Lee Ainslie Adds to Stake in Allergan

Kansas City Southern, Charter Communications lead list of new stakes in portfolio

Sep 25, 2015

Lee Ainslie (Trades, Portfolio), founder and CEO of Dallas-based Maverick Capital Ltd., consults Maverick’s six industry sector heads before reaching conclusions on stocks. Their insights have helped Maverick Capital grow from $38 million when it was founded in 1993 to $10 billion today.

Ainslie’s most significant second-quarter transaction was his acquisition of 1,143,372 shares of Allergan PLC (AGN, Financial), a pharmaceutical company with offices in Ireland and New Jersey. Ainslie paid an average price of $298.2 per share. The deal had a 5.3% impact on his portfolio and more than tripled Ainslie’s stake in Allergan.

Allergan has a market cap of $110.39 billion and an enterprise value of $155.12 billion. It has a P/B of 1.7 and a P/S of 4.8.

Ainslie also added to his stake in Liberty Global PLC (LBTYK, Financial), a London-based international telecommunications and television company. Ainslie increased his stake by more than 85% with the purchase of 2,455,871 shares for an average price of $47.68 per share. The deal had a 1.81% impact on his portfolio.

Liberty Global has a market cap of $38.85 billion and an enterprise value of $84.41 billion. It has a P/B of 3.2 and a P/S of 2.1.

Ainslie bought 22 new stakes in the second quarter with his purchase of 2,397,661 shares of Kansas City Southern Inc. (KSU, Financial), the Kansas City, Mo., parent company of Kansas City Southern Railway, topping the list. Ainslie paid an average price of $98.73 per share. The transaction had a 3.34% impact on Ainslie’s portfolio.

Kansas City Southern has a market cap of $10.03 billion and an enterprise value of $12.44 billion. It has a P/E of 20.5, a P/B of 2.6 and a P/S of 4.0. Andreas Halvorsen (Trades, Portfolio), Frank Sands (Trades, Portfolio), Larry Robbins (Trades, Portfolio), Ken Fisher (Trades, Portfolio), Jim Simons (Trades, Portfolio), Steve Mandel (Trades, Portfolio), Manning & Napier Advisors, Inc. and Pioneer Investments (Trades, Portfolio) have shares of Kansas City Southern in their portfolios.

Ainslie acquired an 896,954-share stake in Charter Communications Inc. (CHTR, Financial), a Stamford, Conn.-based telecommunications company, for an average price of $180.05 per share. The transaction had a 2.34% impact on his portfolio.

Reductions and divestitures

Ainslie sold more than 95% of his stake in Micron Technology Inc. (MU, Financial), a Boise, Idaho-based semiconductor company. Ainslie sold 6,005,020 shares for an average price of $26.66 per share. The deal had a -2.62% impact on his portfolio.

Micron Technology has a market cap of $15.95 billion and an enterprise value of $19.54 billion. It has a P/E of 4.9, a P/B of 1.3 and a P/S of 1.1.

Ainslie sold nearly 41% of his stake in Valeant Pharmaceuticals International Inc. (VRX, Financial), a Montreal-based pharmaceutical company. He sold 519,252 shares for an average price of $221.34 per share. The transaction had a -1.66% impact on Ainslie’s portfolio.

Valeant Pharmaceuticals has a market cap of $68.67 billion and an enterprise value of $102.7 billion. It has a P/E of 95.1, a P/B of 11.4 and a P/S of 7.5.

Ainslie sold roughly 78% of his stake in SolarWinds Inc. (SWI, Financial), an information technology company based in Austin, Texas. He sold 1,999,624 shares for an average price of $49.14 per share. The deal had a -1.65% impact on Ainslie’s portfolio.

SolarWinds has a market cap of $3.05 billion and an enterprise value of $2.81 billion. It has a P/E of 34.7, a P/B of 4.8 and a P/S of 6.6. Steve Mandel (Trades, Portfolio), Jim Simons (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio), Jeremy Grantham (Trades, Portfolio) and Paul Tudor Jones (Trades, Portfolio) have shares of SolarWinds in their portfolios.

Ainslie sold 21 existing stakes in his portfolio, many of them on the small side but some were large. The most noteworthy was Ainslie’s sale of his 2,385,406-share stake in Halliburton Co. (HAL, Financial), a Houston-based oilfield services and equipment company, for an average price of $46.04 per share. The deal had a -1.68% impact on Ainslie’s portfolio.

Ainslie also sold his 432,691-share stake in McKesson Corp. (MCK, Financial), a San Francisco-based pharmaceutical distributor, for an average price of $231.13 per share. The transaction had a -1.58% impact on Ainslie’s portfolio.

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