Francis Chou Chou Associates Management
Francis Chou is the founder of Chou Associates Management and a Canadian value investor known for deep-value and special-situation securities. His funds have historically owned a mix of equities and distressed or complex instruments when prices offered a margin of safety. Chou’s annual reports are read for candid discussion of mistakes, opportunities, and long-term results.
Top Buys
| Rank | Stock | Value |
|---|---|---|
| 1 |
Wells Fargo
WFC
|
+$24.8M |
| 2 |
JPMorgan Chase
JPM
|
+$12.4M |
| 3 |
Bank of America
BAC
|
+$2.84M |
Top Sells
| Rank | Stock | Value |
|---|---|---|
| 1 |
WFC.WS
Wells Fargo & Company Ws
WFC.WS
|
+$22M |
| 2 |
JPM.WS
JPMorgan Chase
JPM.WS
|
+$10.6M |
| 3 |
Goldman Sachs
GS
|
+$5.82M |
| 4 |
Citigroup
C
|
+$5.66M |
| 5 |
Nokia
NOK
|
+$3.74M |
Sector Composition
| Rank | Sector | Weight |
|---|---|---|
| 1 | Financials | 39.2% |
| 2 | Healthcare | 28.09% |
| 3 | Materials | 20.36% |
| 4 | Technology | 2.01% |
| 5 | Consumer Discretionary | 1.85% |
| Name | Market Value | Portfolio Weight | Shares or Principal |
Change in Stake | Capital Flow | |
|---|---|---|---|---|---|---|
|
RFP
1
DELISTED
Resolute Forest Products Inc.
RFP
| $59.2M | 19.89% |
4,571,960
| – | – |
|
2
Berkshire Hathaway Class A
BRK.A
$1.06T
| $48M | 16.12% |
150
| – | – |
|
3
Bausch Health
BHC
$2.41B
| $42.3M | 14.22% |
1,648,992
| – | – |
|
|
4
Wells Fargo
WFC
$254B
| $22.8M | 7.67% |
+434,542
| New | +$24.8M |
|
5
Sanofi
SNY
$110B
| $16.1M | 5.4% |
360,000
-50,000
| -12% | -$2.14M |
|
|
ENDP
6
DELISTED
Endo International plc
ENDP
| $14.8M | 4.98% |
880,000
| – | – |
|
|
7
JPMorgan Chase
JPM
$935B
| $12.3M | 4.14% |
+109,275
| New | +$12.4M |
|
|
ENDP
8
CALL
DELISTED
Endo International plc
ENDP
| $11.8M | 3.96% |
+700,000
| New | +$9.94M |
|
|
9
Goldman Sachs
GS
$303B
| $11.2M | 3.77% |
50,000
-25,000
| -33% | -$5.82M |
|
10
MBIA
MBI
$250M
| $10.2M | 3.44% |
958,097
-122,700
| -11% | -$1.26M |
|
11
DaVita
DVA
$11.1B
| $10.1M | 3.39% |
140,743
| – | – |
|
|
12
Citigroup
C
$221B
| $9.33M | 3.13% |
130,000
-80,000
| -38% | -$5.66M |
|
|
RFP
13
CALL
DELISTED
Resolute Forest Products Inc.
RFP
| $7.12M | 2.39% |
550,000
+400,000
| +267% | +$5M |
|
14
BlackBerry
BB
$4.71B
| $5.99M | 2.01% |
529,040
| – | – |
|
|
SHOS
15
DELISTED
Sears Hometown and Outlet Stores, Inc.
SHOS
| $3.74M | 1.26% |
1,311,960
-10,249
| -0.8% | -$26.7K |
|
|
16
Bank of America
BAC
$431B
| $2.75M | 0.92% |
+93,376
| New | +$2.84M |
|
|
SAVE
17
DELISTED
Spirit Airlines, Inc.
SAVE
| $2.35M | 0.79% |
50,000
| – | – |
|
18
POSCO
PKX
$17.3B
| $1.39M | 0.47% |
21,000
| – | – |
|
19
China Yuchai International
CYD
$1.5B
| $1.27M | 0.43% |
73,364
| – | – |
|
20
Allegiant Air
ALGT
$2.24B
| $547K | 0.18% |
4,317
| – | – |
|
|
SHLD
21
DELISTED
Sears Holding Corporation
SHLD
| $489K | 0.16% |
505,381
-626,229
| -55% | -$1.04M |
|
|
ASCMA
22
DELISTED
Ascent Capital Group, Inc. Series A
ASCMA
| $474K | 0.16% |
268,000
-38,000
| -12% | -$97.7K |
|
23
Ryanair
RYAAY
$28.9B
| $439K | 0.15% |
11,438
| – | – |
|
24
Teva Pharmaceuticals
TEVA
$43.5B
| $323K | 0.11% |
15,000
| – | – |
|
|
NXH
25
Neighborhood Intelligence, Inc. Common Stock
NXH
$396M
| – | – |
-8,851
| Closed | -$224K |
|
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Francis Chou's Q3 2018 Portfolio in Review
As of Q3 2018, Francis Chou held 30 positions worth $298M, up 13% from $264M the previous quarter. Its ten largest holdings account for 84% of the portfolio.
Francis Chou's Q3 2018 filing shows 4 new, 1 increased, 7 reduced and 5 closed positions. Its largest new stake was Wells Fargo: 434,542 shares worth $22.8M. The largest sale was Wells Fargo & Company Ws, an estimated $22M.
By sector, the portfolio is most concentrated in Financials at 39% of assets, up from 31% a quarter earlier, followed by Healthcare and Materials.
- Francis Chou's largest Q3 2018 buy was Wells Fargo: 434,542 shares worth $22.8M.
- Francis Chou's biggest Q3 2018 reduction was Goldman Sachs, cutting an estimated $5.82M.
- Francis Chou fully exited Wells Fargo & Company Ws in Q3 2018, selling an estimated $22M.
- Francis Chou's ten largest holdings make up 84% of its $298M portfolio in Q3 2018.
- Francis Chou opened 4 new positions and closed 5 in Q3 2018.
- Francis Chou's portfolio value rose 13% quarter-over-quarter to $298M.
Based on Chou Associates Management's 13F filing for Q3 2018, filed 13 Nov 2018.