Maverick Capital is a long/short equity hedge fund located in GuruFocus’ own Dallas metroplex. Launched in 1990, Lee Ainslie is the founder and hedge fund manager of Maverick Capital. Under his guidance, the firm manages $9.43 billion invested between 76 different equities. More information about Lee Ainslie and his investment philosophy can be found in a previous article.
Maverick Capital’s current portfolio composition, along with the changes between the two most recent quarters, is shown in the following two charts.
Maverick Capital’s top holdings for Q4 are shown in the following table.
As of Dec. 31, 2010, these are the top four changes per category of movement in Lee Ainslie’s portfolio.
New Aggregate Purchases
1. JP Morgan (JPM, Financial)
JP Morgan is the largest addition to Maverick Capital’s portfolio. JP Morgan is an international financial services firm catering to both individual and corporate clients. Their shares trade around $46.32, with a market capitalization of $184.25 billion. Their current dividend yield is 2.56%, with a P/E ratio of 11.68.
The average estimate price of Maverick Capital’s purchase is $39.41 in 8,565,048 shares. JP Morgan now comprises 3.85% of the overall portfolio with a value of $363 million. Since Ainslie’s purchase, JP Morgan’s value has increased by 18%.
GuruFocus rated JP Morgan with a business predictability rank of 1 star.
2. Urban Outfitters (URBN, Financial)
Urban Outfitters is the second largest addition to Maverick Capital’s portfolio. Urban Outfitters is a retail company specializing in clothing, accessories, and home products. Their shares trade at $30.17, with a market cap. of $4.95 billion. They do not have a dividend, and their P/E ratio is 18.79.
The average estimated price of each Urban Outfitters share is at $34.31, which is a 12% decrease from its current trading price. Maverick Capital’s purchased 6,913,122 shares for an aggregate value of $247 million. Urban Outfitters comprises 2.62% of the overall portfolio. Urban Outfitter’s annual EPS growth rate over the last 10 years has been approximately 32.5%.
GuruFocus rated Urban Outfitters with a business predictability rank of 3.5 stars.
3. Blackrock (BLK, Financial)
Blackrock is the third largest addition to Maverick Capital’s portfolio. Blackrock is an investment management firm that offers products both to individual consumers and corporate clients. Their shares trade around $201.16, with a market capitalization of $38.58 billion. Their current dividend yield is 2.73%, with a P/E ratio of 19.08.
The average estimated price of Blackrock’s share in this portfolio is $174.32. Blackrock’s price has increased by 16% from Maverick Capital’s purchase price. 1,291,900 shares were purchased for an aggregate value of $246 million. Blackrock comprises 2.61% of the overall portfolio. Blackrock’s annual EPS growth rate over the last 10 years has been approximately 22.6%.
GuruFocus rated Blackrock with a business predictability rank of 4 stars.
4. McKesson (MCK, Financial)
McKesson is a firm operating in the health care industry providing services from drugs to information management. Their shares trade at $79.12 with a market capitalization of $20.11 billion. Their current dividend yield is .91% with a P/E ratio of 20.10.
The average estimated purchase price of McKesson is $65.36, which has since increased by 22%. They purchased 3,399,600 shares for a total value of $239 million.
GuruFocus rated McKesson with a business predictability rank of 3 stars.
Stake Increase
1. Qualcomm (QCOM)
Qualcomm’s overall position increased by 571% from $52 million to $353 million. This increase of Qualcomm’s stake is approximately valued at $301 million with an estimated average price of $47.04.
Qualcomm manufacturers wireless telecommunication products and services to their clients. Their shares trade at 52.52, which is an 11% increase from Maverick’s purchase price. Their dividend yield is 1.44%, with a P/E ratio of 24.31. Qualcomm’s EPS growth rate has been 2.3% for the last 5 years.
GuruFocus rated Qualcomm with a business predictability rank of 3 stars.
2. Amdocs (DOX)
Maverick Capital increased its position in Amdocs by 896% from $24 million to $242 million at an estimated average price of $27.92 per share.
