Channing Capital 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.
Channing Capital Management, LLC is an investment management firm based out of Chicago, Illinois. The company was originally established in 2003 by Wendell Eric Mackey and Eric Taylor McKissack, both of whom are still with the company and of whom McKissack acts as the CEO and CIO of the firm. Channing Capital Management conducts its research internally, utilizing a fundamental methodology to make its investment decisions. The company invests with a bottom up stock picking approach, allocating its assets in the value stocks of small to mid-cap companies in the public equity markets within the United States. Channing Capital Management invests most heavily in the finance sector, which alone makes up over a quarter of the firm’s total asset allocations, and also invests in the industrials, which makes up another fifth of its allocations, consumer discretionary, information technology, and energy sectors, among other sectors to a lesser degree, in order of decreasing allocation. The company holds its allocations for just under 16 quarters on average although the firm only holds its top 10 allocations for 1.8 quarters on average. In the most recent quarter, Channing Capital Management had a turnover rate of approximately 9.2%. Channing Capital Management now operates with 15 employees of which 6 are investment professionals. The company currently oversees over $2.1 billion in total assets under management spread across 58 total accounts, all of which are discretionary accounts. Both of Channing Capital Management’s total number of accounts and total assets under management have been increasing in recent years with its total assets under management growing significantly, increasing from $470 million back in 2010 to well over four times that amount today. The company currently offers a variety of strategies including its Small Cap Value, Mid Cap Value, All Cap Value, SMID Cap Value, and Large Cap Value strategies.
As of the latest 13F report, the guru’s equity portfolio contained 108 stocks valued at a total of $3.15Bil. The top holdings were ATI(2.52%), MSA(2.49%), and AVNT(2.46%).
According to GuruFocus data, these were Channing Capital Management, LLC’s top five trades of the quarter.
Synovus Financial Corp
The guru sold out of their 1,865,775-share investment in NYSE:SNV. Previously, the stock had a 2.42% weight in the equity portfolio. Shares traded for an average price of $39.7 during the quarter.
On 02/18/2023, Synovus Financial Corp traded for a price of $43.22 per share and a market cap of $6.29Bil. The stock has returned -14.97% over the past year.
GuruFocus gives the company a financial strength rating of 3 out of 10 and a profitability rating of 5 out of 10.
In terms of valuation, Synovus Financial Corp has a price-earnings ratio of 8.73, a price-book ratio of 1.60, a price-earnings-to-growth (PEG) ratio of 1.06 and a price-sales ratio of 2.85.
The price-to-GF Value ratio is 0.95, earning the stock a GF Value rank of 6.
Regal Rexnord Corp
Channing Capital Management, LLC reduced their investment in NYSE:RRX by 482,629 shares. The trade had a 2.34% impact on the equity portfolio. During the quarter, the stock traded for an average price of $131.11.
On 02/18/2023, Regal Rexnord Corp traded for a price of $159.71 per share and a market cap of $10.57Bil. The stock has returned 2.20% 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, Regal Rexnord Corp has a price-earnings ratio of 21.88, a price-book ratio of 1.65, a price-earnings-to-growth (PEG) ratio of 4.76, a EV-to-Ebitda ratio of 11.83 and a price-sales ratio of 2.04.
The price-to-GF Value ratio is 1.17, earning the stock a GF Value rank of 3.
Topgolf Callaway Brands Corp
The guru sold out of their 3,141,519-share investment in NYSE:MODG. Previously, the stock had a 2.09% weight in the equity portfolio. Shares traded for an average price of $19.7 during the quarter.
On 02/18/2023, Topgolf Callaway Brands Corp traded for a price of $23.81 per share and a market cap of $4.40Bil. The stock has returned 1.71% 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, Topgolf Callaway Brands Corp has a price-earnings ratio of 30.53, a price-book ratio of 1.17, a EV-to-Ebitda ratio of 15.01 and a price-sales ratio of 1.17.
The price-to-GF Value ratio is 0.91, earning the stock a GF Value rank of 7.
XPO Inc
During the quarter, Channing Capital Management, LLC bought 1,840,383 shares of NYSE:XPO for a total holding of 2,099,196. The trade had a 1.95% impact on the equity portfolio. During the quarter, the stock traded for an average price of $33.69.
On 02/18/2023, XPO Inc traded for a price of $37.29 per share and a market cap of $4.31Bil. The stock has returned -11.55% over the past year.
GuruFocus gives the company a financial strength rating of 5 out of 10 and a profitability rating of 6 out of 10.
In terms of valuation, XPO Inc has a price-earnings ratio of 6.47, a price-book ratio of 4.24, a EV-to-Ebitda ratio of 9.08 and a price-sales ratio of 0.56.
The price-to-GF Value ratio is 1.13, earning the stock a GF Value rank of 3.
MKS Instruments Inc
During the quarter, Channing Capital Management, LLC bought 660,665 shares of NAS:MKSI for a total holding of 765,532. The trade had a 1.78% impact on the equity portfolio. During the quarter, the stock traded for an average price of $80.14.
On 02/18/2023, MKS Instruments Inc traded for a price of $95.23999999999999 per share and a market cap of $6.33Bil. The stock has returned -36.88% over the past year.
GuruFocus gives the company a financial strength rating of 4 out of 10 and a profitability rating of 9 out of 10.
In terms of valuation, MKS Instruments Inc has a price-earnings ratio of 12.42, a price-book ratio of 1.53, a price-earnings-to-growth (PEG) ratio of 0.72, a EV-to-Ebitda ratio of 13.72 and a price-sales ratio of 1.66.
The price-to-GF Value ratio is 0.55, earning the stock a GF Value rank of 8.
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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