#3 Franklin Resources, Inc. (NYSE:BEN)
– Shares Owned by Southeastern Asset Management (as of June 30): 2.56 Million
– Value of Holding (as of June 30): $85.55 Million
Moving on, Southeastern Asset Management boosted its stake in Franklin Resources, Inc. (NYSE:BEN) by 18% during the second quarter. Franklin Resources, Inc. (NYSE:BEN)’s stock is currently trading marginally down for 2016, but has lost over 35% since the beginning of 2015. The company currently pays a quarterly dividend of $0.18 per share, which translates into an annual dividend yield of almost 2%. On September 7, analysts at Credit Suisse released a note in which they stated that they think “the asset management industry, which was always very fragmented and highly profitable (with low capital intensity), will become much more concentrated over the next five years – especially in U.S. retail with BlackRock (NYSE:BLK) and Vanguard clear winners.” In their note, the analysts also mentioned that Franklin Resources, Inc. and Waddell & Reed Financial, Inc. (NYSE:WDR) could see the largest net flow impact from the new rule laid out by the U.S. Department of Labor (DOL). During the second quarter, the ownership of Franklin Resources, Inc. (NYSE:BEN) among funds covered by us inched up by one to 32, but the aggregate value of their holdings in it declined by $95 million to $1.81 billion. Billionaire Ken Griffin‘s Citadel Investment Group initiated a stake in the company during that period by purchasing 172,800 shares.
#2 Liberty Media Corporation – Series C Liberty Media (NASDAQ:LMCK)
– Shares Owned by Southeastern Asset Management (as of June 30): 8.3 Million
– Value of Holding (as of June 30): $157.53 Million
Liberty Media Corporation – Series C Liberty Media (NASDAQ:LMCK) was a new entrant in Southeastern Asset Management’s equity portfolio in the second quarter. The company has been in the news lately in relation with its plans to acquire a minority stake in Formula One. On September 8, Liberty Media Corporation put an end to rumors by announcing that it had agreed to acquire the iconic motorsport business in a deal that gives Formula One an enterprise value of $8 billion and an equity value of $4.4 billion. The company will first acquire a minority stake of 18.7% ‘with 100% sale subject to satisfaction of conditions.’ Though the stock of Liberty Media Corporation didn’t do much after the deal was announced, it has appreciated by almost 20% so far in 2016. During the second quarter, the popularity of the company among funds covered by us saw a significant decline with 20 funds reporting stakes as of the end of June, down by 15 on the quarter, while the aggregate value of their holdings slid by almost 82% to $443.05 million during the quarter.
#1 Ralph Lauren Corp (NYSE:RL)
– Shares Owned by Southeastern Asset Management (as of June 30): 2.74 Million
– Value of Holding (as of June 30): $245.24 Million
Ralph Lauren Corp (NYSE:RL) was the largest new stake initiated by Southeastern Asset Management during the second quarter. Shares of the luxury retailer saw a massive drop in February after the company reported its fiscal 2016 third-quarter numbers. However, the stock has recovered since then and is currently trading down by 7% year-to-date. According to some analysts, trading at a forward P/E of 17.74, Ralph Lauren Corp (NYSE:RL)’s stock is overvalued and the company will have to improve its financials considerably. On August 13, analysts at Cowen and Company reiterated their ‘Market Perform’ rating on the stock and raised their price target $101 from $98. The number of investors covered by us long Ralph Lauren Corp (NYSE:RL) inched up by two to 32 and the total value of their positions grew by 45% to $738.48 million during the second quarter.