Amdocs is a leading provider of customer care, billing and order management systems for communications and Internet services. Amdocs trades at $28.97 which is a 6% from Ainslie’s purchase. They offer no dividend, and their P/E ratio is 17.64. Amdocs EPS growth rate has been 3% for the last five years.
GuruFocus rated Amdocs with a business predictability rank of 4 stars.
3. Teva Pharmaceutical (TEVA)
Teva Pharmaceutical’s position increased by 109% from $119 million to $249 million. This purchase of $130 million occurred at an estimated average price of $51.74
Teva develops, manufactures, and markets generic drugs to their consumers. Teva currently trades at $50.21, which is a 3% decrease from Maverick’s purchase price. Teva has a dividend yield of 1.53%, and a P/E ratio of 13.70. Teva’s 10-year EPS growth rate is 30.8%.
GuruFocus rated Teva Pharmaceutical with a business predictability rank of 2.5 stars.
4. Dell (DELL)
Maverick Capital increased its stake in Dell by 115% from $112 million to $242 million. This $130 million transaction occurred at an estimated price of $13.89
Dell is a provider of both technological and hardware solutions. They offer a variety of software and hardware to their clients ranging from desktop PCs to other peripherals pertaining to networks. Dell currently trades at $14.34, a 3% increase from the estimated purchase price. Dell offers no dividend, and has a P/E ratio of 10.50. For the last 10 years, Dell has grown its EPS by 6% annually.
GuruFocus rated Dell with a business predictability rank of 1 star.
Stake Decrease
1. Abercrombie and Fitch (ANF)
Maverick Capital sold $138 million of its stake in ANF, with the aggregate position declining from $266 million to $128 million.
Abercrombie and Fitch is a retail chain specializing in quality casual wear for kids, men and women. Abercrombie and Fitch trades for $59.03 with a market capitalization of $5.15 Billion. Their dividend yield is 1.19% with a P/E ratio of 35.44.
GuruFocus rated Abercrombie and Fitch with a business predictability rank of 1 star.
2. Bed Bath and Beyond (BBBY)
Maverick capital reduced its stake in BBBY by $106 million, with the aggregate position declining from $254 million to $148 million.
BBBY is a retail chain specializing in domestic merchandise and home furnishings at prices lower then those at comparable department stores. Bed Bath & Beyond trades at $47.80 with a market capitalization of $12.19 billion. They offer no dividend, and they have a P/E ratio of 16.97. For the last 10 years, their annual EPS growth rate has been 14.7%.
GuruFocus rated Bed Bath & Beyond with a business predictability rank of 2.5 stars.
3. WellPoint (WLP)
WellPoint‘s overall position in Maverick Capital’s portfolio decreased from $251 million to $119 million.
WellPoint is a health benefits company and a licensee of the Blue Cross and Blue Shield association. WellPoint trades at $70.61 with a market capitalization of $26.51 billion. Their P/E ratio is 10.22, with a dividend yield at 1.42%. Their annual EPS growth rate over the last 10 years has been 19.9%.
GuruFocus rated WellPoint with a business predictability rank of 4.5 stars.
4. Pfizer (PFE)
Pfizer’s position in Maverick Capital’s portfolio was reduced from $368 million to $255 million.
Pfizer is a global pharmaceutical company that researches and develops a variety of drugs. Pfizer trades at $20.47 with a market capitalization of $163.50 billion. They have a 3.91% dividend yield, and a P/E ratio of 19.98.
GuruFocus rated Pfizer with a business predictability rank of 1 star.
Complete Position Close-Out
1. Hewlett Packard (HPQ, Financial)
The largest position in Maverick Capital’s portfolio eliminated was their entire holding of Hewlett Packard at an estimated price of $42.41. Maverick Capital had a stake of $385 million in Hewlett Packard. Hewlett Packard’s current price is 3% lower then its selling price.
Hewlett Packard provides technological solutions and products to both individuals and large corporate clients. They have a diverse line of household products, ranging from computers to printers. Hewlett Packard trades at $40.45 with a market capitalization of $87.53 billion. Hewlett Packard has a dividend yield of 0.79%, with a P/E ratio of 10.28.
GuruFocus rated Hewlett Packard with a business predictability rank of 1 star.
