Retirement Systems of Alabama 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.
The Retirement Systems of Alabama is the administrator of the state pension fund and is headquartered in Montgomery Alabama. The Boards of Control are at the top of the organization system, deciding and overseeing the long term progress of the system. The executive officer, currently David Bronner, oversees day to day management of the system. The systems within the Retirement Systems of Alabama include the Employees Retirement System (ERS), Judicial Retirement Fund (JRF), Teacher’s Retirement System (TRS), Public Education Employees’ Health Insurance Plan, and RSA-1 Deferred Compensation Plan. The Retirement Systems of Alabama, RSA for short, invests the funds of the system in numerous diver asset classes including equities, bonds, real estate and other alternative investments in order to ensure that it can earn the “highest possible risk-adjusted rate of return and pay benefits to members and their beneficiaries at the lowest possible cost to Alabama taxpayers.” Looking at the asset allocations of the TRS, ERS, and JRF, we see that the systems focus mostly on domestic C&P stocks, with each of the three systems investing over half of their total assets in these stocks. The systems, which all follow a very similar investment allocation strategy, also invest in the international C&P stocks, domestic bonds, real estate, money market securities, U.S. government guaranteed bonds, mortgage backed securities, and U.S. agency securities, listed in order of decreasing amount allocated. The conservative investment strategies of the systems have managed to bring in over 6.4% returns for TRS, over 6.1% returns for ERS, and over 7.1% returns for the JRF in the ten year period ending in 2014. The RSA measures its performance against a variety of benchmarks including the S&P 500, DJIA, Morgan Stanley EAFE, Citigroup Big, and Barclays, among others. The RSA is currently ranked within the top 20 largest internally funded pension funds in the world.
As of the latest 13F report, the guru’s equity portfolio contained 932 stocks valued at a total of $21.50Bil. The top holdings were AAPL(4.91%), MSFT(4.12%), and EEM(2.71%).
According to GuruFocus data, these were Retirement Systems of Alabama’s top five trades of the quarter.
Raytheon Technologies Corp
The guru sold out of their 1,108,653-share investment in NYSE:RTX. Previously, the stock had a 0.46% weight in the equity portfolio. Shares traded for an average price of $90.51 during the quarter.
On 11/17/2022, Raytheon Technologies Corp traded for a price of $93.56 per share and a market cap of $137.54Bil. The stock has returned 10.04% over the past year.
GuruFocus gives the company a financial strength rating of 5 out of 10 and a profitability rating of 7 out of 10.
In terms of valuation, Raytheon Technologies Corp has a price-earnings ratio of 31.19, a price-book ratio of 1.96, a EV-to-Ebitda ratio of 15.69 and a price-sales ratio of 2.12.
The price-to-GF Value ratio is 1.03, earning the stock a GF Value rank of 5.
The Home Depot Inc
During the quarter, Retirement Systems of Alabama bought 209,095 shares of NYSE:HD for a total holding of 551,668. The trade had a 0.27% impact on the equity portfolio. During the quarter, the stock traded for an average price of $295.18.
On 11/17/2022, The Home Depot Inc traded for a price of $309.97 per share and a market cap of $316.55Bil. The stock has returned -19.83% over the past year.
GuruFocus gives the company a financial strength rating of 5 out of 10 and a profitability rating of 10 out of 10.
In terms of valuation, The Home Depot Inc has a price-earnings ratio of 19.01, a price-book ratio of 1344.41, a price-earnings-to-growth (PEG) ratio of 1.43, a EV-to-Ebitda ratio of 13.85 and a price-sales ratio of 2.08.
The price-to-GF Value ratio is 0.84, earning the stock a GF Value rank of 7.
Biogen Inc
Retirement Systems of Alabama reduced their investment in NAS:BIIB by 213,829 shares. The trade had a 0.19% impact on the equity portfolio. During the quarter, the stock traded for an average price of $212.38.
On 11/17/2022, Biogen Inc traded for a price of $300.6 per share and a market cap of $43.16Bil. The stock has returned 16.00% over the past year.
GuruFocus gives the company a financial strength rating of 7 out of 10 and a profitability rating of 9 out of 10.
In terms of valuation, Biogen Inc has a price-earnings ratio of 15.26, a price-book ratio of 3.38, a EV-to-Ebitda ratio of 10.82 and a price-sales ratio of 4.24.
The price-to-GF Value ratio is 1.28, earning the stock a GF Value rank of 3.
Ulta Beauty Inc
Retirement Systems of Alabama reduced their investment in NAS:ULTA by 89,602 shares. The trade had a 0.15% impact on the equity portfolio. During the quarter, the stock traded for an average price of $402.75.
On 11/17/2022, Ulta Beauty Inc traded for a price of $431.875 per share and a market cap of $22.12Bil. The stock has returned 7.35% over the past year.
GuruFocus gives the company a financial strength rating of 7 out of 10 and a profitability rating of 9 out of 10.
In terms of valuation, Ulta Beauty Inc has a price-earnings ratio of 20.22, a price-book ratio of 12.53, a price-earnings-to-growth (PEG) ratio of 2.63, a EV-to-Ebitda ratio of 13.63 and a price-sales ratio of 2.45.
The price-to-GF Value ratio is 0.96, earning the stock a GF Value rank of 6.
Intuitive Surgical Inc
During the quarter, Retirement Systems of Alabama bought 161,316 shares of NAS:ISRG for a total holding of 280,315. The trade had a 0.14% impact on the equity portfolio. During the quarter, the stock traded for an average price of $214.77.
On 11/17/2022, Intuitive Surgical Inc traded for a price of $259.59 per share and a market cap of $91.50Bil. The stock has returned -28.36% over the past year.
GuruFocus gives the company a financial strength rating of 10 out of 10 and a profitability rating of 9 out of 10.
In terms of valuation, Intuitive Surgical Inc has a price-earnings ratio of 68.32, a price-book ratio of 7.94, a price-earnings-to-growth (PEG) ratio of 5.84, a EV-to-Ebitda ratio of 44.48 and a price-sales ratio of 15.43.
The price-to-GF Value ratio is 0.81, 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.
Want to provide feedback on this article? Have questions or concerns? Get in touch with us here, or email us at [email protected]!
This article is general in nature and does not represent the opinions of GuruFocus or any of its affiliates. This article is not intended to be financial advice, nor does it constitute investment advice or recommendations. It was written without regard to your individual situation or financial goals. We aim to bring you fundamental, data-driven analysis, The information on this site is in no way guaranteed for completeness, accuracy or in any other way.
