Delphi Management's Founder Emphasizes Value Investing

Scott Black (Trades, Portfolio) recently submitted the 13F filing for the third quarter of 2024, providing insights into his investment moves during this period. Scott Black (Trades, Portfolio) is the president and founder of Delphi Management, Inc. His first entrepreneurial venture involved restructuring the William O’Neil Company in 1978, followed by managing equities for Sunkist Growers in 1979, which was Delphi Management’s original account. At Merrill Lynch, he initially worked in the Market Planning Department before becoming head of Corporate Development, responsible for the holding company’s diversification activities. Black's education includes a BA from Johns Hopkins University in Applied Mathematics and Economics, and an MBA in Finance from Harvard Business School in 1971, after completing his U.S. Army active service obligation at Fort Ord, California. According to Delphi's website, "We pursue a proven value investing strategy that emphasizes the fundamental performance of underlying companies. We only invest in companies that meet our internally developed set of rigorous quantitative criteria and that are under good management. As disciples of the Graham-Dodd school of value investing, this means we believe that an investment candidate should only be purchased at a low absolute valuation. Additionally, it means that we personally contact management at every company in which we invest."

Summary of New Buy

Scott Black (Trades, Portfolio) added a total of 14 stocks, among them:

• The most significant addition was MGP Ingredients Inc (MGPI, Financial), with 17,870 shares, accounting for 1.35% of the portfolio and a total value of $1.49 million.
• The second largest addition to the portfolio was Dell Technologies Inc (DELL, Financial), consisting of 11,861 shares, representing approximately 1.28% of the portfolio, with a total value of $1.41 million.
• The third largest addition was Autoliv Inc (ALV, Financial), with 14,036 shares, accounting for 1.19% of the portfolio and a total value of $1.31 million.

Key Position Increases

Scott Black (Trades, Portfolio) also increased stakes in a total of 3 stocks, among them:

• The most notable increase was Eastman Chemical Co (EMN, Financial), with an additional 716 shares, bringing the total to 3,946 shares. This adjustment represents a significant 22.17% increase in share count, a 0.07% impact on the current portfolio, with a total value of $440,000.
• The second largest increase was Schlumberger Ltd (SLB, Financial), with an additional 943 shares, bringing the total to 30,579. This adjustment represents a significant 3.18% increase in share count, with a total value of $1.28 million.

Summary of Sold Out

Scott Black (Trades, Portfolio) completely exited 5 holdings in the third quarter of 2024, as detailed below:

• Autoliv Inc (OSTO:ALIV SDB, Financial): Scott Black (Trades, Portfolio) sold all 14,694 shares, resulting in a -1.28% impact on the portfolio.
• LKQ Corp (LKQ, Financial): Scott Black (Trades, Portfolio) liquidated all 31,500 shares, causing a -1.07% impact on the portfolio.

Key Position Reduces

Scott Black (Trades, Portfolio) also reduced positions in 71 stocks. The most significant changes include:

• Reduced Iron Mountain Inc (IRM, Financial) by 8,619 shares, resulting in a -38.76% decrease in shares and a -0.63% impact on the portfolio. The stock traded at an average price of $106.96 during the quarter and has returned -10.98% over the past 3 months and 0.73% year-to-date.
• Reduced Apple Inc (AAPL, Financial) by 2,687 shares, resulting in a -21.19% reduction in shares and a -0.46% impact on the portfolio. The stock traded at an average price of $223.32 during the quarter and has returned 0.46% over the past 3 months and -8.95% year-to-date.

Portfolio Overview

At the third quarter of 2024, Scott Black (Trades, Portfolio)'s portfolio included 89 stocks. The top holdings included 2.75% in Berkshire Hathaway Inc (BRK.B, Financial), 2.12% in Apple Inc (AAPL), 1.59% in Progress Software Corp (PRGS, Financial), 1.55% in Sterling Infrastructure Inc (STRL, Financial), and 1.52% in Toll Brothers Inc (TOL, Financial).

The holdings are mainly concentrated in 10 of the 11 industries: Technology, Financial Services, Consumer Cyclical, Industrials, Healthcare, Communication Services, Energy, Consumer Defensive, Real Estate, and Basic Materials.

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.