Steven Scruggs' Strategic Moves: A Deep Dive into the Q2 2024 Portfolio Adjustments
Highlighting Major Transactions and Their Impact on the Investment Landscape
Steven Scruggs (Trades, Portfolio), a seasoned portfolio manager at Bragg Financial Advisors since 1999, recently disclosed his investment activities for the second quarter of 2024 through the latest N-PORT filing. Scruggs, who also serves as the Director of Research and a member of the Investment Committee at BFA, applies a rigorous, fundamental, bottom-up analysis approach to investing. His strategy, deeply rooted in the principles of Benjamin Graham, focuses on identifying small-cap value stocks that are undervalued relative to their intrinsic worth. This meticulous process involves a blend of Quantitative & Qualitative Analysis, scrutinizing Balance Sheets, Valuations, Management capabilities, and sectoral as well as industry trends.
Summary of New Buys
During the second quarter of 2024, Steven Scruggs (Trades, Portfolio) made notable additions to his portfolio, including a significant new position in Brookfield Asset Management Ltd (NYSE:BAM). He purchased 185,915 shares, which now represent 1.12% of his portfolio, with a total value of $7.07 million.
Key Position Increases
Scruggs actively increased his stakes in several companies, with the most prominent being Enstar Group Ltd (NASDAQ:ESGR) and MSC Industrial Direct Co Inc (NYSE:MSM). He added 17,433 shares to his existing holdings in ESGR, bringing the total to 62,211 shares, marking a substantial 38.93% increase. This adjustment had a 0.84% impact on his current portfolio, valuing it at $19.02 million. Similarly, the addition of 65,000 shares to MSM resulted in a 33.58% increase in share count, bringing the total holdings to 258,539 shares valued at $20.50 million.
Summary of Sold Out Positions
The quarter also saw Scruggs exiting positions in two companies. He sold all 408,928 shares of American Equity Investment Life Holding Co (AEL), which had a -3.57% impact on his portfolio. Additionally, he liquidated his position in United Natural Foods Inc (NYSE:UNFI), selling all 41,653 shares, which influenced his portfolio by -0.07%.
Key Position Reductions
Reductions were also part of Scruggs' strategy this quarter. He significantly reduced his stake in Deckers Outdoor Corp (NYSE:DECK) by 8,761 shares, resulting in a -57.05% decrease in shares and a -1.28% impact on the portfolio. Deckers Outdoor Corp traded at an average price of $923.11 during the quarter and has seen a return of 11.42% over the past three months and 35.75% year-to-date. Additionally, TD Synnex Corp (NYSE:SNX) saw a reduction of 19,831 shares, a -6.52% decrease, impacting the portfolio by -0.35%.