Investor John Burbank, leader of hedge fund Passport Capital, is decisively bearish on global growth, as he expressed in a CNBC interview at the SALT conference May 9. In his expected scenario, he advises:
“You want to own primarily U.S. companies, you want to own world leaders. Those are more likely to have some growth, liquidity, top governance, dividends, good capital allocation, and they’re not beneficiaries of just global growth. U.S. companies are increasingly spreading round the world, but they don’t need the whole world to grow the way, say, commodity equities do, or even emerging market equities do. “
Burbank engaged in significant trading in the first quarter, as suggested by his 32% turnover from the previous quarter. He bought 44 new stocks, ending the three months with 121 holdings valued at $2.5 billion.
The intrepid investor has also reported having 17% of his firm’s $3.7 billion in capital invested in Saudi Arabia as of February, and has 44.9% of his equity portfolio in basic materials
Burbank’s Largest Stock Purchases of Q1
5. Yelp Inc. (YELP, Financial)
Shares purchased: 2,029,241
Average price: $22 – near a two-year high
At $29.33 per share on Thursday, Yelp shares have gained 33% from his average price. The holding represents 1.9% of his portfolio.
Yelp, the website that allows customers to give online reviews of companies they patronize, became a public company in March 2012. In that time, revenue has grown annually, while the bottom line has deteriorated:
Valuation
P/B: 11.1
P/S: 11.6
4. Anheuser-Busch Inbev SA (BUD, Financial)
Shares purchased: 483,925
Average price: $92
The Anheuser-Bush holding, representing 1.9%, has increased 4% in price since his purchase, at $92 on Thursday – closing in on its 10-year high.
Anheuser-Bush’s 10-year revenue and net income growth history:
Valuation
P/E: 27.1
P/B: 3.70
P/S: 3.9 – close to a three-year high
3. Yahoo! Inc. (YHOO, Financial)
Shares purchased: 2,228,297
Average price: $21
Yahoo is a search engine generating revenue from advertisers. This week, it announced as part of its revitalization it would acquire media network Tumblr for $1.1 billion. Yahoo’s 10-year revenue and earnings history:
Valuation
P/E: 7.7
P/B: 2.0
P/S: 6.35 – close to a five-year high
2. Gardner Denver Inc. (GDI, Financial)
Shares purchased: 918,862
Average price: $71
Gardner Denver’s function is to manufacture compressors, blowers, pumps and other fluid equipment, and distribute them worldwide. Ten years of Gardner Denver revenue and earnings growth:
Valuation
P/E: 14.6
P/B: 2.5
P/S: 1.6: close to a one-year high
1. McGraw Hill Financial Inc. (MHFI, Financial)
Shares purchased: 1,353,321
Average price: $50
McGraw Hill Financial is a content and analytics company that owns Standard & Poor’s Rating Services and other finance businesses. Ten years of McGraw Hill’s revenue and net income data:
Valuation
P/E: 14.8
P/B: 19.7 – close to a 10-year high
P/S: 3.6 – close to a five-year high
See John Burbank’s further buys and sells in his portfolio here. Also check out the Undervalued Stocks, Top Growth Companies and High Yield stocks of John Burbank.
Don’t forget to become a GuruFocus Premium Member here.
“You want to own primarily U.S. companies, you want to own world leaders. Those are more likely to have some growth, liquidity, top governance, dividends, good capital allocation, and they’re not beneficiaries of just global growth. U.S. companies are increasingly spreading round the world, but they don’t need the whole world to grow the way, say, commodity equities do, or even emerging market equities do. “
Burbank engaged in significant trading in the first quarter, as suggested by his 32% turnover from the previous quarter. He bought 44 new stocks, ending the three months with 121 holdings valued at $2.5 billion.
The intrepid investor has also reported having 17% of his firm’s $3.7 billion in capital invested in Saudi Arabia as of February, and has 44.9% of his equity portfolio in basic materials
Burbank’s Largest Stock Purchases of Q1
5. Yelp Inc. (YELP, Financial)
Shares purchased: 2,029,241
Average price: $22 – near a two-year high
At $29.33 per share on Thursday, Yelp shares have gained 33% from his average price. The holding represents 1.9% of his portfolio.
Yelp, the website that allows customers to give online reviews of companies they patronize, became a public company in March 2012. In that time, revenue has grown annually, while the bottom line has deteriorated:
Valuation
P/B: 11.1
P/S: 11.6
4. Anheuser-Busch Inbev SA (BUD, Financial)
Shares purchased: 483,925
Average price: $92
The Anheuser-Bush holding, representing 1.9%, has increased 4% in price since his purchase, at $92 on Thursday – closing in on its 10-year high.
Anheuser-Bush’s 10-year revenue and net income growth history:
Valuation
P/E: 27.1
P/B: 3.70
P/S: 3.9 – close to a three-year high
3. Yahoo! Inc. (YHOO, Financial)
Shares purchased: 2,228,297
Average price: $21
Yahoo is a search engine generating revenue from advertisers. This week, it announced as part of its revitalization it would acquire media network Tumblr for $1.1 billion. Yahoo’s 10-year revenue and earnings history:
Valuation
P/E: 7.7
P/B: 2.0
P/S: 6.35 – close to a five-year high
2. Gardner Denver Inc. (GDI, Financial)
Shares purchased: 918,862
Average price: $71
Gardner Denver’s function is to manufacture compressors, blowers, pumps and other fluid equipment, and distribute them worldwide. Ten years of Gardner Denver revenue and earnings growth:
Valuation
P/E: 14.6
P/B: 2.5
P/S: 1.6: close to a one-year high
1. McGraw Hill Financial Inc. (MHFI, Financial)
Shares purchased: 1,353,321
Average price: $50
McGraw Hill Financial is a content and analytics company that owns Standard & Poor’s Rating Services and other finance businesses. Ten years of McGraw Hill’s revenue and net income data:
Valuation
P/E: 14.8
P/B: 19.7 – close to a 10-year high
P/S: 3.6 – close to a five-year high
See John Burbank’s further buys and sells in his portfolio here. Also check out the Undervalued Stocks, Top Growth Companies and High Yield stocks of John Burbank.
Don’t forget to become a GuruFocus Premium Member here.
