Chou Associates

Q3 2018 13F · by Francis Chou, portfolio manager

As of: Sep 30, 2018
Filed: Nov 7, 2018
US stock: $276M · prev $260M
Positions: 22 · prev 24
Options notional: $19M
Documents: 1· no amendments

Picture92.8% US stock

Full picture · of what this 13F reports is US stock

US stock listed on a US exchange 92.8%
Foreign stock not listed in the US 0.0%
Notes debt, at principal 0.9%
Puts at notional value 0.0%
Calls at notional value 6.3%

Moves19 since the prior filing

+29.1 pp in · −35.4 pp out

New 4 +29.06 pp
Added 0 0.00 pp
Trimmed 7 −5.62 pp
Exited 6 −29.77 pp

Options: 2 moves on a notional base, in the table below.

The book

Very concentrated · behaves like 8 equal-sized positions

Very concentrated
Concentrated
Focused
Diversified

High turnover · 134% a year, about 0.7 years per position

Low
Moderate
High

Top 5 positions68% of US stock

7AB1 Resolute Forest Products held held21.4%
BRK.A Berkshire Hathaway Inc. held held17.4%
BHC Bausch Health Companies Inc new+15.33 pp new+15.3315.3%
WFC Wells Fargo & Co. new+8.27 pp new+8.278.3%
SNY Sanofi trimmed−0.50 pp trimmed−0.505.8%

Positions22 in this filing · 6 exited


7AB1Resolute Forest Products	21.44%	4,571,960	$59M	held	—	22 q
BRK.ABerkshire Hathaway Inc.	17.38%	150	$48M	held	—	22 q
BHCBausch Health Companies Inc	15.33%	1,648,992	$42M	new	+15.33 pp	new
WFCWells Fargo & Co.	8.27%	434,542	$23M	new	+8.27 pp	new
SNYSanofi	5.82%	360,000	$16M	trimmed−12%	−0.50 pp	22 q
ENDPQEndo International PLC	5.36%	880,000	$15M	held	—	7 q
JPMJPMorgan Chase & Co.	4.46%	109,275	$12M	new	+4.46 pp	new
GSGoldman Sachs Group Inc.	4.06%	50,000	$11M	trimmed−33%	−2.31 pp	22 q
MBIMBIA Inc.	3.71%	958,097	$10M	trimmed−11%	−0.05 pp	22 q
DVADaVita Inc.	3.65%	140,743	$10M	held	—	2 q
CCitigroup Inc.	3.38%	130,000	$9M	trimmed−38%	−2.03 pp	22 q
BBBlackBerry Limited	2.17%	529,040	$6M	held	—	21 q
SHOSSears Hometown and Outlet Stores, Inc.	1.35%	1,311,960	$4M	trimmed−1%	+0.28 pp	17 q
BACBank of America Corporation	1.00%	93,376	$3M	new	+1.00 pp	new
SAVEQSpirit Airlines, Inc.	0.85%	50,000	$2M	held	—	2 q
PKXPOSCO Holdings Inc.	0.50%	21,000	$1M	held	—	13 q
CYDChina Yuchai International Ltd.	0.46%	73,364	$1M	held	—	22 q
ALGTAllegiant Travel Company	0.20%	4,317	$547,000	held	—	2 q
SHLDSears Holdings Corp	0.18%	505,381	$489,000	trimmed−55%	−0.85 pp	22 q
ASCMAAscent Capital Group, Inc. Series A	0.17%	268,000	$474,000	trimmed−12%	−0.16 pp	10 q
RYAAYRyanair Holdings plc	0.16%	4,575	$439,000	held	—	12 q
TEVATeva Pharmaceutical Industries Limited	0.12%	15,000	$323,000	held	—	7 q
unresolvedValeant Pharmaceuticals Intl	—	−1,648,992	—	exited	−14.76 pp	—
unresolvedWells Fargo Warrants, 34.01 St	—	−997,500	—	exited	−8.46 pp	—
unresolvedJpmorgan Chase & Co	—	−166,977	—	exited	−4.08 pp	—
NOKNokia Corporation	—	−650,000	—	exited	−1.44 pp	—
unresolvedBank Of America Corporation	—	−149,476	—	exited	−0.94 pp	—
NXHNeighborhood Intelligence, Inc.	—	−6,650	—	exited	−0.09 pp	—