Sohu.com Inc (SOHU), SK Telecom Co., Ltd. (SKM): Orbis Investment Management’s Small Cap Picks

Korean telecommunications company SK Telecom Co., Ltd. (NYSE:SKM) was another of Orbis’s small cap picks with the filing showing a position of a little over 10 million shares. Consensus estimates for 2014 imply a forward P/E of 10, so SK Telecom Co., Ltd. (NYSE:SKM) is at least somewhat in value territory, and while revenue growth has not been particularly high it has at least been positive (with net income rising at a faster rate, though we would expect it to converge to the revenue figures over time). The stock is up 42% in the last year.

The fund reported a position of 1.2 million shares in RenaissanceRe Holdings Ltd. (NYSE:RNR), a $4.2 billion market cap property and casualty insurance company, though this was down 60% from what it had owned at the beginning of October. Revenue has been growing rapidly at the company, but earnings have actually been down significantly going by recent reports. The earnings multiples are low but it still might be better to look elsewhere in the industry. Citadel Investment Group, managed by Ken Griffin, was taking the opposite tack in more than doubling its stake to a total of about 950,000 shares (check out Griffin’s stock picks).

According to the 13F, Gray was buying Spirit AeroSystems Holdings, Inc. (NYSE:SPR), the manufacturer of aircraft components, and closed December with 4.6 million shares of the stock. Spirit’s revenue was up 17% in its most recent quarterly report compared to the same period in the previous year, but earnings were actually flat. Wall Street analysts are bullish on the company, judging by the forward earnings multiple of 8. Spirit AeroSystems Holdings, Inc. (NYSE:SPR) was one of the largest holdings in Scopia Capital’s portfolio at the end of the fourth quarter of 2012 (research more stocks Scopia likes).

Disclosure: I own no shares of any stocks mentioned in this article.