Hedge Fund Glenn Greenberg just reported his Q3 portfolio. He split with his portfolio at Chieftain Capital, and is now on his own at Brave Warrior Capital.
You may not know Glenn Greenberg, it is not surprising because he does not entertain investment ideas from Wall Street analysts; he does not do marketing, and he does not even speak to his clients. He only communicates with them with two written updates per year.
Glenn Greenberg runs a highly concentrated portfolio. Sometimes he put 40% of portfolio on one stock. What kind of conviction does that need?
The most important rule for Mr. Greenberg is that if they lacked the confidence to put five percent of their portfolio in a company's stock, they would not buy any. Therefore he has a very concentrated portfolio. Due to this excess concentration he typically has less than ten securities in their portfolio. The most number of securities he has held is twelve and the least, six, while maintaining a 30% cash position.
How does he invest? He said that a person should have an approach that over the long-term will win and will not fail. Investors should not use an approach which can provide both huge returns and huge losses. An investor must figure out an approach that will allow them to be a long-term winner because this is a long-term business. Investors need to win successively because they will be taking profits and reinvesting them continuously over their lifetime.
What does he look in a company? He likes business that is predictable, it has no or few competitors, and it has high profit margins and returns on invested capital. He tries to find two or three investment ideas each year that fit its vision of a good business and then it does enough research to feel comfortable putting 8-20% of its portfolio in each idea.
Glenn Greenberg buys Fiserv Inc., Mastercard Inc., Google Inc., Lockheed Martin Corp., Dell Inc., Approach Resources Inc., sells Visa Inc., Crosstex Energy L.p. Ltd. Partnership In, Crosstex Energy Inc. during the 3-months ended 09/30/2010, according to the most recent filings of his investment company, Brave Warrior Capital, Inc.. As of 09/30/2010, Brave Warrior Capital, Inc. owns 18 stocks with a total value of $1 billion. These are the details of the buys and sells.
This is the sector weightings of his portfolio:
These are the top 5 holdings of Glenn Greenberg
Added: Fiserv Inc. (FISV, Financial)
Glenn Greenberg added to his holdings in Fiserv Inc. by 93.57%. His purchase prices were between $45.27 and $55.08, with an estimated average price of $50.25. The impact to his portfolio due to this purchase was 5.32%. His holdings were 2,088,579 shares as of 09/30/2010.
Fiserv, Inc., a Fortune five hundred company, provides information management systems and services to the financial and insurance industries. Fiserv Inc. has a market cap of $8.28 billion; its shares were traded at around $55.15 with a P/E ratio of 14.03 and P/S ratio of 2.03. Fiserv Inc. had an annual average earning growth of 10.8% over the past 10 years. GuruFocus rated Fiserv Inc. the business predictability rank of 3-star.
Added: Mastercard Inc. (MA, Financial)
Glenn Greenberg added to his holdings in Mastercard Inc. by 46.82%. His purchase prices were between $191.98 and $223, with an estimated average price of $208.23. The impact to his portfolio due to this purchase was 2.37%. His holdings were 339,452 shares as of 09/30/2010.
MASTERCARD INCORPORATED advances global commerce by providing a critical economic link among financial institutions, businesses, cardholders and merchants worldwide. Mastercard Inc. has a market cap of $31.82 billion; its shares were traded at around $243.17 with a P/E ratio of 18.26 and P/S ratio of 6.24. The dividend yield of Mastercard Inc. stocks is 0.25%.
Added: Google Inc. (GOOG, Financial)
Glenn Greenberg added to his holdings in Google Inc. by 6.9%. His purchase prices were between $436.07 and $530.41, with an estimated average price of $482.21. The impact to his portfolio due to this purchase was 0.89%. His holdings were 269,353 shares as of 09/30/2010.
Google is a public and profitable company focused on search services. Google Inc. has a market cap of $192.27 billion; its shares were traded at around $603.29 with a P/E ratio of 24.5 and P/S ratio of 8.13. Google Inc. had an annual average earning growth of 65.7% over the past 10 years.
Added: Lockheed Martin Corp. (LMT, Financial)
Glenn Greenberg added to his holdings in Lockheed Martin Corp. by 6.23%. His purchase prices were between $68.48 and $76.15, with an estimated average price of $72.81. The impact to his portfolio due to this purchase was 0.58%. His holdings were 1,405,894 shares as of 09/30/2010.
