Whitney Tilson’s Top Q2 Value Investments

Regardless, Platform Specialty Products Corp (NYSE:PAH) has many proponents among the funds we track. Funds were particularly bullish on the company heading into 2015, with fund ownership increasing to 35 from 27, and invested capital increasing to $2.04 billion from $1.59 billion despite shares actually dipping about 8% during the quarter. The bulls certainly had it right, as Platform Specialty Products Corp (NYSE:PAH) is up by 18% year-to-date.

Reading International, Inc. (NASDAQ:RDI) remains in third position in Tilson’s portfolio, where it sat last quarter after the position was newly opened at that time. Tilson bulked the position up by another 5% to 371,106 shares with a value of $4.99 million. Another real estate company, Reading International, Inc. (NASDAQ:RDI) primarily operates in the cinema segment, with ownership of 58 cinemas boasting a total of 476 screens in the United States, Australia, and New Zealand. Reading International, Inc. (NASDAQ:RDI) unveiled its first quarter results yesterday, reporting net income of $3.1 million. The company’s cinema segment enjoyed increased revenue from a year ago, while the real estate segment’s revenue dipped. Tilson anticipates the family-run company will begin to unlock value for shareholders.

“The patriarch of the controlling family passed away last year, and there’s reason to believe that his three children, who now control and run the company, are eager to unlock value for shareholders. I believe intrinsic value is at least $15/share and likely above $20. I established this position last fall from ~$9-11/share and it closed yesterday at $12.35,” Tilson said.

Reading International, Inc. (NASDAQ:RDI) had limited fund ownership among the funds in our database, with billionaire Jim Simons’ quant fund Renaissance Technologies having the only other substantive position.

Air Products & Chemicals, Inc. (NYSE:APD) sits in fourth position in Tilson’s portfolio with 29,728 shares valued at $4.50 million, the share ownership up by 15% over the first quarter. In his investor letter, Tilson explained some of the rationale behind adding yet more shares to his position in Air Products & Chemicals, Inc. (NYSE:APD).

“There is no reason why APD’s performance can’t improve to Praxair, Inc. (NYSE:PX)’s level over time – and after seeing the new CEO, Seifi Ghasemi, at an investor dinner last month, I now have greater conviction that it will happen more quickly than I’d anticipated, so I added to our position. He’s that impressive and his track record is that good,” Tilson said.