Robert Karr (Trades, Portfolio) is the founder of Joho Capital and one of the Tiger Cubs, a group of investors who learned from the legendary Julian Robertson (Trades, Portfolio). The portfolio is composed of 11 stocks and two were the new buys during third quarter. The following are his most heavily weighted sales during the quarter.
Karr sold out his stake in Qunar Cayman Islands Ltd. (QUNR) with an impact of 12.52% on the portfolio.
The company operates an online travel commerce platform with the provision of pay-for-performance services, display advertising services and other services in China. During the third quarter, revenue increased 164.4% year over year, while profit increased 127.8% year-on-year.
GuruFocus gives Qunar Cayman a profitability and growth rating of 3 out of 10 with negative returns (ROE -475.51%, ROA -59.22%) that are underperforming 99% of the companies in the Global Leisure industry. By contrast, financial strength has a rating of 9 out of 10, with a cash to debt of 1.34 that is above the industry median of 0.66.
Andreas Halvorsen (Trades, Portfolio) is the main guru shareholder of the company with 3.61% of outstanding shares, followed by George Soros (Trades, Portfolio) with 2.08% and Frank Sands (Trades, Portfolio) with 0.67%.
Karr reduced his stake in iKang Healthcare Group Inc. (KANG) by 54.29% with an impact of 6.91% on the portfolio. The holding is 5.47% of his total assets.
The company was formerly known as China iKang Healthcare Inc. iKang is a provider of private preventive healthcare services. It reported an increase of 23.9% year-over-year for net revenues and an increase of 8.6% year-over-year for gross profit.
The stock looks expensive at the current price of $18.88. The DCF calculator gives a fair value of $4.82, estimating the stock is highly overvalued by 292%. GuruFocus gives iKang Healthcare a profitability and growth rating of 4 out of 10 with good returns (ROE 11.24%, ROA 7.23%) that are outperforming 78% of the companies in the Global Diagnostics & Research industry. Financial strength has a rating of 7 out of 10, with a cash to debt of 1.04 that is far below the industry median of 3.06.
Karr is the largest guru shareholder with 1.88% of outstanding shares, followed by Howard Marks (Trades, Portfolio) with 0.07% and Mario Gabelli (Trades, Portfolio) with 0.01%.
Karr also reduced his stake in TAL Education Group (XRS) by 18.73% with an impact of 3.6% on the portfolio. The holding is 17.47% of his total assets.
TAL runs after-school tutoring programs for primary and secondary school students in China. Net revenue increased by 41.6% year-over-year and income from operations increased by 28.5% during the third quarter.
The stock looks expensive at the current price of $44.53. The DCF calculator gives a fair value of $12.95, estimating the stock is highly overvalued by 244%. GuruFocus gives TAL Education a profitability and growth rating of 6 out of 10 with strong returns (ROE 32.40%, ROA 12.59%) that are outperforming 88% of the companies in the Global Education & Training Services industry. Financial strength has a rating of 6 out of 10, with a cash to debt of 2.26 that is below the industry median of 3.33.
Karr is the main guru shareholder of the company with 2.38% of outstanding shares, followed by Jeremy Grantham (Trades, Portfolio) with 1.73% and Ron Baron (Trades, Portfolio) with 1.01%.
Karr reduced his stake in Mead Johnson Nutrition Co. (MJN) by 16.19% with an impact of 5.44% on the portfolio. The stake is 13.05% of his total assets
The company manufactures, distributes and sells infant formulas, children's nutrition and other nutritional products. During the third quarter, the company repurchased 5.6 million shares but sales were 4% below the prior year quarter. Due to lower dairy input costs, gross margin improved by 460 basis points to 64.5%, up from 59.9% in the prior year quarter.
The stock looks expensive at the current price of $80.13. The DCF calculator gives a fair value of $36.06, estimating the stock is overvalued by 122%. GuruFocus gives Mead Johnson a profitability and growth rating of 7 out of 10 with strong returns (ROE 119.45%, ROA 17.91%) that are outperforming 94% of the companies in the Global Packaged Foods industry. Financial strength has a rating of 8 out of 10, with a cash to debt of 0.74 that is slightly above the industry median of 0.50.
