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Buffett and Peers Hold Growing DaVita HealthCare, Four Sell Out

September 12, 2013 | About:
Sally Jones

Sally Jones

49 followers
All year GuruFocus has been tracking numerous trades by Warren Buffett’s Berkshire Hathaway Inc. (BRK.A) (BRK.B) and his portfolio managers Ted Weschler and Todd Combs as they scoop up shares of DaVita HealthCare Partners Inc. (DVA), a growing kidney dialysis healthcare company. As DaVita continues to expand worldwide in Poland, Latin America, Taiwan and Malaysia, its second quarter 2013 income of $254.4 million has more than doubled since a year ago, and numerous billionaires are investing.

As of June 30, 2013, nine other gurus, in addition to Berkshire-related entities, hold DVA; four billionaires sold out.



DaVita HealthCare Partners Inc. (DVA)


Up 12 % over 12 months, DaVita HealthCare Partners Inc. has a market cap of $11.82 billion. The P/E ratio is 10.00, and the P/B ratio is 1.40. DVA shares are currently $55.65.

DaVita HealthCare Partners Inc. is a provider of dialysis services in the United States and beyond for patients suffering from chronic kidney failure, also known as end stage renal disease. The company operates or provides administrative services at 1,912 outpatient dialysis centers in 43 states in the United States, serving approximately 150,000 patients, and at 24 centers in five countries outside of the United States. DaVita HealthCare Partners provides integrated care management for nearly 745,000 managed care patients.

DaVita HealthCare Partners Inc. reported results for the quarter ended June 30, 2013, with income from continuing operations attributable to DaVita HealthCare Partners Inc. for the three and six months ended June 30, 2013 including these items was $254.4 million and $271.3 million, or $2.37 and $2.53 per share, respectively. Compared to the same period a year ago, income was $95.0 million and $235.2 million, or $0.99 and $2.45 per share, respectively.

Adjusted income from continuing operations attributable to DaVita HealthCare Partners Inc. for the three and six months ended June 30, 2013 was $197.4 million and $394.3 million, or $1.84 and $3.68 per share, respectively. Compared to the same period a year ago, adjusted income was $146.7 million and $290.5 million, or $1.53 and $3.03 per share, respectively, according to a company press release.

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Read the back story on Berkshire Hathaway and DaVita.

Guru Action: As of June 30, 2013, Alan Fournier holds 2.52% of DVA shares outstanding or 5,351,944 shares. He reduced his position by 1.51% in the second quarter, selling 82,000 shares at an average price of $62.44 for a loss of 11%. Fournier’s five-year history shows a gain of 75% on 5,295,944 shares bought at an average price of $31.71 per share. In 2,619,142 shares sold at an average price of $36.52, he gained 52%.

Jim Simons is another major long-time stakeholder. As of June 30, 2013, he holds 0.67% of DVA shares outstanding or 1,415,900 shares after he increased his position by 711.4% in the second quarter. Simons added 1,241,400 shares at an average price of $62.44 for a loss of 11%. He had a loss of 10% on 1,415,900 shares bought at an average price of $61.89 per share.

His five-year history shows remarkable gains:

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Pioneer Investments also has a long history of remarkable gains with DaVita. As of June 30, 2013, the company holds 0.64% of DVA shares outstanding or 1,370,028 shares. Pioneer Investments reduced its position by 30.78% in the second quarter, selling 609,200 shares at an average price of $62.44 for a loss of 11%.

The firm has averaged a gain of 39% on 3,377,486 shares bought at an average price of $40.01 per share. On 2,167,858 shares sold at an average price of $48.66 per share, the firm gained 14%.

Check out the new buys made by Chuck Royce and Joel Greenblatt as of June 30, 2013.

In the same quarter, four Gurus sold out, including George Soros, Andreas Halvorsen, Steve Mandel and Paul Tudor Jones, all of whom were long-term stakeholders that had made remarkable gains. Their trading histories show a shared pattern of exiting with an 11% loss after gains began to dwindle to 1.1% in the fourth quarter of 2012. Here are more billionaire trades as well as activ[/url]e DVA insider trading.

Study [url=http://www.gurufocus.com/StockBuy.php?GuruName=Warren+Buffett]Warren Buffett
’s Berkshire Hathaway Inc. (BRK.A) (BRK.B) portfolio.



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About the author:

Sally Jones
Sally Jones writes about Real Time Picks. She says, "I truly enjoy watching the Gurus in realtime and telling their story."

Rating: 3.9/5 (8 votes)

Comments

bullsandbears123
Bullsandbears123 premium member - 11 months ago
Sally, I think you need to check your numbers. I could be wrong, but I do not think you are taking into account the stock split. Hence, valuation ratios like P/E, etc are probably too low.

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