By: Adam Barnett
Grisanti Capital Management is a hedge fund managed by Christopher Grisanti serving high net worth individuals and not-for-profit institutions. The fund recently filed its Q1 13F with the SEC, describing some of its main equity investments for the quarter, an interesting mix of value and growth stocks. See the original 13F here. It's important to pay attention, because quantitative analyses have revealed that piggybackers can beat the market if they know where to look (discover the secrets of this strategy here).
Grisanti's biggest position, according to the 13F, is 343,855 shares in the Nasdaq-listed wireless product maker Qualcomm (NASDAQ:QCOM), worth $17.4 million at the time of filing. This is a significant rise in holdings as only 176,094 QCOM shares were reported to be held by Grisanti in the prior 13F. Qualcomm has a long history of volatility, which has continued during 2013, and as of this writing it is trading at $64.86. Qualcomm reported EPS of $1.06 for the 2013 first quarter, down from $1.29 in the corresponding quarter of 2012.
Also up for consideration is petrochemical giant Valero Energy Corporation (NYSE:VLO). Grisanti currently has a 343,855-share stake in Valero worth about $15.6 million at the time of the 13F filing. This is a significant rise from the prior quarter when only 116,875 Valero shares were held. The price of Valero has been in a downtrend since early April, hitting a 52-week high of $44.73 before selling off to $38.10 at the time of writing. Net income for 2013's first quarter was $654 million, or $1.18 per share, compared with a net loss of $432 million, or $0.78 per share, in the first quarter of 2012. The stock's P/E Ratio is at a value-friendly 6.67, with a forward P/E a bit above 7.0.
The best of the rest
Grisanti also has a substantial holding in carmaker Ford Motor Company (NYSE:F), with 1,123,680 shares of stock worth $14.776 million at the time of filing. This contrasts with the smaller amount of 851,410 Ford shares held during the prior quarter. Ford has been in uptrend since early . TApril, and is currently trading near $14. Ford reported a pre-tax profit of $2.1 billion, or 41 cents per share, for the first quarter 2013, a decrease of $147 million from a year ago. Net income was $1.6 billion, or 40 cents per share, an increase of $215 million compared with the corresponding quarter of the prior year. The stock might also be attractive to value hunters with a P/E Ratio of only 9 and a forward P/E near this mark as well.
HollyFrontier (HFC) is also in the equity portfolio. The fund's latest 13F reports a holding of 280,880 shares of common stock worth $14.451 million. This is another increase in stake with only 233,240 shares being reported one quarter earlier. HollyFrontier's stock price has been in an overall downtrend for the quarter, falling from a 52-week high of $59.20 in early April to $47.51 currently. In 2013, first quarter net income was reported at $333.7 million or $1.63 per diluted share, compared with $241.7 million or $1.16 per diluted share for the corresponding quarter of 2012. The stock's P/E Ratio is very low at 5.35, with a forward P/E of 7.15.
Next up is the Canadian pipeline transport company Enbridge Inc. (NYSE:ENB). The 13F reports the fund holding 281,630 shares worth $13.107 million during the time of filing. This is slight increase in stake from the 279,955 stocks held during the prior period. Price action during 2013 has been quite bullish, but the stock has retreated from it 52-week high of $48.41 to hit $46.54 at the time of writing. Enbridge reported earning of 250 million Canadian dollars ($249 million), or 31 Canadian cents a share, during the 2013 first quarter. This is down from C$261 million, or 34 Canadian cents, for the corresponding quarter of the prior year. The P/E ratio is extremely high at 62.89, but a forward P/E of 25.37 is a bit more reasonable.
The five main equity holdings of Grisanti Capital Management reflect an interesting mix of value and growth, with a strong weighting towards oil- and gas-related stocks. All five of these stocks may be worth your consideration.