1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
David Goodloe
David Goodloe
Articles (769) 

Swensen Takes All-Or-Nothing Approach to First-Quarter Transactions

In the first quarter of 2015, as is frequently the case for him, guru David Swensen (Trades, Portfolio)’s stock transactions amounted to all or nothing. Not entirely, though. Swensen, the chief investment officer for Yale University since 1985, bought or sold stock in 11 companies in the quarter, and one – iShares MSCI EAFE Index Fund ETF (EFA) – was a reduction in an existing stake.

The rest, though, were either new stakes or divestitures for Swensen, who has been responsible for bringing in more than $16 billion in revenue for Yale during his tenure.

New buys

Six of those transactions represent new buys for Swensen.

Swensen bought 240,000 shares of Veeva Systems Inc (NYSE:VEEV), a San Francisco-based provider of software business solutions for the global life sciences industry, for an average price of $28.18 per share. The purchase had an 8.88% impact on his portfolio.

Veeva has a market cap of $3.56 billion and an enterprise value of $3.17 bilion. Veeva has a P/E of 96.2, a Price/Book of 8.8 and a Price/Sales of 12.5. Joel Greenblatt (Trades, Portfolio) also has shares of Veeva in his portfolio.

1431542558373.png

Swensen acquired 81,647 shares of Demandware Inc (NYSE:DWRE), a Burlington, Massachusetts-based software technology company, for an average price of $58.19 per share. The transaction had a 6.95% impact on Swensen’s portfolio.

Demandware has a market cap of $2.31 billion and an enterprise value of $2.05 billion. It has a Price/Book of 7.7 and a Price/Sales of 12.0. Julian Robertson (Trades, Portfolio) also has shares of Demandware in his portfolio, and George Soros (Trades, Portfolio) sold his stake in the company in the fourth quarter of 2014.

1431543017791.png

Swensen purchased 34,345 shares of Twitter Inc (NYSE:TWTR), a worldwide online social networking service based in San Francisco, for an average price of $44.34 per share. The buy had a 2.49% impact on his portfolio.

Twitter has a market cap of $24.95 billion and an enterprise value of $22.56 billion. It has a Price/Book of 6.7 and a Price/Sales of 14.9. Ron Baron (Trades, Portfolio), First Eagle Investment (Trades, Portfolio) and PRIMECAP Management (Trades, Portfolio) have shares of Twitter in their portfolios.

1431543458171.png

Swensen invested in 42,334 shares of Intersect ENT Inc (NASDAQ:XENT), a Menlo Park, California-based health care equipment company, for an average price of $22.87 per share. That acquisition had a 1.58% impact on his portfolio.

Intersect has a market cap of $559.1 million and an enterprise value of $506.65 million. It has a Price/Book of 10.3 and a Price/Sales of 7.0. Ron Baron (Trades, Portfolio) also has shares of Intersect in his portfolio.

The other new stakes in Swensen’s portfolio are JD.com Inc (NASDAQ:JD), a Beijing-based ecommerce company, and Hallador Energy Co (NASDAQ:HNRG), a Denver-based coal-producing company.

Divestitures

Swensen sold his stakes in four companies in the first quarter – Vanguard MSCI Emerging Markets ETF (VWO), Potbelly Corporation (NASDAQ:PBPB), Inogen Inc (NASDAQ:INGN) and General Electric Co (NYSE:GE).

Swensen parted with 174,000 shares of Vanguard, a financial advisory company, for an average price of $40.6 per share. The deal had a -5.4% impact on his portfolio.

Vanguard has a market cap of $56.47 billion and an enterprise value of $56.47 billion. John Keeley (Trades, Portfolio) and Ray Dalio (Trades, Portfolio) each have shares of Vanguard in their portfolios.

ee754fbe00ba99b16777026ca85f3d6f.png

Swensen sold 109,672 shares of Potbelly, a Chicago-based restaurant chain, for an average price of $13.88 per share. The transaction had a -1.1% impact on his portfolio.

Potbelly has a market cap of $426.3 million and an enterprise value of $371.06 million. It has a P/E of 81.7, a Price/Book of 2.7 and a Price/Sales of 1.3.

e2dd3aca834687eea824029ebccb8ca9.png

Inogen is a California-based provider of portable oxygen concentrators, and General Electric is a Connecticut-based conglomerate.

To view the portfolios of more gurus, visit the List of Gurus page. Not a premium member of GuruFocus? Try it free for 7 days.

About the author:

David Goodloe
I'm a journalist by training. I grew up in Arkansas and earned my B.A. at the University of Arkansas. I earned my master's degree at the University of North Texas. My background includes stints at newspapers in Arkansas and Texas and teaching news writing and news editing to students at the University of Oklahoma and Richland College here in Dallas. I'm a writer/editor at GuruFocus.

Rating: 0.0/5 (0 votes)

Comments

Please leave your comment:


Performances of the stocks mentioned by David Goodloe


User Generated Screeners


dwulchscreen92218
merknt84my104
merknt84my103
merknt84my102
merknt84my101
ConnorMFern ExUS&OTC
bursaguru5Charles2
billaw123roe
ripollj67CheapFCF
careerabhiAbhimultipleBook
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat

{{numOfNotice}}
FEEDBACK