Exploring the Strategic Moves of a Value Investing Pioneer

Brandes Investment Partners, LP (Trades, Portfolio) recently submitted the 13F filing for the fourth quarter of 2024, providing insights into its investment moves during this period. Founded by Charles Brandes in 1974, the firm is a leading investment advisory entity specializing in managing global equity and fixed-income assets. As a disciple of Benjamin Graham, Brandes Investment Partners, LP (Trades, Portfolio) adheres to classic value investing principles, focusing on purchasing undervalued securities and holding them until the market recognizes their intrinsic value. The firm operates several funds, including the U.S. Equity and Global Equity Funds, and was among the first to invest globally using a value approach.

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Summary of New Buy

Brandes Investment Partners, LP (Trades, Portfolio) added a total of 11 stocks, among them:

• The most significant addition was Evergy Inc (NASDAQ:EVRG), with 904,180 shares, accounting for 0.62% of the portfolio and a total value of $55.65 million.
• The second largest addition to the portfolio was STMicroelectronics NV (NYSE:STM), consisting of 623,529 shares, representing approximately 0.17% of the portfolio, with a total value of $15.57 million.
• The third largest addition was The Timken Co (NYSE:TKR), with 65,066 shares, accounting for 0.05% of the portfolio and a total value of $4.64 million.

Key Position Increases

Brandes Investment Partners, LP (Trades, Portfolio) also increased stakes in a total of 108 stocks, among them:

• The most notable increase was Arch Capital Group Ltd (NASDAQ:ACGL), with an additional 566,751 shares, bringing the total to 1,083,395 shares. This adjustment represents a significant 109.7% increase in share count, a 0.59% impact on the current portfolio, with a total value of $100.05 million.
• The second largest increase was Sysco Corp (NYSE:SYY), with an additional 631,921 shares, bringing the total to 635,102. This adjustment represents a significant 19,865.48% increase in share count, with a total value of $48.56 million.

Summary of Sold Out

Brandes Investment Partners, LP (Trades, Portfolio) completely exited 7 holdings in the fourth quarter of 2024, as detailed below:

• Orange SA (ORANY): Brandes Investment Partners, LP (Trades, Portfolio) sold all 1,848,118 shares, resulting in a -0.24% impact on the portfolio.
• Ribbon Communications Inc (NASDAQ:RBBN): Brandes Investment Partners, LP (Trades, Portfolio) liquidated all 808,799 shares, causing a -0.03% impact on the portfolio.

Key Position Reduces

Brandes Investment Partners, LP (Trades, Portfolio) also reduced positions in 69 stocks. The most significant changes include:

• Reduced Mohawk Industries Inc (NYSE:MHK) by 370,518 shares, resulting in a -40.16% decrease in shares and a -0.67% impact on the portfolio. The stock traded at an average price of $139.48 during the quarter and has returned -18.37% over the past 3 months and 0.00% year-to-date.
• Reduced Wells Fargo & Co (NYSE:WFC) by 951,940 shares, resulting in a -23.65% reduction in shares and a -0.61% impact on the portfolio. The stock traded at an average price of $68.48 during the quarter and has returned 12.74% over the past 3 months and 12.42% year-to-date.

Portfolio Overview

At the fourth quarter of 2024, Brandes Investment Partners, LP (Trades, Portfolio)'s portfolio included 190 stocks. The top holdings included 4.23% in CAE Inc (NYSE:CAE), 3.65% in Embraer SA (NYSE:ERJ), 2.46% in $Bank of America Corp(BAC-N)$ (NYSE:BAC), 2.45% in Fiserv Inc (NYSE:FI), and 2.41% in Wells Fargo & Co (NYSE:WFC).

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

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.

This article first appeared on GuruFocus.