Insights into Hillman Capital's Latest Moves and Portfolio Adjustments

Mark Hillman (Trades, Portfolio), the seasoned investor and president of Hillman Capital Management, has made notable changes to his investment portfolio in the third quarter of 2024. With a career that spans decades, Hillman's investment strategy focuses on identifying undervalued companies with strong competitive advantages and temporary market mispricings. His approach emphasizes thorough analysis of cash flow, dividends, sales, earnings, book value, and growth projections.

• Warning! GuruFocus has detected 7 Warning Signs with IFF.

Summary of New Buys

During the third quarter, Hillman strategically expanded his portfolio by adding three new stocks:

• Nucor Corp (NYSE:NUE) was the largest new addition with 42,943 shares, representing 2.21% of the portfolio and valued at $6.46 million.

• SPDR S&P 500 ETF Trust (SPY) followed, comprising 0.44% of the portfolio with 2,228 shares valued at approximately $1.28 million.

• Taiwan Semiconductor Manufacturing Co Ltd (NYSE:TSM) was also added with 1,730 shares, making up 0.1% of the portfolio, valued at $300,450.

Key Position Increases

Mark Hillman (Trades, Portfolio) also significantly increased his stakes in several existing holdings:

• Zimmer Biomet Holdings Inc (NYSE:ZBH) saw an addition of 34,389 shares, bringing the total to 80,687 shares. This adjustment increased the share count by 74.28% and impacted the portfolio by 1.27%, with a total value of $8.71 million.

• Nike Inc (NYSE:NKE) was also upped by 16,408 shares, resulting in a new total of 79,408 shares. This increase represented a 26.04% rise in share count, valued at $7.02 million.

Summary of Sold Out Positions

Significant exits were made from several stocks, including:

• Kellanova Co (NYSE:K), where Hillman sold all 143,491 shares, impacting the portfolio by -2.92%.

• Bank of New York Mellon Corp (NYSE:BK), with all 112,230 shares liquidated, resulting in a -2.37% portfolio impact.

Key Position Reductions

Reductions were also notable in Hillman's portfolio adjustments:

• Adobe Inc (NASDAQ:ADBE) was reduced by 4,100 shares, decreasing the share count by 29.29% and impacting the portfolio by -0.81%. The stock traded at an average price of $548.46 during the quarter.

• Simon Property Group Inc (NYSE:SPG) saw a reduction of 5,073 shares, a -8.24% decrease, impacting the portfolio by -0.27%. The stock's price averaged $158.33 during the quarter.

Portfolio Overview

As of the third quarter of 2024, Mark Hillman (Trades, Portfolio)'s portfolio comprised 52 stocks. The top holdings included 3.61% in International Flavors & Fragrances Inc (NYSE:IFF), 3.49% in Microsoft Corp (NASDAQ:MSFT), 3.48% in AT&T Inc (NYSE:T), 3.46% in DuPont de Nemours Inc (NYSE:DD), and 3.28% in Simon Property Group Inc (NYSE:SPG). The portfolio is primarily concentrated across nine industries, including Healthcare, Communication Services, Consumer Defensive, Consumer Cyclical, Technology, Financial Services, Basic Materials, Industrials, and Real Estate.