Meritage Group LP 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.
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 41 stocks valued at a total of $2.90Bil. The top holdings were TDG(12.25%), CHTR(11.49%), and SHW(11.33%).
According to GuruFocus data, these were Meritage Group LP’s top five trades of the quarter.
Salesforce Inc
During the quarter, Meritage Group LP bought 579,871 shares of NYSE:CRM for a total holding of 2,393,801. The trade had a 2.65% impact on the equity portfolio. During the quarter, the stock traded for an average price of $145.92.
On 02/15/2023, Salesforce Inc traded for a price of $169.96 per share and a market cap of $169.96Bil. The stock has returned -17.66% 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 607.00, a price-book ratio of 2.84, a price-earnings-to-growth (PEG) ratio of 22.73, a EV-to-Ebitda ratio of 41.41 and a price-sales ratio of 5.65.
The price-to-GF Value ratio is 0.59, earning the stock a GF Value rank of 8.
UiPath Inc
The guru sold out of their 5,839,446-share investment in NYSE:PATH. Previously, the stock had a 2.21% weight in the equity portfolio. Shares traded for an average price of $12.36 during the quarter.
On 02/15/2023, UiPath Inc traded for a price of $16.07 per share and a market cap of $8.88Bil. The stock has returned -56.85% over the past year.
GuruFocus gives the company a financial strength rating of 8 out of 10. There is insufficient data to calculate the stock’s profitability rating.
In terms of valuation, UiPath Inc has a price-book ratio of 4.77, a EV-to-Ebitda ratio of -21.19 and a price-sales ratio of 8.36.
Workday Inc
Meritage Group LP reduced their investment in NAS:WDAY by 384,851 shares. The trade had a 1.76% impact on the equity portfolio. During the quarter, the stock traded for an average price of $155.96.
On 02/15/2023, Workday Inc traded for a price of $189.54 per share and a market cap of $48.71Bil. The stock has returned -18.65% over the past year.
GuruFocus gives the company a financial strength rating of 6 out of 10 and a profitability rating of 4 out of 10.
In terms of valuation, Workday Inc has a price-book ratio of 9.00, a EV-to-Ebitda ratio of 263.45 and a price-sales ratio of 8.14.
The price-to-GF Value ratio is 0.64, earning the stock a GF Value rank of 8.
Coupa Software Inc
Meritage Group LP reduced their investment in NAS:COUP by 728,979 shares. The trade had a 1.28% impact on the equity portfolio. During the quarter, the stock traded for an average price of $59.83.
On 02/15/2023, Coupa Software Inc traded for a price of $80.09999999999999 per share and a market cap of $6.05Bil. The stock has returned -38.69% over the past year.
GuruFocus gives the company a financial strength rating of 4 out of 10 and a profitability rating of 3 out of 10.
In terms of valuation, Coupa Software Inc has a price-book ratio of 21.47, a EV-to-Ebitda ratio of -54.97 and a price-sales ratio of 7.37.
The price-to-GF Value ratio is 0.26, earning the stock a GF Value rank of 2.
S&P 500 ETF TRUST ETF
During the quarter, Meritage Group LP bought 27,337 shares of ARCA:SPY for a total holding of 76,095. The trade had a 0.36% impact on the equity portfolio. During the quarter, the stock traded for an average price of $382.87.
On 02/15/2023, S&P 500 ETF TRUST ETF traded for a price of $412.64 per share and a market cap of $381.58Bil. The stock has returned -4.48% over the past year.
GuruFocus gives the ETF a financial strength rating of 5 out of 10 and a profitability rating of 8 out of 10.
In terms of valuation, S&P 500 ETF TRUST ETF has a price-earnings ratio of 20.26, a price-book ratio of 3.76, a price-earnings-to-growth (PEG) ratio of 2.48, a EV-to-Ebitda ratio of 15.25 and a price-sales ratio of 2.82.
The price-to-GF Value ratio is 0.00, 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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