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A Monthly Publication of BeyondProxy LLC Subscribe at manualofideas.com If our efforts can further the goals of our members by giving them a discernible edge over other market participants, we have succeeded.
Plus: Lisa Rapuanos guest write-up on Ambassadors Group Plus: Exclusive interview with John Lambert Plus: Favorite stock screens for value investors
Corning
(NYSE: GLW) .... 84
Xerox
(NYSE: XRX) 144
Also Inside
Editors Commentary .. 4 Rapuano on Ambassadors Group .. 6 Interview with John Lambert . 7 Portfolios with Signal Value 12 20 Superinvestor Holdings .. 68 Screening Superinvestor Stocks.. 148 Favorite Value Screens 158 This Months Top Web Links .. 167
Superinvestor companies mentioned in this issue include AbitibiBowater, Alliant Techsystems, Ambassadors Group, Ameriprise Financial, Annaly Capital, Apache, Assured Guaranty, Axis Capital, Baker Hughes, Bank of America, Best Buy, BofI Holding, Boston Scientific, BP, C&J Energy, Canadian Natural Resources, Capital One, Chevron, CIGNA, Citigroup, Cliffs Natural, CNinsure, Commercial Metals, ConocoPhillips, Corning, Covidien, Cowen, CVR Energy, Dell, Delphi Automotive, Delta Air Lines, DeVry, DIRECTV, Enstar Group, Everest Re, Flagstone Re, Flextronics, Gannett, General Motors, Genworth Financial, GeoMet, Goodyear Tire, Google, Greenlight Re, Halliburton, Hanesbrands, Hartford Financial, HCA, Health Mgmt Associates, Hewlett-Packard, HollyFrontier, Ingram Micro, JPMorgan Chase, Katy Industries, KKR & Co., Kronos Worldwide, MEMC Electronic Materials, Meritor, Navistar, Newcastle Investment, Newfield Exploration, Oracle, Owens Illinois, Patterson-UTI Energy, PDL BioPharma, PennyMac Mortgage, PHH, Popular, Quad Graphics, R.R. Donnelley, RenaissanceRe, Republic Airways, Sanofi-Aventis, Seagate Technology, SK Telecom, SLM Corp., Spectrum Brands, Staples, Symetra Financial, Take-Two Interactive Software, Targacept, Telecom Argentina, Teva Pharma, Torchmark, TOTAL, TravelCenters, TRW Automotive, United Continental, Universal Stainless, US Airways, Valassis Comms, Valeant Pharmaceuticals, Valero Energy, Validus, Virgin Media, Warner Chilcott, WellPoint, Xerium Technologies, Xerox, YPF, and more. (analyzed companies are underlined)
Table of Contents
EDITORIAL COMMENTARY ..........................................................................4 GUEST WRITE-UP: LISA RAPUANO ON AMBASSADORS GROUP..........6 EXCLUSIVE INTERVIEW WITH JOHN LAMBERT........................................7 ONLINE ONLY: THREE EXCLUSIVE INTERVIEWS .................................. 10 50+ PORTFOLIOS WITH SIGNAL VALUE.............................................. 12
AKRE CAPITAL (CHUCK AKRE)................................................................................................ 13 ALTAI CAPITAL (TOBY SYMONDS) ........................................................................................... 14 ANCIENT ART / TETON (QUINCY LEE) ...................................................................................... 15 APPALOOSA (DAVID TEPPER) ................................................................................................. 16 ATLANTIC INVESTMENT (ALEXANDER ROEPERS) ...................................................................... 17 BARES CAPITAL (BRIAN BARES).............................................................................................. 18 BAUPOST (SETH KLARMAN).................................................................................................... 19 BERKSHIRE HATHAWAY (W ARREN BUFFETT) ........................................................................... 20 BP CAPITAL (BOONE PICKENS)............................................................................................... 21 BRAVE WARRIOR (GLENN GREENBERG).................................................................................. 22 BREEDEN CAPITAL (RICHARD BREEDEN) ................................................................................. 23 CENTAUR VALUE (ZEKE ASHTON) ........................................................................................... 24 CENTERBRIDGE (JEFFREY ARONSON AND MARK GALLOGLY) .................................................... 25 CHILDRENS INVESTMENT (CHRIS HOHN)................................................................................. 26 CHOU ASSOCIATES (FRANCIS CHOU) ...................................................................................... 27 EAGLE CAPITAL (BOYKIN CURRY) ........................................................................................... 28 EAGLE VALUE (MERYL W ITMER) ............................................................................................. 29 EDINBURGH PARTNERS (SANDY NAIRN) .................................................................................. 30 ESL INVESTMENTS (EDDIE LAMPERT) ..................................................................................... 31 FAIRFAX (PREM W ATSA) ........................................................................................................ 32 FAIRHOLME (BRUCE BERKOWITZ) ........................................................................................... 33 FORCE CAPITAL (ROBERT JAFFE) ........................................................................................... 34 GATES CAPITAL (JEFF GATES) ............................................................................................... 35 GLENVIEW (LARRY ROBBINS) ................................................................................................. 36 GOLDENTREE (STEVE TANANBAUM) ....................................................................................... 37 GREENHAVEN (ED W ACHENHEIM)........................................................................................... 38 GREENLIGHT (DAVID EINHORN) .............................................................................................. 39 H PARTNERS (REHAN JAFFER) ............................................................................................... 40 HARBINGER (PHIL FALCONE) .................................................................................................. 41 HAWKSHAW (KIAN GHAZI) ...................................................................................................... 42 HOUND PARTNERS (JONATHAN AUERBACH) ............................................................................ 43 ICAHN ENTITIES (CARL ICAHN)................................................................................................ 44 INTERNATIONAL VALUE ADVISERS (CHARLES DE VAULX) .......................................................... 45 JOHO CAPITAL (ROBERT KARR) .............................................................................................. 46 LANE FIVE (LISA RAPUANO).................................................................................................... 47 LEUCADIA (IAN CUMMING AND JOE STEINBERG) ....................................................................... 48 LONE PINE (STEVE MANDEL).................................................................................................. 49 MARKEL GAYNER (TOM GAYNER) ........................................................................................... 50 MHR (MARK RACHESKY) ....................................................................................................... 51 MSD CAPITAL (GLENN FUHRMAN AND JOHN PHELAN).............................................................. 52 PABRAI FUNDS (MOHNISH PABRAI) ......................................................................................... 53 PAULSON & CO. (JOHN PAULSON) .......................................................................................... 54 PENNANT (ALAN FOURNIER)................................................................................................... 55
PERSHING SQUARE (BILL ACKMAN) ........................................................................................ 56 SAGEVIEW (ED GILHULY AND SCOTT STUART) ......................................................................... 57 SCOUT (JAMES CRICHTON) .................................................................................................... 58 SECOND CURVE (TOM BROWN) .............................................................................................. 59 SOUTHEASTERN (MASON HAWKINS) ....................................................................................... 60 THIRD POINT (DAN LOEB)....................................................................................................... 61 TIGER GLOBAL (CHASE COLEMAN) ......................................................................................... 62 VALUEACT (JEFFREY UBBEN)................................................................................................. 63 WEITZ FUNDS (WALLY WEITZ)................................................................................................ 64 WEST COAST (LANCE HELFERT AND PAUL ORFALEA)............................................................... 65 WINTERGREEN (DAVID W INTERS) ........................................................................................... 66 WL ROSS & CO. (WILBUR ROSS) ........................................................................................... 67
Editorial Commentary
With the February 15th institutional investor holdings SEC filing deadline behind us, we are pleased to bring you a new Superinvestor Issue of The Manual of Ideas. Weve screened hundreds of superinvestor companies, analyzed twenty of them, and found three ideas that deserve closer consideration: Ambassadors Group (Nasdaq: EPAX, $5.50 per share; MV $97 million)
$45 $40 $35 $30 $25 $20 $15 $10 $5 $0 Feb 03 Feb 04 Feb 05 Feb 06 Feb 07 Feb 08 Feb 09 Feb 10 Feb 11 Feb 12
Ambassadors has a long-term record of impressive growth and returns on capital. Recent profitability has been pressured by revenue declines and high opex. The company has a strong balance sheet and should benefit from a recovery, assuming enrollment eventually returns to the 40,000-50,000 level that prevailed prior to the recession. Improving economic conditions in 2012 will not be fully reflected in travel bookings until 2013. It is worth noting that Ambassadors was slow to bounce back after the 2001 recession. Similar dynamics may be at work currently due to the long lead time required to generate travel bookings. The current valuation appears to give little credit to recovery potential over the next two to three years. Lisa Rapuano of Lane Five, a large shareholder of Ambassadors, kindly agreed to write up her investment thesis for the benefit of our members (see page 6). Corning (NYSE: GLW, $13.50 per share; MV $20 billion)
$35
$30
$25
$20
$15
$10
$5
$0 Feb 03 Feb 04 Feb 05 Feb 06 Feb 07 Feb 08 Feb 09 Feb 10 Feb 11 Feb 12
Corning, which makes specialty glass for LCD displays and other products, has been hurt by steeper-than-expected price declines in the display and solar panel markets. Display accounts for 40% of revenue, while the 50%-owned equity affiliate Dow Corning sells into the solar panel market. According to management, price declines will reset the profitability of both Display Technologies and Dow Corning to lower levels. Still, analysts expect Corning to earn $1.39 and $1.52 per share in 2012 and 2013, respectively, rendering the shares quite attractive, especially in light of Cornings very strong balance sheet.
