Indie Research
'Mini-Berkshire' Could Rebound After Tough 2008
Wednesday January 28, 9:29 am ET
By the tickerspy.com Staff
Quite a few investors with impressive long-term track records endured an uncharacteristically challenging year in 2008. Among them were Ian Cumming and Joseph Steinberg of Leucadia National (NYSE: LUK - News), a diversified holding company that has sometimes been described as a "mini-Berkshire Hathaway" (NYSE: BRK-A - News, BRK-B - News).
The unique and secretive firm, which has investments in everything from wineries to mines, had a disastrous 2008, dropping nearly -60% after years of steady gains. A number of factors contributed to the decline. The firm is under water on a pair of investments in the financial sector, auto finance company Americredit (NYSE: ACF - News) and investment bank Jefferies (NYSE: JEF - News), and it saw the value of its investment in an Australian iron ore mine decline as the commodities bubble popped in the summer of 2008.
Nonetheless, some market watchers are expecting Leucadia to rebound from its off year. In December, Barron's suggested Leucadia "could hit $30 in the next year if the company's equity holdings turn around and if Steinberg and Cumming take advantage of the current financial distress to display their old stock-picking magic."
Assuming that thesis still holds water, the opportunity is still there. Leucadia's shares have been flat over the last couple of months, and looking at the firm's U.S.-listed equity holdings, it's clear that none of them have yet staged a rebound. Leucadia's equity holdings at the end of Q3, the most recent quarter for which data is available, included laboratory and technical furniture products manufacturer Kewaunee Scientific (Nasdaq: KEQU - News), independent oil and gas company GeoResources (Nasdaq: GEOI - News), Cresud (Nasdaq: CRESY - News), and bank United Western Bancorp (Nasdaq: UWBK - News).
Investors hoping for a rebound will no doubt be wondering where Leucadia was putting its money during Q4.
However, investors won't be sure of where Leucadia stands now until next month, when the deadline for Q4 filings hits. At tickerspy.com, members can track Leucadia's latest holdings, see a graph of their combined performance, and be notified when new holdings are made public.
