Amid Portfolio Cuts, Edinburgh Partners Remains Resolute On Favorite Stocks

#3. Whirlpool Corporation (NYSE:WHR)

 – Shares Owned by Edinburgh Partners (as of June 30): 405,439

 – Value of Edinburgh Partners’ Holding (as of June 30): $67.56 Million

The long-term-oriented asset manager owned 405,439 shares of Whirlpool Corporation (NYSE:WHR) at the end of June, 131,738 shares less than it did at the end of March. The reduced position was worth $67.56 million on June 30, and constituted 10.3% of the investment firm’s $659.36 million equity portfolio’s value. The well-known manufacturer of home appliances has seen its market value jump by 28% since the start of the year. Just recently, analysts at Raymond James downgraded Whirlpool to ‘Market Perform’ from ‘Strong Buy’, citing more difficult comparable-sales, a seasonally heavier promotional environment, and higher cost inflation for 2017. Meanwhile, analysts at JPMorgan increased their price target on the home appliances specialist to $210 from $205 and reiterated their ‘Overweight’ rating on it, saying that Whirlpool will likely outperform industry peers over the next year or so. The company’s financial and stock performance has been driven by strong U.S. demand for appliances, in contrast to the challenges it has faced overseas. Edgar Wachenheim’s Greenhaven Associates owns a stake of 2.63 million shares of Whirlpool Corporation (NYSE:WHR) as of June 30.

#2. QUALCOMM Inc. (NASDAQ:QCOM)

 – Shares Owned by Edinburgh Partners (as of June 30): 1.29 Million

 – Value of Edinburgh Partners’ Holding (as of June 30): $69.09 Million

The Edinburgh-based investment firm run by Sandy Nairn cut its position in QUALCOMM Inc. (NASDAQ:QCOM) by 21% during the three-month period ending June 30, to 1.29 million shares. The shares of the mobile chip maker are 21% in the green year-to-date, partially owing to a series of licensing deals with China’s largest manufacturers. Chinese consumers are switching from entry-level smartphones to LTE, short for Long Term Evolution, models, a trend that benefits Qualcomm’s chip sales. Qualcomm’s sales in China during the most recent quarter offset “spotty” sales in other regions. The maker of processors and modem chips for smartphones reported mobile chip shipments of 201 million for its third quarter of fiscal year 2016 that ended June 26, ahead of the company’s guidance of 175 million-to-195 million. Ken Fisher’s Fisher Asset Management had 9.69 million shares of QUALCOMM Inc. (NASDAQ:QCOM) in its portfolio at the end of June.

#1. Apache Corporation (NYSE:APA)

 – Shares Owned by Edinburgh Partners (as of June 30): 1.45 Million

 – Value of Edinburgh Partners’ Holding (as of June 30): $80.64 Million

Its Apache Corporation (NYSE:APA) holding was the largest in Edinburgh Partners’ U.S. equity portfolio at the end of the June quarter, accounting for 12.2% of the value of that portfolio. The Scotland-based asset manager reduced its position in Apache by 21% during the second quarter to 1.45 million shares valued at $80.64 million on June 30. The independent energy company that explores, develops and produces natural gas, crude oil and natural gas liquids has seen its market capitalization increase by 12% in 2016. Although Apache Corporation ran a cash-flow deficit for the first quarter, the company plans to achieve “cash flow neutrality” in 2016 under its current budget. During the first three months of 2016, the company operated 24 rigs on average and drilled and completed 79 gross-operated wells worldwide. Based on strong first quarter results, Apache raised its full-year North American Onshore production guidance to 268,000-to-278,000 BOE per day from its initial guidance of 263,000-to-273,000 BOE per day. Russell Lucas’ Lucas Capital Management owns approximately 6,000 shares of Apache Corporation (NYSE:APA) as of June 30.

Disclosure: None