Get Premium to unlock powerful stock data

First Eagle Boosts Munger's Alibaba in the 3rd Quarter

Firm's top buys also include UK-based insurance company

Author's Avatar
Nov 10, 2021
Summary
  • First Eagle boosted its Alibaba stake by 35%.
  • Firm increased its stakes in Willis Towers Watson and Schlumberger.
  • Universal Health Services and IPG Photonics positions also received boosts.
Article's Main Image

First Eagle Investment (Trades, Portfolio), a New York-based investment firm, disclosed this week that its top five buys during the third quarter were Alibaba Group Holding Ltd. (BABA, Financial), Willis Towers Watson PLC (WLTW, Financial), Schlumberger Ltd. (SLB, Financial), Universal Health Services Inc. (UHS, Financial) and IPG Photonics Corp. (IPGP, Financial).

The firm’s value-oriented approach stems from the conviction that absolute long-term performance preserves capital more sufficiently than competition against short-term movements of major indexes. First Eagle combines its research with company and management visits and seeks to invest in companies whose intrinsic value and long-term potential outweigh market risk.

1458531189051850752.png

As of Sept. 30, the firm’s $38.99 billion equity portfolio contains 312 stocks, with 28 new positions and a turnover ratio of 3%. The top four sectors in terms of weight are technology, financial services, basic materials and communication services, representing 18.02%, 15.94%, 13.45% and 10.03% of the equity portfolio.

1458532531707281408.png

Alibaba

First Eagle purchased 603,598 shares of Alibaba (

BABA, Financial), boosting the position by 35.38% and its equity portfolio by $182.30.

1458532903989510144.png

Shares of Alibaba averaged $182.30 during the third quarter; the stock is significantly undervalued based on Wednesday’s price-to-GF Value ratio of 0.43.

1458533340423618560.png

GuruFocus ranks the Chinese e-commerce giant’s profitability 8 out of 10 on several positive investing signs, which include a three-star business predictability rank and profit margins and returns that outperform more than 80% of global competitors.

1458534526958665728.png

Gurus with holdings in Alibaba include

Charlie Munger (Trades, Portfolio)’s Daily Journal Corp. (DJCO, Financial), PRIMECAP Management (Trades, Portfolio) and Ken Fisher (Trades, Portfolio)’s Fisher Investments.

1458535519402295296.png

Willis Towers Watson

The firm added 2,048,036 shares of Willis Towers Watson (

WLTW, Financial), expanding the position by 75.80% and its equity portfolio by 1.22%.

1458536012979601408.png

Shares of Willis Towers Watson averaged $222.83 during the third quarter; the stock is fairly valued based on Wednesday’s price-to-GF Value ratio of 1.04.

1458536757174960128.png

GuruFocus ranks the U.K.-based insurance company’s profitability 7 out of 10 on the back of a high Piotroski F-score of 9 and profit margins and returns that outperform more than 84% of global competitors.

1458539762809012224.png

Other gurus with holdings in Willis Towers Watson include

Seth Klarman (Trades, Portfolio)’s Baupost and David Abrams (Trades, Portfolio)’ Abrams Capital Management.

1458540115378012160.png

Schlumberger

The firm picked up 3,952,693 shares of Schlumberger (

SLB, Financial), increasing the position by 14.69% and its equity portfolio by 0.30%.

1458541108031356928.png

Shares of Schlumberger averaged $28.70 during the third quarter; the stock is significantly overvalued based on Wednesday’s price-to-GF Value ratio of 1.33.

1458545808520740864.png

GuruFocus ranks the Houston-based energy company’s profitability 6 out of 10 on the back of a high Piotroski F-score of 7 and profit margins and returns that are outperforming more than 64% of global competitors despite three-year revenue decline rates underperforming over half of global energy companies.

1458547611110965248.png

Universal Health Services

First Eagle added 546,643 shares of Universal Health Services (

UHS, Financial), boosting the position by 17.92% and its equity portfolio by 0.19%.

1458548162762604544.png

Shares of Universal Health Services averaged $151.44 during the third quarter; the stock is modestly undervalued based on Wednesday’s price-to-GF Value ratio of 0.82.

1458550858047520768.png

IPG Photonics

First Eagle purchased 437,737 shares of IPG Photonics (

IPGP, Financial), increasing the holding by 27.84% and its equity portfolio by 0.18%.

1458552532350763008.png

Shares of IPG Photonics averaged $183.99 during the third quarter; the stock is fairly valued based on Wednesday’s price-to-GF Value ratio of 0.98.

1458553019259125760.png

GuruFocus ranks the Oxford, Massachusetts-based semiconductor company’s financial strength and profitability 8 out of 10 on several positive investing signs, which include a high Piotroski F-score of 7 and profit margins and debt ratios that outperform more than 85% of global competitors.

1458558641815912448.png

Also check out:

Disclosures

I am/we are Long BABA
The views of this author are solely their own opinion and are not endorsed or guaranteed by GuruFocus.com
Rating:
4 / 5 (1 votes)
Author's Avatar
WRITTEN BY

GuruFocus Screeners

Related Articles

Q&A with Gurus