Billionaire Jacob Rothschild’s Stock Picking Performance Does Not Disappoint Despite Containing Some Losers (2024)

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2. Walt Disney Co (NYSE:DIS)

– Shares Owned by RIT Capital Partners (as of December 31): 481,800

– Value of RIT Capital’s Holding (as of December 31): $50.62 Million

– Q1 Return: -5.5%

RIT Capital Partners had 481,800 shares of Walt Disney Co (NYSE:DIS) in its equity portfolio at the end of December, 27,200 shares less than at the end of the third quarter. The former stake was value at almost $50.62 million on December 31. Shares of Walt Disney are 8% in the red year-to-date, as the company has been facing numerous challenges lately. Some analysts believe that Walt Disney’s shares have been mostly weighted by cord cutting, as cord-cutting trends have triggered a wave of concerns across the entire media landscape. Just recently, Chief Operating Officer and heir apparent Tom Staggs announced he would be leaving the company, which might serve a distraction for the company’s top-tier management in the upcoming future. Mr. Staggs was the expected successor to current Chief Executive Officer Bob Iger, who is stepping down from his role in June 2018. After the somewhat surprising announcement, many believe Walt Disney will have to look for external CEO candidates. Just recently, analysts at RBC Capital Markets initiated coverage on Walt Disney with a ‘Sector Perform’ rating and a price target of $103, which yields an upside of only 7%. Shares of Walt Disney are currently trading around 15.4-times expected earnings, above the forward P/E ratio of 14.3 for the movies and entertainment industry. Lansdowne Partners, overseen by Alex Snow, had 8.24 million shares of Walt Disney Co (NYSE:DIS) in its equity portfolio at the end of 2015.

1. Colgate-Palmolive Company (NYSE:CL)

– Shares Owned by RIT Capital Partners (as of December 31): 1.04 Million

– Value of RIT Capital’s Holding (as of December 31): $69.02 Million

– Q1 Return: 6.7%

Colgate-Palmolive Company (NYSE:CL) was RIT Capital’s largest equity position at the end of 2015, comprised of nearly 1.04 million shares. The London-listed investment firm trimmed its stake in the company by 46,700 shares during the December quarter, with the “quarter-end” position accounting for 18.55% of the fund’s equity portfolio. Colgate-Palmolive is a widely-known consumer products company that sells various products across the entire globe. The company conducts its business operations through two product segments: Oral, Personal and Home Care; and Pet Nutrition. Colgate-Palmolive’s worldwide net sales totaled $16.03 billion in 2015, which decreased 7% year-on-year. The company’s volume growth of 1.5% and net selling price increases of 3% were more than offset by the negative impact of foreign exchange headwinds. Organic sales, which exclude the impact of foreign exchange, acquisitions and divestitures, reached a growth rate of 5% in 2015. Colgate-Palmolive is a member of the exclusive list of Dividend Kings, which represent companies that have increased annual dividend payments for more than 50 consecutive years. The company pays out an annualized dividend of $1.52 per share, which equates to a current yield of 2.1%. Colgate-Palmolive has seen its market capitalization gain 6% since the beginning of 2016, while its shares are currently trading at a rich forward P/E ratio of 23.6 relative to the broader market. However, the company’s forward P/E valuation multiple is much lower than the forward P/E ratio of 27.4 for the personal products industry. Jim Simons’ Renaissance Technologies owns 10.06 million shares of Colgate-Palmolive Company (NYSE:CL) as of the end of the fourth quarter of 2015.

Disclosure: None

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