In its latest 13F filing, Kahn Brothers, managed by Irving Kahn, disclosed three of its best stocks at the end of the third quarter of 2014. The stocks are Merck & Co., Inc. (NYSE:MRK), Citigroup Inc (NYSE:C) and Pfizer Inc. (NYSE:PFE). The fund employs a variety of methodologies in its investments and such include management quality and book value. Kahn Brothers’ equity portfolio value declined to about $615 million in the latest filing from more than $687 million at the end of the second quarter of 2014.
Of the fund’s top three equity stakes, Merck & Co., Inc. (NYSE:MRK) is the largest as the fund owns more than 1.1 million shares there, according to the latest filing. It owned more than 1.12 million shares in the company at the end of the second quarter of 2014. That means that Kahn Brothers reduced its equity holding in the drug company. Its latest holding in the stock carries a value of nearly $66 million.
Merck & Co., Inc. (NYSE:MRK) is also a large position in the portfolio of Sarissa Capital Management, led by Alex Denner. The fund owned 400,000 shares in the company at the closing of the second quarter of 2014.
Citigroup Inc (NYSE:C) is the second largest equity stake in the portfolio of Kahn Brothers. The fund owned more than 1.2 million shares worth almost $64 million at the end of the third quarter of 2014 in the company. That was a reduction in equity holding in the financial services company because it owned nearly 1.4 million shares there in the previous report.
Citigroup Inc (NYSE:C) witnessed a number of insider buying earlier this year but of late insiders are selling the stock. The company’s CEO, Francisco Aristeguieta, reduced exposure to the equity by offloading 1,000 shares last month.
Pfizer Inc. (NYSE:PFE) ends the list of the best three stocks in the portfolio of Kahn Brothers. Its holding in the drug company at the end of the third quarter of 2014 was nearly 1.99 million shares, bearing an estimated value of $59 million. However, the new position reflects a decline because the fund held more than 2.1 million shares in Pfizer Inc. (NYSE:PFE) at the end of the second quarter of 2014.
Pfizer Inc. (NYSE:PFE)’s EVP, H Charles Hill, this week offloaded 99,478 shares of the company. There have not been any insider purchases in the stock this year.