Eric Mindich (Trades, Portfolio), who started working at Goldman Sachs after high school and spent summers at the firm while earning a degree in economics at Harvard, manages a portfolio composed of 36 stocks with a total value of $6.35 billion. The following are his largest sales during the fourth quarter.
The guru reduced his stake in Perrigo Co. PLCĂ‚ (PRGO) by 71.77%. The deal had an impact of -5.87% on the portfolio.
The company develops, manufactures and distributes over-the-counter and generic prescription pharmaceuticals, nutritional products and active pharmaceutical ingredients. Fourth quarter net sales increased 28% compared to the prior year, adjusted net income grew 29% compared to the prior year, and adjusted earnings per share increased 21% compared to the prior year.
GuruFocus gives the stock a profitability and growth rating of 6 out of 10 with negative returns of ROE of -0.40% and ROA of -0.23% that are underperforming 70% of the companies in the Global Drug Manufacturers - Specialty & Generic industry. Financial strength has a rating of 4 out of 10 with a cash-to-debt of 0.07 that is far below the industry median of 3.46.
John Paulson (Trades, Portfolio) is the company's largest shareholder among the gurus with 1.86% of outstanding shares followed by David Rolfe (Trades, Portfolio) with 1.48%, Ruane Cunniff (Trades, Portfolio) with 1.01%, Mindich with 0.59%, Meridian Funds (Trades, Portfolio) with 0.34% and Ron Baron (Trades, Portfolio) with 0.18%.
The investor exited his position in Williams Companies Inc. (WMB) with an impact of -2.15% on the portfolio.
The company is an energy infrastructure company focused on connecting North America's hydrocarbon resource plays to growing markets for natural gas, NGLs and olefins. Its operations are located principally in the U.S. but span from the deepwater Gulf of Mexico to the Canadian oil sands. In the fourth quarter adjusted EBITDA grew 25% compared to the same quarter of a year before, and full-year 2015 adjusted EBITDA increased 22% compared to 2014.
GuruFocus gives the stock a profitability and growth rating of 4 out of 10 with negative returns of ROE of -7.24% and ROA of -1.11% that are underperforming 82% of the companies in the Global Oil & Gas Midstream industry. Financial strength has a rating of 3 out of 10 with a cash-to-debt of 0.13 that is below the industry median of 0.40.
The largest shareholder among the gurus is Steve Mandel (Trades, Portfolio) with 3.86% of outstanding shares followed by Richard Perry (Trades, Portfolio) with 1.08%, John Griffin (Trades, Portfolio) with 0.66%, Jana Partners (Trades, Portfolio) with 0.5%, Jim Simons (Trades, Portfolio) with 0.24% and Murray Stahl (Trades, Portfolio) with 0.03%.
The guru reduced his stake in Microsoft Corp. (MSFT) by 19.71%. The deal had an impact of -1.62% on the portfolio.
The company generates revenue by developing, manufacturing, licensing and supporting software products and services for different types of computing devices.
GuruFocus gives the stock a profitability and growth rating of 8 out of 10 with positive returns of ROE of 13.70% and ROA of 6.48% that are overperforming 67% of the companies in the Global Software - Infrastructure industry. Financial strength has a rating of 7 out of 10 with a cash-to-debt of 2.31 that is below the industry median of 14.04.
Dodge & Cox is the company's largest shareholder among the gurus with 0.84% of outstanding shares followed by PRIMECAP Management (Trades, Portfolio) with 0.75%, Jeff Ubben (Trades, Portfolio) with 0.72%, First Eagle Investment (Trades, Portfolio) with 0.38%, James Barrow (Trades, Portfolio) with 0.37% and Mandel with 0.34%.
The investor reduced his stake in Adobe Systems Inc. (ADBE) by 26.85%; the deal had an impact of -0.98% on the portfolio.
The company offers a line of software and services used by creative professionals, marketers, knowledge workers, application developers, enterprises and consumers for creating, managing, delivering, measuring, optimizing and engaging with compelling content and experiences across multiple operating systems, devices and media. Fourth quarter revenue had 22% year-over-year growth, operating income grew 133%, and net income grew 153%.
