Focused Investors LLC recently filed their 13F report for the fourth quarter of 2022, which ended on 2022-12-31.
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.
Focused Investors LLC is an investment management firm based out of Beverly Hills, California. The company was originally established in 2006 by Bruce Gordon Veaco, who remains with the company as a portfolio manager. Focused Investors has grown from its inception to now operate with 7 employees of which 3 are investment professionals. The company utilizes a fundamental methodology with a bottom up investment approach, focusing on the value stocks of large cap companies within the United States. The company invests primarily in the public equity market, managing separate equity portfolios for its clients. Focused Investors allocates its assets across a wide variety of sectors, investing most heavily in the consumer staples sector which alone makes up a quarter of its total allocations. The company also invests in the finance, health care, consumer discretionary, information technology, and industrials sectors, in order of decreasing allocation. Focused Investors’s top ten holdings make up over half of its total allocations and the company, on average, holds its allocations for 23 quarters. The firm’s top holdings currently include Microsoft Corp., CVS Caremark Corp., Target Corp., McDonalds Corp, and American Express, in order of decreasing allocation. Focused Investors currently manages over $2.6 billion in total assets under management spread across 16 accounts, all of which are discretionary accounts. Both of the company’s total number of accounts and total assets under management have been increasing in recent years with its total number of accounts growing from four in 2010 to its current amount and its total assets under management increasing significantly from $133 million to approaching twenty times that amount today. Focused Investors mainly caters to charities, which alone makes up a third of its client base, and also provides to high net worth individuals, pension and profit sharing plans, state and municipal government entities, pooled investment vehicles, and corporations, in order of decreasing clientele.
As of the latest 13F report, the guru’s equity portfolio contained 23 stocks valued at a total of $3.10Bil. The top holdings were ELV(8.19%), JNJ(7.98%), and UNH(7.36%).
According to GuruFocus data, these were Focused Investors LLC’s top five trades of the quarter.
Oracle Corp
During the quarter, Focused Investors LLC bought 327,200 shares of NYSE:ORCL for a total holding of 1,629,100. The trade had a 0.86% impact on the equity portfolio. During the quarter, the stock traded for an average price of $76.
On 01/26/2023, Oracle Corp traded for a price of $89.64 per share and a market cap of $241.69Bil. The stock has returned 11.98% over the past year.
GuruFocus gives the company a financial strength rating of 3 out of 10 and a profitability rating of 9 out of 10.
In terms of valuation, Oracle Corp has a price-earnings ratio of 28.10, a price-earnings-to-growth (PEG) ratio of 3.70, a EV-to-Ebitda ratio of 18.26 and a price-sales ratio of 5.34.
The price-to-GF Value ratio is 1.04, earning the stock a GF Value rank of 5.
UnitedHealth Group Inc
Focused Investors LLC reduced their investment in NYSE:UNH by 26,000 shares. The trade had a 0.47% impact on the equity portfolio. During the quarter, the stock traded for an average price of $529.71.
On 01/26/2023, UnitedHealth Group Inc traded for a price of $492.5 per share and a market cap of $460.17Bil. The stock has returned 9.09% over the past year.
GuruFocus gives the company a financial strength rating of 6 out of 10 and a profitability rating of 9 out of 10.
In terms of valuation, UnitedHealth Group Inc has a price-earnings ratio of 23.24, a price-book ratio of 5.65, a price-earnings-to-growth (PEG) ratio of 1.76, a EV-to-Ebitda ratio of 15.34 and a price-sales ratio of 1.46.
The price-to-GF Value ratio is 0.96, earning the stock a GF Value rank of 6.
Elevance Health Inc
Focused Investors LLC reduced their investment in NYSE:ELV by 23,400 shares. The trade had a 0.38% impact on the equity portfolio. During the quarter, the stock traded for an average price of $507.74.
On 01/26/2023, Elevance Health Inc traded for a price of $495.59 per share and a market cap of $118.36Bil. The stock has returned 14.01% over the past year.
GuruFocus gives the company a financial strength rating of 6 out of 10 and a profitability rating of 9 out of 10.
In terms of valuation, Elevance Health Inc has a price-earnings ratio of 19.44, a price-book ratio of 3.29, a price-earnings-to-growth (PEG) ratio of 1.52, a EV-to-Ebitda ratio of 12.41 and a price-sales ratio of 0.78.
The price-to-GF Value ratio is 1.02, earning the stock a GF Value rank of 5.
PepsiCo Inc
During the quarter, Focused Investors LLC bought 15,000 shares of NAS:PEP for a total holding of 659,250. The trade had a 0.09% impact on the equity portfolio. During the quarter, the stock traded for an average price of $178.37.
On 01/26/2023, PepsiCo Inc traded for a price of $171.93 per share and a market cap of $236.87Bil. The stock has returned 2.91% over the past year.
GuruFocus gives the company a financial strength rating of 5 out of 10 and a profitability rating of 8 out of 10.
In terms of valuation, PepsiCo Inc has a price-earnings ratio of 24.60, a price-book ratio of 12.49, a price-earnings-to-growth (PEG) ratio of 6.31, a EV-to-Ebitda ratio of 15.97 and a price-sales ratio of 2.84.
The price-to-GF Value ratio is 0.97, earning the stock a GF Value rank of 6.
Johnson & Johnson
Focused Investors LLC reduced their investment in NYSE:JNJ by 13,400 shares. The trade had a 0.08% impact on the equity portfolio. During the quarter, the stock traded for an average price of $172.66.
On 01/26/2023, Johnson & Johnson traded for a price of $169.51 per share and a market cap of $443.18Bil. The stock has returned 3.62% 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, Johnson & Johnson has a price-earnings ratio of 25.15, a price-book ratio of 5.95, a price-earnings-to-growth (PEG) ratio of 6.45, a EV-to-Ebitda ratio of 15.55 and a price-sales ratio of 4.72.
The price-to-GF Value ratio is 0.97, earning the stock a GF Value rank of 6.
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.
When GuruFocus covers insider information, we only track open market or the private purchase and sale of common stock with the transaction code of P or S. Therefore, all the transactions mentioned in this article are only the ones with transaction code of P or S.
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