The Harbor Capital Appreciation Fund, subadvised by Jennison Associates, invests primarily in equity securities, specifically U.S. companies with market capitalizations of at least $1 billion at the time of purchase. The fund is led by Spiros Segalas. The following are his trades during the first quarter that had the largest impact on the total assets.
The fund acquired 2,621,198 shares in McDonald's Corp. (MCD) with an impact of 1.32% on the portfolio.
The company franchises and operates McDonald's restaurants in the food service industry. During the first quarter, global comparable sales increased by 6.2%, which benefited from one additional day due to leap year. Diluted EPS was $1.23, an increase of 46% and consolidated operating income increased by 28%.
GuruFocus gives the stock a profitability and growth rating of 8 out of 10 with ROE of 47.96% and ROA of 13.98% that are outperforming 90% of the companies in the Global Restaurants industry. Financial strength has a rating of 8 out of 10 with no debt.
First Eagle Investment (Trades, Portfolio) is another guru shareholder with 0.32% of outstanding shares, as well as Jeremy Grantham (Trades, Portfolio) with 0.16%, Mason Hawkins (Trades, Portfolio) with 0.14%, Steven Cohen (Trades, Portfolio) with 0.09%, John Burbank (Trades, Portfolio) with 0.06%, Andreas Halvorsen (Trades, Portfolio) with 0.06%, George Soros (Trades, Portfolio) with 0.05% and Louis Moore Bacon (Trades, Portfolio) with 0.04%.
Segalas increased his stake in Microsoft Corp. (MSFT) by 135.68% with an impact of 1.08% on the portfolio.
The company generates revenue by developing, manufacturing, licensing, and supporting software products and services for different types of computing devices. During the second quarter, Microsoft returned $6.5 billion to shareholders in the form of share repurchases and dividends.
GuruFocus gives the stock a profitability and growth rating of 7 out of 10 with ROE of 12.75% and ROA of 5.73% that are outperforming 63% of other companies in the industry. Financial strength has a rating of 87 out of 10, with cash to debt of 2.28 that is below the industry median of 13.14.
The largest shareholder among the gurus is Dodge & Cox with 0.85% of outstanding shares, followed by PRIMECAP Management (Trades, Portfolio) with 0.76%, Jeff Ubben (Trades, Portfolio) with 0.72%, First Eagle Investment (Trades, Portfolio) with 0.38%, Barrow, Hanley, Mewhinney & Strauss with 0.37%, Steve Mandel (Trades, Portfolio) with 0.35% and Ken Fisher (Trades, Portfolio) with 0.23%.
The fund acquired 2,067,722 shares in The Home Depot Inc. (HD) with an impact of 1.06% on the portfolio.
The company sells an assortment of building materials, home improvement and lawn and garden products and provides a number of services. Sales for fiscal 2015 had an increase of 6.4% from fiscal 2014 and earnings per diluted share in fiscal 2015 were $5.46, compared to $4.71 per diluted share in fiscal 2014.
GuruFocus gives the stock a profitability and growth rating of 8 out of 10 with ROE of 85.27% and ROA 16.46% that are outperforming 93% of the companies in the Global Home Improvement Stores industry. Financial strength has a rating of 8 out of 10, with cash to debt of 0.10 that is below the industry median of 1.00.
Ken Fisher (Trades, Portfolio) is the largest guru shareholder with 0.68% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.28%, Jeremy Grantham (Trades, Portfolio) with 0.16%, Tom Gayner (Trades, Portfolio) with 0.07%, John Burbank (Trades, Portfolio) with 0.04% and Mario Gabelli (Trades, Portfolio) with 0.04%.
The guru increased his stake in Alibaba Group Holding Ltd. (BABA) by 212.33% with an impact of 0.97% on the portfolio.
The company is engaged in online and mobile commerce through products, services and technology that enable businesses to operate efficiently and extend their reach to sell to consumers and businesses in China.
GuruFocus gives the stock a profitability and growth rating of 7 out of 10 with ROE of 39.58% and ROA of 22.99% that are outperforming 95% of other companies in the Global Specialty Retail industry. Financial strength has a rating of 6 out of 10, with cash to debt of 2.13 that is above the industry median of 1.00.
