Meritage Group LP recently filed their 13F report for the second quarter of 2022, which ended on 2022-06-30.
The 13F report details which stocks were in a guru’s equity portfolio at the end of the quarter, though investors should note that these filings are limited in scope, containing only a snapshot of long positions in U.S.-listed stocks and American depository receipts as of the quarter’s end. They are not required to include international holdings, short positions or other types of investments. Still, even this limited filing can provide valuable information.
Meritage Group LP is an investment management firm that operates as a hedge fund sponsor. The company was established in 2006 and is currently based out of its original founding city of San Francisco. Meritage Group can trace its history back to the Bar Development Company, which was established in 1976. The company conducts its research both internally and externally, utilizing a fundamental methodology to make its investment decisions. The company invests in the public equity and fixed income markets on a global scale and is headed by Chairman Nathaniel Simons and co-Presidents Alex Richard Magaro and David Kenneth Zierk. Meritage Group has grown from its inception to have 42 employees of which 20 are investment professionals. The company invests most heavily in the consumer discretionary sector, which alone makes up over a third of its total asset allocations, and also invests in the information technology sector, making up another fifth of its total allocations, finance, utilities and telecommunications, health care, and transports sectors, among other sectors to a lesser degree, in order of decreasing allocation. Meritage Group’s top holdings include Charter Communications Inc., American Tower Corp., and Valeant Pharmaceuticals Inc. The firm’s top 10 holdings alone make up almost two thirds of its total holdings and the company has a turnover rate of approximately 19.4%. Meritage Group holds over $12.3 billion in total assets under management spread across 11 accounts, all of which are discretionary. Both of the firm’s total assets under management and total number of accounts have been increasing in recent years with its total managed assets growing significantly from $5.6 billion back in 2010 to well over twice that amount today. Meritage Group mainly caters to pooled investment vehicles, which alone makes up over 90% of its total client base, and also provides services to charities to a lesser degree.
As of the latest 13F report, the guru’s equity portfolio contained 36 stocks valued at a total of $3.47Bil. The top holdings were CHTR(13.62%), AMZN(9.18%), and TDG(8.84%).
According to GuruFocus data, these were Meritage Group LP’s top five trades of the quarter.
Workday Inc
During the quarter, Meritage Group LP bought 786,869 shares of NAS:WDAY for a total holding of 1,908,542. The trade had a 3.17% impact on the equity portfolio. During the quarter, the stock traded for an average price of $182.61.
On 08/14/2022, Workday Inc traded for a price of $176.23 per share and a market cap of $44.76Bil. The stock has returned -25.11% over the past year.
GuruFocus gives the company a financial strength rating of 4 out of 10 and a profitability rating of 4 out of 10.
In terms of valuation, Workday Inc has a price-book ratio of 9.36, a EV-to-Ebitda ratio of 123.22 and a price-sales ratio of 8.33.
The price-to-GF Value ratio is 0.62, earning the stock a GF Value rank of 8.
UiPath Inc
The guru established a new position worth 5,742,855 shares in NYSE:PATH, giving the stock a 3.02% weight in the equity portfolio. Shares traded for an average price of $18.74 during the quarter.
On 08/14/2022, UiPath Inc traded for a price of $20.7 per share and a market cap of $11.28Bil. The stock has returned -66.69% over the past year.
GuruFocus gives the company a financial strength rating of 8 out of 10 and a profitability rating of 1 out of 10.
In terms of valuation, UiPath Inc has a price-book ratio of 6.00, a EV-to-Ebitda ratio of -26.81 and a price-sales ratio of 11.66.
Restaurant Brands International Inc
Meritage Group LP reduced their investment in NYSE:QSR by 3,230,139 shares. The trade had a 2.94% impact on the equity portfolio. During the quarter, the stock traded for an average price of $53.57.
On 08/14/2022, Restaurant Brands International Inc traded for a price of $60.48 per share and a market cap of $18.50Bil. The stock has returned -3.91% over the past year.
GuruFocus gives the company a financial strength rating of 3 out of 10 and a profitability rating of 8 out of 10.
In terms of valuation, Restaurant Brands International Inc has a price-earnings ratio of 23.14, a price-book ratio of 8.33, a price-earnings-to-growth (PEG) ratio of 231.40, a EV-to-Ebitda ratio of 15.34 and a price-sales ratio of 4.55.
The price-to-GF Value ratio is 0.81, earning the stock a GF Value rank of 10.
Canadian Pacific Railway Ltd
Meritage Group LP reduced their investment in NYSE:CP by 2,053,906 shares. The trade had a 2.64% impact on the equity portfolio. During the quarter, the stock traded for an average price of $72.57.
On 08/14/2022, Canadian Pacific Railway Ltd traded for a price of $81.25 per share and a market cap of $75.56Bil. The stock has returned 12.66% over the past year.
GuruFocus gives the company a financial strength rating of 5 out of 10 and a profitability rating of 9 out of 10.
In terms of valuation, Canadian Pacific Railway Ltd has a price-earnings ratio of 35.89, a price-book ratio of 2.72, a price-earnings-to-growth (PEG) ratio of 3.42, a EV-to-Ebitda ratio of 26.49 and a price-sales ratio of 10.31.
The price-to-GF Value ratio is 1.37, earning the stock a GF Value rank of 1.
Salesforce Inc
Meritage Group LP reduced their investment in NYSE:CRM by 596,388 shares. The trade had a 1.97% impact on the equity portfolio. During the quarter, the stock traded for an average price of $177.26.
On 08/14/2022, Salesforce Inc traded for a price of $189.89 per share and a market cap of $188.94Bil. The stock has returned -23.55% over the past year.
GuruFocus gives the company a financial strength rating of 6 out of 10 and a profitability rating of 7 out of 10.
In terms of valuation, Salesforce Inc has a price-earnings ratio of 184.36, a price-book ratio of 3.21, a price-earnings-to-growth (PEG) ratio of 6.90, a EV-to-Ebitda ratio of 50.74 and a price-sales ratio of 6.73.
The price-to-GF Value ratio is 0.68, earning the stock a GF Value rank of 8.
Please note, the numbers and facts quoted are as of the writing of this article and may not factor in the latest trading data or company announcements.
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