Chris Davis Buys More Than 13 Million Shares of Apache Corporation

Guru adds stake in Facebook to portfolio in 4th quarter

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Feb 16, 2016
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Chris Davis (Trades, Portfolio), portfolio manager of Davis Financial Fund, bought 10 new stakes in the fourth quarter, including his most noteworthy deal of the quarter – the purchase of a 13,300,208-share stake in Apache Corporation (APA, Financial), a Houston-based oil and gas company, for an average price of $46.74 per share. The deal had a 2.47% impact on Davis’ portfolio.

Davis’ stake is 3.52% of Apache’s outstanding shares and 2.47% of Davis’ total assets. Apache’s leading shareholder among the gurus is Dodge & Cox with a stake of 26,014,684 shares. The stake is 6.88% of Apache’s outstanding shares and 1.14% of Dodge & Cox’s total assets.

Apache has a forward P/E of 714.3, a P/B of 1.4 and a P/S of 1.7. GuruFocus gives Apache a Financial Strength rating of 2/10 and a Profitability and Growth rating of 7/10.

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Apache sold for $36.53 per share Friday.

Davis also purchased a 2,471,438-share stake in Facebook Inc. (FB, Financial), a Menlo Park, California-based online social networking service, for an average price of $102.98 per share. The transaction had a 1.08% impact on Davis’ portfolio.

Davis’ stake is 0.09% of Facebook’s outstanding shares and 1.08% of the guru’s total assets. Facebook’s leading shareholder among the gurus is Frank Sands (Trades, Portfolio) with a stake of 24,017,872 shares. Sands’ stake is 0.84% of Facebook’s outstanding shares and 6.48% of Sands’ total assets.

Facebook has a P/E of 104.1, a P/E of 27.4, a P/B of 6.5 and a P/S of 17.9. GuruFocus gives Facebook a Financial Strength rating of 7/10 and a Profitability and Growth rating of 7/10.

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Facebook sold for $102.01 per share Friday.

Davis trimmed his stake in Express Scripts Holding Co. (ESRX, Financial), a St. Louis-based health care company, by nearly 40%. Davis sold 3,633,141 shares for an average price of $85.77 per share. The deal had a -1.22% impact on Davis’ portfolio.

Davis’ stake is now 5,531,779 shares, which is 0.82% of Express Scripts’ outstanding shares and 2.02% of Davis’ total assets. Express Scripts’ leading shareholder among the gurus is Dodge & Cox with a stake of 25,520,318 shares. The stake is 3.77% of Express Scripts’ outstanding shares and 2.19% of Dodge & Cox’s total assets.

Express Scripts has a P/E of 20.8, a forward P/E of 9.8, a P/B of 2.8 and a P/S of 0.5. GuruFocus gives Express Scripts a Financial Strength rating of 7/10 and a Profitability and Growth rating of 8/10.

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Express Scripts sold for $67.34 per share Friday.

Davis pared his stake in Cabot Oil & Gas Corp. (COG, Financial), a Houston-based oil and gas company, by more than 40%. Davis sold 11,426,584 shares for an average price of $20 per share. The transaction had a -1.04% impact on Davis’ portfolio.

Davis’ stake is now 16,888,879 shares, which is 4.08% of Cabot Oil & Gas’ outstanding shares and 1.25% of Davis’ total assets. As of the end of the fourth quarter, Davis’ was Cabot Oil & Gas’ leading shareholder among the gurus.

Cabot Oil & Gas has a forward P/E of 11.5, a P/B of 3.9 and a P/S of 4.8. GuruFocus gives Cabot Oil & Gas a Financial Strength rating of 6/10 and a Profitability and Growth rating of 7/10.

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Cabot Oil & Gas sold for $19.75 per share Friday.

Davis reduced his stake in Wells Fargo & Co. (WFC, Financial), a San Francisco-based banking and financial services company, by more than 14%. Davis sold 4,212,041 shares for an average price of $54.36 per share. The deal had a -0.9% impact on Davis’ portfolio.

Davis’ stake, now 25,785,084 shares, is 0.5% of Wells Fargo’s outstanding shares and 5.86% of Davis’ total assets. Warren Buffett (Trades, Portfolio) is Wells Fargo’s leading shareholder among the gurus with a stake of 470,292,359 shares. The stake is 9.21% of Wells Fargo’s outstanding shares and 18.95% of Buffett’s total assets.

