Lee Ainslie (Trades, Portfolio) of Maverick Capital Ltd. acquired 32 new holdings in the second quarter. Among them were Philip Morris International Inc. (PM, Financial), Computer Sciences Corp. (CSC, Financial) and Mylan NV (MYL, Financial).
Ainslie founded Maverick in 1993 and now serves as CEO. The firm is based in Dallas. From 1999-2014, the firm reported a compounded return of 13% annually. The firm invests both long and short positions in stocks based on fundamental analysis and examination of management. Maverick has six industry sector heads who advise Ainslie about different stocks in each industry, upon which Ainslie makes the ultimate decision.
Philip Morris
In Philip Morris, Ainslie purchased 5,851,537 shares for an average price of $99.73 per share. The transaction had an impact of 8.08% on the portfolio. Since then, the stock has increased by 0.56%.
Philip Morris is a holding company that manufactures and sells cigarettes and other tobacco products in markets outside the U.S. It has a market cap of $154.6 billion with an enterprise value of $182.5 billion. It has a price-earnings (P/E) ratio of 23.8 with a forward P/E of 22.4. It has a price-sales (P/S) ratio of 5.9.
GuruFocus ranked the company’s financial strength 5 of 10. Its Piotroski F-Score is 5, indicating a stable financial condition. Its Altman Z-Score is 4.9, placing it in the safe zone. The company’s cash to debt ratio is 0.13, which is below the industry median of 0.42.
GuruFocus ranked the company’s profitability and growth 7 of 10. Its operating margin is 38.7% and its net margin is 24.9%. Its return on assets (ROA) is 19.4%, ranking it above 76% of other companies in the global tobacco industry.
Among the gurus invested in Philip Morris, Barrow, Hanley, Mewhinney & Strauss is the largest shareholder.
Computer Sciences
In Computer Sciences, Ainslie purchased 3,060,018 shares for an average price of $40.44 per share. The transaction had an impact of 2.06% on the portfolio. Since then, the stock has increased by 1.54%.
Computer Sciences provides information technology (IT) and professional services and solutions to its customers. It has a market cap of $6.5 billion with an enterprise value of $8.02 billion. It has a P/E of 95.2 with a forward P/E of 16.13. Its price-book (P/B) ratio is 3.3 and its P/S is 0.7.
GuruFocus ranked the company’s financial strength 5 of 10. Its Piotroski F-Score is 6, indicating a stable financial condition. Its Altman Z-Score is 2.2, placing it in the grey zone. The company’s cash-debt ratio is 0.3, which is below the industry median of 10.3.
GuruFocus ranked the company’s profitability and growth 5 of 10. Its operating margin is 4.2% and its net margin is 0.8%. Its return on equity (ROE) is 2.8% and its ROA is 0.8%, ranking the company below 58% of the companies in the industry.
Among the gurus invested in Computer Sciences, Larry Robbins is the largest shareholder.
Mylan
In Mylan, Ainslie purchased 2,294,698 shares for an average price of $44.24 per share. The transaction had an impact of 1.35% on the portfolio. Since then, the stock has decreased by 0.77%.
Mylan is a pharmaceutical company that develops, licenses, manufactures, markets and distributes generic, branded generic and specialty pharmaceuticals. It has a market cap of $22.8 billion with an enterprise value of $29.9 billion. It has a P/E of 27.4 with a forward P/E of 8.7. Its P/B is 2.12, and its P/S is 2.2.
GuruFocus ranked the company’s financial strength 5 of 10. Its Piotroski F-Score is 5, indicating a stable financial condition. Its Altman Z-Score is 1.81, placing it in the grey zone. The company’s cash to debt ratio is 0.47, which is below the industry median of 3.15.
GuruFocus ranked the company’s profitability and growth 7 of 10. Its operating margin is 15.5% and its net margin is 8.1%. Its ROE is 8.1%, ranking it above 54% of companies in the industry. Its ROA is 3.4%, ranking it below 53% of the companies in the industry.
Among the gurus invested in Mylan, Vanguard Health Care Fund is the largest shareholder.
Disclosure: I do not own stock in any companies mentioned in the article.
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