2008-2012 by BeyondProxy LLC. All rights reserved. SUBSCRIBE TODAY! www.manualofideas.com March 2012 Page 4 of 169
$20
$15
$10
$5
$0 Feb 03 Feb 04 Feb 05 Feb 06 Feb 07 Feb 08 Feb 09 Feb 10 Feb 11 Feb 12
Xerox is one of the cheapest large IT services companies, trading at under 8x estimated EPS of $1.12 in 2012. The company has been allocating capital in a shareholder-friendly way, spending an expected ~$1 billion on repurchases this year. Xerox also appears to have cost-cutting opportunities in the legacy ACS business, which was acquired for $6 billion in 2010. As a result, EPS growth is likely to outpace low to mid single digit revenue growth over the next few years. We wish Xerox had a stronger balance sheet but acknowledge that buying back shares is most likely a better use of capital than deleveraging the balance sheet.
VALUEx Zurich/Klosters took place from February 1-3 and was once again a huge success. It was wonderful to see many of our members there and to meet some new value investors from around the world. I hope youll consider applying to attend next years event (check back at www.valuex.ch in a few months). I take this opportunity to thank my friend and co-organizer Guy Spier for making the event a great experience for all participants. VALUEx Zurich/Klosters simply couldnt exist without Guys charisma and hospitality.
Well be in Omaha for the Berkshire Hathaway annual meeting this May, and we invite you to join us for drinks and conversation. Space at our private gathering is very limited, so please email Oliver Mihaljevic today at oliver@manualofideas.com if you plan on traveling to Omaha. We look forward to seeing you there! While in town, we also look forward to attending John Schwartz and Whitney Tilsons star-studded Value Investing Congress, to be held on May 6-7. Visit www.ValueInvestingCongress.com/manualofideas before March 15 to get $1,300 off (we earn no commission but are simply passing the best deal on to you). Sincerely,
Access The Manual of Ideas Model Portfolio in the online members area at members.manualofideas.com. The portfolio consists of three sub-portfolios: a downside protection portfolio, a deep value portfolio, and a magic formula portfolio. To view the portfolios mark-to-market performance and latest activity, click on the above-referenced link or type it into your web browser.
2010: 25.7% 2009: 66.7% The company is trading at 5.1x the amount of cash it generated just a year ago. We rarely see these sorts of free cash flow multiples for any type of business. Clearly, the market is pricing the stock as if these cash flow numbers will never be repeated, but we think that with the right strategy free cash flow can return to previous levels. We are not advocating a particular approach at this time, but we see multiple ways that costs can be cut, money-losing programs can be closed, program itineraries and possibly pricing can be revamped to meet customer needs more appropriately, assets can be sold or optimized, and marketing and sales can be made more efficient. In December we asked the Board to consider these issues and come back to us with proposals, and we intend to continue this conversation. The core People to People Student Ambassadors program is less awful than the aggregate business appears to be, and we think there are opportunities to isolate that value while lowering or eliminating losses in the non-core programs. In addition, we think there are costs that are redundant, marketing approaches that are outdated and expensive, overcapacity of real estate that can be optimized and possibly sellable assets that are not core to the student travel operation. Overall we think EPAX is worth at least $10 if it is run in a low growth, asset optimized manner that returns capital to shareholders and possibly as much as $20 if the business can be reinvigorated and repositioned to begin growing again.
In light of the underlying cash generation potential and asset value of [BP], we feel it is significantly undervalued at the current price.
seeing new management teams in companies where the previous incumbents have failed operationally or strategically, and hence assessing the abilities and direction of the new team becomes a critical task. There are no hard and fast rules, but we would be wary of those appearing overly confident or those for whom the share price appears to be more important than the business. MOI: How do you generate investment ideas? Lambert: The principal method of idea generation is through the use of very long-term performance charts, which help to identify areas of currently depressed sentiment and hence probable low valuations. Ideas also come through more quantitative screening, subscription to quality newsletters like the MOI and general reading. It is best described as eclectic, and there are no hard criteria for qualification as a potential idea or inclusion in the portfolio. MOI: What are your favorite hunting grounds for investments in the current environment? Do you see value in Japan and, if so, how do you approach that market? Lambert: One of the attractions of our approach is that there will always be areas that are out of favor, that offer value, and there will always be companies that are experiencing a period of underperformance that has the potential to be reversed. Hence we find opportunities in a wide range of industries and geographies at any one time, since ideas are much more often than not generated at a stock-specific level. We do see value in Japan at the moment, and see high quality companies that are very cheaply priced in comparison with Western equivalents. Valuations have descended to levels comparable with or below Western markets, balance sheets are strong and corporates are being forced to undertake restructuring and business reorganizations more actively than ever before. Nevertheless, Western investors remain largely apathetic to this and hence the region appears to us to offer significant value. We dont approach the market differently to any other, and if anything our investment style is even more weighted to a bottom-up approach. We still attempt to find companies that are either significantly below their intrinsic value, have strong turnaround potential or ideally both together. MOI: Would you outline the summary thesis behind one or two of your best ideas at this time? Lambert: Two such ideas at present would be BP (London/NYSE: BP) and Cable & Wireless Worldwide (London: CWC), both in the UK. At BP, we feel the company has clearly had a cathartic shock following the Gulf of Mexico incident, which has led to new management and hopefully in time a new culture as well. This has had the benefit of allowing new management a much freer hand in terms of the strategic direction of the group. In light of the underlying cash generation potential and asset value of the company, we feel it is significantly undervalued at the current price. For Cable & Wireless Worldwide, this is a classic example of what we look for. Essentially the company has been mismanaged for a decade, and with old management finally cleared out, we feel a new start is in the cards. The companys assets appear materially undervalued at the current highly depressed
2008-2012 by BeyondProxy LLC. All rights reserved. SUBSCRIBE TODAY! www.manualofideas.com March 2012 Page 8 of 169
[Cable & Wireless] assets appear materially undervalued at the current highly depressed share price, in particular their UK network, their subsea network internationally, their high-growth hosting business and substantial tax assets, to name just a few. We believe a much sharper focus on cash flow, and operational performance, will reveal the value of these assets in time.
share price, in particular their UK network, their subsea network internationally, their high-growth hosting business and substantial tax assets, to name just a few. We believe a much sharper focus on cash flow, and operational performance, will reveal the value of these assets in time. In the meantime, the depressed share price means the company could clearly be of interest to larger acquirers, with reported expressions of interest in both individual assets and the entire company in recent months. MOI: In investing, good ideas are only one piece of the success equation. Skilled portfolio management is indispensable. What are the biggest challenges you face as a portfolio manager? How do you manage risk? Lambert: One of the biggest challenges in our style is to manage the position size appropriately, since this is a key means both of controlling stock-specific risks and capturing performance from the best ideas within the portfolio. Recovery and restructuring situations can be long, drawn out processes that rarely develop in a straight line, so timing the entry and when to raise the holding to a meaningful exposure become critical success factors. In this regard we tend to start with small positions and grow them when we get greater confidence in the trajectory of the recovery. MOI: How has market volatility over the past few years affected your investment process, and have you tweaked your approach in any way as a result?
Knowing where and how to make small improvements across the range of skills required to deliver better returns is difficult to do, and consequently it is often put to one side and forgotten. This would be a mistake.
