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Keep It Simple – Robert Karr’s Second Quarter Sells, Company Updates
Posted by: Sally Jones (IP Logged)
Date: August 23, 2013 09:55PM
Robert Karr, founder of Joho Capital, is known for keeping it simple with concentrated investments. His hedge fund portfolio currently lists 16 stocks, 3 of them new, a quarter-over-quarter turnover of 21%, and a total value of $1.16 billion. His simplified portfolio is invested in only four sectors weighted with consumer defensive at 23.4%, healthcare at 7.2%, technology at 4% and consumer cyclical at 3.9%. According to the GuruFocus Score Board of Gurus, Karr is one of the highest-gaining investors. He had an average return of 40.62% over the last six months and averaged 48.2% over the last 12 months.
On the selling side, Karr sold only one holding and reduced two in the second quarter of 2013. Here are the trade details along with company financial results from the same quarter.
SINA Corporation (SINA): Sold Out
Impact to Portfolio: -4.4%
Up 46% over 12 months, SINA Corporation, an online media and Internet company based in China, has a market cap of $5.47 billion; its shares were traded at around $82.10, with a P/E of 178.40. The P/B ratio is 4.70.
Reporting financial results for the second quarter ended June 30, 2013, SINA Corporation had net revenues of $157,485,000 compared to $131,605,000 for the same period last year. Loss from operations was $18,195,000 compared to income from operations of $173,000 for the same period last year. Non-GAAP net income attributable to the company was $14,224,000 against $3,737,000 a year ago. Non-GAAP diluted net income per share attributable to the company was $0.49 compared to $0.05 for the same period last year, according to a company press release. The company estimates that its non-GAAP net revenues for the third quarter of 2013 will be between $176 million and $180 million.
Historical share pricing:
Guru Action: [size=13px; ] As of June 30, 2013 Karr sold out his position, selling 808,419 shares at an average price of $54.61, for a gain of 50.3%. In the last four consecutive quarters he has average a gain of 50% or more on this holding. [/size]
Micron Technology Inc. (MU): Reduced
Impact to Portfolio: -3.47%
Up 121% over 12 months, Micron Technology, a global manufacturer of semiconductor devices, has a market cap of $14.43 billion; its shares were traded at around $13.90. The P/B ratio is 1.90.
Micron Technology reported results of operations for its third quarter of fiscal 2013, which ended May 30, 2013. For the third quarter, the company had net income attributable to Micron shareholders of $43 million, or $0.04 per diluted share, on net sales of $2.3 billion. The results for the third quarter of fiscal 2013 are compared to a net loss of $286 million, or ($0.28) per diluted share, on net sales of $2.1 billion for the second quarter of fiscal 2013, and a net loss of $320 million, or ($0.32) per diluted share, on net sales of $2.2 billion for the third quarter of fiscal 2012. The company's consolidated gross margin improved to 24% in the third quarter of fiscal 2013 compared to 18% in the second quarter of fiscal 2013. Revenues from sales of DRAM products in the third quarter of fiscal 2013 were 23% higher compared to the second quarter due to a 16% increase in average selling prices and a 6% increase in sales volume. Revenues from sales of NAND Flash products were 7% higher in the third quarter of fiscal 2013 compared to the second quarter primarily due to an 8% increase in Trade NAND Flash average selling prices, according to a company press release.
Tracking MU revenue versus net income:
Historical MU share pricing:
Guru Action: [size=13px; ] As of June 30, 2013 Karr reduced his position by 36.9%, selling 3,150,000 shares at an average price of $11.08, for a gain of 25.5%. Current shares remaining are 5,386,697.[/size]
He has averaged a gain of 69% on 8,536,697 shares bought at an average price of $8.24 per share. On shares sold, he has averaged a gain of 25% on 3,150,000 shares sold at an average price of $11.08 per share.
SouFun Holdings Ltd. (SFUN): Reduced
Impact to Portfolio: -0.52%
Up 180% over 12 months, SouFun Holdings Ltd., another China-Based Internet and online media company, has a market cap of $3.11 billion; its shares were traded at around $38.48, with a P/E of 18.80. The P/B ratio is 13.80.
SouFun reported revenue in the second quarter of 2013 as $144.1 million, a 48.6% increase from the corresponding period in 2012. The company’s net income attributable to SouFun's shareholders was $55.4 million, or $0.67 per fully diluted share, representing a year-over-year increase of 67.5%.
Historical share pricing:
Guru Action: As of June 30, 2013 Karr reduced his position by 54.36%, selling 180,422 shares at an average price of $25.13, for a gain of 53.1%. Current shares remaining are 151,459.
He has averaged a gain of 91% on 331,881 shares bought at an average price of $20.14 per share. On shares sold, he has averaged a gain of 53% on 180,422 shares sold at an average price of $25.13 per share.
Here is the complete portfolio of Robert Karr.
1. Robert Karr's Undervalued Stocks
2. Robert Karr's Top Growth Companies
3. Robert Karr's High Yield stocks
4. Stocks that Robert Karr keeps buying
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Stocks Discussed: SINA, MU, SFUN,