Robert Karr is the founder of Joho Capital who learned the investing trade under legendary hedge fund manager Julian Robertson. He runs a concentrated portfolio of 14 stocks and specializes in online media stocks. His top three holdings – Google Inc. (GOOG, Financial), Mead Johnson Nutrition Company (MJN, Financial) and Baidu Inc. (BIDU, Financial) – comprise more than 50% of the portfolio.
In the first quarter ended March 31, 2013, Karr bought two new stocks, for a 26% quarter-over-quarter turnover rate. The two new buys are Baidu Inc. (BIDU) and Micron Technology (MU, Financial). Each carries relatively significant portfolio weightings of 13.7% and 9.4%, respectively, making them his third- and fifth-largest holdings.
New Holding: Bidu Inc.
Karr purchased 1,407,050 shares of Baidu Inc. for an average price of $97 per share in the first quarter. He has previously traded this stock at a significant profit, as seen in his holding history below:
Baidu is the Chinese version of Google, founded in 2000 by Robin Li. In addition to search, it powers community-based products such as a Chinese-language searchable online community, an interactive knowledge-sharing platform and a Chinese encyclopedia, among others. It derives the majority of its revenue from performance-based online market services where customers pay on a per-click basis.
Shares of Bidu sunk almost 10% this year. The share price is $90.34 on Monday, up 2%, which is close to a two-year low.
On Feb. 4, Bidu announced its fourth quarter and fiscal 2012 results. Revenue in the fourth quarter increased 41.6% year over year to total $1.017 billion, and full-year 2012 revenue increased 53.8% year over year to total $3.58 billion. The company’s online marketing revenues in the fourth quarter increased 40.8% year over year, with 406,000 active online market customers, a 30.5% increase year over year, and 4.1% sequential increase. Traffic acquisition costs represented 9.6% of total revenues, compared to 7.9% in the year-ago period.
Bidu’s net income in the fourth quarter was $448.7 million, a 36.1% year-over-year increase, or $1.28 basic earnings per ADS.
The company expects revenue to increase 38.1% to 42.6% year over year for the first quarter of 2013.
Baidu’s market share declined 2.48% from October 2012 to 70.49% at February 2013. In the same period, competitor Qihoo (QIHU)’s So.com which launched in August increased 2.72% to 12.36% of the market, according to data from CNZZ.
The company current trades at significantly low multiples of 18.8 P/E (close to a 10-year low), 7.53 P/B (close to a five-year low) and 8.79 P/S (close to a three-year low).
Micron Technology (MU)
Karr purchased 8,536,697 shares of smaller new buy Micron Technology Inc. at an average price of $8 per share in the first quarter. He has not purchased shares of this company in the past five years.
On Monday, Micron Technology is priced at $9.87 per share after advancing 56% year to date.
Micron, a 30-year-old company, has designed and built advanced memory and semiconductor technologies used in everything from computing to mobile to automotive.
Micron on March 21 announced financial results for the second quarter of fiscal 2013, ended Feb. 28, 2013. The company posted a net loss of $286 million, or $0.28 per diluted shares, and net sales of $2.1 billion, on strong growth in DRAM and NAND. In the prior year quarter, it had a net loss of $282 million, or $0.29 per diluted share, and net sales of $2 billion.
The company in the second quarter experienced a loss of $120 million due to the market value change in its currency hedges set in place with the acquisition of Japan’s Elpida Memory Inc. and Rexchip Electronics Corp., and a $62 million loss on the expected sale of its wafer fabrication facility in Avezzano, Italy, in the first half of 2013.
Micron’s gross margin also increased from 12% to 18%, and has $3.5 billion in cash on its balance sheet and $4.6 billion in long-term liabilities and debt.
In addition to its price being near a one-year high, Micron has a P/S ratio of 1.2, close to a two-year high. Its P/B stands at 1.27.
Karr also sold out of online social networking site Facebook (FB, Financial) in the first quarter, along with New Oriental Education & Technology Group Inc. (EDU, Financial) and Yum Brands (YUM, Financial).
