Insightful Analysis of Brandes Investment Partners' Latest 13F Filing
Brandes Investment Partners, LP (Trades, Portfolio), established by Charles Brandes in 1974, is a prominent investment advisory firm that champions the value investing approach globally. The firm's strategy revolves around acquiring undervalued securities and holding them until their market value is fully recognized, a philosophy deeply rooted in the teachings of Benjamin Graham. This quarter's 13F filing reveals significant portfolio adjustments that reflect the firm's strategic investment decisions.
New Additions to the Portfolio
During the second quarter of 2024, Brandes Investment Partners, LP (Trades, Portfolio) expanded its portfolio by acquiring shares in nine new companies. Noteworthy among these are:
- Arch Capital Group Ltd (ACGL, Financial), purchasing 476,907 shares, which now represent 0.59% of the portfolio, valued at $48.12 million.
- Entergy Corp (ETR, Financial), with 299,260 shares, making up approximately 0.39% of the portfolio, valued at $32.02 million.
- Knight-Swift Transportation Holdings Inc (KNX, Financial), adding 606,855 shares, accounting for 0.37% of the portfolio, valued at $30.25 million.
Significant Increases in Existing Positions
Brandes Investment Partners, LP (Trades, Portfolio) also strategically increased its holdings in several key stocks, including:
- CAE Inc (CAE, Financial), with an additional 5,640,269 shares, bringing the total to 11,071,485 shares. This adjustment marks a substantial 103.85% increase in share count, impacting the portfolio by 1.29%, with a total value of $206.03 million.
- Cognizant Technology Solutions Corp (CTSH, Financial), increasing by 787,808 shares to a total of 2,191,388 shares, a 56.13% increase in share count, valued at $148.98 million.
Complete Exits from Certain Holdings
In the same quarter, Brandes Investment Partners, LP (Trades, Portfolio) decided to exit completely from seven positions, including:
- Spirit AeroSystems Holdings Inc (SPR, Financial), selling all 376,218 shares, impacting the portfolio by -0.17%.
- Taro Pharmaceutical Industries Ltd (TARO, Financial), liquidating all 283,917 shares, with a -0.15% impact on the portfolio.
Reductions in Key Holdings
The firm also reduced its stakes in several companies, notably:
- Embraer SA (ERJ, Financial), by 3,409,815 shares, resulting in a -21.75% decrease in shares and a -1.17% impact on the portfolio. The stock traded at an average price of $27.07 during the quarter and has returned 5.04% over the past three months and 76.10% year-to-date.
- Micron Technology Inc (MU, Financial), by 286,795 shares, a -24.13% reduction, impacting the portfolio by -0.43%. The stock's average trading price was $126.02 during the quarter, with a -15.06% return over the past three months and a 24.83% year-to-date gain.
Portfolio Overview and Sector Allocation
As of the second quarter of 2024, Brandes Investment Partners, LP (Trades, Portfolio)'s portfolio included 187 stocks. The top holdings were 3.93% in Embraer SA (ERJ), 2.85% in Wells Fargo & Co (WFC, Financial), 2.68% in Bank of America Corp (BAC, Financial), 2.54% in CAE Inc (CAE, Financial), and 2.39% in Citigroup Inc (C, Financial). The investments are well-diversified across all 11 industries, including Healthcare, Financial Services, Industrials, and Technology.
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.
