Five Big Buys by Manning & Napier

Dr. Osman is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.

Manning & Napier Advisors is one of the largest fund managers in the market. The company applies an active portfolio management approach. The goal of Manning & Napier's investments is to provide competitive absolute returns over the market cycle. In order to achieve this goal, the company utilizes a variety of equity, fixed income, and blended asset portfolios.

In the last quarter, the fund manager opened a position in 20 stocks and sold out 22 stocks. In this article, I briefly examine the major buys of Manning & Napier Advisors in the latest quarter. These are Tyson Foods (NYSE: TSN)Manpower (NYSE: MAN)LinkedIn Corp (NYSE: LNKD), MarketAxess Holding (NASDAQ: MKTX), and Bankrate (NYSE: RATE).

<table> <tbody> <tr> <td> <p>Stock</p> </td> <td> <p><strong>Shares Held</strong></p> </td> <td> <p><strong>Market Value</strong></p> </td> <td> <p><strong>% of Portfolio</strong></p> </td> <td> <p><strong>% Change</strong></p> </td> </tr> <tr> <td> <p>Tyson Foods</p> </td> <td> <p>5,053,940</p> </td> <td> <p>$ 80,964,121</p> </td> <td> <p>0.42%</p> </td> <td> <p>New</p> </td> </tr> <tr> <td> <p>Manpower</p> </td> <td> <p>1,886,399</p> </td> <td> <p>$ 69,419,482</p> </td> <td> <p>0.36%</p> </td> <td> <p>New</p> </td> </tr> <tr> <td> <p>Linked IN Corp</p> </td> <td> <p>570,815</p> </td> <td> <p>$ 68,726,127</p> </td> <td> <p>0.36%</p> </td> <td> <p>New</p> </td> </tr> <tr> <td> <p>MarketAxess</p> </td> <td> <p>761,650</p> </td> <td> <p>$ 24,075,757</p> </td> <td> <p>0.12%</p> </td> <td> <p>New</p> </td> </tr> <tr> <td> <p>Bankrate Inc</p> </td> <td> <p>862,150</p> </td> <td> <p>$ 13,432,297</p> </td> <td> <p>0.07%</p> </td> <td> <p>New</p> </td> </tr> </tbody> </table>

Source: whalewisdom.com

Tyson Foods

Tyson Foods is the largest (world's 2nd largest) exporter and producer of beef, pork, and chicken products in the U.S. It provides meat to grocery stores and worldwide fast food franchises, including McDonald's and Burger King.

In the most recent quarter, the asset manager acquired a remarkable 5,053,940 shares of Tyson Foods, amounting to $80.96 million. This represents 0.42% of the firm's total portfolio. What makes Tyson an eye-catching buy is its cheap valuation.

Tyson presents a low yield, but a risk-free divided. The company sells for a cheap P/E ratio of only 12.5. The company is expected to enjoy double-digit EPS growth rates for the following 3-5 years. If Tyson can reach those growth estimations, it can offer an amazing investment opportunity.

Manpower

Manpower Group is a labor force solutions and services corporation. The company is involved in creating and delivering high impact solutions that allow its clients to obtain their business goals. Manpower Group operates through five segments: South Europe, Americas, Asia Pacific Middle East, Northern Europe and Right Management.

Manpower enjoyed an annualized revenue growth rate of 16.6%. This is substantially better than the industry growth rate. Manpower Group currently turns every 1% of change in annual revenue into 11.7% of change in annual reported earnings. I view Manpower as a leader among its peers.

The asset manager initiated a position in Manpower in the Q3 with a purchase of 1,886,399 shares. This is equivalent to 0.36% of the overall portfolio of Manning & Napier. This is Manpower's first appearance in the 13F filing of the Manning & Napier within at least 9 quarters.

LinkedIn Corp

Business networking leader LinkedIn documented solid Q3 results. Revenue growth continued its solid path, surging 81% year over a year to $252 million. Earnings accelerated 267% year over year to $0.22 per share. LinkedIn commands a major position in the growing online professional service.

In the third quarter, Manning & Napier bought 570,815 shares of LinkedIn Corp. This is also the first time that the corporation appeared in the 13F filing of the fund manager. The purchase is equivalent to $ 68.72 million and forms 0.36% of the total portfolio of Manning & Napier.

LinkedIn trades at a higher premium and is not a stock for the faint hearted. The long run potential is in the ability for LinkedIn to impact traditional hiring markets like staffing agencies. In the near future, LinkedIn will have to continue to generate robust growth. Talent solutions keep on being the corporation's fastest-growing revenue segment.

MarketAxess Holding

MarketAxess operates an electronic trading platform that allows professionals to trade corporate bonds and fixed-income instruments. MarketAxess has an operating profit margin of 43.55%, and return on assets of 17.44%. MarketAxess has a market cap of $1.17 billion. The company's dividend yield stood at 1.17% and payout ratio at 31.48%. MarketAxess is a high growth stock with low debt; in fact, its debt to equity ratio stands at 0.0. The stock gained 51.06% over the last year.

Manning & Napier bought 761,650 shares of MarketAxess Holding in the latest quarter. This is equivalent to 0.12% of the asset manager's portfolio as of the end of the third quarter. Like the rest, the corporation has not been in the 13F filing of Manning & Napier in the last 8 quarters.

Bankrate

Bankrate owns and operates an Internet-based consumer banking market. The company provides over 300 financial products, including mortgages, credit cards, new and used automobile loans. Bankrate also offers certificates of deposit, money market accounts, home equity loans, checking and ATM fees, and online banking fees.

Bankrate also develops and provides web services to around 75 co-branded web sites with online partners. Bankrate provides services to the most reliable and regularly visited personal finance websites, such as Yahoo!, AOL, CNBC and Bloomberg.

Manning & Napier bought 862,150 shares of Bankrate in the most recent quarter. This is tantamount to 0.07% of the fund manager's portfolio as of the end of September. The company has not been in the 13F filing of Manning & Napier in the last 8 quarters. Bankrate is an attractive buy due to its EPS growth rate of 53.27% and net margin of 11%. In addition, the company's projected EPS growth rate is 29.11%.


ecofinstat has no positions in the stocks mentioned above. The Motley Fool owns shares of LinkedIn. Motley Fool newsletter services recommend LinkedIn and Bankrate. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.If you have questions about this post or the Fool’s blog network, click here for information.

blog comments powered by Disqus