See more of Robert Karr’s first quarter trading activity here. Also check out the Undervalued Stocks, Top Growth Companies and High Yield stocks of Robert Karr.
In the first quarter ended March 31, 2013, Karr bought two new stocks, for a 26% quarter-over-quarter turnover rate. The two new buys are Baidu Inc. (BIDU) and Micron Technology (MU, Financial). Each carries relatively significant portfolio weightings of 13.7% and 9.4%, respectively, making them his third- and fifth-largest holdings.
New Holding: Bidu Inc.
Karr purchased 1,407,050 shares of Baidu Inc. for an average price of $97 per share in the first quarter. He has previously traded this stock at a significant profit, as seen in his holding history below:
Baidu is the Chinese version of Google, founded in 2000 by Robin Li. In addition to search, it powers community-based products such as a Chinese-language searchable online community, an interactive knowledge-sharing platform and a Chinese encyclopedia, among others. It derives the majority of its revenue from performance-based online market services where customers pay on a per-click basis.
Shares of Bidu sunk almost 10% this year. The share price is $90.34 on Monday, up 2%, which is close to a two-year low.
On Feb. 4, Bidu announced its fourth quarter and fiscal 2012 results. Revenue in the fourth quarter increased 41.6% year over year to total $1.017 billion, and full-year 2012 revenue increased 53.8% year over year to total $3.58 billion. The company’s online marketing revenues in the fourth quarter increased 40.8% year over year, with 406,000 active online market customers, a 30.5% increase year over year, and 4.1% sequential increase. Traffic acquisition costs represented 9.6% of total revenues, compared to 7.9% in the year-ago period.
Bidu’s net income in the fourth quarter was $448.7 million, a 36.1% year-over-year increase, or $1.28 basic earnings per ADS.
The company expects revenue to increase 38.1% to 42.6% year over year for the first quarter of 2013.
Baidu’s market share declined 2.48% from October 2012 to 70.49% at February 2013. In the same period, competitor Qihoo (QIHU)’s So.com which launched in August increased 2.72% to 12.36% of the market, according to data from CNZZ.
The company current trades at significantly low multiples of 18.8 P/E (close to a 10-year low), 7.53 P/B (close to a five-year low) and 8.79 P/S (close to a three-year low).
Micron Technology (MU)
Karr purchased 8,536,697 shares of smaller new buy Micron Technology Inc. at an average price of $8 per share in the first quarter. He has not purchased shares of this company in the past five years.
On Monday, Micron Technology is priced at $9.87 per share after advancing 56% year to date.
Micron, a 30-year-old company, has designed and built advanced memory and semiconductor technologies used in everything from computing to mobile to automotive.
Micron on March 21 announced financial results for the second quarter of fiscal 2013, ended Feb. 28, 2013. The company posted a net loss of $286 million, or $0.28 per diluted shares, and net sales of $2.1 billion, on strong growth in DRAM and NAND. In the prior year quarter, it had a net loss of $282 million, or $0.29 per diluted share, and net sales of $2 billion.
The company in the second quarter experienced a loss of $120 million due to the market value change in its currency hedges set in place with the acquisition of Japan’s Elpida Memory Inc. and Rexchip Electronics Corp., and a $62 million loss on the expected sale of its wafer fabrication facility in Avezzano, Italy, in the first half of 2013.
Micron’s gross margin also increased from 12% to 18%, and has $3.5 billion in cash on its balance sheet and $4.6 billion in long-term liabilities and debt.
In addition to its price being near a one-year high, Micron has a P/S ratio of 1.2, close to a two-year high. Its P/B stands at 1.27.
Karr also sold out of online social networking site Facebook (FB, Financial) in the first quarter, along with New Oriental Education & Technology Group Inc. (EDU, Financial) and Yum Brands (YUM, Financial).
See more of Robert Karr’s first quarter trading activity here. Also check out the Undervalued Stocks, Top Growth Companies and High Yield stocks of Robert Karr.
