Bernard Horn, the manager of Polaris Capital Management, is a former employee of MDT Advisers. Recently, Polaris Capital Management disclosed all of its equities held during the second quarter of the year, in a 13F filing with the Securities and Exchange Commission. We have picked some of the largest stakes in terms of value from the equity portfolio of this hedge fund. According to our studies, following hedge fund sentiment might help retail investors to beat their index-focused peers by about 18 percentage points per year.
So, if we look at the most recent 13F filing of Polaris Capital Management, we can see that the most valuable stake in it is in healthcare company Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA).
The stake in Teva contains 2.4 million shares and is worth about $93.7 million. In the previous filing, the hedge fund disclosed a position in Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) worth $88.1 million, which contained about 2.2 million shares. Trading at a forward P/E of 7.6x, the stock of Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) has a year-to-date return of about 7.6%. Aside from Polaris Capital Management, we should mention a couple of other “hedgies” long Teva, such as James E. Flynn’s Deerfield Management and Michael Price from Mfp Investors among others.
In second is situated Infosys Ltd ADR (NYSE:INFY), in which Bernard Horn’s hedge fund disclosed a $89.2 million stake, which involves about 2.2 million shares, an increase from the previous amount of 1.8 million shares disclosed as at the end of March. The stock of Infosys Ltd ADR (NYSE:INFY) increased by slightly more than 15% since the beginning of the year, while its forward P/E ratio amounts to 15x.
In addition to Teva and Infosys Ltd ADR (NYSE:INFY), there are a couple of other companies in which Polaris also disclosed significant stakes. In this way, in BHP Billiton Limited (ADR) (NYSE:BHP), Polaris’ stake has a value of over $83.1 million, and it involves about 1.6 million shares, an increase of 450,100 shares over the quarter. The next two positions involve Carter’s, Inc. (NYSE:CRI) and Marathon Petroleum Corp (NYSE:MPC), represented in hedge fund’s equity portfolio by 1.1 million shares and 910,791 shares respectively. The value of both stakes amounts to $82.9 million and $64.7 million respectively.
Overall, the equity portfolio of Polaris Capital Management contains 54 positions, an unchanged number since the end of the first quarter. The value of the portfolio amounts to about $1.8 billion, slightly higher than the previous-quarter amount of $1.7 billion. Stay in touch and we will keep you in the loop regarding all the latest investment plays made by Bernard Horn and Polaris Capital Management.