Lambert: Market conditions have generally not favored our style of investing over recent years, so it has necessarily become somewhat more pragmatic. This essentially means we have blended our instinctive restructuring and recovery bias with higher quality and more naturally resilient businesses. In so doing, we have learned that value can be found right across the quality spectrum, and not just in the most beaten-down and unloved names. MOI: What is the single biggest mistake investors make? Lambert: Compared to most professions, investors suffer a distinct lack of useful information and feedback that would enable them to improve their processes and, ultimately, results. Knowing where and how to make small improvements across the range of skills required to deliver better returns is difficult to do, and consequently it is often put to one side and forgotten. This would be a mistake. A greater effort to understand ones strengths and weaknesses as an investor, by deconstructing and measuring your process as thoroughly as possible, is something the thoughtful individual should constantly be striving for. Process analytics and improvement should be a core part of any investment process! MOI: What books have stood out to you in recent years? Lambert: There is a clear winner in this category. Howard Marks The Most Important Thing was for me the most concise and insightful reference guide to value investing that I have yet found. Practically every page contains a nugget of thoughtful and indispensable advice. Moreover, what we found particularly resonant was the idea that a quality company is not synonymous with a good investment, and that few assets are so bad they cant be a good investment if bought cheaply enough. MOI: John, thanks very much for sharing your ideas and insights.
The second annual VALUEx Zurich/Klosters gathering of value investors took place in early February in Switzerland (www.valuex.ch). We had the pleasure of learning from some of the most thoughtful investors in the business, including Guy Spier, Bryan Lawrence, Whitney Tilson, Colin Moran, Massimo Fuggetta, Simon Denison-Smith, and Ciccio Azzollini, to name a few. We are pleased to share with you exclusive video interviews with the latter three fund managers. To watch the video interviews, visit The Manual of Ideas Members Area at http://members.manualofideas.com or click on the links below.
Watch our interview with Ciccio Azzollini, CEO of Cattolica Partecipazioni at http://youtu.be/Kp0-QIqfqWI
Watch our interview with value investment manager Massimo Fuggetta at http://youtu.be/Kc93t3N48oc
Watch our interview with Jonathan Mills and Simon Denison-Smith, investment managers of the Londonbased Metropolis Valuefund, http://youtu.be/RCfxtmxlfco
Bill Ackman, Pershing Square Chuck Akre, Akre Capital Zeke Ashton, Centaur Capital Jonathan Auerbach, Hound Partners Brian Bares, Bares Capital Bruce Berkowitz, Fairholme Richard Breeden, Breeden Capital Tom Brown, Second Curve Warren Buffett, Berkshire Hathaway Francis Chou, Chou Associates Chase Coleman, Tiger Global James Crichton, Scout Ian Cumming and Joe Steinberg, Leucadia Boykin Curry, Eagle Charles de Vaulx, Intl Value Advisors David Einhorn, Greenlight Phil Falcone, Harbinger Alan Fournier, Pennant Glenn Fuhrman and John Phelan, MSD Capital Jeffrey Gates, Gates Capital Tom Gayner, Markel Gayner Kian Ghazi, Hawkshaw Ed Gilhuly and Scott Stuart, Sageview Glenn Greenberg, Brave Warrior Mason Hawkins, Southeastern Lance Helfert and Paul Orfalea, West Coast Chris Hohn, Childrens Investment Fund Carl Icahn, Icahn Robert Jaffe, Force Capital Rehan Jaffer, H Partners Robert Karr, Joho Capital Seth Klarman, Baupost Eddie Lampert, ESL Investments Quincy Lee, Teton Capital Dan Loeb, Third Point Steve Mandel, Lone Pine Sandy Nairn, Edinburgh Partners Mohnish Pabrai, Pabrai Funds John Paulson, Paulson & Co. Boone Pickens, BP Capital Mark Rachesky, MHR Lisa Rapuano, Lane Five Larry Robbins, Glenview Alexander Roepers, Atlantic Investment Wilbur Ross, WL Ross Toby Symonds, Altai Capital David Tepper, Appaloosa Steve Tananbaum, GoldenTree Jeffrey Ubben, ValueAct Ed Wachenheim, Deephaven Prem Watsa, Fairfax Wally Weitz, Weitz Funds David Winters, Wintergreen Meryl Witmer, Eagle Value
1 2 3 4 5 6 7 8 9 10
Company / Ticker Ross Stores / ROST Markel / MKL Dollar Tree / DLTR American Tower / AMT MasterCard / MA Berkshire Hathaway / BRK.A Enstar Group / ESGR Primo Water / PRMW CarMax / KMX OReilly Automotive / ORLY
1 2 3 4 5 6 7 8 9 10
Company / Ticker American Tower / AMT Ross Stores / ROST MasterCard / MA Dollar Tree / DLTR Markel / MKL Enstar Group / ESGR OReilly Automotive / ORLY Lamar Advertising / LAMR Berkshire Hathaway / BRK.A CarMax / KMX
New Positions
Exxon Mobil / XOM
Portfolio Metrics
Portfolio size
Sector Weightings
$654 million 83% $9.3 billion $46 billion 18x 15x 2.7x
Financial 40%
Top 10 as % of portfolio Median market value Average market value Median P/E (this FY) Median P/E (next FY) Median P / tangible book
*
Other 2% Technology 2%
Services 56%
Based on equity holdings disclosed in 13F-HR filings with the SEC. Excludes portfolio cash, leverage, certain non-U.S. holdings, and non-equity securities.
1 2 3 4 5 6 7 8
Company / Ticker McMoRan Exploration / MMR MEMC Electronic / WFR Energy XXI / EXXI Dynegy / DYN ReachLocal / RLOC IntraLinks / IL Leap Wireless / LEAP Six Flags / SIX
1 2 3 4 5 6 7 8 9 10
Company / Ticker Six Flags / SIX McMoRan Exploration / MMR Energy XXI / EXXI MEMC Electronic / WFR IntraLinks / IL Leap Wireless / LEAP Dynegy / DYN ReachLocal / RLOC iSoftStone / ISS RealD / RLD
New Positions
None
Portfolio Metrics
Portfolio size
Sector Weightings
$284 million 100% $715 million $1.2 billion 18x 19x 2.6x
Energy 33% Technology 16%
Other 2%
Top 10 as % of portfolio Median market value Average market value Median P/E (this FY) Median P/E (next FY) Median P / tangible book
*
Services 49%
Based on equity holdings disclosed in 13F-HR filings with the SEC. Excludes portfolio cash, leverage, certain non-U.S. holdings, and non-equity securities.
1 2 3 4 5 6 7 8 9 10
Company / Ticker Penn National Gaming / PENN Apple / AAPL Google / GOOG Valeant Pharma / VRX Dell / DELL Charter Comms / CHTR BofI Holding / BOFI Teekay Corp. / TK Level 3 Comms / LVLT Credit Acceptance / CACC
1 2 3 4 5 6 7 8 9 10
Company / Ticker Apple / AAPL Google / GOOG Microsoft / MSFT Valeant Pharma / VRX Penn National Gaming / PENN Credit Acceptance / CACC CBS / CBS Dell / DELL Liberty Global / LBTYA BofI Holding / BOFI
New Positions
Apple / AAPL Bank of America / BAC Charter Comms / CHTR Chemtura / CHMT Dell / DELL Level 3 Comms / LVLT Penn National Gaming / PENN
Portfolio Metrics
Portfolio size
Sector Weightings
$213 million 74% $4.4 billion $46 billion 14x 12x 1.8x
Financial 15%
Top 10 as % of portfolio Median market value Average market value Median P/E (this FY) Median P/E (next FY) Median P / tangible book
*
Based on equity holdings disclosed in 13F-HR filings with the SEC. Excludes portfolio cash, leverage, certain non-U.S. holdings, and non-equity securities.
Services 28%
1 2 3 4 5 6 7 8 8 10
Company / Ticker Apple / AAPL Boston Scientific / BSX Oracle / ORCL Royal Bank Scotland / RBS Dean Foods / DF Calumet Specialty / CLMT Goodyear Tire / GT Hartford Financial / HIG Hartford Financial / HIG Delphi Automotive / DLPH
1 2 3 4 5 6 7 8 9 10
Company / Ticker CVR Energy / CVI Royal Bank Scotland / RBS Apple / AAPL Goodyear Tire / GT Dean Foods / DF Boston Scientific / BSX Oracle / ORCL Calumet Specialty / CLMT US Airways / LCC Mueller Water / MWA
New Positions
Boston Scientific / BSX Delphi Automotive / DLPH Oracle / ORCL
Portfolio Metrics
Portfolio size
Sector Weightings
$864 million 74% $6.1 billion $35 billion 11x 10x 2.3x
Other 44%
Top 10 as % of portfolio Median market value Average market value Median P/E (this FY) Median P/E (next FY) Median P / tangible book
*
Energy 22%
Financial 17%
Based on equity holdings disclosed in 13F-HR filings with the SEC. Excludes portfolio cash, leverage, certain non-U.S. holdings, and non-equity securities.
