has a highly successful hedge fund, ESL Investments, and also
often takes a hands-on role at the companies he invests in,
particularly Sears Holdings (
). He is a bottom-up stock picker focused on company
fundamentals. Lampert's portfolio is valued at $3.84 billion, has
11 stocks and is 94.6% weighted in the consumer cyclical sector.
In the fourth quarter, he reported to holding two new stocks:
Safeway Inc. (
) and Sears Hometown & Outlet Stores Inc. (
Sears Hometown & Outlet Stores Inc. (
Lampert in the fourth quarter reported to owning 9,086,583 shares
of Sears Hometown & Outlet Stores Inc. (
), a 7.7% stake in the company.
SHOS was spun off from Sears Holdings on Oct. 11, 2012, and its
common stock began trading on the Nasdaq Capital Market on Oct.
12. Under the terms of the deal, Sears Holdings stockholders
received on transferable subscription right for each shares of
Sears Holdings common stock held. Each subscription right
entitled holders to purchase 0.218091 of a share of SHOS common
stock, with an exercise price of $15 per whole SHOS share.
Lampert announced he would exercise his subscription rights after
the transaction was completed on the same day as the separation
announcement. He said he would purchase all of the shares
allocated to ESL investments.
Since the spinoff, SHOS shares have gained 41% to trade for
$43.41 on Friday afternoon, just off their all-time high of
SHOS has a P/E of 17.14.
Safeway Inc. (
Lampert also purchased 844,926 shares of Safeway for $17 per
share on average in the fourth quarter. The new holding is his
fourth smallest, at 0.4% of his portfolio. In the past five
years, Safeway shares have lost 36%.
Founded in 1915, Safeway is a retail grocer with 1,678 stores
across the U.S. and Canada.
In the past five years, Safeway has grown revenue per share at a
rate of 6.5% and free cash flow at a rate of 30.3%. In the same
time, EBITDA declined as a rate of 0.6% and book value at a rate
In the third quarter, Safeway reported a year-over-year sales
decline of 0.2% to $10 billion, primarily as a result of
disposing of its Genuardi's stores and a lower Canadian exchange
rate. Its net income before allocation to noncontrolling
interests increased to $157 million, from $130.3 million a year
In January, Safeway chairman and CEO Steve Burd stepped down
effective May 14, 2013. The company's board of directors is
currently in search for a successor.
Safeway has a P/E of 10.81, P/B of 1.7 and P/S of 0.1.
stock portfolio here
. Also check out the
, Top Growth Companies and High Yield stocks of Edward
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