With Small-Caps Back on Track, Here Are Impax Asset’s Favorites for Q3

#3. Itron Inc. (NASDAQ:ITRI)

– Shares Owned by Impax Asset Management (as of June 30): 1.44 Million

– Value of Impax Asset Management’s Holding (as of June 30): $62.21 Million

Impax Asset Management owned 1.44 million shares of Itron Inc. (NASDAQ:ITRI) at the end of the second quarter, 48,095 shares more than it did at the end of the first quarter. The increased position was worth $62.21 million at the end of June, and constituted 3.1% of the value of the investment firm’s portfolio. In September 2015, two hedge fund vehicles joined forces to launch an activist campaign against the technology and services company, with all parties involved in this play reaching an agreement in December 2015 under which two new Directors were appointed to the company’s Board. The technology company provides end-to-end smart metering solutions to electric, natural gas, and water utilities. Itron has seen its market value gain 20% since the start of 2016. In mid-July, Itron announced that it had reached an agreement to settle patent litigation claims brought against it by TransData Inc. Bernard Lambilliotte’s Ecofin Ltd reported ownership of almost 185,000 shares of Itron Inc. (NASDAQ:ITRI) through the current round of 13F filings.

#2. California Water Service Group (NYSE:CWT)

– Shares Owned by Impax Asset Management (as of June 30): 1.85 Million

– Value of Impax Asset Management’s Holding (as of June 30): $64.64 Million

The London-based asset manager founded by Ian Simm increased its exposure to California Water Service Group (NYSE:CWT) by a mere 2% during the three-month period ended June 30, to 1.85 million shares valued at $64.64 million on June 30. The provider of water utility and other related services in California, Washington, New Mexico, and Hawaii has seen the value of its stock jump by 35% in 2016. Just recently, the company’s Board approved a quarterly dividend of $0.1725 per share, marking the 286^th-consecutive quarter in which it pay out a dividend to shareholders. The freshly-declared quarterly dividend equates to an annual dividend yield of 2.19%. A mere eight hedge fund vehicles in our system were invested in California Water Service at the end of the first quarter, holding 5% of its outstanding common stock. Beech Hill Partners, founded by Paul Cantor, acquired a new stake of 7,151 shares of California Water Service Group (NYSE:CWT) during the June quarter.

#1. Watts Water Technologies Inc. (NYSE:WTS)

– Shares Owned by Impax Asset Management (as of June 30): 1.60 Million

– Value of Impax Asset Management’s Holding (as of June 30): $93.07 Million

Watts Water Technologies Inc. (NYSE:WTS) was the third-largest equity holding in Impax Asset Management’s portfolio at the end of June, accounting for 4.6% of its value. The London-based investment firm boosted its position in Watts Water by 79,740 shares during the second quarter, to 1.60 million shares worth $93.07 million on June 30. For the second quarter, the U.S. manufacturer of a broad line of plumbing, heating and water quality products reported sales of $371.1 million, down by $15.8 million year-over-year. The decrease primarily reflects the exit of non-core products, which impacted the top-line figure by $33.9 million. In 2015, the company’s Board approved a plan to transform its Americas and Asia-Pacific businesses, which involved the exit of low-margin, non-core product lines and global sourcing actions. Watts Water shares have gained 28% this year. Royce & Associates has 89,340 shares of Watts Water Technologies Inc. (NYSE:WTS) among its holdings as of the end of the second quarter.

Disclosure: None