Technology 17%
1 2 3 4 5 6 7 8 9 10
Company / Ticker Joy Global / JOY Energizer Holdings / ENR Flowserve / FLS Kennametal / KMT Owens Illinois / OI Harman International / HAR Rockwood Holdings / ROC Crown Holdings / CCK Crane Co. / CR TRW Automotive / TRW
1 2 3 4 5 6 7 8 9 10
Company / Ticker Owens Illinois / OI Joy Global / JOY Flowserve / FLS Energizer Holdings / ENR Ashland / ASH Kennametal / KMT Rockwood Holdings / ROC Harman International / HAR Crown Holdings / CCK Solutia / SOA
New Positions
Harman International / HAR Joy Global / JOY Kennametal / KMT Rockwood Holdings / ROC
Portfolio Metrics
Portfolio size
Sector Weightings
$1.2 billion 96% $5.0 billion $6.5 billion 12x 11x 5.6x
Technology 14%
Other 5%
Top 10 as % of portfolio Median maret value Average market value Median P/E (this FY) Median P/E (next FY) Median P / tangible book
*
Based on equity holdings disclosed in 13F-HR filings with the SEC. Excludes portfolio cash, leverage, certain non-U.S. holdings, and non-equity securities.
1 2 3 4 5 6 7 8 9 10
Company / Ticker INTL FCStone / INTL Utah Medical / UTMD Female Health / FHCO Dolan Media / DM Tandy Leather / TLF Winmark / WINA Interactive Intell. / ININ American Public Ed. / APEI Colfax / CFX Hallmark Financial / HALL
1 2 3 4 5 6 7 8 9 10
Company / Ticker INTL FCStone / INTL Interactive Intell. / ININ Winmark / WINA Dolan Media / DM Female Health / FHCO American Public Ed. / APEI Stratasys / SSYS Colfax / CFX Stamps.com / STMP Hallmark Financial / HALL
New Positions
Kinder Morgan Mgmt / KMR Travelzoo / TZOO
Portfolio Metrics
Portfolio size
**
Sector Weightings
$418 million 73% $964 million $18 billion 18x 15x 2.3x
Services 22%
Top 10 as % of portfolio Median market value Average market value Median P/E (this FY) Median P/E (next FY) Median P / tangible book
* **
Based on equity holdings disclosed in 13F-HR filings with the SEC. Excludes portfolio cash, leverage, certain non-U.S. holdings, and non-equity securities.
Technology 24%
1 2 3 4 5 6 7 8 9 10
Company / Ticker Targacept / TRGT AVEO Pharma / AVEO Theravance / THRX News Corp. / NWSA Syneron Medical / ELOS ViaSat / VSAT Enzon Pharma / ENZN Alliance One / AOI Microsoft / MSFT Idenix Pharma / IDIX
1 2 3 4 5 6 7 8 9 10
Company / Ticker BP / BP Hewlett-Packard / HPQ News Corp. / NWSA ViaSat / VSAT Microsoft / MSFT Theravance / THRX Allied Nevada Gold / ANV Genworth Financial / GNW AVEO Pharma / AVEO Enzon Pharma / ENZN
New Positions
Targacept / TRGT
Portfolio Metrics
Portfolio size
Sector Weightings
$3.4 billion 88% $1.2 billion $24 billion 11x 11x 1.9x
Energy 16%
*, **
Top 10 as % of portfolio Median market value Average market value Median P/E (this FY) Median P/E (next FY) Median P / tangible book
*
Based on equity holdings disclosed in 13F-HR filings with the SEC. Excludes portfolio cash, leverage, certain non-U.S. holdings, and non-equity securities.
**
A predominant portion of assets managed by Seth Klarman may be invested in non-equity securities and is therefore not shown in the chart or tables.
1 2 3 4 5 6 7 8 9 10
Company / Ticker IBM / IBM Wells Fargo / WFC Procter & Gamble / PG Coca-Cola / KO Washington Post / WPO American Express / AXP Moodys / MCO USG / USG DIRECTV / DTV ConocoPhillips / COP
1 2 3 4 5 6 7 8 9 10
Company / Ticker Coca-Cola / KO IBM / IBM Wells Fargo / WFC American Express / AXP Procter & Gamble / PG Kraft Foods / KFT Wal-Mart / WMT ConocoPhillips / COP U.S. Bancorp / USB Johnson & Johnson / JNJ
New Positions
DaVita / DVA Liberty Media / LMCA
Portfolio Metrics
Portfolio size
Sector Weightings
$69 billion 90% $56 billion $83 billion 13x 12x 2.9x
Technology 18%
*, **
Top 10 as % of portfolio Median market value Average market value Median P/E (this FY) Median P/E (next FY) Median P / tangible book
*
Based on equity holdings disclosed in 13F-HR filings with the SEC. Excludes portfolio cash, leverage, certain non-U.S. holdings, and non-equity securities.
**
A large portion of Berkshires asset value may be attributed to holdings that are not publicly traded and are therefore not shown in the chart or tables.
1 2 3 4 5 6 7 8 9 10
Company / Ticker McMoRan Exploration / MMR Chesapeake Energy / CHK BP / BP Transocean / RIG Weatherford / WFT Nat.-Oilwell Varco / NOV Golar LNG / GLNG SandRidge Energy / SD Dawson Geophysical / DWSN Exxon Mobil / XOM
1 2 3 4 5 6 7 8 9 10
Company / Ticker BP / BP McMoRan Exploration / MMR Nat.-Oilwell Varco / NOV Chesapeake Energy / CHK Weatherford / WFT Dawson Geophysical / DWSN Devon Energy / DVN SandRidge Energy / SD Transocean / RIG Exxon Mobil / XOM
New Positions
Golar LNG / GLNG Transocean / RIG
Portfolio Metrics
Portfolio size
Sector Weightings
$148 million 77% $28 billion $56 billion 14x 11x 1.9x
*, **
Top 10 as % of portfolio Median market value Average market value Median P/E (this FY) Median P/E (next FY) Median P / tangible book
*
Transportation 1%
Based on equity holdings disclosed in 13F-HR filings with the SEC. Excludes portfolio cash, leverage, certain non-U.S. holdings, and non-equity securities.
Energy 99%
**
A large portion of assets managed by Boone Pickens may be invested outside of BP Capital and are therefore not shown in the chart or tables.
1 2 3 4 5 6 7 8 9 10
Company / Ticker Google / GOOG Valeant Pharma / VRX Comcast / CMCSA VistaPrint / VPRT U.S. Bancorp / USB Oracle / ORCL Adobe Systems / ADBE Primerica / PRI Visa / V Motorola Solutions / MSI
1 2 3 4 5 6 7 8 9 10
Company / Ticker Valeant Pharma / VRX Google / GOOG Fiserv / FISV Comcast / CMCSA Motorola Solutions / MSI U.S. Bancorp / USB VistaPrint / VPRT Aon / AON Lab Corp. of America / LH MasterCard / MA
New Positions
Adobe Systems / ADBE Globe Specialty / GSM Oracle / ORCL VistaPrint / VPRT
Portfolio Metrics
Portfolio size
Sector Weightings
$1.3 billion 88% $16 billion $53 billion 14x 12x 2.6x
Health Care 21%
Other 25%
Top 10 as % of portfolio Median market value Average market value Median P/E (this FY) Median P/E (next FY) Median P / tangible book
*
Technology 31%
Based on equity holdings disclosed in 13F-HR filings with the SEC. Excludes portfolio cash, leverage, certain non-U.S. holdings, and non-equity securities.
Financial 23%
1 2 3 4 5 6 7 8 9 10
Company / Ticker Zale / ZLC Stanley Black Decker / SWK Flowserve / FLS Helmerich & Payne / HP American Science / ASEI Ashland / ASH Alliant Techsystems / ATK Iron Mountain / IRM H&R Block / HRB Airgas / ARG
1 2 3 4 5 6 7 8 9 10
Company / Ticker H&R Block / HRB Flowserve / FLS Helmerich & Payne / HP Stanley Black Decker / SWK Airgas / ARG Steris / STE Iron Mountain / IRM Dun & Bradstreet / DNB American Science / ASEI Alliant Techsystems / ATK
New Positions
Ashland / ASH
Portfolio Metrics
Portfolio size
Sector Weightings
$694 million 94% $5.0 billion $5.2 billion 14x 12x 3.3x
Other 39%
Top 10 as % of portfolio Median market value Average market value Median P/E (this FY) Median P/E (next FY) Median P / tangible book
*
Services 27%
Based on equity holdings disclosed in 13F-HR filings with the SEC. Excludes portfolio cash, leverage, certain non-U.S. holdings, and non-equity securities.