Lockheed Martin Corp. is a global enterprise principally engaged in the research, design, development, manufacture and integration of advanced-technology systems, products and services. Lockheed Martin Corp. has a market cap of $25.19 billion; its shares were traded at around $69.49 with a P/E ratio of 9.75 and P/S ratio of 0.56. The dividend yield of Lockheed Martin Corp. stocks is 3.63%. Lockheed Martin Corp. had an annual average earning growth of 17% over the past 10 years. GuruFocus rated Lockheed Martin Corp. the business predictability rank of 2.5-star.
Added: Dell Inc. (DELL, Financial)
Glenn Greenberg added to his holdings in Dell Inc. by 15.49%. His purchase prices were between $11.585 and $13.74, with an estimated average price of $12.62. The impact to his portfolio due to this purchase was 0.32%. His holdings were 1,852,707 shares as of 09/30/2010.
Dell Inc. is a premier provider of products and services required for customers worldwide to build their information-technology and Internet infrastructures. Dell Inc. has a market cap of $26.1 billion; its shares were traded at around $13.42 with a P/E ratio of 11.88 and P/S ratio of 0.49. Dell Inc. had an annual average earning growth of 4.1% over the past 10 years.
New Purchase: Approach Resources Inc. (AREX, Financial)
Glenn Greenberg initiated holdings in Approach Resources Inc.. His purchase prices were between $6.24 and $11.38, with an estimated average price of $8.35. The impact to his portfolio due to this purchase was 0.01%. His holdings were 12,122 shares as of 09/30/2010.
Approach Resources Inc. is an independent energy company engaged in the exploration, development, exploitation, production and acquisition of unconventional natural gas and oil properties onshore in the United States and Western Canada. Approach Resources Inc. has a market cap of $391.31 million; its shares were traded at around $18.55 with a P/E ratio of 66.25 and P/S ratio of 9.63.
Reduced: Crosstex Energy L.p. Ltd. Partnership In (XTEX)
Glenn Greenberg reduced to his holdings in Crosstex Energy L.p. Ltd. Partnership In by 75.67%. His sale prices were between $10.17 and $13.22, with an estimated average price of $12.05. The impact to his portfolio due to this sale was -1.93%. Glenn Greenberg still held 499,612 shares as of 09/30/2010.
Crosstex Energy, a mid-stream natural gas company, operates over 1,700 miles of pipeline, two processing plants, and 49 natural gas treating plants. Crosstex Energy L.p. Ltd. Partnership In has a market cap of $702.17 million; its shares were traded at around $14.01 with and P/S ratio of 0.48. The dividend yield of Crosstex Energy L.p. Ltd. Partnership In stocks is 7.14%.
Sold Out: Visa Inc. (V, Financial)
Glenn Greenberg sold out his holdings in Visa Inc.. His sale prices were between $65.48 and $77.38, with an estimated average price of $72.17.
VISA operates the world's largest retail electronic payments network and is one of the most recognized global financial services brands. Visa Inc. has a market cap of $64.24 billion; its shares were traded at around $76.94 with a P/E ratio of 19.88 and P/S ratio of 7.97. The dividend yield of Visa Inc. stocks is 0.65%.
Sold Out: Crosstex Energy Inc. (XTXI, Financial)
Glenn Greenberg sold out his holdings in Crosstex Energy Inc.. His sale prices were between $5.65 and $8.45, with an estimated average price of $7.34.
Crosstex Energy Inc. owns and controls the general partner of Crosstex Energy, L. Crosstex Energy Inc. has a market cap of $432.21 million; its shares were traded at around $9.22 with and P/S ratio of 0.3. The dividend yield of Crosstex Energy Inc. stocks is 3.04%. Crosstex Energy Inc. had an annual average earning growth of 18.4% over the past 5 years.
You may not know Glenn Greenberg, it is not surprising because he does not entertain investment ideas from Wall Street analysts; he does not do marketing, and he does not even speak to his clients. He only communicates with them with two written updates per year.
Glenn Greenberg runs a highly concentrated portfolio. Sometimes he put 40% of portfolio on one stock. What kind of conviction does that need?
The most important rule for Mr. Greenberg is that if they lacked the confidence to put five percent of their portfolio in a company's stock, they would not buy any. Therefore he has a very concentrated portfolio. Due to this excess concentration he typically has less than ten securities in their portfolio. The most number of securities he has held is twelve and the least, six, while maintaining a 30% cash position.
How does he invest? He said that a person should have an approach that over the long-term will win and will not fail. Investors should not use an approach which can provide both huge returns and huge losses. An investor must figure out an approach that will allow them to be a long-term winner because this is a long-term business. Investors need to win successively because they will be taking profits and reinvesting them continuously over their lifetime.
What does he look in a company? He likes business that is predictable, it has no or few competitors, and it has high profit margins and returns on invested capital. He tries to find two or three investment ideas each year that fit its vision of a good business and then it does enough research to feel comfortable putting 8-20% of its portfolio in each idea.
Glenn Greenberg buys Fiserv Inc., Mastercard Inc., Google Inc., Lockheed Martin Corp., Dell Inc., Approach Resources Inc., sells Visa Inc., Crosstex Energy L.p. Ltd. Partnership In, Crosstex Energy Inc. during the 3-months ended 09/30/2010, according to the most recent filings of his investment company, Brave Warrior Capital, Inc.. As of 09/30/2010, Brave Warrior Capital, Inc. owns 18 stocks with a total value of $1 billion. These are the details of the buys and sells.
- New Purchases: AREX,
- Added Positions: FISV, MA, GOOG, LMT, DELL,
- Reduced Positions: XTEX,
- Sold Out: V, XTXI,
This is the sector weightings of his portfolio:
| Industrials | 26% |
| Consumer Services | 23.9% |
| Financials | 22.4% |
| Technology | 16.2% |
| Health Care | 10.7% |
| Oil & Gas | 0.7% |
| Utilities | 0.1% |
These are the top 5 holdings of Glenn Greenberg
- Google Inc. (GOOG) - 269,353 shares, 13.86% of the total portfolio. Shares added by 6.9%
- Comcast Corp. Special (CMCSK) - 7,383,019 shares, 12.29% of the total portfolio. Shares reduced by 1.52%
- Ryanair Holdings Plc (RYAAY) - 3,855,506 shares, 11.62% of the total portfolio. Shares reduced by 16.77%
- Fiserv Inc. (FISV) - 2,088,579 shares, 11% of the total portfolio. Shares added by 93.57%
- Laboratory Corp. Of America Holdings (LH) - 1,393,224 shares, 10.69% of the total portfolio. Shares reduced by 9.08%
Added: Fiserv Inc. (FISV, Financial)
Glenn Greenberg added to his holdings in Fiserv Inc. by 93.57%. His purchase prices were between $45.27 and $55.08, with an estimated average price of $50.25. The impact to his portfolio due to this purchase was 5.32%. His holdings were 2,088,579 shares as of 09/30/2010.
Fiserv, Inc., a Fortune five hundred company, provides information management systems and services to the financial and insurance industries. Fiserv Inc. has a market cap of $8.28 billion; its shares were traded at around $55.15 with a P/E ratio of 14.03 and P/S ratio of 2.03. Fiserv Inc. had an annual average earning growth of 10.8% over the past 10 years. GuruFocus rated Fiserv Inc. the business predictability rank of 3-star.
Added: Mastercard Inc. (MA, Financial)
Glenn Greenberg added to his holdings in Mastercard Inc. by 46.82%. His purchase prices were between $191.98 and $223, with an estimated average price of $208.23. The impact to his portfolio due to this purchase was 2.37%. His holdings were 339,452 shares as of 09/30/2010.
MASTERCARD INCORPORATED advances global commerce by providing a critical economic link among financial institutions, businesses, cardholders and merchants worldwide. Mastercard Inc. has a market cap of $31.82 billion; its shares were traded at around $243.17 with a P/E ratio of 18.26 and P/S ratio of 6.24. The dividend yield of Mastercard Inc. stocks is 0.25%.
Added: Google Inc. (GOOG, Financial)
Glenn Greenberg added to his holdings in Google Inc. by 6.9%. His purchase prices were between $436.07 and $530.41, with an estimated average price of $482.21. The impact to his portfolio due to this purchase was 0.89%. His holdings were 269,353 shares as of 09/30/2010.
