Glenn Greenberg (Trades, Portfolio), manager of Brave Warrior Advisors, disclosed Nov. 14 that his top four new holdings for the third quarter were Raymond James Financial Inc. (RJF, Financial), Lennar Corp. (LEN, Financial), Citigroup Inc. (C, Financial) and D.R. Horton Inc. (DHI, Financial).
Managing a portfolio of 18 stocks, Greenberg maintains a highly concentrated portfolio and emphasizes return on invested capital. The guru’s largest sectors in terms of portfolio weight are financial services, technology and communication services.
Raymond James
Greenberg invested in 2,074,489 shares of Raymond James for an average price of $92.42 per share. The guru dedicated 8.13% of his equity portfolio to the position.
St. Petersburg, Florida-based Raymond James operates five business segments: private client group, capital markets, asset management, banking and other services. CEO Paul Reilly said on Oct. 24 that revenues for the 12 months ending Sept. 30 reached $7.27 billion, up 14% from the prior year on continued strength in the company’s client-centric business. The company’s return on equity of 14.37% outperforms 72% of global competitors while the company’s three-year revenue growth rate of 11.40% ranks higher than 62% of global competitors.
Other gurus with large positions in Raymond James include Andreas Halvorsen (Trades, Portfolio) and Ken Fisher (Trades, Portfolio).
Lennar
Greenberg invested in 2,215,308 shares of Lennar for an average price of $52.03 per share, giving the position 4.41% equity portfolio space.
GuruFocus ranks the Miami-based homebuilder’s profitability 8 out of 10 on several positive indicators, which include expanding profit margins and a three-year revenue growth rate that outperforms 85% of global competitors. The company’s Piotroski F-score ranks a solid 6 out of 9 primarily due to higher returns on assets, current ratio and asset turnover year over year.
Citigroup
Greenberg invested in 1,387,683 shares of Citigroup for an average price of $70.70 per share, dedicating 4.24% of his equity portfolio to the position.
Citigroup operates as three business segments: global consumer banking, institutional clients group and corporate. The bank said on Oct. 30 that net income for the quarter ending Sept. 30 was $4.6 billion, up 12% from the prior-year quarter on several factors, which include lower expenses and lower cost of credit.
GuruFocus lists several good signs for Citigroup, which include a price-book ratio near a one-year low and a dividend yield near a five-year high.
D.R. Horton
Greenberg invested in 796,400 shares of D.R. Horton for an average price of $43.28 per share. The guru increased his equity portfolio 1.43% with this transaction.
The Arlington, Texas-based homebuilder operates a portfolio of brands, including D.R. Horton, America’s Builder, Emerald Homes and Breland Homes. Board Chairman Donald R. Horton said on Nov. 8 the company built 51,857 homes for the 12 months ending Sept. 30 and “generated positive cash flows from operations the last four years.” GuruFocus ranks the company’s profitability 8 out of 10 on several positive indicators, including returns on assets that outperform 89% of global competitors. Additionally, D.R. Horton’s return on invested capital of 182.63% significantly exceeds its weighted average cost of capital of 10.83%.
See also
Greenberg also invested in 1,056 Class C shares of Alphabet Inc. (GOOG, Financial) and 5,069 shares of Moody’s Corp. (MCO, Financial). Shares of the former averaged $1,196.79 during the quarter while shares of the latter averaged $175.87 during the quarter.
Disclosure: No positions.
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