Sam Zell’s Public Portfolio Up 19.5%
(Nov. 13, 2009) Much is made of Chicago billionaire investor Sam Zell’s prescient nature and ability to correctly time the markets, but what is his real track record over the challenging past 12 months with the public companies he owns?
A review of the stock charts reveals that the share prices of the five public companies that Zell leads (all stocks traded on the New York Stock Exchange) are up a total of 19.5%, compared to gains of 32.7% for the NYSE Index and 23% for the Dow Jones Industrial Average during the same period, from Nov. 12, 2008 to Nov. 12, 2009.
His major stumbling block has been Capital Trust, a mortgage REIT, which is down a whopping 321% over the past year. The REIT has been saddled with impaired and non-performing loans for some time.
Also, Zell’s Covanta, an energy-from-waste concern, has been hit by the slowed economy.
Here is the portfolio tally:
Equity Residential (EQR)
11/12/09 close: $31.11
11/12/08 close: $29.15
Return: +67%
Equity Lifestyle Properties Inc. (ELS)
11/12/09 close: $46.95
11/12/08 close: $35.02
Return: +34%
Capital Trust Inc. (CT)
11/12/09 close: $1.35
11/12/08 close: $5.69
Return: -321.5%
Covanta Holding Corp. (CVA)
11/12/09 close: $17.37
11/12/08 close: $19.97
Return: -15%
Anixter International Inc. (AXE)
11/12/09 close: $44.04
11/12/08 close: $28.04
Return: +57%
Of course, Zell would be the first to say that stock price is only one measure of performance, and it’s often not the best barometer. For example, his decision to sell Equity Office at the height of the frothy CRE market in late 2006 was largely due to his disenchantment with what he perceived as Wall Street’s low valuation of his company.
Diversification, it seems, is key in both good times and in bad.