GuruFocus gives the stock a profitability and growth rating of 7 out of 10 with easy returns of ROE of 9.31% and ROA of 5.60% that are overperforming 60% of the companies in the Global Software - Application industry. Financial strength has a rating of 8 out of 10 with a cash-to-debt of 2.09 that is far below the industry median of 14.04.
The company's largest shareholder among the gurus is PRIMECAP Management (Trades, Portfolio) with 6.67% of outstanding shares followed by Ubben with 2.81%, Frank Sands (Trades, Portfolio) with 2.15%, Mandel with 0.81%, Lee Ainslie (Trades, Portfolio) with 0.6% and Dodge & Cox with 0.05%.
The guru reduced his stake in Office Depot Inc. (ODP) by 70.03%, and the deal had an impact of -0.98% on the portfolio.
The company operates its business in three segments: North American Retail Division, North American Business Solutions Division and International Division. The former OfficeMax U.S. retail business is included in the North American Retail Division. For the fourth quarter the company reported a 9% decrease in sales and $10 million increase in adjusted operating income.
GuruFocus gives the stock a profitability and growth rating of 3 out of 10 with weak returns of ROE of 0.50% and ROA of 0.12% that are underperforming 73% of the companies in the Global Specialty Retail industry. Financial strength has a rating of 7 out of 10 with a cash-to-debt of 0.71 that is few below the industry median of 0.92.
Paul Singer (Trades, Portfolio) is the company's largest shareholder among the gurus with 2.41% of outstanding shares followed by Jeremy Grantham (Trades, Portfolio) with 1.87%, HOTCHKIS & WILEY with 1.6%, Joel Greenblatt (Trades, Portfolio) with 1.1%, Steven Cohen (Trades, Portfolio) with 0.36% and Simons with 0.29%.
The investor closed stake in Alphabet Inc. (GOOG) by an impact of -0.64% on the portfolio.
The company operates through subsidiaries including Google, which is engaged in improving the ways people connect with information. The Google products include Search, Android, YouTube, Apps, Maps and Ads. Driven by mobile search as well as YouTube and programmatic advertising, all areas in which the company has been investing for many years, it reported strong revenue growth in the fourth quarter which reflects the vibrancy of its business.
GuruFocus gives the stock a profitability and growth rating of 8 out of 10 with strong returns of ROE of 14.18% and ROA of 11.84% that are overperforming 66% of the companies in the Global Internet Content & Information industry. Financial strength has a rating of 9 out of 10 with a cash-to-debt of 14.
The leading shareholder among the gurus is Dodge & Cox with 0.48% of outstanding shares followed by PRIMECAP Management (Trades, Portfolio) with 0.37%, Chris Davis (Trades, Portfolio) with 0.2%, Mason Hawkins (Trades, Portfolio) with 0.18%, Andreas Halvorsen (Trades, Portfolio) with 0.17% and Grantham with 0.15%.
The guru reduced his stake in Cigna Corp. (CI) by 15.97%, and the deal had an impact of -0.42% on the portfolio.
It is a health services organization with insurance subsidiaries that are providers of medical, dental, disability, life and accident insurance and related products and services. In the U.S., the majority of these products and services are offered through employers and other groups and in selected international markets.
GuruFocus gives the stock a profitability and growth rating of 8 out of 10 with good returns of ROE of 18.43% and ROA of 3.67% that are overperforming 56% of the companies in the Global Health Care Plans industry. Financial strength has a rating of 6 out of 10 with a cash-to-debt of 0.38 that is below the industry median of 2.15.
Dodge & Cox is the company's largest shareholder among the gurus with 5.28% of outstanding shares followed by Vanguard Health Care Fund (Trades, Portfolio) with 2.78%, Larry Robbins (Trades, Portfolio) with 2.73%, Barrow with 0.97%, Richard Pzena (Trades, Portfolio) with 0.5% and Grantham with 0.22%.
