MAI Wealth Advisors, LLC, is a portfolio management and financial advisory company based in Cleveland, OH and is run by Gerald H. Gray, their Chief Investment Officer. The fund has recently filed their quarterly 13F report, which includes a massive addition to Avalon Rare Metals Inc (US listing) (NYSEMKT:AVL), while General Electric Company (NYSE:GE) has moved to the top of the holdings list.
Why pay attention?
It’s important to track hedge fund sentiment, because on the whole, their best picks have been shown to outperform the market by 18 percentage points a year. Best of all, retail investors can capitalize on this phenomenon, but they have to know where to look first. Learn the secrets of this strategy here.
Let’s get started
The ball is opened by General Electric Company (NYSE:GE). MAI Wealth Advisors has increased their stake in the US giant by 35% to more than 600,000 shares. General Electric Company (NYSE:GE) stock is traded at a trailing Price to Earnings (P/E) ratio of 16.59, while the forward P/E ratio is 12.31. This implies the market expects the company to grow and increase its revenues and earnings. Analysts estimate earnings of $1.66 per share in 2013 and $1.82 per share in 2014. Revenue is also expected to grow by 0.9% in 2013 and 1.8% during the next year. GE has a beta of 1.40 and pays a dividend of $0.72, for a yield of just under 3.4%.
CIO Gerald Gray has added an enormous 200,000 shares to the fund’s holding of Avalon Rare Metals Inc (US listing) (NYSEMKT:AVL), taking it to a total of 430,900 shares. The stock price of the company has been falling ever since its top in April 2011. It has a beta of 3.64, which makes the stock a very risky one. Analysts estimate the revenues to grow 7.7% in 2013, but they expect the company to bleed money. On April 17, Avalon Rare Metals Inc (US listing) (NYSEMKT:AVL) announced the completion of a feasibility test for their “Nechalacho Rare Earth Elements” Project. According to the report, the Net Present Value of the project is $900 million after-tax, with revenues of $645.8 million per year and average operating costs of $264.5 million per year.
MAI has also bolstered their investment in Vodafone Group Plc (ADR) (NASDAQ:VOD), which made it their third biggest position with more than 430,000 shares. With a beta of 0.78 and a dividend of $1.53, the presence of Vodafone Group Plc (ADR) (NASDAQ:VOD) brings some stability to the portfolio, considering the risky investment in the aforementioned Avalon Rare Metals. The mobile technology provider is expected to register higher revenues in the coming years and has sported a price range of $21.00-$34.40. Two of the 4 analysts that monitor the stock recommend it as a Strong Buy, while one of them tags it as a Sell.
Gray’s fourth major position is Glencore International PLC, St. Helier (OTCMKTS:GLCNF) – a company engaged in the production and supply of commodities, namely metals and minerals, energy products and agricultural products. The company’s stock is traded at a trailing P/E ratio of 38.21 and has been in a down trend since the start of the year. On April 30 it was announced that the Chinese Ministry of Commerce has approved the merger of Glencore International PLC, St. Helier (OTCMKTS:GLCNF) with Xstrata Plc Adr (OTCMKTS:XSRAY).
A bit more mainstream
