Fisher Investments founder, chairman and CEO
updated his portfolio to reflect his fourth quarter changes. To
the $34.93 billion portfolio he added 32 new stocks, for a total
of 461, with the uppermost weightings almost evenly divided among
the financial services, consumer cyclical, consumer defensive and
health care sectors.
Fisher's investment strategy centers on knowing information other
market participants do not, while adjusting other elements of his
style over time as his view of the markets evolves. It
prioritizes analysis from a macro level, then countries and
sectors, and finally individual stock selection.
His 2013 outlook is bullish, as he says in an interview
discussing the fiscal cliff in Forbes, where he is a columnist:
"When I see big fear of potential tax hikes like now, I know
that's bullish. First, either the tax hikes don't happen, or
they're not as bad as feared. Anyone can see how if a feared tax
hike doesn't happen, that's a positive factor. But even if tax
hikes happen as feared, vast history tells me it doesn't have to
have the big bad impact folks fear. And fear of a false factor is
According to his update Thursday, Fisher's largest new stock buys
in the fourth quarter were: Education Realty Trust (
), Mack-Cali Realty Corp. (
), Harris Teeter Superman (
) and Elizabeth Arden Inc. (
Education Realty Trust (
Fisher bought 3,280,938 shares of Education Realty Trust for
about $10 on average in the fourth quarter.
Education Realty Trust is a REIT and one of the largest owners,
developers and managers of collegiate housing in the U.S., with
60 communities in 23 states.
In the third quarter, EDR announced that it had sold 35% of the
properties in its portfolio at the beginning of 2010, and has
made $468 million in acquisitions and $91 in developments for the
portfolio since the same time. It expects to add $343 million in
developments in 2013 and 2014.
Total third quarter revenue increased to $34.5 million, from
$27.9 million in the third quarter of 2011. Net income was $0.5
million, or $0.00 per diluted share, compared to a loss of $6.5
million, or $0.09 per diluted share, a year prior. Primary
reasons for the improvement include: same-community NOI,
operating profits of new communities, lower interest expense and
a $5.2 million gain on asset sales in 2012.
The company's cash level is $150 million, and debt and long-term
liabilities total about $337 million.
Its stock price has increased 4% in the past year. Its P/B is
1.5, which is close to a three-year low, and its P/S ratio is
9.28, which is close to a three-year high.
Mack-Cali Realty Corp. (
Fisher bought 1,251,469 shares of Mack-Cali Realty for an average
cost of $26 per share in the fourth quarter.
One of the largest REITs in the U.S., Mack-Cali operates
high-quality office buildings and multi-family communities in the
The company in the third quarter made $173.2 million in revenues,
down slightly from $175.44 million in the third quarter of 2011.
It earned $14.28 million in net income, also down slightly from
$20.5 million the previous year, as it faced a tepid market. The
company aims to diversify and grow in the multi-family
residential space in the fourth quarter through its acquisition
of the real estate development and management businesses of
Roseland Partners, a multi-family residential community developer
and operator in the Northeast, in addition to several of their
CLI ended the quarter with approximately $166.54 million in cash
and $2.23 billion in long-term liabilities and debt. A third
quarter dividend of $0.45 was paid.
The stock of CLI has gained 2.7% over the past year, and at
$256.63 in midday trading is near a three-year low. The company
has a P/E of 34.7, P/B of 1.3 and P/S of 3.1.
Harris Teeter Supermarkets (
Fisher bought 703,581 Harris Teeter Supermarkets shares for $38
per share on average in the fourth quarter.
A regional supermarket chain, HTSI owns 208 stores in eight
states primarily throughout the southeastern and mid-Atlantic
U.S. and the District of Columbia. It also has pharmacies in 143
of its supermarkets.
For the fiscal year 2012, HTSI increased sales by 5.8% to $4.54
billion from $4.29 billion, driven by increases in both its
comparable stores and new stores, and partially offset by store
closings. HTSI reported net earnings of $82.5 million for the
year, a moderate decrease from $91.2 million in 2011.
In the fourth quarter of 2012, the company opened six new
201central stores, which feature a global selection of wine,
beer, specialty foods and other merchandise. It also plans to
continue its regional expansion though it is cautious for 2013
considering the economy's impact on its customers.
The company has cash amounting to $212.2 million, increased from
$164.5 million the previous year. Its long-term liabilities and
debt are $332.41 million.
HTSI has a P/E of 23.5, P/B of 1.8 and P/S of 0.4.
Elizabeth Arden Inc. (
Fisher bought 511,219 shares of Elizabeth Arden in for $46 per
share on average in the fourth quarter.
Eliabeth Arden is a global prestige beauty products company
selling in over 100 countries through a portfolio of prestige
beauty brands including Elizabeth Arden, celebrity fragrance
brands, designer fragrances and lifestyle fragrance brands.
The company in the third quarter confirmed net sales of $344.5
million, a 13.5% year-over-year increase. Net income was $2.18
million, down from $9.23 million the previous year. Sales
benefited from the rollout of its innovative and revamped
Elizabeth Arden products.
Elizabeth Arden has $345.92 in cash on its balance sheet and
$292.97 million in long-term liabilities and debt.
The company has a P/E of 27.5; P/B of 2.8, which is close to a
three-year high; and P/S of 1.1, which is close to a three-year
See more of Fisher's buys and sells in his
updated portfolio here
. Also check out the
Top Growth Companies
and High Yield stocks of Ken Fisher.About GuruFocus:
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