Donald Smith & Co Exits United States Steel Corp, Impacting Portfolio by -4.37%

Insightful Moves in the Second Quarter of 2025

Donald Smith & Co (Trades, Portfolio) recently submitted the 13F filing for the second quarter of 2025, providing insights into its investment moves during this period. Donald G. Smith was the Chief Investment Officer of Donald Smith & Co (Trades, Portfolio) from its founding in 1980 until he passed away in 2019. He began his career as an analyst with Capital Research Company and subsequently worked at Capital Guardian Trust Co. In 1980, he became the CIO of Home Insurance Company and the President of Home Portfolio Advisors, Inc., which he bought and re-named to Donald Smith & Co (Trades, Portfolio). Smith was awarded a B.S. in Finance and Accounting by the University of Illinois, an MBA by Harvard University, and a J.D. from UCLA Law School and was admitted to the Bar Association of California. He once volunteered for Ben Graham at UCLA to conduct a study on a low P/E strategy. Donald Smith is a deep-value manager employing a strict bottom-up approach. He invests in stocks of out-of-favor companies selling at discounts to tangible book value. He looks for companies in the bottom decile of price-to-tangible book ratios and a positive outlook for earnings potential over the next 2-4 years.

Warning! GuruFocus has detected 6 Warning Signs with AER.

Summary of New Buy

Donald Smith & Co (Trades, Portfolio) added a total of 6 stocks, among them:

The most significant addition was Mohawk Industries Inc (NYSE:MHK), with 277,390 shares, accounting for 0.68% of the portfolio and a total value of $29,081,570 million. The second largest addition to the portfolio was Gerdau SA (NYSE:GGB), consisting of 5,972,460 shares, representing approximately 0.41% of the portfolio, with a total value of $17,439,580. The third largest addition was Hamilton Insurance Group Ltd (NYSE:HG), with 660,144 shares, accounting for 0.34% of the portfolio and a total value of $14,272,310.

Key Position Increases

Donald Smith & Co (Trades, Portfolio) also increased stakes in a total of 20 stocks, among them:

The most notable increase was Harley-Davidson Inc (NYSE:HOG), with an additional 2,108,099 shares, bringing the total to 5,517,795 shares. This adjustment represents a significant 61.83% increase in share count, a 1.17% impact on the current portfolio, with a total value of $130,219,960. The second largest increase was Everest Group Ltd (NYSE:EG), with an additional 109,848 shares, bringing the total to 311,037. This adjustment represents a significant 54.6% increase in share count, with a total value of $105,705,920.

Story Continues

Summary of Sold Out

Donald Smith & Co (Trades, Portfolio) completely exited 3 of the holdings in the second quarter of 2025, as detailed below:

United States Steel Corp (X): Donald Smith & Co (Trades, Portfolio) sold all 4,219,425 shares, resulting in a -4.37% impact on the portfolio. Kimball Electronics Inc (NASDAQ:KE): Donald Smith & Co (Trades, Portfolio) liquidated all 184,176 shares, causing a -0.07% impact on the portfolio.

Key Position Reduces

Donald Smith & Co (Trades, Portfolio) also reduced positions in 29 stocks. The most significant changes include:

Reduced Howard Hughes Holdings Inc (NYSE:HHH) by 472,328 shares, resulting in a -30.08% decrease in shares and a -0.86% impact on the portfolio. The stock traded at an average price of $68.41 during the quarter and has returned 4.05% over the past 3 months and -3.08% year-to-date. Reduced Eldorado Gold Corp (NYSE:EGO) by 2,011,430 shares, resulting in a -16.1% reduction in shares and a -0.83% impact on the portfolio. The stock traded at an average price of $19.42 during the quarter and has returned 28.13% over the past 3 months and 52.25% year-to-date.

Portfolio Overview

At the second quarter of 2025, Donald Smith & Co (Trades, Portfolio)'s portfolio included 60 stocks, with top holdings including 8.63% in AerCap Holdings NV (NYSE:AER), 5.02% in Eldorado Gold Corp (NYSE:EGO), 4.8% in Genworth Financial Inc (NYSE:GNW), 4.66% in Iamgold Corp (NYSE:IAG), and 3.72% in M/I Homes Inc (NYSE:MHO).

The holdings are mainly concentrated in 7 of all the 11 industries: Financial Services, Basic Materials, Industrials, Consumer Cyclical, Energy, Real Estate, and Technology.

This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.

This article first appeared on GuruFocus.

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