Robert Bruce (Trades, Portfolio) and his son Jeff run the Bruce Fund, where they had annualized returns of nearly 30% between 2000 and 2006. More recent returns have been more modest, but they have remained in positive territory - 13.68% last year, 18.95% in 2013, 7.86% in 2012.
The Energy Sector only has a 5% weighting in Bruce's portfolio, but energy stocks dominated his second-quarter transactions.
In late 2014, when Bruce initially invested in Duke Energy Corporation (DUK), a Charlotte, N.C.-based electric power holding company, it didn't register on his list of most valuable stakes. At the time, he bought only 19,000 shares. But in the second quarter, he bought 100,000 shares for an average price of $75.59 per share, and the stake became the 13th-most valuable in his portfolio. The transaction had a 2.08% impact on Bruce's portfolio.
Duke Energy has a market cap of $52.66 billion and an enterprise value of $93.07 billion. It has a P/E of 19.4, a Price/Book of 1.4 and a Price/Sales of 2.3. Brian Rogers (Trades, Portfolio), Jim Simons (Trades, Portfolio), Ray Dalio (Trades, Portfolio), Dodge & Cox, James Barrow (Trades, Portfolio) and John Hussman (Trades, Portfolio) have shares of Duke Energy in their portfolios.
Bruce also added to his second-most valuable stake, International Business Machines Corp. (IBM), a New York-based technology and consulting corporation. Bruce acquired 22,000 shares for an average price of $168.01 per share. The deal had a 1.05% impact on Bruce's portfolio.
IBM has a market cap of $150.67 billion and an enterprise value of $180.73 billion. It has a P/E of 13.5, a Price/Book of 11.0 and a Price/Sales of 1.8. Warren Buffett (Trades, Portfolio), Jeremy Grantham (Trades, Portfolio), HOTCHKIS & WILEY, Brian Rogers (Trades, Portfolio), Ruane Cunniff (Trades, Portfolio), Prem Watsa (Trades, Portfolio), Diamond Hill Capital (Trades, Portfolio), Pioneer Investments (Trades, Portfolio), Bill Frels (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio), Chase Coleman (Trades, Portfolio), Dodge & Cox, Manning & Napier Advisors, Inc, Ray Dalio (Trades, Portfolio), Louis Moore Bacon (Trades, Portfolio), John Rogers (Trades, Portfolio), John Buckingham (Trades, Portfolio), Ken Fisher (Trades, Portfolio), Chris Davis (Trades, Portfolio), Mario Gabelli (Trades, Portfolio), David Dreman (Trades, Portfolio), Tom Russo (Trades, Portfolio), First Eagle Investment (Trades, Portfolio), Kahn Brothers (Trades, Portfolio), Mark Hillman (Trades, Portfolio) and John Hussman (Trades, Portfolio) have shares of IBM in their portfolios.
Bruce made CMS Energy Corp. (CMS), an energy company based in Jackson, Mich., his 16th-most valuable stake. He purchased 200,000 shares for an average price of $33.62 per share. The acquisition had a 1.87% impact on his portfolio.
CMS Energy has a market cap of $9.86 billion and an enterprise value of $17.57 billion. It has a P/E of 21.4, a Price/Book of 2.6 and a Price/Sales of 1.5. Jim Simons (Trades, Portfolio), Mario Gabelli (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio), Manning & Napier Advisors, Inc, Murray Stahl (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio) and Ray Dalio (Trades, Portfolio) have shares of CMS Energy in their portfolios.
Bruce also purchased 150,000 shares of Avista Corp. (AVA), an energy company based in Spokane, Wash., for an average price of $32.26 per share, making Avista the 19th-most valuable stake in Bruce's portfolio. The transaction had a 1.35% impact on Bruce's portfolio.
Avista has a market cap of $2.11 billion and an enterprise value of $3.73 billion. It has a P/E of 18.7, a Price/Book of 1.4 and a Price/Sales of 1.4. Ken Fisher (Trades, Portfolio), Jim Simons (Trades, Portfolio), Mario Gabelli (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio) and David Dreman (Trades, Portfolio) have shares of Avista in their portfolios.
Bruce bought only one new stake in the second quarter - WEC Energy Group Inc. (WEC), a Milwaukee-based provider of electricity and natural gas to more than four million customers in four states. Bruce bought 24,252 shares for an average price of $48.03. The purchase had a 0.32% impact on his portfolio.
WEC has a market cap of $16.32 billion and an enterprise value of $26.17 billion. It has a P/E of 22.5, a Price/Book of 1.4 and a Price/Sales of 2.5. Jim Simons (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio), Mario Gabelli (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio), Ray Dalio (Trades, Portfolio) and Bill Frels (Trades, Portfolio) have shares of WEC in their portfolios.
Bruce sold three stakes in his portfolio in the second quarter - Directv (DTV), C&J Energy Services Ltd. (CJES) and Integrys Energy Group Inc. (TEG).
Bruce's most significant divestiture was his sale of his 85,000-share stake in Directv, a California-based satellite TV service provider, for an average price of $90.32 per share. The deal had a -2.05% impact on his portfolio.
Directv has a market cap of $47.18 billion and an enterprise value of $62.67 billion. It has a P/E of 16.2 and a Price/Sales of 1.4. Warren Buffett (Trades, Portfolio), PRIMECAP Management (Trades, Portfolio), John Paulson (Trades, Portfolio), Eric Mindich (Trades, Portfolio), Mario Gabelli (Trades, Portfolio), David Abrams (Trades, Portfolio), George Soros (Trades, Portfolio), Jim Simons (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio), Jeremy Grantham (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio), John Hussman (Trades, Portfolio), Ruane Cunniff (Trades, Portfolio), Louis Moore Bacon (Trades, Portfolio), Jeff Auxier (Trades, Portfolio), RS Investment Management (Trades, Portfolio), Lee Ainslie (Trades, Portfolio) and Ken Fisher (Trades, Portfolio) have shares of Directv in their portfolios.
Bruce reduced one existing stake in his portfolio in the second quarter - Durect Corp. (DRRX), a Cupertino, Calif.-based developer of pharmaceutical drug delivery systems. Bruce sold 352,364 shares for an average price of $2.34 per share. The transaction had a -0.2% impact on Bruce's portfolio.
Durect has a market cap of $249.4 million and an enterprise value of $231.65 million. It has a Price/Book of 10.9 and a Price/Sales of 13.4. First Eagle Investment (Trades, Portfolio) and Jim Simons (Trades, Portfolio) have shares of Durect in their portfolios.
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