During the second quarter, Forbes columnist and founder of Fisher Asset Management, Ken Fisher (Trades, Portfolio), purchased 57 new holdings, according to data reported by GuruFocus Real Time Picks.
The majority of Fisher’s portfolio at the multi-billion dollar money management firm is held in the financial services sector at 22.5%, followed by 16.2 each in technology and healthcare stocks.
Fisher initiated a new holding in Alibaba Group Holding (BABA, Financial) with 1,306,608 shares bought at an average price of $85.94 per share. Since the company went public in September 2014, the stock declined 11% and closed at $80.73 on July 16. Alibaba is trading with a P/E ratio of 51.47 and P/S ratio of 16.6.
EBITDA per share increased dramatically in FY 2015 ended March 31 at $2.53, compared to $0.98 the year before. Net income also increased to $3,889 million from $3,777 million in 2014.
On July 7, Alibaba announced it had invested Mei.com, a flash sales platform for luxury products and fashion in China. Alibaba’s Tmall.com, a third-party platform for brands and retailers, will support Mei.com to grow their user base.
Frank Sands (Trades, Portfolio) is the largest guru shareholder with 0.79% of shares outstanding, followed by Jeremy Grantham (Trades, Portfolio) with 0.54%.
Fisher also purchased 2,497,815 shares of KB Home (KBH, Financial), which traded for an average price of $15.26 during the quarter. The stock declined 9% and closed at $16.36 on July 16. For the second quarter ended May 31, KB Home reported net income of $9.6 million, down substantially from $26.6 million in the year-ago quarter.
The homebuilder currently trades with a P/E ratio of 1.81 and the P/S ratio is 0.64. The company is deeply undervalued according to the Peter Lynch earnings line, which is at $134.30 based on Q2 earnings.
His third-largest purchase was 169,205 shares in Magellan Health (MGLN, Financial) for an average price of $67.99 per share. Magellan is in the healthcare management business and provides services to managed care organizations, insurance companies, employers, etc.
The stock price increased 10% in the past year, closing at $69.34 on July 16. The current P/E ratio is 30.41 and the P/S ratio is 0.49. Over the past five years, revenue grew by 13.7% and EBITDA increased by 4.8%.
Net income in Q1 2015 was $7.2 million, down from $25.7 million the year before due to a much larger tax impact.
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