A Trail of Extraordinary Gains - Chuck Royce Sells 60 Companies

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As of March 31, 2013, billionaire Guru Chuck Royce of Royce & Associates sold out holdings in 60 companies. Royce's first quarter sells are a study in contrast, with a history of extremely high gains from Sturm, Ruger & Company ( RGR ) and Lumber Liquidators Holdings Inc. ( LL ) versus enduring losses from Jakks Pacific Inc. ( JAKK ), Overland Storage Inc. ( OVRL ), China Digital TV Holding Co. Ltd. ( STV ) and Gleacher & Co. Inc. ( GLCH ). The portfolio's non-producers were balanced by high-gain holdings like the lumber company Pope Resources LP ( POPE ) that gained well over 100% in each of six consecutive quarters beginning in the third quarter of 2008, or the always effervescent National Beverage Corporation ( FIZZ ) that brought Royce 20 quarters of refreshing gains until he sold out his remaining 330,900 shares at $13.87 for a 24.2% gain.

While many of Royce's sells were standard housekeeping of smaller holdings with dwindling gains, here are the highlights of Royce's trading history, companies that showered extraordinary gains until he sold out at the end of first quarter 2013:

Sold Out: Sturm, Ruger & Company ( RGR ) - Aerospace and Defense

Chuck Royce sold out his position with RGR, as of March 31, 2013. He sold 23,862 shares at an average price of $52.53 per share, for a loss of 1.2%. What's remarkable about this holding is that in 19 quarters of holding, Royce made well over 200% for 10 of those quarters. His highest gain was 711.1% in the fourth quarter of 2008. He gained 660% in the third quarter of 2008 and 536.2% in the first quarter of 2009, according to GuruFocus research.

The current share price is $51.91 compared to past valuations:



Sold Out: Lumber Liquidators Holdings Inc. ( LL ) - Hardwood Flooring

Chuck Royce sold out his position with LL, as of March 31, 2013. He sold 177,000 shares at an average price of $60.86 per share, for a gain of 46.4%. This is another exceptional holding that in 17 quarters was always in the green of extraordinary gains. Royce made well over 200% for 14 of those quarters. His highest gains were 812.7% in the fourth quarter of 2008 and 806.2% in the first quarter of 2009.

The current share price is $89.08 compared to past valuations:



Sold Out: Journal Communications Inc. ( JRN ) - Publishing

Chuck Royce sold out his position with JRN, as of March 31, 2013. He sold 250,379 shares at an average price of $5.70 per share, for a gain of 17.7%. Royce held this company for 15 quarters, always with gains. His two highest gains were 386.2% in the first quarter of 2009 and 176.1% in the fourth quarter of 2008. All other quarters have been double digit gains of 66.1% or less.

The current share price is $6.71 compared to past valuations:



Sold Out: Fortress Investment Group LLC ( FIG ) - Asset Management

Chuck Royce sold out his position with FIG, as of March 31, 2013. He sold 50,000 shares at an average price of $5.82 per share, for a gain of 26.6%. Royce held this company for six quarters, with his highest gains of 346.7% in the first quarter of 2009 and 116.1% in the fourth quarter of 2008.

The current share price is $7.37 compared to past valuations:



Sold Out: Central North Airport Group ( OMAB ) - Airports and Air Services

Chuck Royce sold out his position with OMAB, as of March 31, 2013. He sold 7,342 shares at an average price of $27.07 per share, for a gain of 5.3%. Royce made extraordinary gains of well over 100% in six out of 10 quarters with this holding that always produced a gain for him.

The current share price is $28.50 compared to past valuations:



Using a small-cap strategy at Royce & Associate, Chuck Royce manages a portfolio of 1,366 stocks with a total value of $32.6 billion. His portfolio has a quarter-over-quarter turnover rate of 6%. As of May 7, 2013, Royce listed 90 new stocks.

Here's complete information and analysis on all of Chuck Royce's trades.

His top buys, sells and holdings:





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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing

Referenced Stocks: FIG , JRN , LL , OMAB , RGR

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