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Robert Bruce Heavy On Healthcare: America Service Group Inc., Abbott Laboratories, Durect Corp., Pfizer Inc, Merck & Co.

October 02, 2009 | About:
guruek

guruek

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(GuruFocus, October 2, 2009) In the previous article we re-discovered small-cap Investment Guru Robert Bruce. I stated what caught my attention was his heavy holdings in the Health Care sector. This is the his sector allocation:

Industry2009-03-312009-06-30
Technology0.9%0.8%
Financials8.4%10.3%
Utilities4.2%4.3%
Telecommunications0%1.3%
Consumer Services7.3%7.4%
Health Care31.5%32.5%
Consumer Goods4.3%19.4%
Industrials0.8%2%
Basic Materials7.7%7.6%
Oil & Gas12.5%10.1%


The allocation is for June 30, 2009, the latest date we have information on. Peculiar thing happened on that day, Robert Bruce reported only $82 million in stocks, the rest of his $200 million portfolio was in bond. If you are looking for one more difference between Robert Bruce and Bruce Berkowitz, here is one: Robert Bruce seems to be rather bearish as of the end of 2Q09 with a large bond holding; Berkowitz kept some cash but the position was in teens of percent.

His portfolio as a whole returned almost 34% YTD. I assume the bond he held also had a good run. That is not impossible, during the past seven months, stocks had a good run, bonds also had a good run.

I want to point this out so that you can look at his 32.5% allocation into Health Care stocks in that context.

In terms of individual stocks, here is the list. I typically review the first five stocks, and if you want to know more about the rest, click on the symbols and do your own research:

TikckerSharesValue2Q09 Weighting2Q09 Share # Change
ASGR683,09710,97713.32%2.63%
ABT80,0003,7634.56%-2.13%
DRRX1,215,9732,8943.51%0.80%
PFE159,2002,3882.90%
MRK67,0001,8762.28%
ELN221,4001,4101.71%-3.23%
EDAP818,9111,2281.49%0.28%
HGRD217,8008511.03%-6.44%
NEXM1,668,4157930.96%-47.05%
HSP10,0003850.47%
VION98,4521900.23%-0.03%
ADLS107,410540.07%
Total26,80932.53%


America Service Group Inc. (ASGR)

America Service Group Inc. through its subsidiaries Prison Health Services Inc. EMSA Correctional Care Inc. EMSA Military Services Inc.Correctional Health Services Inc. and Secure Pharmacy Plus Inc. contracts to provide managed healthcare services including the distribution of pharmaceuticals to correctional facilities and militaryinstallations throughout the United States. America Service Group Inc. has a market cap of $150.1 million; its shares were traded at around $15.9 with a P/E ratio of 30.4 and P/S ratio of 0.3. The dividend yield of America Service Group Inc. stocks is 1.2%.

Bruce owns 683,097 shares as of 06/30/2009, which accounts for 13.32% of the $82 million portfolio of Bruce & Co., Inc..

Abbott Laboratories (ABT)

Abbott Laboratories is a global broad-based health care company devoted to discovering new medicines new technologies and new ways to manage health. Abbott products span the continuum of care from nutritional products and laboratory diagnostics through medical devices and pharmaceutical therapies. Abbott comprehensive line of products encircles life itself addressing important health needs from infancy to the golden years. Abbott Laboratories has a market cap of $74.64 billion; its shares were traded at around $48.68 with a P/E ratio of 13.8 and P/S ratio of 2.5. The dividend yield of Abbott Laboratories stocks is 3.4%. Abbott Laboratories had an annual average earning growth of 4.4% over the past 10 years. GuruFocus rated Abbott Laboratories the business predictability rank of 5-star.

Bruce owns 80,000 shares as of 06/30/2009, which accounts for 4.56% of the $82 million portfolio of Bruce & Co., Inc..

Durect Corp. (DRRX)

Durect Corp. is pioneering the treatment of chronic diseases and conditions by developing and commercializing pharmaceutical systems to deliver the right drug to the right place in the right amount at the right time. Its pharmaceutical systems combine engineering innovations and delivery technology from the medical device and drug delivery industries with its proprietary pharmaceutical and biotechnology drug formulations. Durect Corp. has a market cap of $173.2 million; its shares were traded at around $2.43 with and P/S ratio of 6.6.

Bruce owns 1,215,973 shares as of 06/30/2009, which accounts for 3.51% of the $82 million portfolio of Bruce & Co., Inc..

Pfizer Inc (PFE)

Pfizer Inc is a research-based global pharmaceutical company that discovers and develops innovative value-added products that improve the quality of life of people around the world and help them enjoy longer healthier and more productive lives. Pfizer has three business segments: health care animal health and consumer health care. Its products are available in numerous countries. (Company Press Release) Pfizer Inc has a market cap of $110.35 billion; its shares were traded at around $16.31 with a P/E ratio of 7.2 and P/S ratio of 2.3. The dividend yield of Pfizer Inc stocks is 4.1%. Pfizer Inc had an annual average earning growth of 11% over the past 10 years. GuruFocus rated Pfizer Inc the business predictability rank of 2.5-star.

Bruce owns 159,200 shares as of 06/30/2009, which accounts for 2.9% of the $82 million portfolio of Bruce & Co., Inc..

Merck & Co. (MRK)

Merck & Co. Inc. is a global research-driven pharmaceutical company dedicated to putting patients first. Established in 1891 Merck discovers develops manufactures and markets vaccines and medicines to address unmet medical needs. The company devotes extensive efforts to increase access to medicines through far-reaching programs that not only donate Merck medicines but help deliver them to the people who need them. Merck also publishes unbiased health information as a not-for-profit service. Merck & Co. Inc. has a market cap of $65.25 billion; its shares were traded at around $31.18 with a P/E ratio of 9.5 and P/S ratio of 2.8. The dividend yield of Merck & Co. Inc. stocks is 4.9%.

Bruce owns 67,000 shares as of 06/30/2009, which accounts for 2.28% of the $82 million portfolio of Bruce & Co., Inc..

Comments

Robert Bruce allocated 32.5% of his equity portfolio into Healthcare related stocks. There are small-cap in the list, but several large players take the top spots.

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