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Guru Robert Karr Closes Fund Joho Capital - His Top Five Q4 Stocks

February 17, 2014 | About:
Monica Wolfe

Monica Wolfe

133 followers

Robert Karr (Trades, Portfolio) of Joho Capital holds a portfolio of 18 stocks valued at $1.5 billion. Over the duration of the fourth quarter the guru bought two new stocks for a quarter over quarter turnover of 12%. Robert Karr (Trades, Portfolio) is one of Julian Robertson (Trades, Portfolio)’s Tiger Cubs who went on to found and manage Joho Capital.

On Jan. 30, 2013, Robert Karr (Trades, Portfolio) announced in a seven-page letter to his clients that he would be shutting his New York-based fund and becoming a family office at the end of the first quarter in order to spend more time with his kids.

In 2013 Joho Partners and Joho Fund gained 30.3% net of fees, which in his letter, Karr calls one of the best in the firm’s history. At the time of this release Joho Capital had a total of $4.9 billion in its long-short hedge funds and another $243 million in long-only funds. The guru also says that he plans of reducing his current position of 67 longs and 55 shorts to roughly 20 a piece.

The following five companies are Karr’s five largest holdings as of the close of the fourth quarter:

Baidu (BIDU)

Robert Karr (Trades, Portfolio)’s largest holding is in Baidu where he holds on to 1,488,550 shares of the company’s stock. This position makes up for 18.1% of his total assets managed as well as 0.43% of the company’s shares outstanding.

During the fourth quarter Karr reduced his holdings -18.7% by selling a total of 342,400 shares of the company’s stock. He sold these shares in the fourth quarter price range of $ to $ , with an estimated average quarterly price of $161.62 per share. The price per share has increased approximately 3.6% since then.

Robert Karr (Trades, Portfolio)’s historical holding history:

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Baidu is a Chinese language Internet search provider. It provides a platform for businesses to reach customers. The company offers its main products and services to users through Baidu.com free of charge.

Baidu’s historical revenue and earnings growth:

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The analysis on Baidu reports that the company’s trading at a near 10-year high in price, it has enough cash to cover all of its debt and its operating margin is expanding.

As of the most recent quarterly updates there were 26 gurus that hold a position in BIDU. Check out their holdings here.

Baidu has a market cap of $58.56 billion. Its shares are currently trading at around $167.48 with a P/E ratio of 42.70, a P/S ratio of 15.80 and a P/B ratio of 10.20. The company had an annual average earnings growth of 84.90% over the past five years.

Google (GOOG)

Robert Karr (Trades, Portfolio)’s second largest holding is in Google where maintains 224,434 shares of the company’s stock. His position makes up for 17.2% of his total portfolio as well as 0.07% of the company’s shares outstanding.

Over the duration of the fourth quarter Karr cut his holdings -9.16% by selling a total of 22,630 shares. He sold these shares in the quarterly price range of $853.67 to $1120.71, with an estimated average quarterly price of $1015.29 per share. Since his increase the price per share is trading up about 18.5%.

Robert Karr (Trades, Portfolio)’s historical holding history:

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Google is a global technology company engaged in improving the ways people connect with information. The company's business is mainly focused around the following key areas: search, advertising, operating systems and platforms, enterprise and hardware products.

Google’s historical revenue and net income:

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The analysis on Google reports that the company’s price is near a 10-year high, the company has issued $5 billion of debt over the past three years, its interest coverage is comfortable and it’s shown signs of predictable revenue and earnings growth.

The Peter Lynch Chart suggests that Google is currently overvalued:

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Google has a market cap of $404.2 billion. Its shares are currently trading at around $1202.80 with a P/E ratio of 35.30, a P/S ratio of 7.70 and a P/B ratio of 4.63. The company had an annual average earnings growth of 31.50% over the past 10 years.

GuruFocus rated Google the business predictability rank of 2.5-star.

