Ken Fisher's Top 3rd-Quarter Trades

Firm boosts positions in ETFs, Apple and Amazon, trims 2 energy holdings

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James Li
Nov 11, 2020
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Ken Fisher (Trades, Portfolio), portfolio manager of Fisher Investments, revealed his third-quarter portfolio this week, listing five position boosts among its top trades.

The Camas, Washington-based firm seeks long-term capital appreciation on the belief that the market has already priced in all information on a stock and that supply and demand of securities are key drivers of stock prices. According to the strategy, value is created through identifying information not widely known or interpreting information differently from other market participants.

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As of the quarter-end, the firm's $114.09 billion equity portfolio contains 889 stocks, with 96 new holdings and a turnover ratio of 3.63% for the period. During the quarter, Fisher Investments increased its holding in Apple Inc. (

AAPL, Financial), Amazon.com Inc. (AMZN, Financial) and three exchange-traded funds: Vanguard Intermediate-Term Corporate Bond ETF (VCIT, Financial), iShares Global Energy ETF (IXC, Financial) and iShares MSCI Europe Financial Sector Index Fund (EUFN, Financial). The firm also trimmed its positions in two energy companies: Total SA (TOT, Financial) and Royal Dutch Shell PLC (RDS.A, Financial).

Apple

Fisher Investments disclosed a holding of 58,694,648 shares of Apple, up 1,447,128 shares or 2.53% from the previous-quarter holding. Shares of Apple averaged $109.02 during the quarter on a split-adjusted basis. The Cupertino, California-based tech giant completed a 4-for-1 stock split on Aug. 31.

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GuruFocus ranks Apple's profitability 9 out of 10 on several positive investing signs, which include consistent revenue growth and a high Piotroski F-score of 7. Additionally, operating margins are outperforming over 95% of global competitors despite declining approximately 4.3% per year on average over the past five years.

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Gurus with large holdings in Apple include

Warren Buffett (Trades, Portfolio)'s Berkshire Hathaway Inc. (BRK.A, Financial)(BRK.B, Financial), Pioneer Investments (Trades, Portfolio) and Spiros Segalas (Trades, Portfolio).

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Amazon

The firm purchased 43,326 shares of Amazon, increasing the position 2.63% and the equity portfolio 0.12%. Shares averaged $3,151.21 during the third quarter.

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GuruFocus ranks the Seattle-based retail giant's profitability 8 out of 10 on several positive investing signs, which include a 4.5-star business predictability rank and an operating margin that has increased in the double digits on average over the past five years albeit outperforming just over 68% of global competitors.

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Vanguard Intermediate-Term Corporate Bond ETF

The firm purchased 3,747,806 shares of Vanguard Intermediate-Term Corporate Bond ETF, increasing the position 11.9% and the equity portfolio 0.31%. Shares averaged $96.15 during the third quarter.

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According to Vanguard's website, the Intermediate-Term Corporate Bond ETF seeks to track the performance of a market-weighted corporate bond index with a dollar-weighted average maturity between five and 10 years. The ETF's dividend yield is approximately 2.75% according to GuruFocus.

iShares Global Energy ETF

The firm purchased 20,386,111 shares of iShares Global Energy ETF, increasing the position 677.94%. Shares averaged $18.89 during the third quarter.

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According to iShares' website, the Global Energy ETF seeks to track the investment results of an index comprised of global securities in the energy sector.

iShares MSCI Europe Financial Sector Index Fund

The firm purchased 16,887,038 shares of iShares MSCI Europe Financial Sector Index Fund, increasing the position 468.97%. Shares averaged $14.79 during the third quarter.

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According to the website, the iShares MSCI Europe Financial Sector Index Fund seeks to track the investment results of an index comprised of financial services stocks within developed European countries. The ETF has a dividend yield of approximately 2.18% according to GuruFocus.

Total

The fund sold 4,456,119 shares of Total, trimming the position 21.61%. Shares averaged $38.14 during the third quarter.

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GuruFocus ranks the French oil and gas company's financial strength 4 out of 10 on several warning signs, which include a weak Altman Z-score of 1 and a debt-to-equity ratio that underperforms over 70% of global competitors.

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Royal Dutch Shell

The firm sold 4,265,905 shares of Royal Dutch Shell, trimming the position 27.97%. Shares averaged $30.27 during the third quarter.

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GuruFocus ranks the Netherlands-based energy company's financial strength 4 out of 10 on the back of debt ratios underperforming over 55% of global competitors and a weak Altman Z-score of 1.38.

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Disclosure: Long Apple.

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