FARALLON CAPITAL MANAGEMENT LLC recently filed their 13F report for the third quarter of 2022, which ended on 2022-09-30.
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.
Farallon Capital Management is an investment management based out of San Francisco. The company was founded in 1986 and has been registered with the SEC since 1990. The company has expanded internally since its inception to now have offices in London, Singapore, Hong Kong, Tokyo, and Sao Paulo. Farallon Capital Management utilizes a fundamental analysis with a bottom up investment approach to achieve superior risk adjusted returns. The execution of its investment methodology is highly flexible, allowing the company to shift its assets among its strategies, asset classes, and geographies based on various opportunities. The company currently has 160 employees with 74 of them being investment professionals. Farallon Capital Management is owned by its employees with Andrew J. Spokes and Daniel K. Goldberg holding the highest ownership in the company with the remaining ownership split among key executives. Farallon Capital Management invests most heavily in the consumer discretionary sector, which alone makes up almost a third of its total asset allocations, and also invests in the health care, finance, information technology, industrials, and energy sectors, among others to a lesser degree, in order of decreasing allocation. The company currently holds over $24.5 billion in total assets under management spread across 43 accounts, all of which are discretionary. Both its total number of accounts and total assets under management have been increasing in recent years with its total number of accounts growing from 29 five years ago to its current amount and its total managed assets growing from $21 billion back in 2010 to its current amount. Farallon Capital Management caters almost exclusively to pooled investment vehicles although it does provide its services to other clientele to a lesser degree. The company currently operates with five core investment strategies: Credit Investments, Long/Short Equity, Merger Arbitrage, Real Estate Investments, and Direct Investments.
As of the latest 13F report, the guru’s equity portfolio contained 282 stocks valued at a total of $15.69Bil. The top holdings were IQV(3.70%), TMO(3.63%), and CHNG(3.17%).
According to GuruFocus data, these were FARALLON CAPITAL MANAGEMENT LLC’s top five trades of the quarter.
Change Healthcare Inc
During the quarter, FARALLON CAPITAL MANAGEMENT LLC bought 7,911,272 shares of NAS:CHNG for a total holding of 18,076,272. The trade had a 1.39% impact on the equity portfolio. During the quarter, the stock traded for an average price of $24.78.
On 11/15/2022, Change Healthcare Inc traded for a price of $27.49 per share and a market cap of $9.03Bil. The stock has returned 30.16% over the past year.
GuruFocus gives the company a financial strength rating of 3 out of 10 and a profitability rating of 3 out of 10.
In terms of valuation, Change Healthcare Inc has a price-book ratio of 2.73, a EV-to-Ebitda ratio of 16.98 and a price-sales ratio of 2.55.
Clarivate PLC
During the quarter, FARALLON CAPITAL MANAGEMENT LLC bought 15,988,500 shares of NYSE:CLVT for a total holding of 40,546,300. The trade had a 0.96% impact on the equity portfolio. During the quarter, the stock traded for an average price of $12.66.
On 11/15/2022, Clarivate PLC traded for a price of $10.52 per share and a market cap of $7.09Bil. The stock has returned -56.00% over the past year.
GuruFocus gives the company a financial strength rating of 3 out of 10 and a profitability rating of 2 out of 10.
In terms of valuation, Clarivate PLC has a price-book ratio of 1.51, a EV-to-Ebitda ratio of -3.96 and a price-sales ratio of 2.85.
The price-to-GF Value ratio is 0.38, earning the stock a GF Value rank of 4.
Humana Inc
The guru established a new position worth 251,200 shares in NYSE:HUM, giving the stock a 0.78% weight in the equity portfolio. Shares traded for an average price of $486.43 during the quarter.
On 11/15/2022, Humana Inc traded for a price of $512.9 per share and a market cap of $64.93Bil. The stock has returned 17.75% over the past year.
GuruFocus gives the company a financial strength rating of 6 out of 10 and a profitability rating of 8 out of 10.
In terms of valuation, Humana Inc has a price-earnings ratio of 23.26, a price-book ratio of 3.99, a price-earnings-to-growth (PEG) ratio of 1.40, a EV-to-Ebitda ratio of 13.45 and a price-sales ratio of 0.72.
The price-to-GF Value ratio is 0.98, earning the stock a GF Value rank of 5.
Howmet Aerospace Inc
FARALLON CAPITAL MANAGEMENT LLC reduced their investment in NYSE:HWM by 3,995,000 shares. The trade had a 0.77% impact on the equity portfolio. During the quarter, the stock traded for an average price of $35.09.
On 11/15/2022, Howmet Aerospace Inc traded for a price of $36.55 per share and a market cap of $15.12Bil. The stock has returned 10.89% over the past year.
GuruFocus gives the company a financial strength rating of 5 out of 10 and a profitability rating of 6 out of 10.
In terms of valuation, Howmet Aerospace Inc has a price-earnings ratio of 35.49, a price-book ratio of 4.70, a EV-to-Ebitda ratio of 18.44 and a price-sales ratio of 2.84.
The price-to-GF Value ratio is 1.05, earning the stock a GF Value rank of 3.
S&P Global Inc
During the quarter, FARALLON CAPITAL MANAGEMENT LLC bought 388,500 shares of NYSE:SPGI for a total holding of 717,500. The trade had a 0.76% impact on the equity portfolio. During the quarter, the stock traded for an average price of $357.77.
On 11/15/2022, S&P Global Inc traded for a price of $354.66 per share and a market cap of $115.55Bil. The stock has returned -22.07% over the past year.
GuruFocus gives the company a financial strength rating of 6 out of 10 and a profitability rating of 10 out of 10.
In terms of valuation, S&P Global Inc has a price-earnings ratio of 29.65, a price-book ratio of 3.11, a price-earnings-to-growth (PEG) ratio of 3.75, a EV-to-Ebitda ratio of 20.49 and a price-sales ratio of 10.20.
The price-to-GF Value ratio is 0.89, earning the stock a GF Value rank of 7.
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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