Ruane Cunniff

Ruane Cunniff

Last Update: 06-07-2016

Number of Stocks: 133
Number of New Stocks: 11

Total Value: $12,872 Mil
Q/Q Turnover: 3%

Countries: USA SGP
Details: Top Buys | Top Sales | Top Holdings  Embed:

Ruane Cunniff Watch

  • Ruane Cunniff Acquires Shares of Dentsply Sirona

    Ruane Cunniff (Trades, Portfolio) bought a 4,843,324-share stake in Dentsply Sirona Inc. (NASDAQ:XRAY) during the first quarter.


    Dentsply Sirona, a Delaware corporation that was founded in 1899, is a leading designer, developer, manufacturer and marketer of a broad range of consumable dental products for the professional dental market. The company also manufactures and markets other consumable medical device products. The company’s principal product categories are dental consumable products, dental laboratory products, dental specialty products and consumable medical device products. The company’s worldwide headquarters and executive offices are located in York, Pennsylvania.

      


  • Ruane Cunniff's Sequoia Fund Reduces Stake in Valeant

    Several days after appointing an investment committee and new holding restrictions in response to substantial losses on Valeant Pharmaceuticals (NYSE:VRX), the Sequoia Fund sold a substantial portion of its investment in the company.


    The filing from a week ago and made public Tuesday afternoon documented a 47% reduction in the Sequoia Fund’s Valeant position, to 16.1 million shares from 30.3 million shares. It also shrank the fund’s ownership of the company to 4.7% from 8.8%.

      


  • Stocks Fall to 5-Year Lows

    According to GuruFocus' list, these guru stocks have reached their five-year lows: Bed Bath & Beyond Inc. (NASDAQ:BBBY), Nordstrom Inc. (NYSE:JWN), Fossil Group Inc. (NASDAQ:FOSL) and DeVry Education Group Inc. (NYSE:DV).


    Bed Bath & Beyond reaches $45.57

      


  • Ruane Cunniff Buys JD.Com, Yelp, LinkedIn

    Ruane Cunniff (Trades, Portfolio) is a value investor focused on the intrinsic value of a business. The firm is a long-term investor and will buy stocks and hold them for quite awhile, even if sometimes the stocks seem to be overvalued. During the first quarter the investor bought shares in the following stocks.


    The guru acquired 4,843,324 shares in Dentsply Sirona Inc. (XRAY) with an impact of 2.32% on the portfolio.

      


  • Ruane Cunniff Sells Shares of Goldman Sachs, IBM

    Ruane, Cunniff & Goldfarb Inc. was founded by William Ruane, who died in October 2005. GuruFocus continues to track the firm's stock picks. During the fourth quarter, the firm sold many stocks including the following.


    Ruane Cunniff decreased its stake in Goldman Sachs Group Inc. (GS) by 39.13%, and the deal had an impact of -0.44% on the portfolio.

      


  • Ruane Cunniff Boosts Time Warner During 4th Quarter

    Ruane Cunniff (Trades, Portfolio) is a value investor focused on the intrinsic value of business. It is a long-term investor and will buy a stock and hold it for a long time, even if sometimes the stocks seem to be overvalued. Its largest buys during the fourth quarter were:


    The investor increased its stake in Precision Castparts Corp. (PCP) by 33.93%, and the deal had an impact of 1.59% on the portfolio.

      


  • Bob Goldfarb Steps Down at Sequoia Fund

    There are three gurus who are suffering tremendously through big concentrated bets on Valeant (NYSE:VRX) that backfired starting at the end of last year.


    The Sequoia Fund is taking perhaps the worst of it. With a 30%-plus position, it had two directors resign over the concentrated bet last year. In response, instead of cutting back, Sequoia upped its stake while the share price was falling due to the controversy surrounding the Philidor pharmacy.

