Select Equity Group, L.P. 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.
Select Equity Group is a hedge fund sponsor based out of New York City. The company was founded in 1990 by George S. Loening, who continues to play an active role in the company as its acting chairman and treasurer. Select Equity Group, since its beginning, has maintained a “research-intensive, value-biased approach to investing in high-quality businesses” with an initial focus on U.S. small to mid-cap companies. The company would expand its investments to include larger cap companies by the late 1990s and would again expand to include international opportunities by the 2000s. Select Equity Group invests in public equity markets on a global scale, utilizing a combination of fundamental and quantitative analysis to form a bottom up stock picking approach to make its investment decisions based on the research that the company conducts internally. The company invests most heavily in the consumer discretionary and industrials sectors, each making up approximately a quarter of its total investments, and also invests in the finance, health care, information technology, materials, energy, and transports sectors, among others to a lesser degree, in order of decreasing allocation. Select Equity Group currently has $17 billion spread across over 850 accounts, all of which are discretionary. The company has 95 employees taking care of its diverse client base, which includes high net worth individuals, which alone makes up over half of its clientele, individuals, pension and profit sharing plans, charities, pooled investment vehicles, corporations, state or municipal government entities, investment advisors, and insurance companies, among others, in order of decreasing clientele. Select Equity Group is currently owned in majority by itself with the remaining ownership split amongst Seg Legacy S. Corp., which holds just under 50% of ownership, and various key executives. The company currently offers eight strategies, which includes its Small-Mid Cap and Mid-Cap strategies.
As of the latest 13F report, the guru’s equity portfolio contained 178 stocks valued at a total of $26.59Bil. The top holdings were PKI(5.16%), MLM(4.59%), and CDW(4.55%).
According to GuruFocus data, these were Select Equity Group, L.P.’s top five trades of the quarter.
Fidelity National Information Services Inc
The guru sold out of their 5,869,789-share investment in NYSE:FIS. Previously, the stock had a 1.55% weight in the equity portfolio. Shares traded for an average price of $71.04000000000001 during the quarter.
On 02/17/2023, Fidelity National Information Services Inc traded for a price of $69.25 per share and a market cap of $41.09Bil. The stock has returned -27.33% 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, Fidelity National Information Services Inc has a price-book ratio of 1.51, a EV-to-Ebitda ratio of -4.84 and a price-sales ratio of 2.89.
The price-to-GF Value ratio is 0.50, earning the stock a GF Value rank of 4.
Maravai LifeSciences Holdings Inc
Select Equity Group, L.P. reduced their investment in NAS:MRVI by 13,926,045 shares. The trade had a 1.24% impact on the equity portfolio. During the quarter, the stock traded for an average price of $15.75.
On 02/17/2023, Maravai LifeSciences Holdings Inc traded for a price of $14.67 per share and a market cap of $1.93Bil. The stock has returned -54.76% over the past year.
GuruFocus gives the company a financial strength rating of 6 out of 10 and a profitability rating of 5 out of 10.
In terms of valuation, Maravai LifeSciences Holdings Inc has a price-earnings ratio of 8.20, a price-book ratio of 3.83, a EV-to-Ebitda ratio of 2.92 and a price-sales ratio of 3.46.
Vail Resorts Inc
During the quarter, Select Equity Group, L.P. bought 1,165,211 shares of NYSE:MTN for a total holding of 2,612,048. The trade had a 1.04% impact on the equity portfolio. During the quarter, the stock traded for an average price of $234.64.
On 02/17/2023, Vail Resorts Inc traded for a price of $244.14 per share and a market cap of $9.85Bil. The stock has returned -5.38% 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, Vail Resorts Inc has a price-earnings ratio of 28.62, a price-book ratio of 7.78, a price-earnings-to-growth (PEG) ratio of 11.45, a EV-to-Ebitda ratio of 13.86 and a price-sales ratio of 3.78.
The price-to-GF Value ratio is 0.74, earning the stock a GF Value rank of 10.
Cintas Corp
During the quarter, Select Equity Group, L.P. bought 440,662 shares of NAS:CTAS for a total holding of 473,448. The trade had a 0.74% impact on the equity portfolio. During the quarter, the stock traded for an average price of $432.64.
On 02/17/2023, Cintas Corp traded for a price of $441.91 per share and a market cap of $44.91Bil. The stock has returned 20.36% 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, Cintas Corp has a price-earnings ratio of 35.96, a price-book ratio of 13.09, a price-earnings-to-growth (PEG) ratio of 2.41, a EV-to-Ebitda ratio of 22.78 and a price-sales ratio of 5.52.
The price-to-GF Value ratio is 1.00, earning the stock a GF Value rank of 5.
Sensata Technologies Holding PLC
During the quarter, Select Equity Group, L.P. bought 4,616,942 shares of NYSE:ST for a total holding of 9,852,952. The trade had a 0.7% impact on the equity portfolio. During the quarter, the stock traded for an average price of $41.65.
On 02/17/2023, Sensata Technologies Holding PLC traded for a price of $52.022 per share and a market cap of $7.93Bil. The stock has returned -9.12% 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, Sensata Technologies Holding PLC has a price-earnings ratio of 25.88, a price-book ratio of 2.55, a price-earnings-to-growth (PEG) ratio of 43.13, a EV-to-Ebitda ratio of 12.86 and a price-sales ratio of 2.02.
The price-to-GF Value ratio is 0.90, 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.
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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