Tracking Alex Roepers’ Atlantic Investment Management Portfolio – Q1 2022 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 5/16/2022. 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 Q4 2021.

This quarter, Roepers’ 13F portfolio value decreased from ~$358M to ~$310M. The number of holdings increased from 10 to 11. The top three holdings are at ~46% while the top five are at ~70% of the 13F assets: Westrock Company, Huntsman Corp, Eastman Chemical, Univar Solutions, and Timken.

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New Stakes:

Ralph Lauren (RL): RL is an 8.23% of the portfolio stake established this quarter at prices between ~$101 and ~$134 and the stock currently trades at ~$106.

Stake Disposals:

None.

Stake Increases:

Timken Company (TKR): TKR is a ~10% of the portfolio position established last quarter at prices between ~$64 and ~$77. This quarter saw a one-third stake increase at prices between ~$59 and ~$75. The stock currently trades at $63.14.

Goodyear Tire & Rubber (GT): GT is a large ~9% of the portfolio position purchased in Q3 2021 at prices between ~$14.50 and ~$18.75. Last quarter saw a ~5% trimming while this quarter there was a ~13% increase. The stock currently trades at $13.69.

Lear Corp. (LEA): LEA is a large ~8% of the portfolio position established in Q4 2020 at prices between ~$113 and ~$165 and the stock currently trades at ~$141. There was a ~12% trimming last quarter at prices between ~$146 and ~$188 while this quarter there was minor ~5% increase.

Stake Decreases:

WestRock Co. (WRK): WRK is currently the largest 13F position at 14.55% 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. The two quarters through Q3 2021 had seen a ~22% selling at prices between ~$48 and ~$62. The stock is currently at $48.59. Last quarter saw a ~15% stake increase while this quarter there was similar trimming.

Huntsman Corp. (HUN): HUN is currently the second-largest position at 13.46% 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. This quarter saw a ~36% reduction at prices between ~$35 and ~$41. The stock currently trades at $36.21.

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.

Eastman Chemical (EMN): EMN was a large stake established in Q4 2015 at prices between $65 and $74. The position has wavered. Recent activity follows: H2 2019 and Q1 2020 had seen the position sold down at prices between $38 and $83.90. It was re-built last quarter at prices between ~$101 and ~$121. There was a ~25% selling this quarter at prices between ~$105 and ~$128. The stock is now at ~$111 and the stake is at 11.36% of the portfolio.

Univar Solutions (UNVR): The large (top five) ~11% 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. This quarter saw a ~45% selling at prices between ~$26.50 and ~$34. The stock currently trades at $32.21.

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. Last quarter saw a ~11% stake increase while this quarter there was a ~17% trimming. The stock is now at $48.96.

Nomad Foods (NOMD): NOMD is a 1.31% position established over the last two quarters at prices between ~$24 and ~$29 and the stock currently trades well below that range at $20.73. There was a ~25% reduction this quarter at prices between ~$20 and ~$27.

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.

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: Q4 2020 saw a ~45% selling 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 $16.68, and the stake is now small at 2.79% of the portfolio.

The spreadsheet below highlights changes to Roepers’ 13F stock holdings in Q1 2022: