Al Gore's Firm Checks Into Visa, Carlisle Companies in 4th Quarter

Generation Investment Management releases quarterly portfolio

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Feb 28, 2022
Summary
  • Firm establishes positions in Visa and Carlisle Companies.
  • Firm reduces holdings of Cisco Systems and Palo Alto Networks.
  • Firm exits Synopsys holding.
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Generation Investment Management, the firm co-founded by

Al Gore (Trades, Portfolio) and David Blood, disclosed in a regulatory portfolio filing that its top five trades during the fourth quarter of 2021 included new positions in Visa Inc. (V, Financial) and Carlisle Companies Inc. (CSL, Financial), reductions to its holdings of Cisco Systems Inc. (CSCO, Financial) and Palo Alto Networks Inc. (PANW, Financial) and the closure of its Synopsys Inc. (SNPS, Financial) stake.

The U.K.-based firm seeks long-term capital appreciation by focusing on sustainability within markets with companies that strategically manage their economic, social and environmental practices. The firm applies fundamental analysis and bottom-up stock picking to build its portfolio.

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As of December 2021, the firm’s $24.33 billion equity portfolio contains 47 stocks, with four new positions and a quarterly turnover ratio of 10%. The top-three sectors in terms of weight are technology, health care and consumer cyclical, representing 34.25%, 29.98% and 9.95% of the equity portfolio.

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Visa

Generation purchased 3,206,439 shares of Visa (

V, Financial), dedicating 2.86% of its equity portfolio to the stake.

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Shares of Visa averaged $214.28 during the fourth quarter; the stock is modestly undervalued based on Monday’s price-to-GF Value ratio of 0.90.

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GuruFocus ranks the San Francisco-based credit card company’s profitability 10 out of 10 on several positive investing signs, which include a five-star business predictability rank and profit margins and returns that outperform more than 85% of global competitors.

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Other gurus with holdings in Visa include

Warren Buffett (Trades, Portfolio)’s Berkshire Hathaway Inc. (BRK.A)(BRK.B) and Ken Fisher (Trades, Portfolio)’s Fisher Investments.

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Carlisle Companies

The firm invested in 1,626,843 shares of Carlisle Companies (

CSL, Financial), allocating 1.66% of its equity portfolio to the position. Shares averaged $230.37 during the fourth quarter; the stock is modestly overvalued based on Monday’s price-to-GF Value ratio of 1.28.

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GuruFocus ranks the Scottsdale, Arizona-based construction company’s profitability 9 out of 10 on several positive investing signs, which include a 4.5-star business predictability rank and profit margins and returns that outperform more than 77% of global competitors.

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Cisco

Generation sold 6,287,582 shares of Cisco (

CSCO, Financial), slicing 41.71% of the position and 1.81% of its equity portfolio.

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Shares of Cisco averaged $57.22 during the fourth quarter; the stock is fairly valued based on Monday’s price-to-GF Value ratio of 1.07.

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GuruFocus ranks the San Jose, California-based networking hardware company’s profitability 10 out of 10 on several positive investing signs, which include a high Piotroski F-score of 7, a 4.5-star business predictability rank and profit margins and returns that outperform more than 90% of global competitors.

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Palo Alto Networks

The firm sold 637,569 shares of Palo Alto Networks (

PANW, Financial), curbing 39.49% of the position and 1.27% of its equity portfolio.

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Shares averaged $520.64 during the fourth quarter; the stock is significantly overvalued based on Monday’s price-to-GF Value ratio of 1.46.

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GuruFocus ranks the Santa Clara, California-based cybersecurity software company’s financial strength 5 out of 10 on the back of cash-to-debt ratios underperforming more than 73% of global competitors despite having a high Altman Z-score of 3.13.

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Synopsis

The firm sold all 975,141 shares of Synopsis (

SNPS, Financial), trimming 1.21% of its equity portfolio.

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Shares of Synopsis averaged $338.40 during the fourth quarter; the stock is modestly overvalued based on Monday’s price-to-GF Value ratio of 1.19.

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GuruFocus ranks the Mountain View, California-based electric design automation software company’s profitability 9 out of 10 on several positive investing signs, which include a high Piotroski F-score of 9, a 4.5-star business predictability rank and profit margins and returns that top more than 80% of global competitors.

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