2. Expedia Inc. (EXPE, Financial)
Expedia was the second largest position sold out in Maverick Capital’s portfolio. Maverick Capital had a $328 million position in Expedia, and sold it at an estimated price of $27.16. Expedia’s current price is 18% lower then for what Maverick Capital sold it for.
Expedia is an online travel company that connects consumers to ticket merchants. Expedia trades around $22.35 with a market capitalization of $6.13 billion. Their dividend yield is 1.25%, with a P/E ratio of 15.24.
3. UnitedHealth Group (UNH, Financial)
The third largest elimination from Maverick Capital’s portfolio is UnitedHealth Group. The stake invested in UNH was $238 million, and was sold at an estimated price of $36.12. UnitedHealth Group is currently trading for 26% more then what Maverick Capital sold it at.
UnitedHealth Group is a health insurance company operating through seven of their subsidiaries. Their shares trade at $45.67 with a market capitalization at $49.94 billion. Their dividend yield is 1.10%, with a P/E ratio of 11.14
GuruFocus rated UnitedHealth Group with a business predictability rank of 2.5 stars.
4. Tyco International (TYC, Financial)
Tyco International comprised $232 million of Maverick Capital’s overall position. Tyco International was sold at an estimated price of $39.16, which is 16% less then its current trading price.
Tyco international provides security products and solutions to its clients. Tyco currently trades at $45.65 with a market cap. of $21.63 billion. Their dividend yield is 2.195 with a P/E ratio of 16.99.
GuruFocus rated with Tyco International a business predictability rank of 1 star.
For more information pertaining to Lee Ainslie and Maverick Capital, please visit:
http://www.gurufocus.com/ListGuru.php?GuruName=Lee+Ainslie
Maverick Capital’s current portfolio composition, along with the changes between the two most recent quarters, is shown in the following two charts.
Overall Portfolio Composition | Q4 | Q3 | % Change |
Technology | 34.20% | 30.80% | 3.40% |
Financials | 14.20% | 10.30% | 3.90% |
Telecommunications | 1% | 0.40% | 0.60% |
Consumer Services | 24.30% | 28.50% | -4.20% |
Health Care | 13.60% | 14.80% | -1.20% |
Consumer Goods | 2.90% | 5.20% | -2.30% |
Industrials | 3.50% | 7.40% | -3.90% |
Basic Materials | 0.50% | 0% | 0.50% |
Oil & Gas | 1.60% | 1.30% | 0.30% |
Maverick Capital’s top holdings for Q4 are shown in the following table.
Top Five Holdings for Q4 | Symbol | Composition | Shares | Value |
Corning | GLW | 4.03% | 19,706,424 | 380,728,000 |
Marvell Technology Group | MRVL | 3.97% | 20,199,993 | 374,710,000 |
Citigroup | C | 3.96% | 78,989,466 | 373,620,000 |
Apple | AAPL | 3.95% | 1,154,695 | 372,458,000 |
JP Morgan Chase | JPM | 3.85% | 8,565,048 | 363,329,000 |
Total Value of Portfolio | 9,439,087,000 |
As of Dec. 31, 2010, these are the top four changes per category of movement in Lee Ainslie’s portfolio.
New Aggregate Purchases
1. JP Morgan (JPM, Financial)
JP Morgan is the largest addition to Maverick Capital’s portfolio. JP Morgan is an international financial services firm catering to both individual and corporate clients. Their shares trade around $46.32, with a market capitalization of $184.25 billion. Their current dividend yield is 2.56%, with a P/E ratio of 11.68.
The average estimate price of Maverick Capital’s purchase is $39.41 in 8,565,048 shares. JP Morgan now comprises 3.85% of the overall portfolio with a value of $363 million. Since Ainslie’s purchase, JP Morgan’s value has increased by 18%.
GuruFocus rated JP Morgan with a business predictability rank of 1 star.
2. Urban Outfitters (URBN, Financial)
Urban Outfitters is the second largest addition to Maverick Capital’s portfolio. Urban Outfitters is a retail company specializing in clothing, accessories, and home products. Their shares trade at $30.17, with a market cap. of $4.95 billion. They do not have a dividend, and their P/E ratio is 18.79.
