Alex Roepers’ Atlantic Investment Management Portfolio Update

This article is part of a series that provides an ongoing analysis of the changes made to Alex Roepers’ 13F portfolio on a quarterly basis. It is based on Roepers’ regulatory 13F Form filed on 2/14/2022. Please visit our Tracking Alex Roepers’ Atlantic Investment Management Portfolio article for an idea on his investment philosophy and our last update for the fund’s moves during Q3 2021.

This quarter, Roepers’ 13F portfolio value increased from ~$298M to ~$358M. The number of holdings decreased from 11 to 10. The top three holdings are at ~46% while the top five are at ~70% of the 13F assets: Huntsman Corp., Univar Solutions, Eastman Chemical, WestRock Company, and Avnet.

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New Stakes:

Timken Company (TKR): TKR is a 7.52% of the portfolio position established this quarter at prices between ~$64 and ~$77 and the stock currently trades just below that range at $62.41.

Stake Disposals:

Berry Global (BERY): BERY was a large 8.85% of the portfolio stake established in Q2 2021 at prices between ~$61 and ~$71. There was a one-third selling last quarter at prices between ~$60 and ~$69. The disposal this quarter was at prices between ~$60 and ~$74. The stock is now at $56.76.

Builders FirstSource (BLDR): The 1.74% BLDR stake was purchased last quarter at prices between ~$40.50 and ~$55. The position was sold this quarter at prices between ~$52 and ~$86. The stock currently trades at $73.85.

Stake Increases:

Eastman Chemical (EMN): EMN was a large stake established in Q4 2015 at prices between $65 and $74. The position was since sold down. Recent activity follows: It was rebuilt in Q1 2019 at prices between $71 and $85. H2 2019 had seen a ~45% selling at prices between $61.50 and $83.90. That was followed with another ~75% selling in Q1 2020 at prices between $38 and $79. The position was built again this quarter at prices between ~$101 and ~$121. The stock is now at ~$109 and the stake is at ~14% of the portfolio.

WestRock Co (WRK): WRK is a large (top five) position at 13.52% of the portfolio. It was built in Q4 2019 at prices between $33.50 and $43.25. Q1 2020 saw a ~17% selling while next quarter there was a two-thirds increase at prices between $24 and $34. Q4 2020 saw a ~10% trimming while next quarter there was a ~20% stake increase at prices between ~$41 and ~$54. Last two quarters had seen a ~22% selling at prices between ~$48 and ~$62. This quarter saw a ~15% stake increase. The stock is currently at $42.49.

Avnet Inc. (AVT): The large ~10% AVT stake was purchased in Q4 2020 at prices between ~$24.50 and ~$35.25. There was a ~30% stake increase next quarter at prices between ~$35 and ~$41.50. The stock is now at $39.83. This quarter also saw a ~11% stake increase.

Nomad Foods (NOMD): NOMD is a 1.72% position established over the last two quarters at prices between ~$24 and ~$29 and the stock currently trades well below that range at $20.85.

Note: Nomad Foods is back in the portfolio after a quarter’s gap. A similar stake was established in Q4 2020 at prices between ~$22.60 and ~$26.15. It was eliminated next quarter at prices between ~$27.50 and ~$31.50.

Stake Decreases:

Huntsman Corp (HUN): HUN is currently the largest position at ~17% of the portfolio. It was established in Q1 2021 at prices between ~$25 and ~$29.50. The stake was more than doubled next quarter at prices between ~$25 and ~$31.60. The stock currently trades at $36.96. There was a ~15% trimming over the last two quarters.

Note: Huntsman is a frequently traded pick in the portfolio. Details of the latest roundtrip follow: It was a ~5% of the portfolio stake established in Q2 2017 at prices between $23 and $27. The five quarters through Q2 2019 had seen a combined ~50% selling at prices between $17.35 and $35.30. That was followed with another two-thirds selling next quarter at prices between $18.25 and $23.50. Q4 2019 saw the position almost eliminated at prices between $21.50 and $25. The remainder stake was disposed in H1 2020.

Univar Solutions (UNVR): The large (top three) ~15% of the portfolio stake in UNVR was established in Q2 2020 at prices between $9.60 and $18.15. The two quarters through Q1 2021 had seen a one-third stake increase at prices between ~$16.50 and ~$22. The stock currently trades at $29.52. There was a ~9% trimming this quarter.

Goodyear Tire & Rubber (GT): GT is a large ~10% of the portfolio position purchased last quarter at prices between ~$14.50 and ~$18.75. The stock currently trades below that range at $13.13. This quarter saw a ~5% trimming.

Lear Corp. (LEA): LEA is a large ~9% of the portfolio position established in Q4 2020 at prices between ~$113 and ~$165 and the stock currently trades at ~$141. Last three quarters had seen only minor adjustments. There was a ~12% trimming this quarter at prices between ~$146 and ~$188.

Kept Steady:

O-I Glass (OI) previously Owens Illinois: OI is a very long-term stake. In 2008, the position was minutely small and was built to 11.2M shares by 2012 through consistent buying. Recent activity follows: Q2 to Q4 2019 had seen a ~85% stake increase at prices between $8.50 and $20. H1 2020 saw a ~35% selling at prices between $4.65 and $14.85. That was followed with a ~45% reduction in Q4 2020 at prices between ~$9.40 and ~$13. The two quarters through Q2 2021 had seen another ~75% selling at prices between $11.50 and $19.30. The stock currently trades at $12.10, and the stake is at 2.20% of the portfolio.

The spreadsheet below highlights changes to Roepers’ 13F stock holdings in Q4 2021: