Market charts plus calculator
Markets

Jim Chanos' Noteworthy 3rd-Quarter New Buys

Jim Chanos is president and founder of Kynikos Associates LP, an investment adviser who is focused on short selling. He once observed, "One thing people always say is that 'I don't want to short because it can go to infinite.' But I have seen much more zero than infinite."

In total, the portfolio had a value of $15.7 billion and is composed of 54 stocks; eight stocks got new positions in the portfolio in the third quarter.

Chanos' most noteworthy third-quarter new buy was his purchase of a 216,036-share stake in Reynolds American Inc. ( RAI ). Chanos paid an average price of $41.47 per share. The deal had a 3.86% impact on his portfolio.

Reynolds American, through its subsidiaries, manufactures cigarettes and other tobacco products in the United States and has a market cap of $66.72 billion and an enterprise value of $81.47 billion. It has a P/E of 17.61, a forward P/E of 20.62, a P/B of 3.61 and a P/S of 5.6. GuruFocus has given Reynolds American a Financial Strength rating of 7/10 and a Profitability and Growth rating of 7/10.

Jim Simons ( Trades , Portfolio ) acquired a position in Reynolds American. James Barrow (Trades, Portfolio), Pioneer Investments (Trades, Portfolio), David Winters (Trades, Portfolio), Jeremy Grantham (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio), Lee Ainslie (Trades, Portfolio), Murray Stahl (Trades, Portfolio), Manning & Napier Advisors Inc. and David Dreman (Trades, Portfolio) increased their stakes in this quarter.

Chanos also acquired 163,501 shares of Altria Group Inc. ( MO ) for an average price of $53.62 per share. The deal had a 3.59% impact on Chanos' portfolio.

Altria Group has a market cap of $112.88 billion and an enterprise value of $123.88 billion. It has a P/E of 21.56, a forward P/E of 19.01, a P/B of 39.14 and a P/S of 6.00. GuruFocus has given Altria Group a Financial Strength rating of 8/10 and a Profitability and Growth rating of 8/10. Louis Moore Bacon (Trades, Portfolio) and Caxton Associates (Trades, Portfolio) made Altria Group a new buy in the third quarter.

Chanos' third third-quarter new buy was his purchase of a 35,879-share stake in Lockheed Martin Corp. ( LMT ). He paid an average price of $203.46 per share. The deal had a 3% impact on Chanos' portfolio.

Lockheed Martin is engaged in the research, design, development, manufacture, integration and maintenance of advanced technology systems, products and services and has a market cap of $69.68 billion and an enterprise value of $74.79 billion. It has a P/E of 20.15, a forward P/E of 18.28, a P/B of 24.77 and a P/S of 1.6. GuruFocus has given Lockheed Martin Corp a Financial Strength rating of 7/10 and a Profitability and Growth rating of 8/10.

Chanos was the only investor who bought shares of Lockheed Martin for the first time, but Steven Cohen (Trades, Portfolio) and Ken Fisher (Trades, Portfolio) increased their stakes by 16,723.53% and 13.38%.

Chanos also acquired 94,277 shares in Hasbro Inc . ( HAS ) for an average price of $77.19 per share. The deal had a 2.74% impact on Chanos' portfolio.

Hasbro provides children's and family leisure time and entertainment products and services, including the design, manufacture and marketing of games and toys and has a market cap of $9.4 billion and an enterprise value of $10.52 billion. It has a P/E of 21.49, a forward P/E of 19.76, a P/B of 6.10 and a P/S of 2.2. GuruFocus has given Hasbro a Financial Strength rating of 6/10 and a Profitability and Growth rating of 7/10.

During the third quarter Chanos was the only investor who got a new position in Hasbro while Caxton Associates (Trades, Portfolio) raised its stake.

Another new buy was Chanos' purchase of a 83,143-share stake in Check Point Software Technologies Ltd. ( CHKP ). Chanos paid an average price of $79.89 per share. The deal had a 2.66% impact on Chanos' portfolio.

Check Point Software Technologies Ltd. develops and markets software and combined hardware and software products and services for information technology security and has a market cap of $15.69 billion and an enterprise value of $14.39 billion. It has a P/E of 23.45, a forward P/E of 18.42, a P/B of 4.41 and a P/S of 9.84. GuruFocus has given Check Point Software Technologies a Financial Strength rating of 9/10 and a Profitability and Growth rating of 9/10.

Pioneer Investments (Trades, Portfolio), RS Investment Management (Trades, Portfolio) and Ron Baron (Trades, Portfolio) increased their stakes in Check Point Software Technologies by 53.46%, 70.59% and 0.56%.

Chanos also acquired 89,512 shares in Dollar General Corp. ( DG ) for an average price of $76.33 per share. The deal had a 2.62% impact on Chanos' portfolio.

Dollar General is a discount retailer in the United States with 11,879 stores located in 43 states as of Feb. 27 in the Southern, Southwestern, Midwestern and Eastern United States and has a market cap of $19.19 billion and an enterprise value of $21.77 billion. It has a P/E of 17.36, a forward P/E of 16.67, a P/B of 3.56 and a P/S of 1.00. GuruFocus has given Dollar General a Financial Strength rating of 8/10 and a Profitability and Growth rating of 9/10.

Jeremy Grantham (Trades, Portfolio), Manning & Napier Advisors Inc. and Lee Ainslie (Trades, Portfolio) got new positions in Dollar General.

Chanos' seventh new buy was his purchase of a 137,397-share stake in Utilities SPDR (ETF) (XLU). Chanos paid an average price of $43.02 per share. The deal had a 2.4% impact on Chanos' portfolio.

Utilities SPDR seeks to provide investment results that, before expenses, correspond generally to the price and yield performance of the Utilities Select Sector Index.

Steven Cohen (Trades, Portfolio) and Louis Moore Bacon (Trades, Portfolio) also bought stakes in Utilities SPDR.

Chanos acquired 503,796 shares in United States Natural Gas Fund LP (UNG) for an average price of $13.03 per share. The deal had a 2.36% impact on Chanos' portfolio.

United States Natural Gas Fund LP is an exchange-traded security that is designed to track in percentage terms the movements of natural gas prices . UNG issues shares that may be purchased and sold on the NYSE Arca.

Chanos was the only investor who traded United States Natural Gas stock.

About GuruFocus: GuruFocus.com tracks the stocks picks and portfolio holdings of the world's best investors. This value investing site offers stock screeners and valuation tools. And publishes daily articles tracking the latest moves of the world's best investors. GuruFocus also provides promising stock ideas in 3 monthly newsletters sent to Premium Members .

This article first appeared on GuruFocus .

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


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

In This Story

CHKP DG LMT HAS MO

Other Topics

Stocks

Latest Markets Videos