John Hussman Buys Infosys, Southern

The guru's largest 2nd-quarter acquisitions

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Aug 12, 2016
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John Hussman (Trades, Portfolio) is the president and principal shareholder of Hussman Strategic Advisors, the investment advisory firm that manages the Hussman Funds. During the second quarter he bought shares in the following stocks.

The investor raised his stake in Infosys Ltd. ADRÂ (INFY) by 7,042.86% with an impact of 1.34% on the portfolio.

The company provides end-to-end business solutions including consulting, design, development, software re-engineering, maintenance, systems integration, package evaluation and implementation and infrastructure management services.

GuruFocus gives the stock a profitability and growth rating of 8 out of 10 with return on equity (ROE) of 23.65% and return on assets (ROA) of 19.14% that are outperforming 89% of the companies in the Global Information Technology Services industry. Financial strength has a rating of 10 out of 10 with no debt.

The largest shareholder among the gurus is Ken Fisher (Trades, Portfolio) with 1.04% of outstanding shares followed by Jeremy Grantham (Trades, Portfolio) with 0.17%, Sarah Ketterer (Trades, Portfolio) with 0.13% and Richard Pzena (Trades, Portfolio) with 0.01%.

The guru bought 150,000 shares in Southern Co. (SO) with an impact of 1.23% on the portfolio.

The company through its traditional operating companies provides electric service in four Southeastern states.

During the second quarter earnings were $638 million, or 68 cents per share, compared to earnings of $629 million, or 69 cents per share, in the second quarter of 2015 and operating revenues were $4.45 billion, compared to $4.34 billion for the same quarter of a year before.

GuruFocus gives the stock a profitability and growth rating of 5 out of 10 with ROE of 11.01% and ROA of 3.00% that are outperforming 55% of the companies in the Global Utilities - Regulated Electric industry. Financial strength has a rating of 5 out of 10 with cash to debt of 0.05 that is below the industry median of 0.29.

Jim Simons (Trades, Portfolio) is the company's largest shareholder among the gurus with 0.37% of outstanding shares followed by HOTCHKIS & WILEY with 0.23%, John Rogers (Trades, Portfolio) with 0.17%, Stanley Druckenmiller (Trades, Portfolio) with 0.11%, Hussman with 0.02% and Paul Tudor Jones (Trades, Portfolio) with 0.01%.

The investor acquired 175,000 shares in Baxter International Inc. (BAX) with an impact of 1.21% on the portfolio.

Baxter is a health care company. It develops, manufactures and markets products that save and sustain the lives of people with hemophilia, immune disorders, infectious diseases, kidney disease, trauma and other chronic conditions.

During the last quarter worldwide sales totaled $2.6 billion, an increase of 4% on a reported basis and 6% on a constant currency basis as compared to the prior-year period.

GuruFocus gives the stock a profitability and growth rating of 7 out of 10 with ROE of 58.61% and ROA of 21.16% that are outperforming 97% of the companies in the Global Medical Instruments & Supplies industry.

The largest shareholder among the gurus is Daniel Loeb (Trades, Portfolio) with 9.9% of outstanding shares followed by Vanguard Health Care Fund (Trades, Portfolio) with 1.3%, Pzena with 0.57%, Tweedy Browne (Trades, Portfolio) with 0.44% and First Eagle Investment (Trades, Portfolio) with 0.39%.

The guru bought 177,900 shares in Fastenal Co. (FAST) with an impact of 1.21% on the portfolio.

Fastenal is engaged in the wholesale distribution of industrial and construction supplies in North America. It offers bolts, nuts, screws, studs and related washers and miscellaneous supplies and hardware.

Second quarter net sales grew 1.6% from the same quarter of a year before, and net earnings decreased 6.3%.

GuruFocus gives the stock a profitability and growth rating of 8 out of 10 with ROE of 28.00% and ROA of 19.69% that are outperforming 93% of the companies in the Global Industrial Distribution industry. Financial strength has a rating of 7 out of 10 with cash to debt of 0.36 that is below the industry median of 0.70.

Ruane Cunniff (Trades, Portfolio) is the company's largest shareholder among the gurus with 4.19% of outstanding shares followed by Ron Baron (Trades, Portfolio) with 0.87%, Mairs and Power (Trades, Portfolio) with 0.76% and Steven Cohen (Trades, Portfolio) with 0.05%.

The guru acquired 350,000 shares in MasTec Inc. (MTZ) with an impact of 1.19% on the portfolio.

MasTec is an infrastructure construction company. It is engaged in engineering, building, installing, maintaining and upgrading energy, communication and utility infrastructure in North America.

During the last quarter revenue was $1.23 billion compared to $1.07 billion in the same period in 2015 and GAAP net income was 30 cents per diluted share, compared to a net loss of 5 cents per diluted share, in the second quarter of 2015.

GuruFocus gives the stock a profitability and growth rating of 6 out of 10 with ROE of -7.63% and ROA of -2.38% that are underperforming 86% of the companies in the Global Engineering & Construction industry. Financial strength has a rating of 4 out of 10 with cash to debt of 0.32 that is below the industry median of 0.40.

The largest shareholder among the gurus is Mariko Gordon (Trades, Portfolio) with 3.49% of outstanding shares followed by Chuck Royce (Trades, Portfolio) with 0.96% and Murray Stahl (Trades, Portfolio) with 0.03%.

The investor bought 100,000 shares in HCA Holdings Inc. (HCA) with an impact of 1.18% on the portfolio.

HCA is a health care services company. It operates general acute care hospitals, psychiatric hospitals and rehabilitation hospitals. It also operates freestanding surgery centers.

Second quarter revenues grew 4.3%, and net income attributable to HCA Holdings totaled $658 million, or $1.65 per diluted share, compared to $507 million, or $1.18 per diluted share, in the second quarter of 2015.

GuruFocus gives the stock a profitability and growth rating of 8 out of 10 with ROA of 7.34% and ROC of 31.46% that are outperforming 67% of the companies in the Global Medical Care industry.

Larry Robbins (Trades, Portfolio) is the largest shareholder among the gurus with 3.88% of outstanding shares followed by Vanguard Health Care Fund (Trades, Portfolio) with 3.09%, David Tepper (Trades, Portfolio) with 0.84%, Richard Perry (Trades, Portfolio) with 0.73% and Samuel Isaly (Trades, Portfolio) with 0.19%.

The guru bought 100,000 shares in Visteon Corp. (VC) with an impact of 1.01% on the portfolio.

Visteon is engaged in designing, engineering, manufacturing and supplying automotive systems, modules and components for original equipment manufacturers. Its products include instrument clusters, audio head units, decorative control and panel. Full-year sales grew 25% and adjusted EBITDA increased 59%, led by record electronics performance.

GuruFocus gives the stock a profitability and growth rating of 6 out of 10 with ROE of 4.56% and ROA of 1.85% that are underperforming 67% of the companies in the Global Auto Parts industry. Financial strength has a rating of 6 out of 10 with cash to debt of 2.27 that is above the industry median of 0.71.

The largest shareholder among the gurus is First Eagle Investment (Trades, Portfolio) with 2.62% of outstanding shares followed by RS Investment Management (Trades, Portfolio) with 0.9%, Private Capital (Trades, Portfolio) with 0.9%, Simons with 0.65% and Joel Greenblatt (Trades, Portfolio) with 0.51%.

Disclosure: I do not own any shares of any stocks mentioned in this article.

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