Every quarter, many money managers have to disclose what they’ve bought and sold, via “13F” filings. Their latest moves can shine a bright light on smart stock picks.
Today let’s look at Robeco Investment Management, which is a U.S.-focused subsidiary of major Netherlands-based financial institution Rabobank and which has three primary divisions: Boston Partners (value equity), Sage Capital (multi-manager strategies), and Weiss, Peck, & Greer (fixed income, equity, and alternatives). It has been in the news a bit lately, with Rabobank trying to sell its investment management business and some suitors, such as Australia’s Macquarie Group, not wanting all of the U.S.-based business.
Robeco Investment Management touts its flat management structure and focus on value equity investing. The company’s reportable stock portfolio totaled $36.8 billion in value as of March 31.
So what does Robeco’s latest quarterly 13F filing tell us? Here are a few interesting details.
The biggest new holdings are Liberty Media Corp (NASDAQ:LMCA) and AbbVie Inc (NYSE:ABBV). Other new holdings of interest include Active Network Inc (NYSE:ACTV), which specializes in online registrations for endurance events such as marathons and triathlons. The company recently signed a three-year deal with Ironman, and its most recent quarterly earnings report featured revenue up 12% and shrinking losses. Some have questioned the company’s solvency, while others like its valuation.
Among holdings in which Robeco Investment Management increased its stake were American Capital Agency Corp. (NASDAQ:AGNC) and RF Micro Devices, Inc. (NASDAQ:RFMD). American Capital Agency Corp. (NASDAQ:AGNC) is a mortgage REIT with a tantalizing dividend yield above 16%. The company’s CEO is well respected, but some worry that mortgage REITs may lose a valuable tax advantage.
RF Micro Devices, Inc. (NASDAQ:RFMD), specializing in high-performance radio-frequency technology, enjoyed an analyst upgrade in March, because of its successful diversification away from Nokia Corporation (ADR) (NYSE:NOK) and its profitable growth in Samsung and Apple Inc. (NASDAQ:AAPL) devices. Since then, the stock has hit a 52-week high, and some are hoping that it will do a lot of business in China. Its recently reported fourth quarter featured revenue up 49% over year-ago levels. Still, RF Micro Devices faces serious competition, such as from QUALCOMM, Inc. (NASDAQ:QCOM).
Robeco Investment Management reduced its stake in lots of companies, including Heckmann Corporation (NYSE:HEK), which provides water-related services and chemicals for the growing (but controversial) fracking method of gas extraction. (It handles waste disposal, too, among other things.) Heckmann Corporation (NYSE:HEK) recently posted a disappointing earnings report, but management expects solid organic growth and sees pricing stabilizing.