Insightful Analysis of Investment Shifts and Portfolio Adjustments
Barrow, Hanley, Mewhinney & Strauss (Trades, Portfolio), under the leadership of Executive Director Mr. Barrow, has made notable changes in their investment portfolio during the second quarter of 2024. The firm, known for its conservative investment philosophy, focuses on stocks with below-market price-to-earnings ratios, robust dividend yields, and solid price-to-book ratios. This approach has historically yielded above-market returns, as evidenced by the performance of the Selected Value Funds, which averaged a 9.33% annual return over a decade.
New Additions to the Portfolio
During this quarter, Barrow, Hanley, Mewhinney & Strauss (Trades, Portfolio) expanded their portfolio by adding 56 new stocks. Noteworthy new positions include:
- Exxon Mobil Corp (XOM, Financial) with 4,076,479 shares, making up 1.6% of the portfolio and valued at $469.28 million.
- Carnival Corp (CCL, Financial) with 24,937,916 shares, representing 1.59% of the portfolio, valued at $466.84 million.
- Prologis Inc (PLD, Financial) with 1,809,480 shares, accounting for 0.69% of the portfolio, valued at $203.22 million.
Significant Increases in Existing Positions
The firm also increased its stakes in 119 existing stocks. Key increases include:
- Johnson Controls International PLC (JCI, Financial), which saw an addition of 3,880,146 shares, bringing the total to 4,445,418 shares. This represents a 686.42% increase in share count and a 0.88% impact on the current portfolio, valued at $295.49 million.
- Sanofi SA (SNY, Financial), with an additional 3,164,092 shares, bringing the total to 5,943,547 shares. This adjustment represents a 113.84% increase in share count, valued at $288.38 million.
Complete Exits from Certain Holdings
The firm also decided to exit completely from 46 holdings in this quarter, including:
- Pioneer Natural Resources Co (PXD, Financial), selling all 1,657,009 shares, impacting the portfolio by -1.46%.
- Vestis Corp (VSTS, Financial), liquidating all 3,410,400 shares, causing a -0.22% impact on the portfolio.
Reductions in Key Positions
Reductions were made in 78 stocks, with significant cuts in:
- Vertiv Holdings Co (VRT, Financial), reduced by 7,454,157 shares, resulting in a -55.73% decrease in shares and a -2.05% impact on the portfolio. The stock traded at an average price of $91.04 during the quarter and has returned -19.93% over the past 3 months and 64.64% year-to-date.
- Skyworks Solutions Inc (SWKS, Financial), reduced by 2,894,395 shares, resulting in an -80.13% reduction in shares and a -1.06% impact on the portfolio. The stock traded at an average price of $98.58 during the quarter and has returned 11.76% over the past 3 months and -5.52% year-to-date.
Portfolio Overview and Sector Concentration
As of the second quarter of 2024, Barrow, Hanley, Mewhinney & Strauss (Trades, Portfolio)'s portfolio included 300 stocks. The top holdings were 2.8% in Enbridge Inc (ENB, Financial), 2.71% in Fidelity National Information Services Inc (FIS, Financial), 2.7% in Air Products & Chemicals Inc (APD, Financial), 2.53% in Entergy Corp (ETR, Financial), and 2.51% in Qualcomm Inc (QCOM, Financial). The firm's investments are well-diversified across all 11 industries, with significant concentrations in Technology, Industrials, and Financial Services.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
