MSD Capital’s Top Picks
Asbury Automotive Group, Inc. (NYSE:ABG) is MSD’s second largest holding, and makes up 20% of the firm’s public equity portfolio. Asbury is one of the largest automotive retailers in the United States. Asbury Automotive Group, Inc. (NYSE:ABG)posted fourth-quarter earnings of $0.72 per share, versus $0.55 from the same quarter last year and beat the consensus estimate of $0.65 handily. Earnings before interest and taxes beat consensus estimates by 5%. Asbury did suspend its dividend in 2008 in an effort to boost its cash position, but boding well for Asbury Automotive Group, Inc. (NYSE:ABG) is the S&P’s expected increase in U.S. light vehicle sales to 15.4 million units in 2013, up from 14.4 million in 2012.compared to an industry average of 20%. What’s more is that its net profit margin of 15% is high compared to an industry average of 5%. DineEquity Inc (NYSE:DIN) carries a 4.23% dividend yield and trades at a mere 10.7 times earnings, making the stock a value and income play (read more about why).
PVH Corp (NYSE:PVH) is MSD’s fourth largest holding, and makes up 17.5% of the fund’s portfolio. PVH Corp (NYSE:PVH) has a diversified portfolio of iconic brands, including Calvin Klein, Tommy Hilfiger, and Van Heusen. The stock is up over 30% in the last twelve months, mainly due to its planned acquisition of The Warnaco Group. The acquisition will unite the Calvin Klein brand under one roof. Other Warnaco brands include Speedo, Chaps, Warner’s and, Olga. Meanwhile, the company exited its Izod women’s and Timberland wholesale sportswear businesses last year.