Editor’s Note: Related tickers: Anadarko Petroleum Corporation (NYSE:APC), The Home Depot, Inc. (NYSE:HD), The Mosaic Company (NYSE:MOS), Hess Corporation (NYSE:HES), Energizer Holdings Inc. (NYSE:ENR)
Giovine Capital Group is an employee-owned hedge fund primarily providing services to pooled investment vehicles. Thomas A. Giovine founded the fund in 1998,which has $338 million worth of 13F equities under management. Institutional investors have to comply with SEC requirements, which include filinga 13F form every quarter.A quick lookatthe top fiveequitypositionsofGiovinemaybe a goodstartingpointfor individual research.
Let’s get started
First up is Anadarko Petroleum Corporation (NYSE:APC). During the quarter, the fund held a position of156,193 shares valued $13.659 million in the oil and gas giant. This was a decrease in the amount of shares by 25,000 and a rise in value of 1.45%, when compared with the prior quarter. Anadarko Petroleum Corporation (NYSE:APC) is the fourth most capitalized player in the Independent Oil and Gas Industry, and it hasa trailing P/E ratio of 18.19 and a forward P/E of 16.84. The former compares favorably withits industry average of 21.59.Over the past twelve months, Anadarko Petroleum Corporation (NYSE:APC)’s stock price has shifted up by 25.58%,while demonstrating an above-average beta of 2.35. The company currently sports a profit margin of 17.97% at a trailing EPS of $4.74, and receives a particularly positive mean recommendation of 1.6 from analysts.
Next isThe Home Depot, Inc. (NYSE:HD), which is 3.74% of the equities reported in the 13F, slightly belowthe previous quarter’s level. The holding was worth $12.644 million at the end of Q1, decreasing by 25,000 shares, and falling in value by less than a percentage point. The Home Depot, Inc. (NYSE:HD)’s stock currently trades at trailing and forward P/E ratios of 25.33 and 18.44 respectively, close to industry norms. A near-1.0 beta signals a strong correlation with Mr. Market, which is a nice companion for the aforementioned Anadarko Petroleum Corporation (NYSE:APC).
The Mosaic Company (NYSE:MOS) is the next position, with 202,600 shares held by the fund on March 31, 2013, a fall of 32,400 from the prior quarter to a value of $12.077 million. While the stock’s P/E ratio for the previous twelve monthsis 14.15, the forward estimation drops to 12.87, with both values below their industry averages. On a further positive note, the company enhanced its quarterly revenue on a year-to-year basis by 2.30%, while earnings grew by 26.10% in its latest financials, so we’ll continue to watch The Mosaic Company (NYSE:MOS) closely.
The best of the rest
A newcomer to Giovine’s holdings is Hess Corporation (NYSE:HES). The fund opened a position of 160,000 shares, valued $11.458 million, during the first quarter. Analysts estimate an annual EPS of $6.29 will be reached this year, while trailing EPS ($8.08) is significantly higher than this mark. Somewhat expectedly, then, the stock has trailing and forward P/E ratios of 8.57 and 11.59, respectively. This valuation is indicative of attractive multiples, but investors should be aware of possible earnings declination. Still, Hess Corporation (NYSE:HES)’s stock price has advanced a whopping 46.16% over the last twelve months, and analysts have a mean recommendation of 2.3.
Fifth and final on the list isEnergizer Holdings Inc. (NYSE:ENR), with the fund decreasing its holdingsby 50,000 shares to 110,000 during the first quarter; the value of the position was 14.28% lower at $10.970 million. The price of Energizer Holdings Inc. (NYSE:ENR) has increased by more than a third during the last 52 weeks,and its stock has a beta of 0.95. Energizer Holdings Inc. (NYSE:ENR) has a profit margin of 8.82% and a trailing diluted EPS of $6.30.