Related tickers: Exxon Mobil Corporation (NYSE:XOM)
Kimelman & Baird is an employee-owned investment management company providing services to a wide range of clients. According to its latest 13F filing for the first quarter, it has over $470 million invested in its equity portfolio. See the original filing here.
Why you should pay attention?
On the whole, the world’s smartest investors can act as a great screener for their retail counterparts looking for a leg up on the competition. When we focus on the best picks of the best hedge fund managers, it’s possible to beat the market by as much as 18 percentage points a year (discover the secrets behind this strategy here).
Numero uno
Exxon Mobil Corporation (NYSE:XOM), the energy giant and one of the most highly capitalized companies in the world, tops the list of stock owned by Kimelman & Baird, with a value of $34.3 million—2% lower than previous quarter. The size of the fund’s position in Exxon Mobil Corporation (NYSE:XOM) now lies at 381,589 shares. Exxon Mobil Corporation (NYSE:XOM) has a beta of 0.86 and its latest quarterly EPS of $2.12 compared to $2.05 estimates have been enough for some bullish investors. Exxon Mobil Corporation (NYSE:XOM) sports a trailing P/E ratio of 9.32 and a forward P/E ratio of 11.12.
The best of the rest
The second biggest holding in Kimelman & Baird’s equity portfolio is Copart, Inc. (NASDAQ:CPRT). With a stake of 722,812 shares compared to 814,454 shares at the end of 2012, the fund’s position in this online auctions and vehicle remarketing services company has shrunk a bit. Nevertheless, the position’s value actually increased by 3.10% to $24.7 million, indicating an increase in the stock’s price. A trailing P/E ratio as high as 24.57, with a forward P/E of 19.77 indicates that future increases in earnings are expected by Mr. Market. Copart, Inc. (NASDAQ:CPRT) is less sensitive to market movements than many of its peers, as its beta of 0.57 is by far the lowest in the 12-stock auto dealerships industry.
According to this fund’s latest 13F, Nucor Corporation (NYSE:NUE), with a position of 505,930 shares compared to 584,425 a quarter earlier, is its third largest equity holding. The steel company’s stock trades at a trailing P/E ratio of 33.24, while its forward P/E of 12.4 indicates that there’s some value to be had here. Like Copart, Nucor Corporation (NYSE:NUE) has one of the lowest beta values in its industry, and on Wall Street, Nucor has positive recommendations (Buy or Strong Buy) from 14 of the 20 analysts who cover its shares.
In fourth we have General Electric Company (NYSE:GE). The widely diversified infrastructure and financial giant saw the size of its holding in Kimelman & Baird’s 13F rise from 898,115 shares to 959,537 in just a quarter. This stake change, coupled with modest gains in price, led to a 17.7% enlargement of General Electric Company (NYSE:GE)’s dollar value in the fund’s equity portfolio. General Electric sports a beta of 1.4 and a trailing EPS of $1.35, while generally meeting Wall Street’s expectations. Recent insider buying activity is a commonly missed indicator that something bullish may be afloat, and in 2013, GE has seen one unique insider buying and zero insider sales.
Teleflex Incorporated (NYSE:TFX), lastly, closes up this top five list. At 197,960 shares owned, down slightly from one quarter earlier, steady gains have actually pushed the position’s total dollar value up 10.7% quarter-over-quarter. With a beta around 1.0 and a trailing EPS of $2.91, the medical devices supplier seems like a very prudent investment for those who are interested. Teleflex Incorporated (NYSE:TFX) trades at a trailing P/E ratio of 27.22 and forward P/E of 14.60, while surpassing Wall Street’s EPS estimates for the previous four quarters.
Final points
The equity portfolio of Kimelman & Baird consists of 102 positions in total, among which you can find industry titans and little guys side by side. On the whole, it is a well-balanced 13F, formed by a combination of prudent and riskier investments, and it’s worth paying attention to (continue preparing for 13F filing season here).
Disclosure: none