Mead Johnson Nutrition Company (MJN)

The guru’s third largest holding goes to the Mead Johnson Nutrition Company. Karr holds on to 1,751,900 shares of the company’s stock, representing 10% of his total portfolio as well as 0.87% of the company’s shares outstanding.

During the fourth quarter Karr upped his stake 27.7% by purchasing a total of 380,000 shares of the company’s stock. He bought these shares near the estimated average quarterly price of $81.43 per share. Since then the price per share is down about -4.6%.

Robert Karr (Trades, Portfolio)’s holding history as of the fourth quarter:

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The company manufactures, distributes and sells infant formulas, children's nutrition and other nutritional products. Mead Johnson has a broad product portfolio, which extends across routine and specialty infant formulas, children's milks and milk modifiers, pediatric vitamins, dietary supplements for pregnant and breastfeeding mothers, and products for metabolic disorders.

Mead Johnson Nutrition’s historical revenue and net income:

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The analysis on the company reports that the company’s price is trading at near a 1-year high, its dividend yield is close to a 5-year high and its Piotroski F-Score is high, indicating a healthy situation.

The Peter Lynch Chart suggests that the company is currently overvalued:

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There are 12 gurus that hold a position in the company as of the close of the fourth quarter. Check out their holding histories here.

Mead Johnson Nutrition Company has a market cap of $15.69 billion. Its shares are currently trading at around $77.67 with a P/E ratio of 25.00, a P/S ratio of 3.80 and a P/B ratio of 74.70. The dividend yield for Mead Johnson is currently at 1.80%.

Yelp Inc. (YELP)

Robert Karr (Trades, Portfolio)’s fourth largest position is in Yelp where he holds on to 1,933,808 shares of the company’s stock. This position makes up for 9.1% of the company’s shares outstanding as well as 2.97% of the company’s shares outstanding.

During the past quarter Karr made a slight reduction in his holdings of -1.64%. The guru sold 32,200 shares of the company’s stock in the quarterly price range of $58.20 to $74.89, with an estimated average quarterly price of $66.21 per share. Since then the price per share has jumped up 35.6%.

The guru’s historical holding history:

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Yelp is an online platform features more than 22 million reviews of almost every type of local business, from restaurants, boutiques and salons to dentists, mechanics, plumbers and more. These reviews are written by people using Yelp to share their everyday local business experiences, giving voice to consumers and bringing "word of mouth" online.

Yelp’s historical revenue and net income:

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The analysis on Yelp reports that the company’s revenue has been in decline over the past year, its price is near a 2-year high and it has a high short percentage of float. The analysis also notes that the company has no debt and its P/B and P/S ratios are trading at 2-year highs.

There are currently six gurus that hold a position in Yelp. Check out these gurus’ positions here.

Yelp has a market cap of $6.32 billion. Its shares are currently trading at around $89.78 with a P/S ratio of 28.50.

Veeco Instruments (VECO)

Veeco Instruments is Robert Karr (Trades, Portfolio)’s fifth largest holding, maintaining 2,535,933 shares of the company’s stock. His position in Veeco represents 5.7% of his total portfolio.

The guru made a notable increase in the company over the past quarter, increasing his position 169.51%. Karr purchased a total of 1,594,976 shares in the price range of $28.44 to $38.15, with an estimated average quarterly price of $32.34. Since then the price per share is up about 23.2%.

Karr’s holding history as of the close of the fourth quarter:

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Veeco Instruments, through its subsidiaries, creates Process Equipment solutions that enable technologies for a cleaner and more productive world. The company designs, manufactures and markets equipment primarily sold to make light emitting diodes and hard-disk.

Veeco Instruments’ historical revenue and net income:

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The analysis on Veeco reports that the company’s revenue has been in decline over the past year, its price is trading at a 2-year high and its P/S ratio is trading at a 10-year high.

Veeco Instruments has a market cap of $1.56 billion. Its shares are currently trading at around $39.83 with a P/S ratio of 4.20 and a P/B ratio of 2.00.

Check out Robert Karr’s complete fourth quarter portfolio here.

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