Markel Corporation (MKL), 3M Co (MMM): Redmond Asset Management’s 5 Biggest First Quarter Bets

The only reduction in Redmond’s top five was in 3M Co (NYSE:MMM). The fund has reduced its stake by 1%, with the holding valued at $3.7 million as of March 31, 2013. The stock has climbed 17% so far in 2013, with shares currently trading at approximately $110. The stock has a beta of 1.07 and pays a dividend of $2.41—a yield of 2.2%. 3M Co (NYSE:MMM) has a trailing P/E ratio of 17.45 and a forward P/E of 15.03. The company’s financial results during the first quarter just missed estimates; 3M Co (NYSE:MMM) posted earnings of $1.61 per share and revenues of $7.63 billion.

Another small addition was made to the fund’s holding in Portfolio Recovery Associates, Inc. (NASDAQ:PRAA), a business service company. Redmond added 360 shares to its investment, with the value of the holding being $3.6 million on March 31, 2013. The stock’sprice has surged 37% so far in 2013, and is currentlytrading at approximately $150 per share. Portfolio Recovery Associates, Inc. (NASDAQ:PRAA) has a trailing P/E ratio of 18.24, significantly lower than its industry’s average of 29.90. The stock has a beta of 1.11 and does not pay a dividend. Analysts are rather bullish, with five of them recommending Portfolio Recovery Associates, Inc. (NASDAQ:PRAA) as a Buy or Strong Buy, while three recommend it as a Hold.

Bottom line

Redmond Asset Management has made a few changes to its largestequity positions, with some proving to be more profitable than others during the first quarter. We believe investors should take particular note of General Electric Company (NYSE:GE), as Redmond has made a significant increase (+11%) in its stake in the automaker from the previous quarter. “Mini-Berkshire” Markel is also a top investment of many members of the smart money, and despite its incessant comparisons to one Omaha behemoth, many investors still haven’t taken notice.

Likewise, Portfolio Recovery, 3M Co (NYSE:MMM) and Barrett Business Services, Inc. (NASDAQ:BBSI) aren’t the flashiest names out there, but each offers decent value at their current prices, and pair nicely with the larger General Electric Company (NYSE:GE) and Markel in this top five. Continue preparing for 13F-filing season here.

Disclosure: none