Kahn Brothers is a money manager and Registered Investment Advisor. Founded in 1978, Kahn Brothers manages over $700 million of institutional and private funds. It provides money management and brokerage services through its affiliated broker-dealer, Kahn Brothers LLC, which is a member of the New York Stock Exchange. The firm invests primarily in undervalued and often unpopular securities that present both a margin of safety and attractive prospects for capital appreciation. We believe that by focusing on Kahn Brothers’ top stock picks, investors are more likely to beat the market in the long term.
Below is a list of top 15 positions in Kahn Brothers’ portfolio at the end of September.
Bristol Myers Squibb (BMY): BMS is engaged in the discovery, development, licensing, manufacturing, marketing, distribution and sale of pharmaceutical products on a global basis. The company reported net income of $969 million, or 56 cents per share, up 2.1% from a year ago. Profit excluding certain items was 61 cents per share, beating the average estimate of 15 analysts surveyed by Bloomberg by 2 cents. Kahn Brothers invested $50.5 million in BMY and it returned 0.84% since the end of September. It has a market cap of $54.04B and a P/E ratio of 16.44. Jim Simons had more than $200 million invested in BMY shares.
Pfizer Inc (PFE): Pfizer is a research-based, global biopharmaceutical company. The company reported third-quarter revenues of $17.2 billion, up 7% from the same period last year. Kahn Brothers invested $45.8 million in PFE and it returned 13.09% since the end of September. It has a market cap of $157.06B and a P/E ratio of 15.84. Ken Fisher and David Einhorn both invested over $400 million in PFE.
New York Community Banncorp (NYB): New York Community Bancorp is a bank holding company and a producer of multi-family mortgage loans in New York City. The company reported third-quarter net income of $119.8 million, or 27 cents a share, compared with $135.6 million, or 31 cents a share, in the third quarter of 2010. Kahn Brothers invested $43.2 million in NYB and it returned 4.46% since the end of September. It has a market cap of $5.37B and a P/E ratio of 10.61. Irving Kahn had $55 million of NYB shares.
Merck & Co (MRK): Merck & Co is a global health care company. MRK was purchased by two insiders over the past three months. The company reported third-quarter revenue of $12.0 billion, compared with $11.1 billion for the same period in 2010. Net income was $1.7 billion, up from $342 million a year ago. Kahn Brothers invested $42.8 million in MRK and it returned 6.94% since the end of September. It has a market cap of $110.75B and a P/E ratio of 24.56. Ric Dillon invested $173 million in MRK shares.
Seaboard Corp (SEB): Seaboard is a diversified international agribusiness and transportation company. For the three months ended October 1, 2011, the company reported net sales of $1.5 billion, compared with $1.1 billion for the same quarter last year. Net earnings per common share were $30.07, up from $32.74 a year ago. Kahn Brothers invested $27.4 million in SEB and it returned 13.60% since the end of September. It has a market cap of $2.60B and a P/E ratio of 7.03. Chuck Royce and Jim Simons both invested $20+ million in SEB.