term growth estimate is at 38.5%. The company has been surpassing consensus EPS estimates for the last several quarters already. And with a forward P/E of 10.38 and a PEG of 0.67, I can see why CCI initiated a stake of 6.607 million shares in the fourth quarter. The stock is attractive, indeed.

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

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

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

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!