The company’s largest shareholder among the gurus is David Rolfe (Trades, Portfolio) with 1.77% of outstanding shares, followed by Jim Simons (Trades, Portfolio) with 1.5% and Pioneer Investments (Trades, Portfolio) with 0.48%.
Karr also reduced his stake in Amazon.com Inc. (AMZN) by 27.98% with an impact of 0.16% on the portfolio. The holding is 0.58% of his total assets
The stock looks overpriced at the current price of $676.01. The DCF calculator gives a fair value of $7.49, estimating the stock is highly overvalued by 8926%. GuruFocus gives Amazon a profitability and growth rating of 7 out of 10 with weak returns (ROE 2.92%, ROA 0.65%) that are outperforming 70% of the in the Global Specialty Retail industry. Financial strength has a rating of 5 out of 10, with a cash to debt of 1.75 that is above the industry median of 0.78.
Chase Coleman (Trades, Portfolio) is the main guru shareholder of the company with 0.68% of outstanding shares, followed by Chris Davis (Trades, Portfolio) with 0.67% and Andreas Halvorsen (Trades, Portfolio) with 0.64%.
Karr sold out his stake in Tableau Software Inc. (DATA) with an impact of 0.11% on the portfolio.
The company provides software products that help people see and understand data. Its software products put the power of data into the hands of everyday people, allowing business users to engage with their data, ask questions, solve problems and create value. In the third quarter, total revenue grew by 64% year over year.
GuruFocus gives Tableau a profitability and growth rating of 3 out of 10 with negative returns (ROE 3.16%, ROA 2.43%) that are underperforming 70% of the companies in the Global Software - Application industry. Financial strength has a rating of 7 out of 10 with no debt.
The company’s largest shareholder among the gurus is Chase Coleman (Trades, Portfolio) with 3.24% of outstanding shares, followed by Jim Simons (Trades, Portfolio) with 0.76% and Ken Fisher (Trades, Portfolio) with 0.15%.
Karr also sold out his stake in Baidu Inc. (BIDU) with an impact of 0.08% on the portfolio.
The Chinese internet search website provides a platform for businesses to reach customers. Revenue increased by 36% in the most recent quarter, and gross profit had a 35.9% decline from the corresponding period in 2014.
The stock looks overpriced at the current price of $211.36. The DCF calculator gives a fair value of $157.78, estimating the stock is overvalued by 34%. GuruFocus gives Baidu a profitability and growth rating of 7 out of 10 with good returns (ROE 22.43%, ROA 11.24%) that are outperforming 79% of the companies in the Global Internet Content & Information industry. Financial strength has a rating of 9 out of 10, with a cash to debt of 1.87 that is much below the industry median of 14.03.
Frank Sands (Trades, Portfolio) is the main guru shareholder of the company with 3.12% of outstanding shares, followed by Dodge & Cox with 2.37% and David Herro (Trades, Portfolio) with 1.35%.
Karr sold his stake in Cisco Systems Inc. (CSCO) with an impact of 0.08% on the portfolio.
The company is engaged in designing, manufacturing and selling of Internet Protocol (IP) based networking products and services related to the communications and information technology industry.
The stock looks overpriced at the current price of $27.44. The DCF calculator gives a fair value of $22.46, estimating the stock is overvalued by 22%. GuruFocus gives Cisco Systems a profitability and growth rating of 9 out of 10 with strong returns (ROE 16.36%, ROA 8.87%) that are outperforming 85% of the companies in the Global Communication Equipment industry. Financial strength has a rating of 5 out of 10, with a cash to debt of 2.40 that is slightly above the industry median of 2.08.
The largest shareholder among the gurus is Dodge & Cox with 1.33% of outstanding shares, followed by Donald Yacktman (Trades, Portfolio) with 0.71% and Jeremy Grantham (Trades, Portfolio) with 0.69%.
