The company’s CEO, Ricky Sandler, had already started his own business with Wayne Cooperman in the 1990s, before founding Eminence Capital. This name may ring a bell for you, as Wayne Cooperman is the son of Leon Cooperman, the former head of the asset management division of US investment bank Goldman Sachs and now one of the most influential large investors in the US.

Ricky Sandler invests in both significantly undervalued value stocks and stocks of very fast-growing companies. Regardless of which category he invests in, a look at his stock portfolio shows that he values strong customer loyalty in the companies he invests in. With his investment style, Sandler can look back on an impressive return.

According to the analysis of Gurufocus.com, Eminence Capital has achieved a return of +1,530% from April 2001 to the end of 2021, significantly outperforming the US benchmark index S&P 500 (including dividends +472%).

Blindly following a single large investor without knowing the background of each stock position is certainly not advisable. However, if you are looking for undervalued US stocks, it may be worth taking a look at Ricky Sandler’s investments.

These are currently the three largest stock positions of Eminence Capital:

Ashland Global Holdings: The largest stock position is that of specialty chemicals company Ashland Global Holdings. In total, around $287 million or 5.6% of the total assets are invested in the stock. This corresponds to 6.86% of all outstanding shares. In the last quarter, Eminence Capital slightly reduced the position (-2.81%).

Ashland is a company founded in the United States in 1924 and is active in over 100 countries worldwide. The company’s headquarters are located in Covington, Kentucky. Ashland produces specialty chemicals, intermediates, solvents, and motor oil. In the last quarter (until the end of September), the company reported a slight loss of $4 million on a revenue of $517 million.

Uber: In second place of the top positions is the stock of ride-hailing company Uber. Sandler currently holds shares worth $187 million. This corresponds to 3.7% of the total managed assets. In 2023, the Uber stock had a tremendous run (+147%). Most recently, the large investor reduced the position by 12.7% after the strong price performance. In total, Eminence Capital holds 0.20% of all outstanding shares of the company.

Uber operates a platform for ride-hailing services, including ride-hailing for consumers, delivery services, and freight services. The company was founded in 2009 and has its headquarters in San Francisco, California.

In the third quarter of 2023, the company increased its revenue by 11% compared to the previous year to $9.29 billion. The ride-hailing company also reported a net profit of $221 million.

Graphic Packaging Holding: The third-largest stock position is in the packaging specialist Graphic Packaging Holding. Sandler has invested $167 million or approximately 3.32% of his assets in the stock. This means that Sandler currently holds 2.46% of all outstanding shares of the company. Most recently, the large investor increased his position by another 27%.

Graphic Packaging Holding is a leading company in the field of packaging solutions, offering its customers a wide range of products and services. The company is divided into several business areas, including consumer packaging (packaging solutions for food and beverages), paperboard mills (paper production), and recycling (recycling facilities in the US and Europe).

In the third quarter, the company reported a net profit of $170 million on a revenue of $2.34 billion.