Editor’s Note: Related tickers: Liberty Media Corp (NASDAQ:LMCA), CBS Corporation (NYSE:CBS), BP plc (ADR) (NYSE:BP), General Dynamics Corporation (NYSE:GD), Focus Media Holding Limited (ADR) (NASDAQ:FMCN)
Gruss Asset Management is a financial investment advisory firm headquartered in New York with an estimated $2.44 billion of assets under management. It is managed by Howard Guberman. The fund recently filed its 13F with the SEC, describing some of its main investments during 2013’s first quarter. A quick look at the top five equity positions of this new hedge fund might be a good starting point for your own research.
The original 13F can be found here, and it’s important to note that various empirical studies show that retail investors can benefit from watching hedge fund sentiment; see the details of this strategy revealed.
Number one
According to the 13F, the fund’s biggest equity stake was in Liberty Media Corp (NASDAQ:LMCA).By comparison with the prior quarter, the number of shares owned by the fund fell by 400,000 to 650,000, with the total value of the holding falling by 40.43% to $72.560 million. Liberty Media Corp (NASDAQ:LMCA) Mediahas a trailing EPS of $11.79, and it sports the third lowest trailing P/E ratio within its industry at 10.40,though a forward PE of 48.26 indicates possible overvaluation. Year-over-year revenues increased by 79.30% in its latest quarterly report, while the company’s profit margin was 70.64%, second highest in theTV broadcasting industry.
The best of the rest
Gruss Asset Management maintained its position in CBS Corporation (NYSE:CBS),with 1,500,000 shares worth $69.495 million held at the end of first quarter, as stated in the 13F. The value of the holdingrose by 22% during the quarter. CBS Corporation (NYSE:CBS) currently trades at a P/E ratio of 19.25, and the company’s trailing diluted EPS is spotted at $2.54. CBS Corporation (NYSE:CBS)’s profit margin is a moderate 11.54%, while current-quarter earningshave increased by 22.00%.The stock pays a forward dividend rate of $0.40 at a yield of 1.20%.
A newcomer, energy behemoth BP plc (ADR) (NYSE:BP) saw the fund report a position of 1,500,000 shares worth $63.525 million as of March 31. This company’s stock trades at the lowest trailing P/E ratio (6.15) in the major integrated oil & gasindustry. The stock’s forward P/E ratio is also below industry norms. With the fourth-highest dividend yield (5.02%) in its industry, BP plc (ADR) (NYSE:BP) is recommended as a Hold by seven analysts, a Buy by four analysts, and a Strong Buy by another three.
Next is General Dynamics Corporation (NYSE:GD), withGruss Asset Management holding 451,267 shares at the end of the first quarter, down by 148,733 units when compared withone quarterearlier. The value of the position fell by 23.44% to $31.819 million.
General Dynamics Corporation (NYSE:GD) pays the fourth highest dividend yield in the industry at 2.98%, and it trades at a moderately attractive forward P/E of 10.65. Analysts have a mean recommendation of 2.2 for the stock.
Thistop five list closes with Focus Media Holding Limited (ADR) (NASDAQ:FMCN), with a bigincreaseduring the first quarter. The fund’s stake in Focus Media Holding Limited (ADR) (NASDAQ:FMCN) increased by 439,331 shares to 1,154,331in Q1, with the value rising by 68.55%. Focus Mediashares sport a trailing EPS of $4.09 and a trailing P/E ratio of 6.66, the lowest in its industry.The stock also pays a dividend yield of 1.69%, and analysts have a mean recommendation of 2.3 on the stock.
Final remarks
Gruss Asset Management has some well-performing stocks amongst its biggest holdings, with a concentration on the services sector. As with the rest of hedge funds’ sentiment, it’s important to take advantage of these filings from an aggregate perspective;see what we mean here.
Focus Media Holding Limited (ADR) (NASDAQ:FMCN) and Liberty Media Corp (NASDAQ:LMCA) aren’t always considered the flashiest of players in their space, but each offers very good value. Similarly, BP plc (ADR) (NYSE:BP) is extremely cheap, and while General Dynamics Corporation (NYSE:GD) isn’t insanely attractively priced, its yield—and cyber security potential—are two things to watch moving forward. CBS Corporation (NYSE:CBS) is really the odd stock out of this bunch, as it represents more of a momentum play, but it’s also a decent media bet moving off its strong earnings growth.
Disclosure: none
