Iszo Capital is an equity only hedge fund based in New York, NY. It was founded in 2010 by Brian Sheehy, its current manager. So far, the fund has invested mainly in pharmaceutical and healthcare stock, but its portfolio contains industrial and service companies as well. The fund has recently filed its first 13F report, for the quarter ending December 31, 2013. Let’s have a look at Sheehy’s top stock picks and the financials behind them.
Top dog is Taro Pharmaceutical Industries Ltd. (NYSE:TARO). Iszo Capital has reported ownership of 1.1 million shares worth approximately $105 million. The company engages in the research and production of pharmaceuticals mainly in the United states. It has a market cap of $5.0 billion and does not pay a dividend. The stock is traded at a Price to Earnings (P/E) ratio of 17.0 and has a beta of 0.28. For the final quarter of 2013, the company posted net sales of $213.6 million and earnings of $2.59 per share.
Second place goes to AMERCO (NASDAQ:UHAL), a company that provides moving and storage services in Canada and the United States. According to Iszo’s 13F report, the fund holds 37,317 shares valued at $8.7 million. The company has a market cap of $4.5 billion and pays an annual dividend of $1.0, which represents a yield of 0.4%. Shares are changing hands at a P/E ratio of 13.7 and have a beta of 1.23. For the quarter ending December 31, 2013, the company announced consolidated revenues of $641 million and earnings per share (EPS) of $2.67.
Next up is Navigator Holdings Ltd (NYSE:NVGS). Sheehy acquired 275,800 shares valued at $7.4 million. The company is based in London, United Kingdom and operates gas carriers. Navigator Holdings went public on November 21, 2013 in a $19.00 Initial Public Offering (IPO). 12 million shares were offered and net proceeds of $156.4 million were registered. The company has a market cap of $1.4 billion and does not pay a dividend. The stock is traded at a trailing P/E ratio of 26.6 and has a beta of -0.22, which means that the stock trends in the opposite direction to the market.
Great Lakes Dredge & Dock Corporation (NASDAQ:GLDD) is also among the fund’s biggest bets. Iszo reported owning 456,024 shares valued at a little over $4 million. The company engages in marine construction and industrial and commercial demolition. It has a market cap of $484 million and pays a quarterly dividend of $0.25, which equals a 1.03% yield. For the fourth quarter of 2013, the company reported revenues of $216 million and earnings of $0.08 per share. For the current quarter, analysts expect Great Lakes Dredge & Dock to post revenues of $203 million and EPS of $0.09.
Ending the top 5 picks is a pharmaceutical company – Depomed Inc (NASDAQ:DEPO). Sheehy has bought 275,644 shares reportedly worth $2.4 million. Depomed has a market cap of $740 million and the stock has a beta of 1.34. The share price has been trending upwards since May 2013 and has gained 24% so far in 2014 to a current price of $13 per share. According to a preliminary earnings report, the company registered revenues of $22.1 million from both drug sales and licensing.
Disclosure: none.
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