GMT Capital Corp. is a private investment company, the general partner and investment manager for several hedge funds, each managed under the same long-term investment philosophy. Founded in 1990, the firm strives to achieve high absolute returns in all markets, measuring itself on the ability to make profitable investments on both sides of the market, long and short.
Its investment track record is very limited, as most private investment firms are (they place a high value on secrecy). But GMT has shown some great investment returns in one company, Photronics (NASDAQ:PLAB), and not so great in another one, Fushi Copperweld (NASDAQ:FSIN).
Back in July 2010, GMT was buying a lot of Photronics at approximately $4.5 and starting selling in February 2011 at approximately $9, good for a double in just over six months. It still owns well over 5M shares of the company and looks to have some great value trading at .7x P/B and EV/S along with a forward 8x P/E and solid $40M in net cash. Moreover, in February 2011, GMT was adding to its position in Fushi at approximately $8.75.
However, since that time, this Chinese copper stock has continued to drift lower; to $6 now. GMT owns well over 4M shares and it seems to have some great value at .6x P/B, .3x EV/S, and very nice net cash position in excess of $3.50/share and very minimal debt. Moreover, with just under $50M in FCF this past year, the company is trading at a very cheap 2x EV/FCF, but this is volatile as it is strongly correlated with copper. I think this makes for a nice speculative play.
On October 10, GMT bought 120,500 shares of Entegris (NASDAQ:ENTG) after disclosing on October 3 that it owns more than 13.5M shares. Entegris develops, manufactures, and supplies products and materials used in processing and manufacturing in the semiconductor and other high-technology industries worldwide. The stock looks cheap at 9.6x P/E, 1x EV/S, and has no debt with approximately $1.5/share in net cash. I'd follow suit and be a buyer of Entegris.
GMT Capital is also a major shareholder in Kraton Performance Polymers (NYSE:KRA) and Endeavour International (NYSE:END) and acquired over 100,000 shares of Kraton and 10,000 shares of Endeavour in the month of October alone. Kraton is a specialty chemicals company that has some compelling valuations with a 5.8x P/E, 1x P/B, and .7x EV/S. Endeavour is an oil & gas company trading at 6.3x P/E, 1.1x P/B, but has a big debt load relative to its cash position; it burned through approximately $75M in FCF this past year. I'd rather buy Kraton if I had to pick between the two, but GMT seems to like both holding well over 4M shares in each.
Sources: SEC filing, Yahoo, GuruFocus
Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in ENTG over the next 72 hours.