The average estimated price of each Urban Outfitters share is at $34.31, which is a 12% decrease from its current trading price. Maverick Capital’s purchased 6,913,122 shares for an aggregate value of $247 million. Urban Outfitters comprises 2.62% of the overall portfolio. Urban Outfitter’s annual EPS growth rate over the last 10 years has been approximately 32.5%.
GuruFocus rated Urban Outfitters with a business predictability rank of 3.5 stars.
3. Blackrock (BLK, Financial)
Blackrock is the third largest addition to Maverick Capital’s portfolio. Blackrock is an investment management firm that offers products both to individual consumers and corporate clients. Their shares trade around $201.16, with a market capitalization of $38.58 billion. Their current dividend yield is 2.73%, with a P/E ratio of 19.08.
The average estimated price of Blackrock’s share in this portfolio is $174.32. Blackrock’s price has increased by 16% from Maverick Capital’s purchase price. 1,291,900 shares were purchased for an aggregate value of $246 million. Blackrock comprises 2.61% of the overall portfolio. Blackrock’s annual EPS growth rate over the last 10 years has been approximately 22.6%.
GuruFocus rated Blackrock with a business predictability rank of 4 stars.
4. McKesson (MCK, Financial)
McKesson is a firm operating in the health care industry providing services from drugs to information management. Their shares trade at $79.12 with a market capitalization of $20.11 billion. Their current dividend yield is .91% with a P/E ratio of 20.10.
The average estimated purchase price of McKesson is $65.36, which has since increased by 22%. They purchased 3,399,600 shares for a total value of $239 million.
GuruFocus rated McKesson with a business predictability rank of 3 stars.
Stake Increase
1. Qualcomm (QCOM)
Qualcomm’s overall position increased by 571% from $52 million to $353 million. This increase of Qualcomm’s stake is approximately valued at $301 million with an estimated average price of $47.04.
Qualcomm manufacturers wireless telecommunication products and services to their clients. Their shares trade at 52.52, which is an 11% increase from Maverick’s purchase price. Their dividend yield is 1.44%, with a P/E ratio of 24.31. Qualcomm’s EPS growth rate has been 2.3% for the last 5 years.
GuruFocus rated Qualcomm with a business predictability rank of 3 stars.
2. Amdocs (DOX)
Maverick Capital increased its position in Amdocs by 896% from $24 million to $242 million at an estimated average price of $27.92 per share.
Amdocs is a leading provider of customer care, billing and order management systems for communications and Internet services. Amdocs trades at $28.97 which is a 6% from Ainslie’s purchase. They offer no dividend, and their P/E ratio is 17.64. Amdocs EPS growth rate has been 3% for the last five years.
GuruFocus rated Amdocs with a business predictability rank of 4 stars.
3. Teva Pharmaceutical (TEVA)
Teva Pharmaceutical’s position increased by 109% from $119 million to $249 million. This purchase of $130 million occurred at an estimated average price of $51.74
Teva develops, manufactures, and markets generic drugs to their consumers. Teva currently trades at $50.21, which is a 3% decrease from Maverick’s purchase price. Teva has a dividend yield of 1.53%, and a P/E ratio of 13.70. Teva’s 10-year EPS growth rate is 30.8%.
GuruFocus rated Teva Pharmaceutical with a business predictability rank of 2.5 stars.
4. Dell (DELL)
Maverick Capital increased its stake in Dell by 115% from $112 million to $242 million. This $130 million transaction occurred at an estimated price of $13.89
Dell is a provider of both technological and hardware solutions. They offer a variety of software and hardware to their clients ranging from desktop PCs to other peripherals pertaining to networks. Dell currently trades at $14.34, a 3% increase from the estimated purchase price. Dell offers no dividend, and has a P/E ratio of 10.50. For the last 10 years, Dell has grown its EPS by 6% annually.
GuruFocus rated Dell with a business predictability rank of 1 star.
Stake Decrease
1. Abercrombie and Fitch (ANF)
Maverick Capital sold $138 million of its stake in ANF, with the aggregate position declining from $266 million to $128 million.
