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QVP In June 2015

The end of June was a volatile time for investors with Greek insolvency and a feared departure from the European Union, coupled with China’s free-falling market, causing considerable uncertainty. With that in mind, our signature large-cap value strategy, QVP, saw a -3.58% return for the month, slightly behind the S&P 500.

At KAM we have called for a pull-back this summer in the market and we have been vindicated in that regard with the S&P 500 peaking back in May with two unsuccessful attempts at surpassing that point to date.

However, the focus on QVP is long-term outperformance, and in that regard it continues to trump the S&P 500, beating the market for eight of the past 10 years. If you were to have invested $100,000 in QVP at the start of 2010, it would now be worth $220,955.42. Conversely, the same amount would only have grown to $185,015.69 if it had been invested in the S&P 500.

QVP's performance since the start of 2010 against the S&P 500

Now though we will take a closer look at QVP’s top performers throughout the month:

5. Newell Rubbermaid (NWL) +3.79%

The company has been focused on its Project Renewal Program in an effort seeking significant cost savings which they hope to be in the $600+ million range come 2017. With these savings being diverted to further growing their stable of brands such as Sharpie and Rubbermaid, the company hit a 52-week high in June of $41.82. This has since been surpassed this July already with a peak price of $42.50.

With a focus on further growth and pursuing additional acquisitions, the company remains a solid stock heading into the future.

4. HollyFrontier Corporation (HFC) +3.98%

HollyFrontier has appeared in our monthly lists of QVP top performers multiple times before—coming out top in our last review of May’s top movers—and the Texas oil refiner has performed admirably again in June.

June was a quiet month for the company though with little of note occurring. Keeping in mind the company’s dividend yield (TTM) of 4.87% however, their $0.33 dividend announced in May was paid at the end of the month to investors.

3. Santander Consumer USA (SC) +4.20%

The Spanish banking giant has steadily been making in-roads in the United States with a focus on subprime consumer loans for the purchase of new and used cars. Fortunately for them new auto loan registrations are at a record high thanks to low interest and unemployment rates, with default rates also being at their lower for the past twenty years too.

The company was rocked at the beginning of July though by the announcement of Thomas Dundon leaving his position as CEO with share price falling five percent. CFO Jason Kulas takes his place and will seek to continue the company’s steady progress.

2. Foot Locker (FL) +5.99%

Another familiar name on the list, the retail shoe and apparel provider continues to capitalize on the demand for basketball and running footwear for millennials. As Nike, Under Armour and other shoe manufacturers continue to prosper, so do retail insiders such as Foot Locker.

1. Valero Energy (VLO) +6.50%

Another Texas-based oil refinery rounds out the top of the list for June’s best movers for QVP. One of the top ten energy stocks of the S&P 500 for the past twelve months, Valero saw further growth in June and looks set to continue in that vein of performance for the rest of the year to come.

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