      


  • Sequoia CEO and Portfolio Manager Resigns Amid Valeant Losses

    Saying it will take a more collaborative approach to portfolio management, Ruane Cuniff announced Wednesday the resignation of CEO and Co-Manager Bob Goldfarb, who led the fund to 14% annual returns and had a 45-year investing career before the losses from its outsized position troubled pharmaceutical company Valeant (NYSE:VRX).


    Read the full contents of the letter below:

      


  • Ackman Named to Valeant Board as Search for New CEO Begins

    Valeant Pharmaceuticals (NYSE:VRX) announced today that it will replace CEO Michael Pearson and name major shareholder Bill Ackman (Trades, Portfolio) to the board of directors. Pearson will continue to serve as CEO until a successor is named, and Katharine Stevenson will resign from the board to make room for Ackman.

    The company also said that CFO Howard Schiller has been asked to resign from the board due to improper conduct that resulted in incorrect information, but he has not yet done so. Valeant is already in the process of revising its numbers for fiscal 2014, and plans to include them with the 2015 report that will be filed with the SEC and Canadian Securities Regulators by April 29. Just last week, Valeant said the delayed filing would put the company at risk for defaulting on some of its debt.  


  • Morningstar Reviews Sequoia Fund Rating Due to Valeant Losses

    A fund that once boasted one of the best long-term track records and a friendly relationship with Warren Buffett (Trades, Portfolio) found itself maimed by a series of negative developments at its top holding, Valeant Pharmaceuticals (NYSE:VRX) in recent months. The stock’s months-long plunge and Sequoia’s large exposure prompted mutual funds rating company Morningstar to place its analyst rating under review Wednesday. It also caused Sequoia’s manager to say their “credibility as investors has been damaged by this saga,” but few saw the sinkhole coming.


    One of Morningstar’s primary arguments for the review of Sequoia was its portfolio’s sizable concentration in Valeant, charging managers with taking no steps to “mitigate the risks of such a large position.” Yet Sequoia had skirted traditional mutual fund diversification in the past to good result. Buffett’s company, Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B), ballooned to 35% of the fund in the 1990s, the New York Times reported, its only position to exceed Valeant in size.

      


  • Pershing Square Gains Board Seat on Valeant

    Activist investor Bill Ackman (Trades, Portfolio) of Pershing Square has landed a representative on the board of Valeant Pharmaceuticals (NYSE:VRX), the controversy-ridden company whose stock has tanked over the past year, possibly giving investors hope that Pershing can orchestrate a turnaround.


    Valeant announced Wednesday that Pershing Vice Chairman Stephen Fraidin will join Valeant’s board of directors, which expanded from 12 to 14 seats, along with Fred Eshelman, who founded Furiex Pharmaceuticals (NASDAQ:FURX), and Thomas Ross, president emeritus of the University of North Carolina.

      


  • Chase Coleman Sells Autohome, IBM in 4th Quarter

    Chase Coleman (Trades, Portfolio) is the founder of Tiger Global Management. During the fourth quarter he sold many stocks.


    He reduced his stake in Autohome Inc. (ATHM) by 42.76%. The deal had an impact of -1.5% on the portfolio.

      


  • Sequoia Fund Comments on Rolls-Royce

    Our European holdings continued to turn in poor performance. Rolls-Royce (LSE:RR.) fired its CEO John Rishton and replaced him with a board member, Warren East, who had great success leading the semiconductor company ARM Holdings. Mr. East knows what he is doing but he’s got his work cut out for him as he tries to improve operating discipline at this inefficient manufacturer. Rolls and our UK holding IMI plc were the two worst-performing stocks in Sequoia, each declining about 35% in dollars.


    From Sequoia Fund's 4th quarter 2015 shareholder letter.

      


  • Sequoia Fund Comments on Berkshire Hathaway

    Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B), our second largest holding, declined by 12.5% during the year. Berkshire now trades at less than 12 times our estimate of 2016 earnings. We think Berkshire grew its earnings at a high-single digit rate in 2015 but many of its individual operating companies face challenges. Railroad volumes declined abruptly at year-end and the outlook for 2016 volume is poor. GEICO’s auto insurance profit was off and many of Berkshire’s other service and manufacturing businesses were soft. Berkshire committed over $40 billion to acquisitions in 2015, the bulk of it to buy Precision Castparts.


