Richard McGuire’s Marcato Trims Exposure to Top Picks; Buys Signet Jewelers, CSC

#3. Goodyear Tire & Rubber Co (NASDAQ:GT)

– Number of Shares Held By Marcato Capital (as of June 30): 4.92 million

–Value of Marcato Capital’s Holdings (as of June 30): $126.4 million

Marcato’s third-largest stake was represented by Goodyear Tire & Rubber Co (NASDAQ:GT), which fell one position in relation to March 31, even though the fund’s stake was boosted by 2% over the second quarter – as the stock lost 21.7% of its value. A total of 34 funds among those we track were long the stock, including Phill Gross And Robert Atchinson’s Adage Capital Management, which upped its exposure by 29% over the second quarter, disclosing ownership of 8.48 million shares as of the end of June. Since the second quarter ended, shares of Goodyear Tire & Rubber Co (NASDAQ:GT) have managed to recuperate more than 13.75%, largely on the back of an earnings beat in late-July. For the second quarter, the company posted revenue of $3.9 billion, down by 6.5% year-over-year, and $20 million below the Street’s consensus. However, EPS of $1.16, which came in $0.13 ahead of expectations, and reiterated financial targets helped the stock gain ground.

#2. Sothebys (NYSE:BID)

– Number of Shares Held By Marcato Capital (as of June 30): 5.27 million

–Value of Marcato Capital’s Holdings (as of June 30): $144.4 million

The case for Sothebys (NYSE:BID) was the opposite: while Marcato trimmed its participation by 11% during the second quarter, the stock ascended one spot in this list, as the shares gained 2.85% over the period. Overall, 16 funds from our database held over 31% of Sotheby’s stock at the end of the second quarter. Shares of Sothebys (NYSE:BID) have spiked by 48.2% since June 30, mostly on the back of better-than-expected results for the second quarter. EPS of $1.51 came in $0.46 ahead of expectations, while revenue of $298.67 million beat estimates by $7.45 million. Also helping the stock was a 90 bps increase in the auction margin rate, to 16.4%.

#1. Bank of New York Mellon Corp (NYSE:BK)

– Number of Shares Held By Marcato Capital (as of June 30): 10.54 million

–Value of Marcato Capital’s Holdings (as of June 30): $409.6 million

Finally, there’s Bank of New York Mellon Corp (NYSE:BK), which has occupied the first place in McGuire’s 13F portfolio since the third quarter of 2014. However, the stock saw the fund trim its stake by 43% over the second quarter of 2016, as the stock advanced by 4.6%. Also notable was the position of Warren Buffett’s Berkshire Hathaway, which held 20.82 million shares of the company. Since the second quarter ended, Bank of New York Mellon Corp (NYSE:BK) has seen its stock gain 8.5%, even in spite of its relatively high forward P/E ratio of 12x and not-so-high dividend yield of 1.86%. On Monday, subsidiary Pershing LLC said it would launch a new mutual fund and ETF aimed at “emerging and mass-affluent investors.”

Disclosure: Javier Hasse holds no interest in any of the securities or entities mentioned above.