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Richard Pzena Ups Stake in Exxon, Franklin Resources

Richard Pzena ( Trades , Portfolio ) is the founder and co-CIO of Pzena Investment Management LLC, with more than $24 billion under management. His portfolio is composed of 149 stocks, and the following are the most heavily weighted buys during the third quarter.

He increased his stake in Exxon Mobil Corporation ( XOM ) by 45.64% with an impact of 0.91% on the portfolio. The current stake is 2.89% of his total assets and 0.15% of the company's outstanding shares.

The company's main business is energy, involving exploration for, and production of, crude oil and natural gas, manufacture of petroleum products and transportation and sale of crude oil, natural gas and petroleum products. During the third quarter, earnings decreased by 47% year over year.

GuruFocus gives Exxon Mobil a profitability and growth rating of 8 out of 10 with strong returns of ROE 11.46% and ROA 5.75% that are outperforming 78% of other companies in the Global Oil & Gas Integrated industry. Financial strength has a high rating of 8 out of 10, with cash to debt of 0.13 that is below industry median of 0.37.

Pzena is largest shareholder of the company among the gurus, followed by Donald Yacktman (Trades, Portfolio), who holds 0.14% of outstanding shares, Ken Fisher (Trades, Portfolio) with 0.13% and T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.13%.

Pzena also increased his stake in Franklin Resources Inc. ( BEN ) by 45.65% with an impact of 0.57% on the portfolio. The current stake is 1.83% of his total assets and 1.28% of the company's outstanding shares.

The company operates as an investment management company. It offers investment services under Franklin, Templeton, Mutual Series, Bissett, Fiduciary Trust, Darby, Balanced Equity Management and K2 brand names. During the last quarter, operating revenues had an 6% increase versus the same quarter of a year before, while net income grew by 29%.

GuruFocus gives Franklin Resources a profitability and growth rating of 8 out of 10 with weak returns of ROE 4.67% and ROA 3.71% that are outperforming 85% of other companies in the Global Asset Management industry. Financial strength has a high rating of 7 out of 10 with a high cash to debt ratio of 5.48.

Pzena is largest shareholder of the company, followed by Diamond Hill Capital (Trades, Portfolio), which holds 0.93% of outstanding shares of the company, then Bill Nygren (Trades, Portfolio) with 0.89% and Mason Hawkins (Trades, Portfolio) with 0.38%.

Pzena increased his stake in Royal Dutch Shell PLC (RDS.A) by 23.78% with an impact of 0.54% on the portfolio. The current stake is 2.8% of his total assets and 0.29% of the company's outstanding shares.

The company is an integrated oil and gas company. The company's operating segment consists of Upstream and Downstream. Upstream segment consists of Upstream International and Upstream Americas. Upstream International manages the upstream businesses outside the Americas.

GuruFocus gives Royal Dutch Shell a profitability and growth rating of 6 out of 10 with weak returns of ROE 0.97% and ROA 0.47% that are under performing 60% of other companies in the Global Oil & Gas Integrated industry. Financial strength has a high rating of 7 out of 10. Cash to debt ratio of 0.57 is weak, but still above the industry median of 0.37.

Dodge & Cox is largest shareholder of the company among the gurus with 0.31% of outstanding shares, followed by Pzena, then HOTCHKIS & WILEY with 0.24% and T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.18%.

Pzena increased his stake in Dover Corp. ( DOV ) by 170.69% with an impact of 0.52% on the portfolio. The current stake is 0.82% of his total assets and 1.46% of the company's outstanding shares.

The company owns and operates a portfolio of manufacturing companies providing components and equipment, specialty systems and support services for a variety of applications in the industrial products, engineered systems, fluid management and electronic technologies markets. During the third quarter, driven by an organic revenue decline of 10% and an unfavorable impact from foreign exchange of 4%, revenue had a decrease of 11% from the prior year.