    From Sequoia Fund's 4th quarter 2015 shareholder letter.

      


  • Sequoia Fund Comments on Valeant Pharmaceuticals

    Sequoia turned in its second straight year of poor results in 2015.Teasing out the source of our underperformance doesn’t take much work. We began the year with a 20% weighting in Valeant Pharmaceuticals (NYSE:VRX). Valeant rose by more than 80% through the summer, driving very strong gains for the Fund. But the price collapsed in the fall amid revelations and allegations about the company’s business practices. Ultimately, Valeant declined 29% for the year and by more than 70% from its 52-week high to its low. We bought more shares in October, and we calculate that Valeant contributed -6.3% to Sequoia’s return of -7.3% for the year.


    At its peak price,Valeant constituted more than 30% of the Fund’s assets. We’ve been criticized for allowing the holding to grow so large, but our feeling before the crisis erupted was that Valeant was executing well on its business model. Earnings were growing rapidly and we believed the company was making intelligent acquisitions that were creating shareholder value.Valeant was taking outsized price increases on a portion of its drug portfolio, but the entire branded pharmaceutical industry routinely has taken substantial annual price increases on drugs for more than a decade.

      


  • Sequoia Fund Releases 4th Quarter Shareholder Letter

    Dear Shareholder:


    Sequoia Fund’s results for the quarter and year ended December 31, 2015 appear below with comparable results for the S&P 500 Index:

      


  • Ruane Cunniff Adds to Valeant Stake, Buys 3 New Stocks

    When controversy erupted over Valeant Pharmaceuticals’ accounting practices last quarter, advisers and investors parted ways over the stock. The Sequoia Fund in particular both suffered large losses due to its outsized position in the company and defended its questioned relationship with a pharmacy, Philidor, and astronomical drug price increases. Last week, Ruane Cunniff, the distributor of the Sequoia Fund, reported that it added more share of Valeant and bought three new stocks during the fourth quarter.


    Ruane Cunniff ended the year with 142 positions in its portfolio, valued at $17.6 billion. It has as its top sector health care, which represents 54% of all holdings, followed by financial services at 22% of holdings. The Sequoia Fund in its mid-year letter described its portfolio as containing “market-leading companies that earn high returns on capital, boast strong balance sheets and self-fund their growth.”

      


  • O'Reilly and ConAgra Foods Are Outperforming the Market

    The following are some of the stocks that outperformed the S&P 500 Index over the last 12 months and have been bought by gurus during the last quarter.


    O'Reilly Automotive Inc. (ORLY) has a market cap of $25.23 billion, and during the last 12 months has outperformed the S&P 500 Index by 32.2%. Currently five gurus are holding the company that has returned 4% year-to-date and 363% during the last five years. It is now trading with a P/E ratio of 29.22 and according to the DCF calculator it looks undervalued with a margin of safety of 2%.

      


  • 5 Stocks Reach 5-Year Lows

    According to GuruFocus list of five-year lows, these guru stocks have reached their five-year lows: Iron Mountain Inc. (NYSE:IRM), FMC Corp. (NYSE:FMC), Liberty Property Trust (NYSE:LPT), Range Resources Corp. (NYSE:RRC), BOK Financial Corp. (NASDAQ:BOKF).


    Iron Mountain Inc. reached $24.84

      


  • Ruane Cunniff's Top New Buys of 3rd Quarter

    Ruane Cunniff was founded by William Ruane. The Fund’s investment objective is long-term growth of capital. In pursuing this objective the Fund focuses on investing in equity securities that it believes are undervalued at the time of purchase and have the potential for growth.


    In total, the portfolio has a value of $19.485 billion and is composed of 149 stocks; nine stocks got new positions in the portfolio in the third quarter.

      


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