LUMINUS MANAGEMENT LLC recently filed their 13F report for the fourth quarter of 2022, which ended on 2022-12-31.
The 13F report details which stocks were in a guru’s equity portfolio at the end of the quarter, though investors should note that these filings are limited in scope, containing only a snapshot of long positions in U.S.-listed stocks and American depository receipts as of the quarter’s end. They are not required to include international holdings, short positions or other types of investments. Still, even this limited filing can provide valuable information.
Luminus Management LLC is a hedge fund sponsor based out of New York City, New York. The company was originally established in 2002 by founder Paul Segal, who, although not actively involved with the company anymore, has placed Radion N. Segal as the trustee of the company. Luminus Management has grown from its inception to now have an additional office in Houston, Texas and has expanded to 25 employees of which 17 are investment professionals. The company utilizes a long short strategy to “capitalize on investment opportunities across the capital structure of companies primarily in power, utility and related subsectors by taking positions in securities including, but not limited to, equities, bonds, convertibles, preferred securities, and bank debt.” The firm seeks to locate inefficiencies primarily in the power sector to analyze the complex industry situations, utilizing a fundamental investment methodology with a macro sector overlay while managing risks. Luminus Management invests most heavily in the utilities and telecommunications sector, which alone makes up half of its total asset allocations, and also invests in the energy, materials, transports, industrials, and finance sectors, among other sectors to a lesser degree, in order of decreasing allocations. The company keeps its holdings an average of 2.45 quarters and, in the most recent quarter, had a turnover rate of approximately 65.3%. Luminus Management manages over $5.4 billion in total assets under management spread across 8 total accounts, all of which are discretionary accounts. Although the company’s total number of accounts has been somewhat volatile in recent years, its total assets under management has been increasing, growing significantly from $1.1 billion back in 2011 to approaching five times that amount today. Luminus Management currently caters solely to pooled investment vehicles and takes advisory fees in the form of a percentage of assets and various performance based fees.
As of the latest 13F report, the guru’s equity portfolio contained 20 stocks valued at a total of $401.00Mil. The top holdings were ARCH(19.84%), BATL(14.88%), and ASH(11.06%).
According to GuruFocus data, these were LUMINUS MANAGEMENT LLC’s top five trades of the quarter.
Arch Resources Inc
During the quarter, LUMINUS MANAGEMENT LLC bought 271,849 shares of NYSE:ARCH for a total holding of 557,705. The trade had a 9.67% impact on the equity portfolio. During the quarter, the stock traded for an average price of $146.28.
On 02/18/2023, Arch Resources Inc traded for a price of $159.19 per share and a market cap of $2.88Bil. The stock has returned 59.29% over the past year.
GuruFocus gives the company a financial strength rating of 8 out of 10 and a profitability rating of 5 out of 10.
In terms of valuation, Arch Resources Inc has a price-earnings ratio of 2.49, a price-book ratio of 2.43, a EV-to-Ebitda ratio of 2.09 and a price-sales ratio of 0.88.
The price-to-GF Value ratio is 1.73, earning the stock a GF Value rank of 1.
Olin Corp
The guru established a new position worth 392,019 shares in NYSE:OLN, giving the stock a 5.17% weight in the equity portfolio. Shares traded for an average price of $53.08 during the quarter.
On 02/18/2023, Olin Corp traded for a price of $61.25 per share and a market cap of $8.10Bil. The stock has returned 23.88% over the past year.
GuruFocus gives the company a financial strength rating of 5 out of 10 and a profitability rating of 7 out of 10.
In terms of valuation, Olin Corp has a price-earnings ratio of 6.92, a price-book ratio of 3.19, a EV-to-Ebitda ratio of 4.54 and a price-sales ratio of 0.98.
The price-to-GF Value ratio is 1.10, earning the stock a GF Value rank of 3.
O-I Glass Inc
The guru established a new position worth 1,075,571 shares in NYSE:OI, giving the stock a 4.44% weight in the equity portfolio. Shares traded for an average price of $16.11 during the quarter.
On 02/18/2023, O-I Glass Inc traded for a price of $22.01 per share and a market cap of $3.40Bil. The stock has returned 57.78% over the past year.
GuruFocus gives the company a financial strength rating of 4 out of 10 and a profitability rating of 7 out of 10.
In terms of valuation, O-I Glass Inc has a price-earnings ratio of 6.00, a price-book ratio of 2.40, a price-earnings-to-growth (PEG) ratio of 0.77, a EV-to-Ebitda ratio of 4.91 and a price-sales ratio of 0.51.
The price-to-GF Value ratio is 1.53, earning the stock a GF Value rank of 1.
Ashland Inc
During the quarter, LUMINUS MANAGEMENT LLC bought 86,570 shares of NYSE:ASH for a total holding of 412,728. The trade had a 2.32% impact on the equity portfolio. During the quarter, the stock traded for an average price of $105.39.
On 02/18/2023, Ashland Inc traded for a price of $103.37 per share and a market cap of $5.61Bil. The stock has returned 9.81% over the past year.
GuruFocus gives the company a financial strength rating of 6 out of 10 and a profitability rating of 6 out of 10.
In terms of valuation, Ashland Inc has a price-earnings ratio of 6.42, a price-book ratio of 1.69, a EV-to-Ebitda ratio of 12.58 and a price-sales ratio of 2.37.
The price-to-GF Value ratio is 0.90, earning the stock a GF Value rank of 7.
Westlake Corp
The guru established a new position worth 90,550 shares in NYSE:WLK, giving the stock a 2.31% weight in the equity portfolio. Shares traded for an average price of $100.74 during the quarter.
On 02/18/2023, Westlake Corp traded for a price of $122.51 per share and a market cap of $15.62Bil. The stock has returned 12.83% over the past year.
GuruFocus gives the company a financial strength rating of 6 out of 10 and a profitability rating of 10 out of 10.
In terms of valuation, Westlake Corp has a price-earnings ratio of 5.97, a price-book ratio of 1.63, a price-earnings-to-growth (PEG) ratio of 0.39, a EV-to-Ebitda ratio of 4.12 and a price-sales ratio of 1.00.
The price-to-GF Value ratio is 0.84, earning the stock a GF Value rank of 9.
Please note, the numbers and facts quoted are as of the writing of this article and may not factor in the latest trading data or company announcements.
When GuruFocus covers insider information, we only track open market or the private purchase and sale of common stock with the transaction code of P or S. Therefore, all the transactions mentioned in this article are only the ones with transaction code of P or S.
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