Many leading funds, including Franklin Templeton, Blue Ridge Capital and Lazard Asset Management, filed forms 13-D and 13-G with the SEC over the last month, indicating that they had amended their ownership in U.S. exchange traded industrial and tech sector companies. The following summarizes two noteworthy buys and four noteworthy sells in the tech and industrial sectors (in addition to prior articles summarizing 13D/G activity in the biotech group and the tech sector). Also, for more info on Forms 13-D and 13-G, and how to interpret them, please refer to our instablog discussion on institutional trades:
Navistar International Corp. (NAV): NAV is a manufacturer of commercial and military trucks, buses, diesel engines and recreational vehicles. They serve the government, construction, energy and commercial transportation markets. Last Wednesday, well-known financier, corporate raider and 'activist' hedge fund manager Carl Icahn's eponymous fund, with $9.8 billion in 13-F assets, filed SEC Form 13D/A indicating that it holds 9.04 million or 13.2% of outstanding shares, an increase from the 8.13 million shares it indicated in a prior SC 13D/A filing last month, and compared to 7.25 million shares that it held at the end of Q1.
Also, last week, Franklin Templeton Investments, with over $152 billion in 13-F assets, filed SEC Form SC 13G/A, indicating that it held 12.91 million or 18.8% of outstanding shares, an increase from the 8.50 million shares that it indicated holding in a prior SC 13G filing in May, and above the 5.12 million shares that it held at the end of Q1. In addition to the above two, also last week, deep-value focused activist hedge fund MHR Fund Management, with $2.3 billion in 13-F assets, filed SEC Form SC 13D/A indicating that it held 10.25 million or 15.0% of outstanding shares, an increase from the 9.34 million shares that it indicated holding in a prior SC 13D/A filing last month, and a new position for it since the end of Q1.
The filing by these three notable investment companies comes at a time when NAV shares have fallen off about 40% YTD, and are currently trading near their lows at 7-8 forward P/E compared to the average of 8.0 for its peers in the auto/truck OEM group. Earnings, meanwhile, are projected to rise from $1.24 on a TTM (trailing-twelve-month) basis to $3.09 for the FY ending October, 2012. Wall Street analysts too are bullish on the company, with eight of eighteen analysts that cover the company rating it at buy/strong buy and the remaining ten rating it at hold, with a mean price target above $35, more than 50% higher than current prices in the $24 range.
In addition to NAV, institutions also indicated via their 13D/G filings in the last month that they increased their ownership in the following industrial sector companies:
- Colfax Corp. (CFX), that manufacturers fluid handling products, including pumps, fluid handling systems and controls, and specialty valves for the commercial marine, oil & gas, power generation, defense, and general industrial sectors, in which Guru, Tiger Cub and Star Manager John Griffin's hedge fund Blue Ridge Capital, with $6.0 billion in assets under management, filed SEC Form SC 13G indicating that it holds 5.37 million or 5.7% of outstanding shares, a new position for them since the end of Q1.
- Gardner Denver Inc. (GDI), that manufactures compressor, vacuum and fluid transfer products used in industrial, water, jetting and drilling applications, in which San Francisco-based shareholder activist-oriented hedge fund ValueAct Capital Management, with $6.46 billion in 13-F assets, filed SEC Form SC 13D indicating that it holds 2.49 million or 5.0% of outstanding shares, an increase from the 0.88 million shares that it held at the end of Q1.
On top of these, institutional investors also indicated via their 13D/G filings over the past month that they decreased their positions in the following industrial and tech sector companies:
- Companhia Energetica (CIG), that is a Brazilian utility engaged in the generation, transmission and distribution of electricity in Brazil, in which global asset management firm Lazard Asset Management, with $44.5 billion in 13-F assets, filed SEC Form SC 13G/A indicating that it holds 16.88 million or 3.6% of outstanding shares, a decrease from the 32.78 million shares it held at the end of Q1.
- Authentec Inc. (AUTH), that is a provider of fingerprint authentication sensors and solutions for the PC, wireless, home security and access control markets, in which Marxe Austin & Greenhouse David, filed SEC Form SC 13G/A indicating that their investment vehicle, the Special Situation Fund, holds 1.59 million or 3.6% of outstanding shares, a decrease from the 2.35 million shares that it held at the end of Q1.
- Sealed Air Corp. (SEE), that manufactures packaging and related materials and systems for food, industrial, medical and consumer applications, in which Tucson, AZ-based independent investment firm Davis Selected Advisers, with $48.1 billion in 13-F assets, filed SEC Form SC 13D/A indicating that it holds 9.29 million or 4.8% of outstanding shares, a decrease from the 10.27 million shares it indicated in a prior SC 13D filing on July 2nd, and also a decrease from the 12.16 million shares it held at the end of Q1.
Credit: Fundamental data in this article and company descriptions are based on SEC filings, Zacks Investment Research, Yahoo, Thomson Reuters and Briefing.com. The information and data is believed to be accurate, but no guarantees or representations are made.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
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