Hound Partners, 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.
Hound Partners, LLC is a hedge fund sponsor based out of New York City. The company was established in 2004 by Jonathan A.G. Auerbach, who is still with the company acting as its Portfolio Manager. Jonathan A.G. Auerbach previously worked at Ziff Brothers Investments as a senior analyst before founding the company. Hound Partners has grown from its inception to now have 22 employees of which 14 are investment professionals. The company conducts its research internally and utilizes a fundamental methodology to make its investment decisions. Hound Partners invests in the value stocks of companies, utilizing a long short strategy to allocate its assets in the public equity markets on a global scale. The company invests most heavily in the industrials sector, which alone makes up almost a quarter of its total asset allocations, and also invests in the finance sector, which makes up another fifth of its total allocations, health care, consumer discretionary, information technology, and energy sectors, among other sectors to a lesser degree, in order of decreasing allocation. The company’s top holdings include Valeant Pharmaceuticals International Inc., Spirit Aerosystems Holdings Inc., Citigroup Inc., Caters Inc., Tesoro Petroleum Co., and FleetCor Technologies Inc. Its top 10 holdings alone make up over three quarters of its total holdings and the company has a turnover rate of 30%. Hound Partners holds over $4.5 billion in total assets under management spread across 10 accounts, all of which are discretionary accounts. Both of the firm’s total number of accounts held and total assets under management have been increasing in recent years with its total assets under management growing significantly from approximately half a billion to almost 9 times that amount today. Hound Partners currently caters exclusively to pooled investment vehicles and takes advisory fees in the form of a percentage of assets and various performance based fees.
As of the latest 13F report, the guru’s equity portfolio contained 13 stocks valued at a total of $338.00Mil. The top holdings were HCA(17.21%), QQQ(14.98%), and FRSH(11.78%).
According to GuruFocus data, these were Hound Partners, LLC’s top five trades of the quarter.
iShares Russell 2000 ETF
The guru sold out of their 581,571-share investment in ARCA:IWM. Previously, the stock had a 18.21% weight in the equity portfolio. Shares traded for an average price of $177.2 during the quarter.
On 02/18/2023, iShares Russell 2000 ETF traded for a price of $193.1 per share and a market cap of $56.53Bil. The stock has returned -2.64% over the past year.
There is insufficient data to calculate the stock’s financial strength and profitability ratings.
In terms of valuation, iShares Russell 2000 ETF has a price-earnings ratio of 11.62 and a price-book ratio of 2.01.
Vanguard S&P 500 ETF
The guru sold out of their 265,225-share investment in ARCA:VOO. Previously, the stock had a 16.53% weight in the equity portfolio. Shares traded for an average price of $351.8 during the quarter.
On 02/18/2023, Vanguard S&P 500 ETF traded for a price of $374.22 per share and a market cap of $280.89Bil. The stock has returned -5.38% over the past year.
There is insufficient data to calculate the stock’s financial strength and profitability ratings.
In terms of valuation, Vanguard S&P 500 ETF has a price-earnings ratio of 20.20 and a price-book ratio of 3.76.
INVESCO QQQ Trust
The guru established a new position worth 190,260 shares in NAS:QQQ, giving the stock a 14.98% weight in the equity portfolio. Shares traded for an average price of $275.95 during the quarter.
On 02/18/2023, INVESCO QQQ Trust traded for a price of $301.16 per share and a market cap of $160.29Bil. The stock has returned -12.19% over the past year.
There is insufficient data to calculate the stock’s financial strength and profitability ratings.
In terms of valuation, INVESCO QQQ Trust has a price-earnings ratio of 25.71 and a price-book ratio of 5.97.
Ross Stores Inc
Hound Partners, LLC reduced their investment in NAS:ROST by 311,737 shares. The trade had a 4.99% impact on the equity portfolio. During the quarter, the stock traded for an average price of $101.96.
On 02/18/2023, Ross Stores Inc traded for a price of $115.69 per share and a market cap of $39.84Bil. The stock has returned 27.45% over the past year.
GuruFocus gives the company a financial strength rating of 7 out of 10 and a profitability rating of 8 out of 10.
In terms of valuation, Ross Stores Inc has a price-earnings ratio of 28.08, a price-book ratio of 9.62, a EV-to-Ebitda ratio of 17.69 and a price-sales ratio of 2.18.
The price-to-GF Value ratio is 0.93, earning the stock a GF Value rank of 6.
Bio-Rad Laboratories Inc
During the quarter, Hound Partners, LLC bought 34,947 shares of NYSE:BIO for a total holding of 88,354. The trade had a 4.35% impact on the equity portfolio. During the quarter, the stock traded for an average price of $403.63.
On 02/18/2023, Bio-Rad Laboratories Inc traded for a price of $483.23 per share and a market cap of $14.14Bil. The stock has returned -17.55% over the past year.
GuruFocus gives the company a financial strength rating of 7 out of 10 and a profitability rating of 7 out of 10.
In terms of valuation, Bio-Rad Laboratories Inc has a price-book ratio of 1.70, a EV-to-Ebitda ratio of -1.67 and a price-sales ratio of 5.12.
The price-to-GF Value ratio is 0.80, earning the stock a GF Value rank of 9.
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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