GoodHaven Buys Sears Hometown; Increases Stake in Hewlett-Packard

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GoodHaven Capital Management’s portfolio showed that the market value of its assets under management increased from approximately $244.52 million to more than $257.49 million during the fourt quarter of 2012.

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Based on its latest filing with the Securities and Exchange Commission, GoodHaven Capital’s bought 24,970 shares of Sears Hometown and Outlet Stores Inc (NASDAQ:SHOS) with $813,023 market value. During the quarter, the mutual fund also increased its holdings in Sears Holdings Corporation (NASDAQ:SHLD) by 40,950 shares to 152, 972 shares. Its total stake in the company is now worth more than $6.3 million.

GoodHaven Capital also boosted its stakes Hewlett-Packard Company (NYSE:HPQ) by 589,981 shares. Hewlett-Packard is the second largest position of the mutual fund, which represents 11.95 percent in its portfolio with an estimated market value of $2.16 million.

In their 4Q letter to investors, Larry Pitkowsky and Keith Trauner, co-founder and portfolio managers of GoodHaven Capital cited their reasons for being bullish on the shares of Hewlett-Packard Company (NYSE:HPQ). According to them, HP is an iconic technology company that sells more than $450 million services every day despite the material challenges confronting it.

They emphasized, “In highly competitive markets and with slow growth in many areas, we do not expect a quick turnaround or easy solutions. Yet as long as HP focuses on customers and continues to generate billions of dollars of pre-tax operating cash flow per year, there is little risk at current levels.”

GoodHaven Capital also boosted its stake in Microsoft Corporation (NASDAQ:MSFT) and Sprint Nextel Corporation (NYSE:S), the mutual fund acquired 67,420 shares of Microsoft and 215,520 shares of Sprint. The total market values of its stake in the two companies are more than $18 million and $12 million, respectively. Microsoft is the fifth largest position of the mutual fund representing 7.21 percent in its portfolio.

GoodHaven Capital’s top positions during the quarter in addition to Hewlett-Packard Company include Spectrum Brands Holdings, Inc (NYSE:SPB), Walter Investment Management Corp (NYSE:WAC), and Jefferies Group, Inc (NYSE:JEF). Spectrum Brands is the largest holding of the mutual fund, which account 13.66 percent, while Walter Investment and Jefferies represent 10.49 percent and 9.26 percent, respectively.

The mutual fund sold all its positions in Hartford Financial Services Group, Inc (NYSE:HIG) and Mueller Industries, Inc (NYSE:MLI).

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