Energy 13%
1, 2
Shares Owned Recent (000) 550 235 120 90 60 150 7 125 420 450 from Sep. 30 >100% 42% 0% >100% 50% 88% 21% 0% -14% -18%
Holdings as % of Co. <1% <1% <1% <1% <1% <1% <1% <1% <1% <1% Fund* 6% 9% 9% 4% 5% 2% 4% 4% 7% 4%
P/E (Est.) This FY n/a 25x 14x 12x 15x 58x 12x 10x 13x 7x Next FY n/a 20x 12x 11x 12x 11x 10x 9x 11x 6x
1 2 3 4 5 6 7 8 9 10
1
Company / Ticker Millipore / MIL Ancestry.com / ACOM Coinstar / CSTR Medtronic / MDT Diamond Offshore / DO IDT Corp. / IDT Apple / AAPL Aspen Insurance / AHL Activision Blizzard / ATVI Xerox / XRX
Price/ Tang. Book .9x n/m 6.8x >9.9x 2.0x 3.8x 5.4x .6x 5.1x >9.9x
Excludes holdings of Tilson Dividend Fund, which is also managed by Zeke Ashton.
1, 2
Shares Owned from Dec. 30 21% 35% 24% 0% 15% 10% 4% 14% 22% 4%
2
1 2 3 4 5 6 7 8 9 10
1
Company / Ticker Dell / DELL Ancestry.com / ACOM Coinstar / CSTR Activision Blizzard / ATVI Millipore / MIL Cisco Systems / CSCO Interactive Brokers / IBKR Diamond Offshore / DO Apple / AAPL Medtronic / MDT
from Sep. 30 -8% 42% 0% -14% >100% -54% -10% 50% 21% >100%
Holdings as % of Co. <1% <1% <1% <1% <1% <1% <1% <1% <1% <1% Fund* 10% 9% 9% 7% 6% 5% 5% 5% 4% 4%
P/E (Est.) This FY 8x 25x 14x 13x n/a 11x 12x 15x 12x 12x Next FY 9x 20x 12x 11x n/a 10x 10x 12x 10x 11x
Price/ Tang. Book >9.9x n/m 6.8x 5.1x .9x 3.5x 1.2x 2.0x 5.4x >9.9x
Excludes holdings of Tilson Dividend Fund, which is also managed by Zeke Ashton.
New Positions
Genie Energy / GNE (spun off from IDT) Medtronic / MDT Millipore / MIL
Himax Tech / HIMX P.F. Changs / PFCB Transatlantic Petro / TAT Western Digital / WDC
*
Portfolio Metrics
Portfolio size
Sector Weightings
$80 million 64% $1.7 billion $25 billion 14x 12x 1.8x
Financial 18% Health Care 12%
Other 7%
Top 10 as % of portfolio Median market value Average market value Median P/E (this FY) Median P/E (next FY) Median P / tangible book
*
Technology 63%
Based on equity holdings disclosed in 13F-HR filings with the SEC. Excludes portfolio cash, certain non-U.S. holdings, and non-equity securities.
1 2 3 4 5 6 7 8 9
Company / Ticker Delphi Automotive / DLPH Visteon Corp. / VC Starwood Hotels / HOT BankUnited / BKU CIT Group / CIT Quad Graphics / QUAD General Motors / GM iStar Financial / SFI Penn National Gaming / PENN
1 2 3 4 5 6 7 8 9 10
Company / Ticker CIT Group / CIT Delphi Automotive / DLPH BankUnited / BKU Visteon Corp. / VC Starwood Hotels / HOT Quad Graphics / QUAD General Motors / GM iStar Financial / SFI Royal Bank Scotland / RBS Walter Investment / WAC
New Positions
Delphi Automotive / DLPH
Portfolio Metrics
Portfolio size
Sector Weightings
$1.3 billion 100% $3.2 billion $9.6 billion 13x 12x 1.9x
Consumer Cyclical 33%
Top 10 as % of portfolio Median market value Average market value Median P/E (this FY) Median P/E (next FY) Median P / tangible book
*
Services 12%
Financial 55%
Based on equity holdings disclosed in 13F-HR filings with the SEC. Excludes portfolio cash, leverage, certain non-U.S. holdings, and non-equity securities.
1 2 3 4 5 6 7
Company / Ticker Royal Bank Scotland / RBS News Corp. / NWSA Viacom / VIA Walt Disney / DIS WellPoint / WLP Oracle / ORCL Union Pacific / UNP
1 2 3 4 5 6 7
Company / Ticker News Corp. / NWSA Walt Disney / DIS Viacom / VIA Union Pacific / UNP Oracle / ORCL WellPoint / WLP Royal Bank Scotland / RBS
New Positions
None
Portfolio Metrics
Portfolio size
Sector Weightings
$2.1 billion 100% $39 billion $51 billion 14x 12x 2.9x
Top 10 as % of portfolio Median market value Average market value Median P/E (this FY) Median P/E (next FY) Median P / tangible book
*
Based on equity holdings disclosed in 13F-HR filings with the SEC. Excludes portfolio cash, leverage, certain non-U.S. holdings, and non-equity securities.
Services 90%
1 2 3 4 5 6 7 8 9 10
Company / Ticker Watson Pharma / WPI Berkshire Hathaway / BRK.A Bank of America / BAC JPMorgan Chase / JPM Overstock.com / OSTK Primus Telecom / PTGI RadioShack / RSH Sanofi-Aventis / SNY Wells Fargo / WFC Qiao Xing Mobile / QXM
1 2 3 4 5 6 7 8 9 10
Company / Ticker Bank of America / BAC JPMorgan Chase / JPM AbitibiBowater / ABH Watson Pharma / WPI Berkshire Hathaway / BRK.A Wells Fargo / WFC Sears Holdings / SHLD Goldman Sachs / GS Overstock.com / OSTK Sanofi-Aventis / SNY
New Positions
Primus Telecom / PTGI
Portfolio Metrics
Portfolio size
Sector Weightings
$437 million 78% $7.1 billion $38 billion 10x 8x 1.3x
Services 24% Health Care 13%
*, **
Top 10 as % of portfolio Median market value Average market value Median P/E (this FY) Median P/E (next FY) Median P / tangible book
*
Other 10%
Financial 53%
Based on equity holdings disclosed in 13F-HR filings with the SEC. Excludes portfolio cash, leverage, certain non-U.S. holdings, and non-equity securities.
**
A large portion of assets managed by Francis Chou may be invested in Canadian and other securities, which are not shown in the chart or tables.
1 2 3 4 5 6 7 8 9 10
Company / Ticker Coca-Cola / KO Aon / AON Ecolab / ECL Wal-Mart / WMT Microsoft / MSFT Praxair / PX UnitedHealth / UNH 3M / MMM W.R. Berkley / WRB Alleghany / Y
1 2 3 4 5 6 7 8 9 10
Company / Ticker Microsoft / MSFT Wal-Mart / WMT Aon / AON Coca-Cola / KO Ecolab / ECL Comcast / CMCSA Praxair / PX UnitedHealth / UNH 3M / MMM News Corp. / NWSA
New Positions
Charles Schwab / SCHW Oracle / ORCL
Portfolio Metrics
Portfolio size
Sector Weightings
$10 billion 49% $26 billion $67 billion 14x 13x 2.5x
Consumer NonCyclical 20% Other 33%
Financial 24%
Top 10 as % of portfolio Median market value Average market value Median P/E (this FY) Median P/E (next FY) Median P / tangible book
*
Services 23%
Based on equity holdings disclosed in 13F-HR filings with the SEC. Excludes portfolio cash, leverage, certain non-U.S. holdings, and non-equity securities.
1 2 3 4 5 6 7 8 9 10
Company / Ticker Calpine / CPN Macquarie Infrastr. / MIC Packaging Corp. / PKG Rockwood Holdings / ROC Delphi Automotive / DLPH Globe Specialty / GSM Innophos / IPHS Rock-Tenn / RKT Spansion / CODE Black Diamond / BDE
1 2 3 4 5 6 7 8 9 10
Company / Ticker Macquarie Infrastr. / MIC Rockwood Holdings / ROC Six Flags / SIX Packaging Corp. / PKG Calpine / CPN Innophos / IPHS Globe Specialty / GSM Rock-Tenn / RKT Spansion / CODE Delphi Automotive / DLPH
New Positions
Delphi Automotive / DLPH
Portfolio Metrics
Portfolio size
Sector Weightings
$67 million 92% $1.5 billion $3.8 billion 14x 12x 3.2x
Services 20% Transportation 17%
Other 10%
Top 10 as % of portfolio Median market value Average market value Median P/E (this FY) Median P/E (next FY) Median P / tangible book
*
Based on equity holdings disclosed in 13F-HR filings with the SEC. Excludes portfolio cash, leverage, certain non-U.S. holdings, and non-equity securities.