The largest shareholder among the gurus is Frank Sands (Trades, Portfolio) with 0.92% of outstanding shares, followed by PRIMECAP Management (Trades, Portfolio) with 0.54%, Manning & Napier Advisors with 0.14%, Ken Fisher (Trades, Portfolio) with 0.12% and Andreas Halvorsen (Trades, Portfolio) with 0.07%.
The fund bought 3,294,669 shares in General Electric Co. (GE) with an impact of 0.39% on the portfolio.
The company is a diversified infrastructure and financial services company. Its products and services range from aircraft engines, power generation, oil and gas production equipment, and household appliances to medical imaging, business and consumer financing and industrial products. During the first quarter, GE announced Industrial Operating and Verticals EPS grew 5% from the first quarter of 2015, and the company returned $8.3 billion to shareholders.
GuruFocus gives the stock a profitability and growth rating of 5 out of 10 with ROE of 7.08% and ROA of 1.38% that is underperforming other companies in the Global Diversified Industrials industry. Financial strength has a rating of 6 out of 10, with cash to debt of 0.58 that is below the industry median of 1.11.
Ken Fisher (Trades, Portfolio) is the largest guru shareholder with 0.33% of outstanding shares, followed by T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.24%, Bill Nygren (Trades, Portfolio) with 0.17%, First Pacific Advisors (Trades, Portfolio) with 0.13%, Warren Buffett (Trades, Portfolio) with 0.11% and Steven Romick (Trades, Portfolio) with 0.1%.
Segalas raised his stake in LinkedIn Corp. (LNKD) by 15.77% with an impact of 0.25% on the portfolio.
The company operates an online professional network through which the company's members are able to create, manage and share their professional identities online, build and engage with their professional networks, access shared knowledge and insights and find business opportunities.
GuruFocus gives the stock a profitability and growth rating of 4 out of 10 with ROE of -4.03% and ROA of -2.56% that are underperforming 73% of other companies in the industry. Financial strength has a rating of 7 out of 10, with cash to debt of 2.78 that is below the industry median of 14.39.
The largest shareholder among the gurus is Frank Sands (Trades, Portfolio) with 4.95% of outstanding shares, followed by Jim Simons (Trades, Portfolio) with 0.29%, John Griffin (Trades, Portfolio) with 0.24%, Steven Cohen (Trades, Portfolio) with 0.19%, Ron Baron (Trades, Portfolio) with 0.15% and Pioneer Investments (Trades, Portfolio) with 0.07%.
The fund acquired 781,714 shares in Biomarin Pharmaceutical Inc. (BMRN) with an impact of 0.24% on the portfolio.
It develops and commercializes pharmaceuticals for serious diseases and medical conditions. The company selects product candidates for diseases and conditions that represent an unmet medical need.Â
GuruFocus gives the stock a profitability and growth rating of 4 out of 10 with ROE of -8.05% and ROA of -5.17% that are outperforming 68% of the companies in the Global Biotechnology industry. Financial strength has a rating of 7 out of 10, with cash to debt of 0.68.
Frank Sands (Trades, Portfolio) is the largest guru shareholder with 7.17% of outstanding shares, followed by PRIMECAP Management (Trades, Portfolio) with 4.52%, John Griffin (Trades, Portfolio) with 0.95% and Jim Simons (Trades, Portfolio) with 0.12%.
The guru increased his stake in Marriott International Inc. (MAR) by 16.83% with an impact of 0.21% on the portfolio.
The company is an operator, franchisor and licensor of hotels and timeshare properties under different brand names. It also operates, develops and markets residential properties and provides services to home/condominium owner associations.
GuruFocus gives the stock a profitability and growth rating of 8 out of 10 with ROE of 13.83% and ROA of 132.26% that are outperforming 92% of other companies in the Global Lodging industry. Financial strength has a rating of 8 out of 10, with cash to debt of 0.02 that is below the industry median of 0.82.
Other notable shareholders of the company are Tom Gayner (Trades, Portfolio) with 0.57% of outstanding shares, Jim Simons (Trades, Portfolio) with 0.14%, Ray Dalio (Trades, Portfolio) with 0.1%, PRIMECAP Management (Trades, Portfolio) with 0.05% and Joel Greenblatt (Trades, Portfolio) with 0.04%.
