Insight into Herro’s Latest Portfolio Adjustments and Strategic Decisions
David Herro (Trades, Portfolio), a seasoned investment manager at Harris Associates and a recognized figure in international equities, has made significant portfolio adjustments in the second quarter of 2024. With a career spanning over three decades, Herro has been at the helm of the Oakmark International Fund, Oakmark International Small Cap Fund, and Oakmark Global Select Fund. His investment philosophy focuses on acquiring undervalued businesses with potential for long-term growth, managed by shareholder-oriented teams. This approach has earned him accolades such as Morningstars International Stock Fund Manager of the Year and Manager of the Decade.
Summary of New Buys
David Herro (Trades, Portfolio) added a total of 2 stocks to his portfolio this quarter. Notably, he invested in:
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Airbus SE (XPAR:AIR), purchasing 1,481,200 shares, which now represent 1.15% of his portfolio, amounting to 203.46 million.
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Koninklijke Ahold Delhaize NV (XAMS:AD), acquiring 5,227,700 shares, making up approximately 0.87% of the portfolio, valued at 154.47 million.
Key Position Increases
Herro also increased his stakes in 24 stocks, with significant boosts in:
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Smith & Nephew PLC (LSE:SN.), adding 9,164,000 shares, bringing the total to 15,213,900 shares. This represents a 151.47% increase in share count, impacting the portfolio by 0.64%, with a total value of 188.59 million.
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Continental AG (XTER:CON), with an additional 1,813,300 shares, increasing the total to 8,064,378 shares. This adjustment marks a 29.01% increase in share count, valued at 456.87 million.
Summary of Sold Out Positions
During this quarter, David Herro (Trades, Portfolio) completely exited his position in:
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Recruit Holdings Co Ltd (TSE:6098), selling all 3,443,200 shares, which previously had a -0.78% impact on the portfolio.
Key Position Reductions
Herro reduced his positions in 38 stocks, with notable reductions in:
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Lloyds Banking Group PLC (LSE:LLOY), reducing his stake by 220,451,900 shares, resulting in a -19.97% decrease in shares and a -0.75% impact on the portfolio. The stock traded at an average price of 0.54 during the quarter and has returned 9.99% over the past 3 months and 30.86% year-to-date.
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Valeo SA (XPAR:FR), cutting back 11,343,943 shares, leading to a -72.2% reduction in shares and a -0.74% impact on the portfolio. The stock traded at an average price of 11.59 during the quarter and has returned -12.63% over the past 3 months and -25.62% year-to-date.
Portfolio Overview
As of the second quarter of 2024, David Herro (Trades, Portfolio)’s portfolio included 67 stocks, with top holdings featuring 3.59% in BNP Paribas (XPAR:BNP), 3.56% in Bayer AG (XTER:BAYN), and 3.45% in Lloyds Banking Group PLC (LSE:LLOY). The holdings are predominantly concentrated in 8 of the 11 industries, including Industrials, Financial Services, and Consumer Cyclical.
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.
This article first appeared on GuruFocus.