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Guru Robert Karr’s Top Five in Last Quarter as Money Manager

May 15, 2014 | About:
Monica Wolfe

Monica Wolfe

133 followers

Robert Karr (Trades, Portfolio) of Joho Capital holds a portfolio of 11 stocks valued at $626 million. Over the duration of the first quarter the guru added no new stocks and sold out of seven. 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 shuttering 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 first quarter:

Baidu (BIDU)

Robert Karr (Trades, Portfolio)’s largest holding is in Baidu where he holds on to 912,406 shares of the company’s stock. This position makes up for 22.2% of his total assets managed as well as 0.26% of the company’s shares outstanding.

During the first quarter Karr reduced his holdings -38.71% by selling a total of 576,144 shares of the company’s stock. He sold these shares in the first quarter price range of $150.52 to $184.64, with an estimated average quarterly price of $167.27 per share. The price per share has decreased approximately -9% since then.

Robert Karr’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:

1400167221823.png

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.

Baidu has a market cap of $53.3 billion. Its shares are currently trading at around $152.25 with a P/E ratio of 31.20, a P/S ratio of 9.40 and a P/B ratio of 8.20. The company had an annual average earnings growth of 107% over the past ten years.

Veeco Instruments (VECO)

Veeco Instruments is Robert Karr’s second largest holding, maintaining 1,531,251 shares of the company’s stock. His position in Veeco represents 10.3% of his total portfolio.

The guru made a notable decrease in the company over the past quarter, reducing his position -39.62%. Karr sold a total of 1,004,682 shares in the price range of $32.18 to $43.30, with an estimated average quarterly price of $38.65. Since then the price per share is down about -18.9%.

Karr’s holding history as of the close of the first 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 $1.26 billion. Its shares are currently trading at around $31.36 with a P/S ratio of 3.40 and a P/B ratio of 1.70.

TAL Education (XRS)

The guru’s third largest holding is in TAL Education where he maintains 2,602,707 shares of the company’s stock. This position makes up for 9.4% of his total portfolio and 3.33% of the company’s shares outstanding.

Over the past quarter Karr cut his holdings a minor -4.43% by selling 120,630 shares of the company’s stock. He sold these shares near the estimated average quarterly price of $23.71, and since then the price per share is up about 6.1%.

Karr’s historical holding history:

1400170635128.png

TAL Education Group is a K-12 after-school tutoring service provider in China. It delivers its tutoring services through small classes, personalized premium services and online course offerings.

TAL Education’s historical revenue and net income:

1400171796443.png

The analysis on TAL Education reports that the company holds no debt, its price is near a 5-year high and its P/E ratio is near a 3-year high.

TAL Education Group has a market cap of $1.76 billion. Its shares are currently trading at around $22.59 with a P/E ratio of 42.00, a P/S ratio of 6.30 and a P/B ratio of 7.40. The dividend yield of TAL Education stocks is currently at 2.30%.

Google (GOOGL)

Robert Karr (Trades, Portfolio)’s fourth largest holding is in Google where maintains 84,063 shares of the company’s stock. His position makes up for 7.9% of his total portfolio as well as 0.03% of the company’s shares outstanding.

Over the duration of the first quarter Karr cut his holdings -62.54% by selling a total of 140,371 shares. He sold these shares near the estimated average quarterly price of $585.06 (stock split). Since then the price per share is trading up down about -10%%.

Robert Karr ’s historical holding history:

1400172505875.png

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:

1400172952855.png

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:

1400172976812.png

Google has a market cap of $354.55 billion. Its shares are currently trading at around $525.65 with a P/E ratio of 27.30, a P/S ratio of 5.70 and a P/B ratio of 4.63. The company had an annual average earnings growth of 32.50% over the past 10 years.

GuruFocus rated Google the business predictability rank of 3-star.

Vipshop Holdings (VIPS)

The guru’s fifth largest position goes to Vipshop Holdings where he maintains 327,200 shares of the company’s stock. This position makes up for 7.8% of his total portfolio as well as 0.5% of the company’s shares outstanding.

Karr cut his holdings in Vipshop -57.26% by selling 438,300 shares over the past quarter. He sold these shares near the average quarterly price of $118.93, and since then the price per share is trading up about 32.8%.

Karr’s historical holding history:

1400174615754.png

Vipshop is China's online discount retailer. It offers high-quality branded products to consumers in China through flash sales on its vipshop.com website.

Vipshop’s historical revenue and net income:

1400174689057.png

The analysis on Vipshop reports that the company’s inventory has been building up and it also notes that the company has no debt.

Vipshop has a market cap of $8.78 billion. Its shares are trading at around $157.29 with a P/E ratio of 271.20 and a P/S ratio of 5.30.

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

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