Google is a public and profitable company focused on search services. Google Inc. has a market cap of $192.27 billion; its shares were traded at around $603.29 with a P/E ratio of 24.5 and P/S ratio of 8.13. Google Inc. had an annual average earning growth of 65.7% over the past 10 years.
Added: Lockheed Martin Corp. (LMT, Financial)
Glenn Greenberg added to his holdings in Lockheed Martin Corp. by 6.23%. His purchase prices were between $68.48 and $76.15, with an estimated average price of $72.81. The impact to his portfolio due to this purchase was 0.58%. His holdings were 1,405,894 shares as of 09/30/2010.
Lockheed Martin Corp. is a global enterprise principally engaged in the research, design, development, manufacture and integration of advanced-technology systems, products and services. Lockheed Martin Corp. has a market cap of $25.19 billion; its shares were traded at around $69.49 with a P/E ratio of 9.75 and P/S ratio of 0.56. The dividend yield of Lockheed Martin Corp. stocks is 3.63%. Lockheed Martin Corp. had an annual average earning growth of 17% over the past 10 years. GuruFocus rated Lockheed Martin Corp. the business predictability rank of 2.5-star.
Added: Dell Inc. (DELL, Financial)
Glenn Greenberg added to his holdings in Dell Inc. by 15.49%. His purchase prices were between $11.585 and $13.74, with an estimated average price of $12.62. The impact to his portfolio due to this purchase was 0.32%. His holdings were 1,852,707 shares as of 09/30/2010.
Dell Inc. is a premier provider of products and services required for customers worldwide to build their information-technology and Internet infrastructures. Dell Inc. has a market cap of $26.1 billion; its shares were traded at around $13.42 with a P/E ratio of 11.88 and P/S ratio of 0.49. Dell Inc. had an annual average earning growth of 4.1% over the past 10 years.
New Purchase: Approach Resources Inc. (AREX, Financial)
Glenn Greenberg initiated holdings in Approach Resources Inc.. His purchase prices were between $6.24 and $11.38, with an estimated average price of $8.35. The impact to his portfolio due to this purchase was 0.01%. His holdings were 12,122 shares as of 09/30/2010.
Approach Resources Inc. is an independent energy company engaged in the exploration, development, exploitation, production and acquisition of unconventional natural gas and oil properties onshore in the United States and Western Canada. Approach Resources Inc. has a market cap of $391.31 million; its shares were traded at around $18.55 with a P/E ratio of 66.25 and P/S ratio of 9.63.
Reduced: Crosstex Energy L.p. Ltd. Partnership In (XTEX)
Glenn Greenberg reduced to his holdings in Crosstex Energy L.p. Ltd. Partnership In by 75.67%. His sale prices were between $10.17 and $13.22, with an estimated average price of $12.05. The impact to his portfolio due to this sale was -1.93%. Glenn Greenberg still held 499,612 shares as of 09/30/2010.
Crosstex Energy, a mid-stream natural gas company, operates over 1,700 miles of pipeline, two processing plants, and 49 natural gas treating plants. Crosstex Energy L.p. Ltd. Partnership In has a market cap of $702.17 million; its shares were traded at around $14.01 with and P/S ratio of 0.48. The dividend yield of Crosstex Energy L.p. Ltd. Partnership In stocks is 7.14%.
Sold Out: Visa Inc. (V, Financial)
Glenn Greenberg sold out his holdings in Visa Inc.. His sale prices were between $65.48 and $77.38, with an estimated average price of $72.17.
VISA operates the world's largest retail electronic payments network and is one of the most recognized global financial services brands. Visa Inc. has a market cap of $64.24 billion; its shares were traded at around $76.94 with a P/E ratio of 19.88 and P/S ratio of 7.97. The dividend yield of Visa Inc. stocks is 0.65%.
Sold Out: Crosstex Energy Inc. (XTXI, Financial)
Glenn Greenberg sold out his holdings in Crosstex Energy Inc.. His sale prices were between $5.65 and $8.45, with an estimated average price of $7.34.
Crosstex Energy Inc. owns and controls the general partner of Crosstex Energy, L. Crosstex Energy Inc. has a market cap of $432.21 million; its shares were traded at around $9.22 with and P/S ratio of 0.3. The dividend yield of Crosstex Energy Inc. stocks is 3.04%. Crosstex Energy Inc. had an annual average earning growth of 18.4% over the past 5 years.
