Baillie Gifford (Trades, Portfolio), a U.K.-based investment management firm, disclosed in a regulatory filing that its top trades during the first quarter included reductions to its positions in Alibaba Group Holding Ltd. (BABA, Financial), Tesla Inc. (TSLA, Financial) and Zillow Group Inc. (Z, Financial) and boosts to its holdings in Sea Ltd. (SE, Financial) and Coupang Inc. (CPNG, Financial).
The firm seeks long-term capital appreciation through a rigorous process that combines fundamental analysis and depth of expertise. Emphasis is placed on companies that have potential to grow at a faster rate, on a sustainable basis, than their competitors.
As of March, the firm’s $142.65 billion 13F equity portfolio contains 498 stocks, with 11 new positions and a quarterly turnover of 3%. Investors should be aware that 13F filings do not give a complete picture of a firm’s holdings as the reports only include its positions in U.S. stocks and American depository receipts, but the reports can still provide valuable information. Further, the reports only reflect trades and holdings as of the most-recent portfolio filing date, which may or may not be held by the reporting firm today or even when this article was published.
The top three sectors in terms of weight are consumer cyclical, health care and technology, representing 26.32%, 23.81% and 21.47% of the equity portfolio.
Alibaba
The firm sold 4,132,368 shares of Alibaba (BABA, Financial), slicing 70.27% of the position and 0.27% of its equity portfolio.
Shares of Alibaba averaged $115.52 during the first quarter; the stock is significantly undervalued based on Friday’s price-to-GF Value ratio of 0.24.
The Hangzhou, Zhejiang-based e-commerce giant has a GF Score of 78 out of 100: Although the company has a growth rank of 10 out of 10, a profitability rank of 9 out of 10 and a financial strength rank of 7 out of 10, Alibaba’s GF Value and momentum rank below 2 out of 10.
Charlie Munger (Trades, Portfolio)’s Daily Journal Corp. (DJCO, Financial) also reduced its position in Alibaba.
Tesla
The firm sold 985,761 shares of Tesla (TSLA, Financial), trimming the position by 9.13% and its equity portfolio by 0.57%.
Shares of Tesla averaged $934.99 during the first quarter; the stock is fairly valued based on Friday’s price-to-GF Value ratio of 0.94.
The Austin, Texas-based electric vehicle giant has a GF Score of 81 out of 100: Even though profitability ranks just 4 out of 10, Tesla has a rank of 7 out of 10 or better for growth, financial strength, momentum and GF Value.
Zillow
The firm sold 7,735,715 shares of Zillow (Z, Financial), slashing 75.08% of the position and 0.27% of its equity portfolio.
Shares of Zillow averaged $53.90 during the first quarter; the stock is significantly undervalued based on Friday’s price-to-GF Value ratio of 0.24.
The Seattle-based online real estate company has a GF Score of 67 out of 100 based on a growth rank of 7 out of 10, a GF Value rank of 2 out of 10 and a rank between 4 and 5 out of 10 for profitability, financial strength and momentum.
Sea
The firm added 7,293,025 shares of Sea (SE, Financial), boosting the position by 72.93% and its equity portfolio by 0.61%.
Shares of Sea averaged $141.27 during the first quarter; the stock is significantly undervalued based on Friday’s price-to-GF Value ratio of 0.23.
The Singapore-based interactive media company has a GF Score of 63 out of 100: Although the company’s growth ranks of 8 out of 10, Sea has a financial strength rank of just 5 out of 10 and a rank between 2 and 3 out of 10 for profitability, GF Value and momentum.
Other gurus with holdings in Sea include Frank Sands (Trades, Portfolio)’ Sands Capital Management, Chase Coleman (Trades, Portfolio)’s Tiger Global Management and Catherine Wood (Trades, Portfolio)’s ARK Investment Management.
Coupang
The firm added 45,751,780 shares of Coupang (CPNG, Financial), expanding the position by 70.81% and its equity portfolio by 0.57%. Shares of Coupang averaged $21.39 during the first quarter.
The South Korean e-commerce company has a financial strength rank of 6 out of 10 on the back of a cash-to-debt ratio that outperforms 70% of global competitors despite debt-to-equity ratios underperforming more than 66% of global retail companies.
