No two Guru investors think alike. On any given day and with
any given stock, one is selling as the other is buying. Watching
from the sidelines, we want to close that gap or at least
understand how two great Guru investors can have opposing views.
A case in point is the recent trading activity on Asset
Acceptance Capital Corporation (
reducing again while First Eagle Investment Management is buying
new. Nearing acquisition by the larger Encore Capital Group Inc.
), another debt buyer-debt collector rival, Asset Acceptance
shows major warning signs according to a GuruFocus financial
checkup, but the company is up 22% over 12 months. Encore's
acquisition of Asset Acceptance Capital is expected to be
completed in this quarter.
of D3 Family of Funds reduced his position again with Asset
Acceptance Capital Corporation (
) by 0.13%, as of April 23, 2013. Nierenberg traded at an average
price of $6.49, with a 0% change from average. D3 Family of funds
holds 4,370,529 shares after the trade.
This is the second AACC paring by D3 Family of Funds this month.
Nierenberg reduced his AACC position by 8.4%, as of April 16,
2013, trading at an average price of $6.48, with a 0% change from
As Nierenberg reduces his position with the debt-collector on the
brink of a merger, First Eagle Investment Management bought the
new holding as of March 31, 2013. First Eagle bought 399,283 AACC
shares for an average price of $5.52, making a 17.6% gain.
Earlier this month Asset Acceptance Capital Corporation, (
) agreed to the $200 million offer made by its competitor Encore
Capital Group (
). Together, the companies have purchased over 60 million
consumer accounts with a face value of approximately $130
On Fortune's 2012 List of "100 Fastest Growing Companies," Encore
Capital Group is a debt management and recovery solutions company
for consumers and property owners across a broad range of assets.
Encore employs 2,400 people worldwide and a large third-party
network, with operations in the U.S., India and Costa Rica.
Encore's President and CEO Brandon Black commented on the
upcoming deal: "This acquisition moves our industry into a new
phase of maturity defined by more efficient companies that are
committed to operating ethically and treating consumers with
respect. Encore's strong operating and cost advantages will allow
Asset Acceptance's investments to be significantly more
profitable and will deliver greater value to shareholders."
Promoting consumer financial recovery and ethical collections,
Encore has a reputation for its industry-leading Consumer Bill of
Rights offered to millions of people repaying their obligations
and getting a new start financially.
Encore Capital Group Inc. (
) has a market cap of $642.7 million, with a P/E of 9.9, a P/B of
1.6 and a P/S ratio of 1.3. ECPG is up 19% over 12 months. The
current share price is $28.20.
Asset Acceptance Capital Corporation (
) has a market cap of $199.7 million, with a P/E of 18.1, a P/B
of 1.3 and a P/S ratio of 0.8882. AACC is up 35% from January.
The current share price is $6.49.
is the founder of D3 Family of Funds. His updated portfolio lists
seven stocks with a total value of $147 million and a
quarter-over-quarter turnover of 0%.
First Eagle Investment's
is one of the most respected investors in the world. He was
Morningstar's International Manager of the Year in 2001. He also
received a Lifetime Achievement Award from Morningstar in 2003
for "building one of the most successful long-term records in the
Here is the complete portfolio of First Eagle Investment
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