Abercrombie and Fitch is a retail chain specializing in quality casual wear for kids, men and women. Abercrombie and Fitch trades for $59.03 with a market capitalization of $5.15 Billion. Their dividend yield is 1.19% with a P/E ratio of 35.44.
GuruFocus rated Abercrombie and Fitch with a business predictability rank of 1 star.
2. Bed Bath and Beyond (BBBY)
Maverick capital reduced its stake in BBBY by $106 million, with the aggregate position declining from $254 million to $148 million.
BBBY is a retail chain specializing in domestic merchandise and home furnishings at prices lower then those at comparable department stores. Bed Bath & Beyond trades at $47.80 with a market capitalization of $12.19 billion. They offer no dividend, and they have a P/E ratio of 16.97. For the last 10 years, their annual EPS growth rate has been 14.7%.
GuruFocus rated Bed Bath & Beyond with a business predictability rank of 2.5 stars.
3. WellPoint (WLP)
WellPoint‘s overall position in Maverick Capital’s portfolio decreased from $251 million to $119 million.
WellPoint is a health benefits company and a licensee of the Blue Cross and Blue Shield association. WellPoint trades at $70.61 with a market capitalization of $26.51 billion. Their P/E ratio is 10.22, with a dividend yield at 1.42%. Their annual EPS growth rate over the last 10 years has been 19.9%.
GuruFocus rated WellPoint with a business predictability rank of 4.5 stars.
4. Pfizer (PFE)
Pfizer’s position in Maverick Capital’s portfolio was reduced from $368 million to $255 million.
Pfizer is a global pharmaceutical company that researches and develops a variety of drugs. Pfizer trades at $20.47 with a market capitalization of $163.50 billion. They have a 3.91% dividend yield, and a P/E ratio of 19.98.
GuruFocus rated Pfizer with a business predictability rank of 1 star.
Complete Position Close-Out
1. Hewlett Packard (HPQ, Financial)
The largest position in Maverick Capital’s portfolio eliminated was their entire holding of Hewlett Packard at an estimated price of $42.41. Maverick Capital had a stake of $385 million in Hewlett Packard. Hewlett Packard’s current price is 3% lower then its selling price.
Hewlett Packard provides technological solutions and products to both individuals and large corporate clients. They have a diverse line of household products, ranging from computers to printers. Hewlett Packard trades at $40.45 with a market capitalization of $87.53 billion. Hewlett Packard has a dividend yield of 0.79%, with a P/E ratio of 10.28.
GuruFocus rated Hewlett Packard with a business predictability rank of 1 star.
2. Expedia Inc. (EXPE, Financial)
Expedia was the second largest position sold out in Maverick Capital’s portfolio. Maverick Capital had a $328 million position in Expedia, and sold it at an estimated price of $27.16. Expedia’s current price is 18% lower then for what Maverick Capital sold it for.
Expedia is an online travel company that connects consumers to ticket merchants. Expedia trades around $22.35 with a market capitalization of $6.13 billion. Their dividend yield is 1.25%, with a P/E ratio of 15.24.
3. UnitedHealth Group (UNH, Financial)
The third largest elimination from Maverick Capital’s portfolio is UnitedHealth Group. The stake invested in UNH was $238 million, and was sold at an estimated price of $36.12. UnitedHealth Group is currently trading for 26% more then what Maverick Capital sold it at.
UnitedHealth Group is a health insurance company operating through seven of their subsidiaries. Their shares trade at $45.67 with a market capitalization at $49.94 billion. Their dividend yield is 1.10%, with a P/E ratio of 11.14
GuruFocus rated UnitedHealth Group with a business predictability rank of 2.5 stars.
4. Tyco International (TYC, Financial)
Tyco International comprised $232 million of Maverick Capital’s overall position. Tyco International was sold at an estimated price of $39.16, which is 16% less then its current trading price.
Tyco international provides security products and solutions to its clients. Tyco currently trades at $45.65 with a market cap. of $21.63 billion. Their dividend yield is 2.195 with a P/E ratio of 16.99.
GuruFocus rated with Tyco International a business predictability rank of 1 star.
For more information pertaining to Lee Ainslie and Maverick Capital, please visit:
http://www.gurufocus.com/ListGuru.php?GuruName=Lee+Ainslie
