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Six Sells Review - Ruane, Cunniff & Goldfarb

September 16, 2013 | About:
Sally Jones

Sally Jones

49 followers
Managed by Ruane, Cunniff & Goldfarb, the Sequoia Fund's average annual total return as of June 30, 2013 is 14.65%, year-to-date, compared to the S&P 500’s at 13.83%. Sequoia Fund’s average annual total return over one year is 25.98%, compared to the S&P 500’s 20.60%. The recently updated portfolio of Ruane, Cunniff & Goldfarb Inc. lists 148 stocks, 13 of them new, with a total value of $15.53 billion and a quarter-over-quarter turnover of 1%. The portfolio’s top sectors are weighted as health care at 26.8%, financial services at 22.4% and consumer cyclical at 21.4%.

According to GuruFocus research, Ruane, Cunniff & Goldfarb reduced three companies and sold out six in the second quarter of 2013. Here are the details of all six sell-outs, as of June 30, 2013.

Corning Inc. (GLW): Sold Out

Impact to Portfolio: 0.37%

Up 14% over 12 months, Corning Inc., a computer hardware electronic components company, has a market cap of $21.38 billion; its shares were traded at around $14.64 with a P/E ratio of 11.30.

Guru Action: As of June 30, 2013, Ruane, Cunniff & Goldfarb sold out its position, selling 4,187,155 shares at an average price of $14.54, for a gain of 0.7%. The firm held GLW for nine quarters, with its highest gain of 20.3% in the third quarter of 2012 when selling 21,809 shares at an average price of $12.17 per share. The firm lost 25.1% on its new buy of 6,106,490 shares bought at an average price of $19.54 in the second quarter of 2011.

Track historical share pricing, revenue and net income:

1379287754937.png

First Solar Inc. (FSLR): Sold Out

Impact to Portfolio: 0.09%

Up 64% over 12 months, First Solar Inc. has a market cap of $3.73 billion; its shares were traded at around $38.19 with a P/E ratio of 10.10. First Solar Inc. makes solar modules and solar power systems.

Guru Action: As of June 30, 2013, Ruane, Cunniff & Goldfarb sold out its position, selling 531,170 shares at an average price of $44.50, for a loss of 14.2%. The firm held FSLR for 13 quarters, with its highest gains of 129.4% and 98.4% in the second and third quarters of 2012, respectively. However, the first seven quarters of holding showed double-digit losses.

Track historical share pricing, revenue and net income:

1379288092199.png

Apollo Group Inc. (APOL)

Impact to Portfolio: 0.1%

Down 28% over 12 months, Apollo Group Inc., an education and training company known best for its subsidiary, The University of Phoenix Inc., has a market cap of $2.35 billion; its shares were traded at around $20.79 with a P/E ratio of 7.80.

Guru Action: As of June 30, 2013, Ruane, Cunniff & Goldfarb sold out its position, selling 900,000 shares at an average price of $19.04, for a gain of 9.2%. In 10 quarters of holding APOL, the firm averaged gains in only two quarters. In seven quarters of holding the firm had double-digit losses, bottoming out at a loss of 66.1%.

J.C.Penney Co. Inc. (JCP): Sold Out

Impact to Portfolio: 0.07%

Down 52% over 12 months, the well-known department store J.C. Penney Co. has a market cap of $3.05 billion; its shares were traded at around $13.81 with a P/B ratio of 1.31.

Guru Action: As of June 30, 2013, Ruane, Cunniff & Goldfarb sold out its position after five quarters of losses. The firm sold 700,000 shares at an average price of $16.83, for a loss of 17.9%. The firm averaged a loss of 65.9% when it made a new buy of 14,244 shares at an average price of $40.50 in the second quarter of 2008.

Everest Re Group Ltd. (RE): Sold Out

Impact to Portfolio: 0.06%

Up 26% over 12 months, Everest Re Group Ltd., an international insurance and reinsurance company, has a market cap of $6.76 billion; its shares were traded at around $139.02 with a P/E ratio of 7.30.

Guru Action: As of June 30, 2013, Ruane, Cunniff & Goldfarb sold out its position after eight quarters of gains. The firm sold 72,000 shares at an average price of $129.33 for a gain of 7.5%.

Check out this remarkable trading history with seven quarters of double-digit gains:

1379287340197.png

Capella Education Co. (CPLA): Sold Out[/b]

[b]Impact to Portfolio: 0.01%


Up 59% over 12 months, Capella Education Company, best known for post-graduate programs offered through its subsidiary Capella University, has a market cap of $701.31 million; its shares were traded at around $56.52 with a P/E ratio of 21.70.

Guru Action: As of June 30, 2013, Ruane, Cunniff & Goldfarb sold out its position, selling 56,870 shares at an average price of $38.37 for a gain of 47.3%. The firm held for five quarters, showing a loss in one quarter only. In the fourth quarter of 2010, the firm bought 41,500 shares at an average price of $62.45, losing 9.5%. The highest gain of 83.7% was made selling 240 shares at an average price of $30.77 in the fourth quarter of 2012.



Ruane, Cunniff & Goldfarb is a long-time value investor focused on the intrinsic value of business. The fund's investment objective is long-term growth of capital. In pursuing this objective, the fund focuses principally on common stocks that it believes are undervalued at the time of purchase and have potential for growth.

Check out the complete portfolio of Ruane, Cunniff & Goldfarb.





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The GuruFocus Real Time Picksreports the stock purchases and sales that Gurus have made within the prior 2 weeks. The report time lag can be as short as 2 days after the date of the transaction. This feature is for Premium Members only.

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: 3.5/5 (2 votes)

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