Wells Fargo has a P/E of 11.4, a forward P/E of 10.1, a P/B of 1.4 and a P/S of 2.9. GuruFocus gives Wells Fargo a Financial Strength rating of 6/10 and a Profitability and Growth rating of 5/10.

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Wells Fargo sold for $47.31 per share Friday.

Davis pruned his stake in UnitedHealth Group Inc. (UNH, Financial), a Minnetonka, Minnesota-based managed health care company, by nearly 30%. Davis sold 1,690,048 shares for an average price of $116.87 per share. The transaction had a -0.81% impact on Davis’ portfolio.

Davis’ remaining stake is 3,996,369 shares, which is 0.42% of UnitedHealth’s outstanding shares and 1.97% of Davis’ total assets. Vanguard Health Care Fund (Trades, Portfolio) is UnitedHealth’s leading shareholder among the gurus with a stake of 23,462,000 shares. The stake is 2.47% of UnitedHealth’s outstanding shares and 5.49% of Vanguard’s total assets.

UnitedHealth has a P/E of 17.7, a forward P/E of 13.1, a P/B of 3.2 and a P/S of 0.7. GuruFocus gives UnitedHealth a Financial Strength rating of 7/10 and a Profitability and Growth rating of 8/10.

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UnitedHealth sold for $111.82 per share Friday.

Davis reduced his stake in Amazon.com Inc. (AMZN, Financial), a Seattle-based ecommerce company, by more than 10%. Davis sold 323,167 shares for an average price of $633.28 per share. The deal had a -0.69% impact on Davis’ portfolio.

Davis’ stake in Amazon, now 2,803,142 shares, is 0.6% of Amazon’s outstanding shares and 7.92% of Davis’ total assets. Chase Coleman (Trades, Portfolio) is Amazon’s leading shareholder among the gurus with a stake of 3,193,590 shares. The stake is 0.68% of Amazon’s outstanding shares and 20.13% of Chase Coleman (Trades, Portfolio)’s total assets.

Amazon has a P/E of 714.2, a forward P/E of 49.5, a P/B of 17.8 and a P/S of 2.4. GuruFocus gives Amazon a Financial Strength rating of 6/10 and a Profitability and Growth rating of 7/10.

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Amazon sold for $507.08 per share Friday.

Davis reduced his stake in American Express Co. (AXP, Financial), a New York-based banking and financial services company, by nearly 13%. Davis sold 2,235,388 shares for an average price of $72.69 per share. The transaction had a -0.69% impact on Davis’ portfolio.

Davis’ stake is now 15,284,520 shares, is 1.55% of American Express’ outstanding shares and 4.44% of Davis’ total assets. Buffett is American Express’ leading shareholder among the gurus with a stake of 151,610,700 shares. The stake is 15.4% of American Express’ outstanding shares and 8.82% of Buffett’s total assets.

American Express has a P/E of 9.5, a forward P/E of 9.4, a P/B of 2.5 and a P/S of 1.6. GuruFocus gives American Express a Financial Strength rating of 4/10 and a Profitability and Growth rating of 7/10.

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American Express sold for $52.66 per share Friday.

Davis boosted his stake in Valeant Pharmaceuticals International Inc. (VRX, Financial), a Canadian pharmaceutical company, by nearly 151%. Davis purchased 2,274,890 shares for an average price of $111.15 per share. The deal had a 0.97% impact on Davis’ portfolio.

Davis’ stake is now 3,784,012 shares, which is 1.1% of Valeant’s outstanding shares and 1.61% of Davis’ total assets. Ruane Cunniff (Trades, Portfolio) is Valeant’s leading shareholder among the gurus with a stake of 35,900,026 shares. The stake is 10.46% of Valeant’s outstanding shares and 17.11% of Ruane Cunniff (Trades, Portfolio)’s total assets.

Valeant has a P/E of 59.4, a forward P/E of 5.4, a P/B of 5 and a P/S of 3.4. GuruFocus gives Valeant a Financial Strength rating of 6/10 and a Profitability and Growth rating of 9/10.

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Valeant sold for $88.39 per share Friday.

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