1 2 3 4 5 6 7 8 9 10
Company / Ticker Applied Materials / AMAT General Dynamics / GD Cisco Systems / CSCO Zimmer Holdings / ZMH D.R. Horton / DHI Illinois Tool Works / ITW Petroleo Brasileiro / PBR Microsoft / MSFT Intel / INTC Wal-Mart / WMT
1 2 3 4 5 6 7 8 9 10
Company / Ticker Cisco Systems / CSCO Petroleo Brasileiro / PBR Illinois Tool Works / ITW Microsoft / MSFT D.R. Horton / DHI Intel / INTC Applied Materials / AMAT Zimmer Holdings / ZMH Bank of America / BAC General Dynamics / GD
New Positions
Virgin Media / VMED Wal-Mart / WMT
Portfolio Metrics
Portfolio size
Sector Weightings
$2.4 billion 99% $26 billion $77 billion 11x 10x 2.9x
Energy 14%
Other 14%
Top 10 as % of portfolio Median market value Average market value Median P/E (this FY) Median P/E (next FY) Median P / tangible book
*
Technology 45%
Based on equity holdings disclosed in 13F-HR filings with the SEC. Excludes portfolio cash, leverage, certain non-U.S. holdings, and non-equity securities.
1 2 3 4 5 6 7 8 9
Company / Ticker iStar Financial / SFI AutoNation / AN Capital One / COF Big Lots / BIG Gap / GPS CIT Group / CIT Genworth Financial / GNW AutoZone / AZO Sears Holdings / SHLD
1 2 3 4 5 6 7 8 9 10
Company / Ticker Sears Holdings / SHLD AutoNation / AN AutoZone / AZO Gap / GPS Capital One / COF CIT Group / CIT Seagate Technology / STX Genworth Financial / GNW Big Lots / BIG iStar Financial / SFI
New Positions
None
Portfolio Metrics
Portfolio size
Sector Weightings
$6.8 billion 100% $9.4 billion $29 billion 12x 11x 1.8x
Top 10 as % of portfolio Median market value Average market value Median P/E (this FY) Median P/E (next FY) Median P / tangible book
*
Technology 3% Financial 8%
Services 89%
Based on equity holdings disclosed in 13F-HR filings with the SEC. Excludes portfolio cash, leverage, certain non-U.S. holdings, and non-equity securities.
1 2 3 4 5 6 7 8 9 10
Company / Ticker Intel / INTC Johnson & Johnson / JNJ Overstock.com / OSTK Research In Motion / RIMM AbitibiBowater / ABH Level 3 Comms / LVLT Frontier Comms / FTR Baldwin & Lyons / BWINB U.S. Bancorp / USB Wells Fargo / WFC
1 2 3 4 5 6 7 8 9 10
Company / Ticker Johnson & Johnson / JNJ Intel / INTC Level 3 Comms / LVLT AbitibiBowater / ABH Research In Motion / RIMM Dell / DELL Wells Fargo / WFC U.S. Bancorp / USB USG / USG Frontier Comms / FTR
New Positions
Intel / INTC
*
Portfolio Metrics
Portfolio size
Sector Weightings
$2.2 billion 93% $4.2 billion $38 billion 12x 12x 1.8x
Health Care 18% Other 33%
Top 10 as % of portfolio Median market value Average market value Median P/E (this FY) Median P/E (next FY) Median P / tangible book
*
Technology 31%
Based on equity holdings disclosed in 13F-HR filings with the SEC. Excludes portfolio cash, leverage, certain non-U.S. holdings, and non-equity securities.
Services 19%
**
A large portion of Fairfaxs asset value may be attributed to holdings that are not publicly traded and are therefore not shown in the chart or tables.
1 2 3 4 5 6 7 8 9
Company / Ticker Bank of America / BAC Wells Fargo / WFC MBIA / MBI St. Joe / JOE AIG / AIG Berkshire Hathaway / BRK.A CIT Group / CIT Leucadia National / LUK Assured Guaranty / AGO
1 2 3 4 5 6 7 8 9 10
Company / Ticker AIG / AIG Bank of America / BAC CIT Group / CIT Sears Holdings / SHLD Berkshire Hathaway / BRK.A MBIA / MBI Leucadia National / LUK St. Joe / JOE Citigroup / C Wells Fargo / WFC
New Positions
Goldman Sachs / GS JPMorgan Chase / JPM
Portfolio Metrics
Portfolio size
Sector Weightings
$7.9 billion 99% $56 billion $72 billion 10x 9x 1.2x
Services 15%
Conglomerates 7%
Top 10 as % of portfolio Median market value Average market value Median P/E (this FY) Median P/E (next FY) Median P / tangible book
*
Financial 78%
Based on equity holdings disclosed in 13F-HR filings with the SEC. Excludes portfolio cash, leverage, certain non-U.S. holdings, and non-equity securities.
1 2 3 4 5 6 7 8 9 10
Company / Ticker CSX Corp. / CSX iStar Financial / SFI Sears Holdings / SHLD State Auto Financial / STFC Williams-Sonoma / WSM Alexander & Baldwin / ALEX Staples / SPLS Lowes / LOW Can. Pacific Railway / CP Ashford Hospitality / AHT
1 2 3 4 5 6 7 8 9 10
Company / Ticker Sears Holdings / SHLD First Indust. Realty / FR iStar Financial / SFI Copart / CPRT Charter Comms / CHTR Bank of America / BAC Alexander & Baldwin / ALEX Eagle Materials / EXP SL Green Realty / SLG CSX Corp. / CSX
New Positions
C.H. Robinson / CHRW Can. Pacific Railway / CP CSX Corp. / CSX Gaylord Entertain. / GET General Growth / GGP Hartford Financial / HIG J.B. Hunt / JBHT Liz Claiborne / LIZ Lowes / LOW News Corp. / NWSA SodaStream / SODA Staples / SPLS Walt Disney / DIS Williams-Sonoma / WSM
Portfolio Metrics
Portfolio size
Sector Weightings
$384 million 66% $2.0 billion $9.3 billion 17x 16x 1.8x
Transportation 14% Financial 8%
Top 10 as % of portfolio Median maret value Average market value Median P/E (this FY) Median P/E (next FY) Median P / tangible book
*
Other 10%
Services 68%
Based on equity holdings disclosed in 13F-HR filings with the SEC. Excludes portfolio cash, leverage, certain non-U.S. holdings, and non-equity securities.
1 2 3 4 5 6 7 8 9 10
Company / Ticker Nortek / NTK Ashland / ASH Quanex Building / NX Zimmer Holdings / ZMH Darling / DAR GeoMet / GMET Richardson Electron. / RELL Xylem / XYL Vishay Precision / VPG ITT Corp. / ITT
1 2 3 4 5 6 7 8 9 10
Company / Ticker Solutia / SOA W.R. Grace / GRA DaVita / DVA Ashland / ASH Quanex Building / NX Darling / DAR Blount International / BLT Nortek / NTK Snap-on / SNA Zimmer Holdings / ZMH
New Positions
E.W. Scripps / SSP ITT Corp. / ITT Nortek / NTK Xylem / XYL
Portfolio Metrics
Portfolio size
Sector Weightings
$924 million 70% $1.9 billion $3.0 billion 14x 13x 1.9x
Services 13%
Other 28%
Top 10 as % of portfolio Median market value Average market value Median P/E (this FY) Median P/E (next FY) Median P / tangible book
*
Based on equity holdings disclosed in 13F-HR filings with the SEC. Excludes portfolio cash, leverage, certain non-U.S. holdings, and non-equity securities.
1 2 3 4 5 6 7 8 9 10
Company / Ticker Citigroup / C Crown Castle / CCI Thermo Fisher / TMO Take-Two / TTWO Quest Diagnostics / DGX HCA / HCA Openwave Systems / OPWV Lab Corp. of America / LH Sprint Nextel / S Xerox / XRX
1 2 3 4 5 6 7 8 9 10
Company / Ticker Life Technologies / LIFE McKesson / MCK Crown Castle / CCI Citigroup / C Thermo Fisher / TMO Flextronics / FLEX HCA / HCA Tyco International / TYC BMC Software / BMC Fidelity National / FIS
New Positions
Oracle / ORCL Quest Diagnostics / DGX
Portfolio Metrics
Portfolio size
Sector Weightings
$5.9 billion 52% $12 billion $22 billion 12x 11x 2.3x
Technology 19% Other 29%
Top 10 as % of portfolio Median market value Average market value Median P/E (this FY) Median P/E (next FY) Median P / tangible book
*
Based on equity holdings disclosed in 13F-HR filings with the SEC. Excludes portfolio cash, leverage, certain non-U.S. holdings, and non-equity securities.
