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The Vanguard Health Care Fund Exits CVS Health, Teva Pharmaceutical

Fund's largest sales of the 1st quarter

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Tiziano Frateschi
May 05, 2020
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The

Vanguard Health Care Fund (Trades, Portfolio) sold shares of the following stocks during the first quarter of 2020.

CVS Health

The fund exited its CVS Health Corp. (

CVS, Financial) stake. The portfolio was impacted by -1.82%.

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The health care services provider has a market cap of $77.59 billion and an enterprise value of $158.84 billion

GuruFocus gives the company a profitability rating of 8 out of 10. The return on equity of 10.85% and return on assets of 3.08% are underperforming 78% of companies in the health care plans industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.09 is below the industry median of 0.62.

The largest guru shareholder of the company is Dodge & Cox with 1.57% of outstanding shares, followed by Barrow, Hanley, Mewhinney & Strauss with 0.84% and

PRIMECAP Management (Trades, Portfolio) with 0.46%.

Teva Pharmaceutical Industries

Vanguard exited its Teva Pharmaceutical Industries Ltd. (

TEVA, Financial) holding. The portfolio was impacted by -1.32%.

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The Israel-based drug manufacturer has a market cap of $11.95 billion and an enterprise value of $38.41 billion.

GuruFocus gives the company a profitability rating of 6 out of 10. The return on equity of -7% and return on assets of -1.7% are underperforming 62% of companies in the drug manufacturers industry. Its financial strength is rated 3 out of 10. The cash-debt ratio of 0.07 is below the industry median of 0.94.

The largest guru shareholder of the company is

Warren Buffett (Trades, Portfolio) with 3.96% of outstanding shares, followed by David Abrams (Trades, Portfolio) with 2.20% and Jim Simons (Trades, Portfolio)’ Renaissance Technologies with 0.20%.

Eli Lilly

The fund reduced is position in Eli Lilly and Co. (

LLY, Financial) by 19.11%, impacting the portfolio -0.90%.

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The pharmaceutical company has a market cap of $151 billion and an enterprise value of $162.17 billion.

GuruFocus gives the company a profitability rating of 8 out of 10. The return on equity of 193.08% and return on assets of 14.19% are outperforming 91% of companies in the drug manufacturers industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.1 is below the industry median of 0.94.

The largest guru shareholder of the company is PRIMECAP Management with 4.51% of outstanding shares, followed by Vanguard with 1.41% and Dodge & Cox with 0.85%.

AstraZeneca

Vanguard cut its position in drugmaker AstraZeneca PLC (

LSE:AZN, Financial) by 10.89%. The trade had an impact of -0.64% on the portfolio.

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Bristol-Myers

The Health Care Fund curbed its Bristol-Myers Squibb Co. (

BMY, Financial) stake by 8.19%. The portfolio was impacted by -0.46%.

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The company, which develops treatments form cardiovascular, oncology and immune disorders, has a market cap of $136.34 billion and an enterprise value of $168.58 billion.

GuruFocus gives the company a profitability rating of 9 out of 10. The return on equity of 15.01% and return on assets of 5.5% are outperforming 69% of companies in the drug manufacturers industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.32 is below the industry median of 0.94.

The largest guru shareholder of the company is Simons’ firm with 2.66% of outstanding shares, followed by Dodge & Cox with 2.22%.

McKesson

The fund curbed its McKesson Corp. (

MCK, Financial) holding by 44.92%. The trade had an impact of -0.40% on the portfolio.

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The company, which distributes wholesale pharmaceutical and medical products, has a market cap of $21.64 billion and an enterprise value of $31.78 billion.

GuruFocus gives the company profitability rating of 7 out of 10. The return on equity of -12.13% and return on assets of -1.52% are underperforming 88% of companies in the medical distribution industry. Its financial strength is rated 5 out of 10. The equity-asset ratio of 0.17 is underperforms 76% of competitors.

Larry Robbins (Trades, Portfolio)’ Glenview Capital Management is the largest guru shareholder of the company with 2.30% of outstanding shares. Other notable shareholders are Richard Pzena (Trades, Portfolio) with 2.13% and Seth Klarman (Trades, Portfolio) with 0.93%.

Merck

Vanguard reduced its holding of Merck & Co. Inc. (

MRK, Financial) by 17.21%. The trade had an impact of -0.35% on the portfolio.

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The company, which manufactures pharmaceutical products to treat cardiovascular diseases, cancer and infections, has a market cap of $194.84 billion and an enterprise value of $210.83 billion.

GuruFocus gives the company a profitability and growth rating of 8 out of 10. The return on equity of 37.68% and return on assets of 12.17% are outperforming 88% of other companies in the drug manufacturers industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.4 is below the industry median of 0.95.

The largest guru shareholder of the company is

Ken Fisher (Trades, Portfolio) with 0.35% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.33%, Simons’ firm with 0.22% and Jeremy Grantham (Trades, Portfolio) with 0.15%.

Disclosure: I do not own any stocks mentioned.

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