Seth Klarman Nearly Doubles Stake in Twenty-First Century Fox

GuruFocus.com

Sun, May 15, 2016, 9:21 PM

- By Kyle Ferguson

Value investor Seth Klarman (Trades, Portfolio) boosted his stake in Twenty-First Century Fox Inc. (FOXA) during the first quarter, adding ‘,599,4—— shares of the company at an average price of $—6.74. Klarman now owns 7,696,9—— shares of Twenty-First Century Fox.

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FOXA –5-Year Financial Data
The intrinsic value of FOXA
Peter Lynch Chart of FOXA

Twenty First Century Fox has a market cap of $54.9– billion, a P/E ratio of —5.…—, an enterprise value of $7….85 billion, a P/B ratio of ‘.8– and a dividend yield of –.…‘.

Twenty-First Century Fox is a diversified media company that was originally founded in –979. The company operates in cable network television, television broadcasting, filmed entertainment, and direct broadcast satellite television. The company conducts its business throughout the world primarily in the U.S., the U.K., Continental Europe, Asia and Latin America.

Twenty-First Century Fox has a 7/–… financial strength rating and a 7/–… profitability and growth rating according to GuruFocus. The company has one good sign that may have influenced Klarman to nearly double his stake in the company during the quarter. Twenty-First Century Fox is expanding with an operating margin rating of ——.66% according to GuruFocus. This ranks the company above 85% of the companies in the industry.

According to the company website, on May 4, —–st Century Fox reported third quarter total segment operating income before depreciation and amortization of $–.88 billion, a –—% increase over the prior year quarter, with a total revenue Increase of 6%, and income from continuing operations per share of 44 cents. It is possible that Klarman believes that Twenty-First Century Fox has a differentation advantage by having ‘7 years of experience within the industry. This, combined with excellent operating margin expansion, may have influenced Klarman to nearly double his stake in the company at the end of the first quarter.

Below is a Peter Lynch chart for Twenty-First Century Fox Inc.