Services 22%
Company / Ticker 1 2 3 4 5 CBS / CBS Tenet Healthcare / THC American Capital / ACAS Charter Comms / CHTR Gannett / GCI
Company / Ticker 1 2 3 4 5 Tenet Healthcare / THC Gannett / GCI CBS / CBS American Capital / ACAS Charter Comms / CHTR
New Positions
CBS / CBS
Penn National Gaming / PENN Popular / BPOP Rowan Companies / RDC Solutia / SOA Tenneco / TEN TRW Automotive / TRW
Portfolio Metrics
Portfolio size
Sector Weightings
$116 million 100% $4.1 billion $6.9 billion 11x 10x 2.3x
Services 28%
Top 10 as % of portfolio Median maret value Average market value Median P/E (this FY) Median P/E (next FY) Median P / tangible book
*
Financial 11%
Based on equity holdings disclosed in 13F-HR filings with the SEC. Excludes portfolio cash, leverage, certain non-U.S. holdings, and non-equity securities.
1 2 3 4 5 6 7 8 9 10
Company / Ticker Devon Energy / DVN Lowes / LOW Air Products & Chem / APD FedEx / FDX Baker Hughes / BHI Agilent Technologies / A UPS / UPS Rockwell Collins / COL RHJ International / RHJIF Home Depot / HD
1 2 3 4 5 6 7 8 9 10
Company / Ticker FedEx / FDX Lowes / LOW 3M / MMM Air Products & Chem / APD Devon Energy / DVN UPS / UPS Baker Hughes / BHI Equitable Resources / EQT Agilent Technologies / A Rockwell Collins / COL
New Positions
Am. Independence / AMIC Lennox International / LII Mohawk Industries / MHK
Portfolio Metrics
Portfolio size
Sector Weightings
$3.2 billion 82% $16 billion $30 billion 15x 13x 3.3x
Other 46%
Top 10 as % of portfolio Median market value Average market value Median P/E (this FY) Median P/E (next FY) Median P / tangible book
*
Transportation 24%
Based on equity holdings disclosed in 13F-HR filings with the SEC. Excludes portfolio cash, leverage, certain non-U.S. holdings, and non-equity securities.
Services 14%
Energy 17%
1 2 3 4 5 6 7 8 9 10
Company / Ticker Einstein Noah / BAGL BioFuel Energy / BIOF General Motors / GM Apple / AAPL Dell / DELL Microsoft / MSFT Delphi Automotive / DLPH Seagate Technology / STX Xerox / XRX Liberty Media / LMCA
1 2 3 4 5 6 7 8 9 10
Company / Ticker Apple / AAPL General Motors / GM Microsoft / MSFT Seagate Technology / STX CareFusion / CFN Ensco / ESV Marvell Technology / MRVL Dell / DELL Delphi Automotive / DLPH NCR / NCR
New Positions
CA / CA Dell / DELL Delphi Automotive / DLPH DST Systems / DST Liberty Media / LMCA OmniVision / OVTI Research In Motion / RIMM Tessera Technologies / TSRA Xerox / XRX Yahoo! / YHOO
Portfolio Metrics
Portfolio size
Sector Weightings
$5.6 billion 64% $6.3 billion $26 billion 13x 11x 2.4x
Consumer Cyclical 13%
Other 25%
Top 10 as % of portfolio Median market value Average market value Median P/E (this FY) Median P/E (next FY) Median P / tangible book
*
Technology 46%
Based on equity holdings disclosed in 13F-HR filings with the SEC. Excludes portfolio cash, leverage, certain non-U.S. holdings, and non-equity securities.
Services 16%
Company / Ticker 1 2 3 4 5 Sealy Corp. / ZZ Boyd Gaming / BYD Cumulus Media / CMLS Six Flags / SIX W.R. Grace / GRA
Company / Ticker 1 2 3 4 5 Six Flags / SIX W.R. Grace / GRA Boyd Gaming / BYD Sealy Corp. / ZZ Cumulus Media / CMLS
New Positions
None
Portfolio Metrics
Portfolio size
Sector Weightings
$743 million 100% $786 million $1.7 billion 40x 18x 1.8x
Top 10 as % of portfolio Median market value Average market value Median P/E (this FY) Median P/E (next FY) Median P / tangible book
*
Based on equity holdings disclosed in 13F-HR filings with the SEC. Excludes portfolio cash, leverage, certain non-U.S. holdings, and non-equity securities.
Services 89%
1 2 3 4 5 6 7 8 9 10
Company / Ticker N.A. Energy Partners / NOA Spectrum Brands / SPB Crosstex Energy / XTXI Cliffs Natural / CLF Harbinger Group / HRG EXCO Resources / XCO Calpine / CPN Presidential Life / PLFE General Moly / GMO Owens Corning / OC
1 2 3 4 5 6 7 8 9 10
Company / Ticker Spectrum Brands / SPB Harbinger Group / HRG Crosstex Energy / XTXI N.A. Energy Partners / NOA Cliffs Natural / CLF EXCO Resources / XCO Owens Corning / OC Calpine / CPN Presidential Life / PLFE General Moly / GMO
New Positions
None
Lone Pine Resources / LPR Research In Motion / RIMM WD-40 Company / WDFC
*, **
Portfolio Metrics
Portfolio size
Sector Weightings
$1.6 billion 99% $1.5 billion $2.8 billion 12x 12x 1.7x
Financial 38%
Top 10 as % of portfolio Median market value Average market value Median P/E (this FY) Median P/E (next FY) Median P / tangible book
*
Energy 4%
Other 4%
Technology 54%
Based on equity holdings disclosed in 13F-HR filings with the SEC. Excludes portfolio cash, leverage, certain non-U.S. holdings, and non-equity securities.
**
A material portion of assets managed by Phil Falcone may be invested in private, non-equity or non-U.S. securities, which are not shown here.
1 2 3 4 5 6 7 8 9 10
Company / Ticker Blyth / BTH Sycamore Networks / SCMR Talbots / TLB Westport Innovations / WPRT Abercrombie & Fitch / ANF Frozen Food Express / FFEX AnnTaylor Stores / ANN Electronic Arts / EA XO Group / XOXO Ingram Micro / IM
1 2 3 4 5 6 7 8 9 10
Company / Ticker Blyth / BTH Ingram Micro / IM Talbots / TLB Abercrombie & Fitch / ANF XO Group / XOXO Sycamore Networks / SCMR Aviat Networks / AVNW Symantec / SYMC AnnTaylor Stores / ANN Electronic Arts / EA
New Positions
Sycamore Networks / SCMR
Portfolio Metrics
Portfolio size
Sector Weightings
$89 million 92% $570 million $4.2 billion 17x 12x 2.1x
Consumer NonCyclical 20%
Other 6%
Top 10 as % of portfolio Median maret value Average market value Median P/E (this FY) Median P/E (next FY) Median P / tangible book
*
Technology 39%
Based on equity holdings disclosed in 13F-HR filings with the SEC. Excludes portfolio cash, leverage, certain non-U.S. holdings, and non-equity securities.
Services 35%
1 2 3 4 5 6 7 8 9 10
Company / Ticker Google / GOOG Valeant Pharma / VRX General Motors / GM Sherwin-Williams / SHW Kronos Worldwide / KRO Groupon / GRPN Williams Companies / WMB Level 3 Comms / LVLT Molycorp / MCP Ascent Media / ASCMA
1 2 3 4 5 6 7 8 9 10
Company / Ticker Valeant Pharma / VRX W.R. Grace / GRA Carters / CRI Google / GOOG Ensco / ESV Sherwin-Williams / SHW Level 3 Comms / LVLT TransDigm / TDG Kronos Worldwide / KRO General Motors / GM
New Positions
Angies List / ANGI General Motors / GM Groupon / GRPN Molycorp / MCP Williams Companies / WMB
Portfolio Metrics
Portfolio size
Sector Weightings
$719 million 77% $5.1 billion $28 billion 17x 12x 3.1x
Other 37%
Top 10 as % of portfolio Median maret value Average market value Median P/E (this FY) Median P/E (next FY) Median P / tangible book
*
Services 25%
Based on equity holdings disclosed in 13F-HR filings with the SEC. Excludes portfolio cash, leverage, certain non-U.S. holdings, and non-equity securities.
