Alan Fournier (Trades, Portfolio) manages Pennant Master Fund, Pennant Windward Master Fund, Broadway Gate Master Fund Ltd. and Pennant General Partner LLC. The guru made the following sales during the third quarter:
Fournier exited his position in CST Brands Inc. (CST, Financial) with an impact of -3.79% on the portfolio.
CST is an independent retailer of motor fuel and convenience merchandise in the U.S. and eastern Canada. Its retail operations include the sale of motor fuel and convenience merchandise items at convenience stores. Third quarter net income was $260 million or $3.41 per diluted share, compared to net income of $85 million or $1.12 per diluted share in the same quarter a year before. The company reported an increase of 165% for EBITDA.
GuruFocus gives the stock a profitability and growth rating of 4 out of 10. The return on equity (ROE) of 33.69% and return on assets (ROA) of 8.01% are outperforming 79% of companies
in the Global Specialty Retail industry. Financial strength has a rating of 6 out of 10. The cash-debt ratio of 0.13 is below the industry median of 0.72.
The largest shareholder of the company among the gurus is Mario Gabelli (Trades, Portfolio) with 3.54% of outstanding shares, followed by Paul Tudor Jones (Trades, Portfolio) with 0.99%, Keeley Asset Management Corp (Trades, Portfolio) with 0.48%, Third Avenue Management (Trades, Portfolio) with 0.08% and Jeff Auxier (Trades, Portfolio) with 0.06%.
The guru reduced his position in Allergan PLCÂ (AGN, Financial) by 46.98%. The trade had an impact of -3.26% on the portfolio.
Allergan is a specialty pharmaceutical company. The company is engaged in developing, manufacturing and distributing generic, brand and biosimilar products. During the third quarter, total net revenue grew 4.4% year over year but decreased 1.7% quarter on quarter.
GuruFocus gives the stock a profitability and growth rating of 6 out of 10. The ROE of 17.67% and ROA of 10.38% are outperforming 90% of the companies in the Global Drug Manufacturers - Specialty & Generic industry. Financial strength has a rating of 5 out of 10. The cash-debt ratio of 0.84 is below the industry median of 1.69.
Vanguard Health Care Fund (Trades, Portfolio) is the largest shareholder of the company among the gurus with 3.18% of outstanding shares, followed by John Paulson (Trades, Portfolio) with 1.04%, Daniel Loeb (Trades, Portfolio) with 1.01%, Paul Singer (Trades, Portfolio) with 0.73%, Spiros Segalas (Trades, Portfolio) with 0.55%, Seth Klarman (Trades, Portfolio) with 0.53%, John Griffin (Trades, Portfolio) with 0.34% and David Tepper (Trades, Portfolio) with 0.32%.
The investor exited Signet Jewelers Ltd. (SIG, Financial) with an impact of -2.01% on the portfolio.
The company is a specialty jewelry retailer. It is engaged in the sale of jewelry, watches and associated services in United Kingdom and United States. During the third quarter, total sales decreased 2.5%, diluted earnings per common share were 20 cents and adjusted diluted earnings per share were 30 cents.
GuruFocus gives the stock a profitability and growth rating of 8 out of 10. The ROE of 18.26% and ROA 8.05% are outperforming 82% of the companies in the Global Luxury Goods industry. Financial strength has a rating of 6 out of 10. The cash-debt ratio of 0.05 is below the industry median of 0.72.
The largest shareholder of the company among the gurus is Sarah Ketterer (Trades, Portfolio) with 2.04% of outstanding shares, followed by Joel Greenblatt (Trades, Portfolio) with 0.29%, First Pacific Advisors (Trades, Portfolio) with 0.27%, Bestinfond (Trades, Portfolio) with 0.16%, Louis Moore Bacon (Trades, Portfolio) with 0.1% and Steven Cohen (Trades, Portfolio) with 0.06%.
The guru closed his stake in Charter Communications Inc. Class AÂ (CHTR, Financial) with an impact of -1.83% on the portfolio.
Charter is a cable operator providing services in the United States. It offers cable video programming, internet services and voice services, as well as video services such as video on demand, HD television and DVR. During the last quarter, revenues grew 4.7% from the same quarter of the prior year and adjusted EBITDA grew 14.5% year over year.