GuruFocus gives Dover a profitability and growth rating of 8 out of 10 with strong returns of ROE 24.44% and ROA 10.28% that are outperforming 88% of other companies in the Global Diversified Industrials industry. Financial strength has a high rating of 8 out of 10, with cash to debt of 0.25 that is below industry median of 0.75

Pzena is largest shareholder of the company, followed by Jeremy Grantham (Trades, Portfolio) who holds 0.44% of outstanding shares, Joel Greenblatt (Trades, Portfolio) with 0.43% and Diamond Hill Capital (Trades, Portfolio) with 0.36%.

Pzena increased his stake in Wal-Mart Stores Inc. ( WMT ) by 22.06% with an impact of 0.47% on the portfolio. The current stake is 2.61% of his total assets.

The company operates retail stores located throughout the U.S., Africa, Argentina, Brazil, Canada, Central America, Chile, China, India, Japan, Mexico and the United Kingdom.

GuruFocus gives Wal-Mart Stores a low profitability and growth rating of 4 out of 10 but the company has strong returns of ROE 19.07% and ROA 7.43% that are over performing 80% of other companies in the Global Discount Stores industry. Financial strength has a high rating of 6 out of 10, with cash to debt of 0.13 that is below industry median of 0.52.

Warren Buffett (Trades, Portfolio) is largest shareholder of the company among the gurus with 1.75% of outstanding shares, followed by Dodge & Cox with 0.96% and James Barrow (Trades, Portfolio) with 0.52%.

Pzena also increased his stake in Willis Group Holdings PLC ( WSH ) by 36.02% with an impact of 0.39% on the portfolio. The current stake is 1.46% of his total assets.

The company provides insurance brokerage, reinsurance and risk management consulting services to its clients. In the last quarter, net income was up 55.6% from the prior year period and organic commissions and fees grew 3.3%.

GuruFocus gives Willis Group Holdings a profitability and growth rating of 4 out of 10, with positive returns of ROE 4.67% and ROA 3.71% that are at average level of the other companies in the Global Insurance Brokers industry. Financial strength has a high rating of 6 out of 10, with a weak cash to debt of 0.18 that is far below the industry median of 22.29.

The largest shareholder among the gurus is Jeff Ubben (Trades, Portfolio) with 10.22% of outstanding shares, followed by David Herro (Trades, Portfolio) with 7.92%, First Eagle Investment (Trades, Portfolio) with 5.25% and Diamond Hill Capital (Trades, Portfolio) with 3.7%.

Pzena acquired a new stake in Cenovus Energy Inc. ( CVE ), buying 3,937,345 shares with an impact of 0.38% on the portfolio. The current stake is 0.38% of his total assets.

The company is in the business of developing, producing and marketing crude oil, NGLs and natural gas in Canada with refining operations in the U.S.

GuruFocus gives Cenovus Energy a profitability and growth rating of 6 out of 10 with weak returns of ROE 4.67% and ROA 3.71% that are outperforming 63% of other companies in the Global Oil & Gas Integrated industry.

Financial strength has a high rating of 8 out of 10, with cash to debt of 0.70 that is below industry median of 0.37.

First Eagle Investment (Trades, Portfolio) is largest shareholder of the company among the gurus with 3.87% of outstanding shares, followed by Richard Pzena (Trades, Portfolio), Jeremy Grantham (Trades, Portfolio) with 0.05% and Ray Dalio (Trades, Portfolio) with 0.03%.

Pzena increased his stake in Allstate Corp. (ALL) by 906.80% with an impact of 0.34% on the portfolio. The current stake is 0.38% of his total assets.

The company is engaged in the property-liability insurance and life insurance business. It offers its products in the U.S. and Canada.

GuruFocus gives Allstate a profitability and growth rating of 7 out of 10 with weak returns of ROE 4.67% and ROA 3.71% that are under performing 56% of other companies in the Global Insurance - Property & Casualty industry. Financial strength has a high rating of 6 out of 10, with cash to debt of 0.18 that is far below industry median of 2.93.

The largest shareholder among the gurus is Andreas Halvorsen (Trades, Portfolio) with 1.29% of outstanding shares, followed by HOTCHKIS & WILEY with 1.07%, Pzena and David Tepper (Trades, Portfolio) with 0.16%.

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.

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