The Only 4 Stocks That Matter to Longview Asset Management

#2. Allison Transmission Holdings Inc. (NYSE:ALSN)

– Shares Owned by Longview Asset Management (as of June 30): 9.26 Million
– Value of Longview Asset Management’s Holding (as of June 30): $261.45 Million

The asset manager run by current President and CEO James A. Star owned 9.26 million shares of Allison Transmission Holdings Inc. (NYSE:ALSN) both at the end of the first and second quarters of 2016. The untouched position was worth $261.45 million at the end of June. The designer and manufacturer of commercial and defense fully-automatic transmissions has seen its market cap increase by 9% since the start of the year. Earlier this year, Allison adopted a set of corporate governance enhancements after facing pressure from shareholders. The set of governance proposals included the declassification of its Board, which means that the entire Board will be elected annually beginning at the 2017 meeting of stockholders; as well as the adoption of a majority voting standard for the election of Directors in uncontested elections. The number of money managers in our system that were invested in the company rose to 38 from 27 during the first three months of 2016. Wallace Weitz’s Wallace R. Weitz & Co. owns 1.12 million shares of Allison Transmission Holdings Inc. (NYSE:ALSN) as of the end of the second quarter.

#1. General Dynamics Corporation (NYSE:GD)

– Shares Owned by Longview Asset Management (as of June 30): 33.33 Million
– Value of Longview Asset Management’s Holding (as of June 30): $4.64 Billion

General Dynamics Corporation (NYSE:GD) was by far the largest position in Longview Asset Management’s concentrated portfolio at the end of the second quarter, accounting for a whopping 88.5% of the portfolio’s value. The Chicago-based asset manager did not adjust its 33.33 million-share position in GD during the three-month period ended June 30, which was valued at $4.64 billion on the last day of June. The global aerospace and defense company that makes Gulfstream jets, tanks and U.S. Navy ships has seen the value of its stock balloon by 10% since the beginning of 2016. General Dynamics shares could go even higher should top- and bottom-line trends in the company’s aerospace unit, which produces Gulfstream business jets, show signs of stabilization after experiencing several weak quarters. The company’s defense business is anticipated to grow as well. The U.S. defense budget, which totals $523.9 billion for the fiscal year ending September 30, will increase to $582.7 billion for the next fiscal year. Moreover, the U.S. government has also lifted some restrictions on international sales of military technology and equipment, which could serve as an additional boost to GD’s future top-line growth. Tom Gayner’s Markel Gayner Asset Management has 387,000 shares of General Dynamics Corporation (NYSE:GD) among its holdings as of the end of the second quarter.

Disclosure: None