1 2 3 4 5 6 7 8 9 10
Company / Ticker Navistar / NAV Dynegy / DYN El Paso Corp. / EP Motorola Solutions / MSI Federal-Mogul / FDML American Railcar / ARII Mentor Graphics / MENT Hain Celestial / HAIN Icahn Enterprises / IEP WebMD Health / WBMD
1 2 3 4 5 6 7 8 9 10
Company / Ticker Icahn Enterprises / IEP El Paso Corp. / EP Motorola Solutions / MSI Federal-Mogul / FDML Motorola Mobility / MMI Forest Labs / FRX American Railcar / ARII Navistar / NAV Hain Celestial / HAIN Amylin Pharma / AMLN
New Positions
CVR Energy / CVI
Portfolio Metrics
Portfolio size
Sector Weightings
$12 billion 91% $1.8 billion $4.4 billion 16x 14x 3.1x
Capital Goods 17% Other 35%
*, **
Top 10 as % of portfolio Median market value Average market value Median P/E (this FY) Median P/E (next FY) Median P / tangible book
*
Financial 29%
Based on equity holdings disclosed in 13F-HR filings with the SEC. Excludes portfolio cash, leverage, certain non-U.S. holdings, and non-equity securities.
**
A large portion of assets controlled by Carl Icahn may be attributed to entities other than Icahn Capital LP and are therefore not shown in the chart or tables.
1 2 3 4 5 6 7 8 9 10
Company / Ticker TOTAL / TOT Devon Energy / DVN Net1 UEPS / UEPS Staples / SPLS Valassis Comms / VCI Nortel Inversora / NTL Seacor Holdings / CKH Washington Post / WPO IAMGOLD / IAG Cimarex Energy / XEC
1 2 3 4 5 6 7 8 9 10
Company / Ticker News Corp. / NWSA TOTAL / TOT Devon Energy / DVN Microsoft / MSFT Hewlett-Packard / HPQ Dell / DELL MasterCard / MA Washington Post / WPO Staples / SPLS Berkshire Hathaway / BRK.A
New Positions
Seacor Holdings / CKH
Portfolio Metrics
Portfolio size
Sector Weightings
$4.8 billion 52% $13 billion $39 billion 13x 11x 2.3x
Energy 15% Other 20%
Top 10 as % of portfolio Median market value Average market value Median P/E (this FY) Median P/E (next FY) Median P / tangible book
*
Technology 34%
Based on equity holdings disclosed in 13F-HR filings with the SEC. Excludes portfolio cash, leverage, certain non-U.S. holdings, and non-equity securities.
Services 31%
1 2 3 4 5 6 7 8 9 10
Company / Ticker SINA Corp. / SINA Google / GOOG Yahoo! / YHOO Katy Industries / KT Veeco Instruments / VECO TAL Education / XRS Changyou.com / CYOU Hexcel / HXL Home Inns & Hotels / HMIN 21Vianet Group / VNET
1 2 3 4 5 6 7 8 9 10
Company / Ticker New Oriental Edu. / EDU Google / GOOG Yahoo! / YHOO Katy Industries / KT SINA Corp. / SINA Estee Lauder / EL TAL Education / XRS Veeco Instruments / VECO Hexcel / HXL Home Inns & Hotels / HMIN
New Positions
21Vianet Group / VNET Changyou.com / CYOU Veeco Instruments / VECO
*
Portfolio Metrics
Portfolio size
Sector Weightings
$492 million 98% $3.4 billion $22 billion 21x 17x 3.7x
Services 43% Consumer NonCyclical 9%
Top 10 as % of portfolio Median maret value Average market value Median P/E (this FY) Median P/E (next FY) Median P / tangible book
*
Technology 48%
Based on equity holdings disclosed in 13F-HR filings with the SEC. Excludes portfolio cash, leverage, certain non-U.S. holdings, and non-equity securities.
1 2 3 4 5 6 7 8 9 10
Company / Ticker Ambassadors Group / EPAX Williams Controls / WMCO Healthsouth / HLS Quiksilver / ZQK Learning Tree / LTRE Monotype Imaging / TYPE Markel / MKL MasterCard / MA Corinthian Colleges / COCO Skechers / SKX
1 2 3 4 5 6 7 8 9 10
Company / Ticker Corinthian Colleges / COCO Williams Controls / WMCO Ambassadors Group / EPAX Healthsouth / HLS Quiksilver / ZQK MasterCard / MA Skechers / SKX Monotype Imaging / TYPE Learning Tree / LTRE Markel / MKL
New Positions
None
Portfolio Metrics
Portfolio size
Sector Weightings
$104 million 54% $1.4 billion $5.3 billion 17x 15x 2.1x
Consumer Cyclical 17% Financial 16% Other 13%
Top 10 as % of portfolio Median maret value Average market value Median P/E (this FY) Median P/E (next FY) Median P / tangible book
*
Services 55%
Based on equity holdings disclosed in 13F-HR filings with the SEC. Excludes portfolio cash, leverage, certain non-U.S. holdings, and non-equity securities.
Company / Ticker 1 2 3 4 INTL FCStone / INTL Jefferies / JEF Cowen / COWN Mueller Industries / MLI
Company / Ticker 1 2 3 4 Jefferies / JEF Mueller Industries / MLI INTL FCStone / INTL Cowen / COWN
New Positions
None
Portfolio Metrics
Portfolio size
Sector Weightings
$1.4 billion 100% $427 million $1.2 billion 16x 10x 1.8x
Basic Materials 34%
*, **
Top 10 as % of portfolio Median market value Average market value Median P/E (this FY) Median P/E (next FY) Median P / tangible book
*
Financial 66%
Based on equity holdings disclosed in 13F-HR filings with the SEC. Excludes portfolio cash, leverage, certain non-U.S. holdings, and non-equity securities.
**
A large portion of Leucadias asset value may be attributed to holdings that are not publicly traded and are therefore not shown in the chart or tables.
1 2 3 4 5 6 7 8 9 10
Company / Ticker priceline.com / PCLN Google / GOOG Polo Ralph Lauren / RL Apple / AAPL VanceInfo / VIT Visa / V Fossil / FOSL New Oriental Edu. / EDU Williams-Sonoma / WSM Accretive Health / AH
1 2 3 4 5 6 7 8 9 10
Company / Ticker Apple / AAPL Google / GOOG Polo Ralph Lauren / RL priceline.com / PCLN Express Scripts / ESRX Dollar General / DG Visa / V Crown Castle / CCI Las Vegas Sands / LVS NetApp / NTAP
New Positions
Baidu.com / BIDU eBay / EBAY El Paso Corp. / EP FMC Technologies / FTI Green Mtn Coffee / GMCR Kinder Morgan / KMI Liberty Media / LMCA Lululemon Athletica / LULU Medco Health / MHS Michael Kors / KORS V.F. Corp. / VFC W.R. Grace / GRA Willis Group / WSH
Portfolio Metrics
Portfolio size
Sector Weightings
$15 billion 45% $11 billion $32 billion 18x 16x 4.8x
Consumer Cyclical 14% Other 19%
Top 10 as % of portfolio Median market value Average market value Median P/E (this FY) Median P/E (next FY) Median P / tangible book
*
Technology 38%
Based on equity holdings disclosed in 13F-HR filings with the SEC. Excludes portfolio cash, leverage, certain non-U.S. holdings, and non-equity securities.
Services 30%
1 2 3 4 5 6 7 8 9 10
1
Company / Ticker Fairfax Financial / FRFHF Brookfield Asset / BAM Union Bankshares / UBSH Investors Title / ITIC Exxon Mobil / XOM Wal-Mart / WMT Paychex / PAYX Louisiana-Pacific / LPX Expeditors Intl / EXPD Nicholas Financial / NICK
Markel acquired UBSH shares in connection with a merger of a Markel subsidiary with First Market Bank, a private company in which Markel was a shareholder.
1 2 3 4 5 6 7 8 9 10
Company / Ticker CarMax / KMX Fairfax Financial / FRFHF Diageo / DEO Berkshire Hathaway / BRK.A Brookfield Asset / BAM Exxon Mobil / XOM Wal-Mart / WMT Walt Disney / DIS UPS / UPS Marriott / MAR
New Positions
DreamWorks / DWA Loews Corp. / L Marriott Vacations / VAC McCormick / MKC Mosaic Company / MOS SEI Investments / SEIC Vodafone / VOD
Portfolio Metrics
Portfolio size
Sector Weightings
$1.9 billion 49% $19 billion $49 billion 16x 14x 2.8x
Consumer NonCyclical 10% Other 30%
*, **
Top 10 as % of portfolio Median market value Average market value Median P/E (this FY) Median P/E (next FY) Median P / tangible book
*
Services 35%
Based on equity holdings disclosed in 13F-HR filings with the SEC. Excludes portfolio cash, leverage, certain non-U.S. holdings, and non-equity securities.
**
A large portion of Markel Corp.s asset value may be attributed to holdings that are not publicly traded and are therefore not shown in the chart or tables.
Financial 26%