GuruFocus gives the stock a profitability and growth rating of 7 out of 10. The ROE of 18.34% and ROA of 3.55% are outperforming 58% of the companies in the Global Pay TV industry. Financial strength has a rating of 4 out of 10. The cash-debt ratio of 0.02 is below the industry median of 0.41.
Dodge & Cox is the largest shareholder of the company among the gurus with 4.03% of outstanding shares, followed by Warren Buffett (Trades, Portfolio) with 3.49%, Steve Mandel (Trades, Portfolio) with 1.94%, Chase Coleman (Trades, Portfolio) with 1.23%, John Griffin (Trades, Portfolio) with 0.69%, Daniel Loeb (Trades, Portfolio) with 0.37%, Larry Robbins (Trades, Portfolio) with 0.25% and Diamond Hill Capital (Trades, Portfolio) with 0.18%.
Fournier exited BP PLC ADR. (BP, Financial) with an impact of -1.82% on the portfolio.
The company explores for oil and natural gas and also engages in supply and trading of crude oil, petroleum, petrochemicals products and related services. Third quarter profit was $933 million on an underlying replacement cost basis compared to $720 million in profit for the previous quarter and $1.8 billion for the third quarter of a year before.
GuruFocus gives the stock a profitability and growth rating of 3 out of 10. The ROE of -3.58% and ROA of -1.30% are underperforming 66% of the companies in the Global Oil & Gas Integrated industry. Financial strength has a rating of 5 out of 10. The cash-debt ratio of 0.43 is slightly above the industry median of 0.42.
The largest shareholder of the company among the gurus is Barrow, Hanley, Mewhinney & Strauss with 1.25% of outstanding shares, followed by Richard Pzena (Trades, Portfolio) with 0.24%, Charles Brandes (Trades, Portfolio) with 0.12%, Kahn Brothers (Trades, Portfolio) with 0.04%, Ken Fisher (Trades, Portfolio) with 0.02%, Richard Snow (Trades, Portfolio) with 0.01% and Ray Dalio (Trades, Portfolio) with 0.01%.
The guru reduced his holding of Team Health Holdings Inc. (TMH, Financial) by 54.40%. The transaction had an impact of -1.59% on the portfolio.
The company is a supplier of outsourced health care professional staffing and administrative services to hospitals and other health care providers in the United States. Recently, the company entered into a definitive agreement to be acquired by funds affiliated with Blackstone (BGB, Financial). During the second quarter, it reported an increase of 27.9% for net revenue and 19.9% for adjusted EBITDA.
GuruFocus gives the stock a profitability and growth rating of 6 out of 10. The ROE of 3.09% and ROA of 0.54% are underperforming 75% of the companies in the Global Staffing & Outsourcing Services industry. Financial strength has a rating of 4 out of 10. The cash-debt ratio of 0.01 is below the industry median of 1.92.
Jana Partners (Trades, Portfolio) is the largest shareholder of the company among the gurus with 7.91% of outstanding shares, followed by Vanguard Health Care Fund (Trades, Portfolio) with 3.28%, Columbia Wanger (Trades, Portfolio) with 0.47%, Jim Simons (Trades, Portfolio) with 0.04%, Joel Greenblatt (Trades, Portfolio) with 0.04% and Mario Gabelli (Trades, Portfolio) with 0.03%.
Fournier reduced his holding of LKQ Corp. (LKQ, Financial) by 42.70%. The trade had an impact of -1.52% on the portfolio.
The company provides replacement parts, components and systems needed to repair cars and trucks. It has three operating segments: Wholesale - North America, Wholesale - Europe and Self Service.
GuruFocus gives the stock a profitability and growth rating of 8 out of 10. The ROE of 14.46% and ROA of 6.64% are outperforming 70% of the companies in the Global Auto Parts industry. Financial strength has a rating of 6 out of 10. The cash-debt ratio of 0.08 is below the industry median on 0.51.
The largest shareholder of the company among the gurus is David Rolfe (Trades, Portfolio) with 1.44% of outstanding shares, followed by Chuck Akre (Trades, Portfolio) with 1.15%, Meridian Funds (Trades, Portfolio) with 0.89%, Columbia Wanger (Trades, Portfolio) with 0.73%, Pioneer Investments (Trades, Portfolio) with 0.12% and Jim Simons (Trades, Portfolio) with 0.06%.
Disclosure: I do not own any shares of any stocks mentioned in this article.
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