Smead Value Fund (Trades, Portfolio), managed by Smead Capital Management, is known for its disciplined investment approach focusing on U.S. large-cap companies. The fund, under the stewardship of Bill Smead, Tony Scherrer, CFA, and Cole Smead, CFA, aims for long-term capital appreciation by holding a concentrated portfolio of 25-30 companies. These companies are selected based on stringent criteria including economic necessity, competitive advantages, profitability, free cash flow, valuation, management quality, financial health, and insider ownership.
Smead Value Fund (Trades, Portfolio) has increased its stakes in 22 stocks during the third quarter of 2024. Noteworthy adjustments include:
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Cenovus Energy Inc (TSX:CVE) saw an addition of 1,811,964 shares, bringing the total to 10,714,559 shares. This represents a 20.35% increase in share count and a 0.56% impact on the current portfolio, valued at C$198,684,250.
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D.R. Horton Inc (NYSE:DHI) increased by 60,782 shares, totaling 2,177,083 shares. This adjustment marks a 2.87% increase in share count, with a total value of $410,946,190.
In a significant portfolio adjustment, Smead Value Fund (Trades, Portfolio) exited its entire position in one company during the third quarter of 2024:
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Warner Bros. Discovery Inc (NASDAQ:WBD): The fund sold all 6,063,706 shares, impacting the portfolio by -0.86%.
The fund also reduced its holdings in four stocks, with significant changes in:
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American Express Co (NYSE:AXP) was reduced by 207,798 shares, a -12.84% decrease, impacting the portfolio by -0.86%. The stock traded at an average price of $239.79 during the quarter and has returned 10.94% over the past three months and 46.30% year-to-date.
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Qualcomm Inc (NASDAQ:QCOM) saw a reduction of 121,682 shares, a -16.98% decrease, impacting the portfolio by -0.43%. The stock traded at an average price of $189.60 during the quarter and has returned -11.89% over the past three months and 19.87% year-to-date.
As of the third quarter of 2024, Smead Value Fund (Trades, Portfolio)’s portfolio included 27 stocks. The top holdings were 6.98% in Lennar Corp (NYSE:LEN), 6.83% in D.R. Horton Inc (NYSE:DHI), 6.31% in Simon Property Group Inc (NYSE:SPG), 6.06% in American Express Co (NYSE:AXP), and 5.63% in Amgen Inc (NASDAQ:AMGN). The holdings are predominantly concentrated in eight industries: Consumer Cyclical, Energy, Financial Services, Real Estate, Healthcare, Industrials, Consumer Defensive, and Technology.
