Tom Russo Boosts Stakes in Nestle, Philip Morris, and Wells Fargo

Tom Russo Boosts Stakes in Nestle, Philip Morris, and Wells Fargo

Tom Russo Boosts Stakes in Nestle, Philip Morris, and Wells Fargo

Tom Russo’s Gardner Russo & Gardner’s updated portfolio for 2012 includes a larger position in Nestle SA (ETR:NESR) (FRA:NESR). Nestle makes up 10.7 percent of the firm’s portfolio and the position has been held since the beginning of 2011. The stake was increased by 6 percent in the last quarter. Gardner Russo increased holdings in all of its top ten, except in Philip Morris International Inc. (NYSE:PM), which was reduced by 4.8 percent. The top ten holdings make 70 percent of the $6.89 billion assets. A number of changes were made in the portfolio, small positions in 28 stocks were closed and 2 new purchases were made in Q3. Some of the highlights are as under:


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In Q3, Gardner Russo started a new position in Lonrho plc (LON:LONR) with 150,000 shares and another in SPDR S&P 500 (NYSEARCA: SPY) . The position in Wells Fargo & Company (NYSE:WFC) was increased by 6.5 percent, WFC is now 5.4 percent of the portfolio. Altria Group Inc (NYSE: MO) was reduced by 6.6 percent. The shares in Altria were sold for first time since Q2 2010.

Holdings in Brown-Forman Corporation (NYSE:BF.A) (NYSE:BF.B) was increased by 50 percent. Brown-Forman was down 32 percent in the third quarter. The stock has been held by Gardner Russo since 2008’s end. Holdings in Schlumberger Limited. (NYSE:SLB), Reckitt Benckiser Group Plc-ADR (PINK:RBGPY) (LON:RB), L’Oreal (EPA:OR) were all increased.

A total of 35 positions were added to in last quarter.


Major sells were executed in Staples, Inc. (NASDAQ:SPLS), the position was reduced by 98 percent. Abbott Laboratories (NYSE:ABT) was cut by more than 70 percent; Gardner Russo has been selling ABT in small amounts for the past five quarters. This is by far the largest sell off. Johnson & Johnson (NYSE:JNJ) was reduced by 54 percent and Merck & Co., Inc. (NYSE:MRK) was reduced by 14 percent. The Procter & Gamble Company (NYSE:PG) was reduced by 11 percent in Q3.

Stakes were reduced in 65 stocks in total.

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