Dodge & Cox Exits Time Warner Cable, Buys MetLife

Guru's largest trades in the 2nd quarter

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Sep 12, 2016
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Dodge & Cox was founded in 1930, by Van Duyn Dodge and E. Morris Cox. During the second quarter the guru’s most heavily weighted trades were as follows:

The guru closed its stake in Time Warner Cable Inc. (TWC) with an impact of -3.65% on the portfolio.

The company provides video, high-speed data and voice services. It also offers security and home management services, networking and transport services and enterprise-class, cloud-enabled hosting, managed applications and services.

GuruFocus gives the stock a profitability and growth rating of 8 out of 10 with ROE of 21.33% and ROA of 3.84% that are outperforming 59% of the companies in the Global Pay TV industry. Financial strength has a rating of 4 out of 10 with cash to debt of 0.06 that is below the industry median of 0.45.

The firm bought 11,347,398 shares in Charter Communications Inc. Class AĂ‚ (CHTR) with an impact of 2.56% on the portfolio.

The company is a cable operator providing services in the U.S. It offers cable video programming, Internet services and voice services as well as video services such as video on demand, HD television and DVR service. During the second quarter adjusted EBITDA grew 9.0% year over year and net income totaled $280 million in the second quarter, compared to $107 million during the same period last year, driven by higher income from operations year over year.

GuruFocus gives the stock a profitability and growth rating of 7 out of 10 with ROE of 35.13% and ROA of 4.96% that are outperforming 67% of its competitors. Financial strength has a rating of 3 out of 10 with cash to debt of 0.01 that is below the industry median of 0.45.

Warren Buffett (Trades, Portfolio) is the second-largest shareholder among the gurus with 4.19% of outstanding shares followed by Steve Mandel (Trades, Portfolio) with 1.77%, Chase Coleman (Trades, Portfolio) with 1.57%, John Griffin (Trades, Portfolio) with 0.69%, Daniel Loeb (Trades, Portfolio) with 0.57%, Larry Robbins (Trades, Portfolio) with 0.38%, John Burbank (Trades, Portfolio) with 0.23% and Jim Simons (Trades, Portfolio) with 0.2%.

The guru reduced its stake in Schlumberger Ltd. (SLB) by 12.78% with an impact of -0.58% on the portfolio.

The company is a supplier of technology, integrated project management and information solutions to customers working in the oil and gas industry. Its business segments are Reservoir Characterization Group, Drilling Group and Production Group. Second-quarter revenue grew 10% from the first quarter but decreased 20% from the same quarter of a year before. The company reported a quarterly cash dividend of 50 cents per share.

GuruFocus gives the stock a profitability and growth rating of 7 out of 10 with ROE of -4.45% and ROA of -2.43% that are outperforming 54% of the companies in the Global Oil & Gas Equipment & Services industry. Financial strength has a rating of 6 out of 10 with cash to debt of 0.52 that is a few below the industry median of 0.55.

The largest shareholder among the gurus is Dodge & Cox with 3.93% of outstanding shares followed by Frank Sands (Trades, Portfolio) with 0.47%, Manning & Napier Advisors Inc. with 0.45%, PRIMECAP Management (Trades, Portfolio) with 0.34% and Ken Fisher (Trades, Portfolio) with 0.3%.

The firm raised its stake in Anadarko Petroleum Corp. (APC) by 109,259.72% with an impact of 0.48% on the portfolio.

The company is engaged in the exploration and production of oil and natural gas. Its three operating segments are: Oil and gas exploration and production, Midstream and Marketing. During the second quarter it recorded production levels at three operated Gulf of Mexico facilities and in the U.S. onshore Delaware and DJ basins and closed $2.5 billion of monetizations year to date.

GuruFocus gives the stock a profitability and growth rating of 4 out of 10 with ROE of -39.33% that is underperforming and ROA of -10.87% that is outperforming 53% of the companies in the Global Oil & Gas E&P industry. Financial strength has a rating of 4 out of 10 with cash to debt of 0.09 that is below the industry median of 0.44.

Andreas Halvorsen (Trades, Portfolio) is the second-largest shareholder among the gurus with 1.53% of outstanding shares followed by Bill Nygren (Trades, Portfolio) with 1%, Steven Cohen (Trades, Portfolio) with 0.47%, Louis Moore Bacon (Trades, Portfolio) with 0.15%, Pioneer Investments (Trades, Portfolio) with 0.11% and T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.09%.

The guru reduced its stake in EMC Corp. (EMC) by 17.33% with an impact of -0.42% on the portfolio.

The company supports the businesses and service providers to transform information technology (IT) operations to an as a service model (ITaaS). It operates in three segments: EMC Information Infrastructure, Pivotal and VMware Virtual Infrastructure. Second-quarter GAAP earnings per weighted average diluted share was 29 cents, a growth of 16% year over year. Non-GAAP earnings per weighted average diluted share was 45 cents, up 5% year over year.

GuruFocus gives the stock a profitability and growth rating of 8 out of 10 with ROE of 9.96% and ROA of 4.58% which are outperforming 62% of the companies in the Global Data Storage industry. Financial strength has a rating of 6 out of 10 with cash to debt of 1.87 that is above the industry median of 1.49.

The second-largest shareholder among the gurus is Seth Klarman (Trades, Portfolio) with 3.9% of outstanding shares followed by Paul Singer (Trades, Portfolio) with 2.15%, PRIMECAP Management (Trades, Portfolio) with 1.68%, Eric Mindich (Trades, Portfolio) with 0.72%, Jeremy Grantham (Trades, Portfolio) with 0.65%, John Paulson (Trades, Portfolio) with 0.51% and Simons with 0.43%.

The firm increased its stake in MetLife Inc. (MET) by 26.25% with an impact of 0.32% on the portfolio.

It is a provider of insurance, annuities and employee benefit programs in the U.S., Japan, Latin America, Asia, Europe and the Middle East. It offers life insurance, annuities, property and casualty insurance and other financial services. During the second quarter it reported operating earnings of $924 million, down 48% from the second quarter of 2015 and 47% on a constant currency basis.

GuruFocus gives the stock a profitability and growth rating of 6 out of 10 with ROE of 5.85% and ROA of 0.48% that are underperforming 64% of the companies in the Global Insurance - Life industry. Financial strength has a rating of 6 out of 10 with cash to debt of 0.86 that is below the industry median of 10.20.

Diamond Hill Capital (Trades, Portfolio) is the second-largest shareholder among the gurus with 3.56% of outstanding shares followed by T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.67%, Richard Pzena (Trades, Portfolio) with 0.56%, NWQ Managers (Trades, Portfolio) with 0.13% and Richard Snow (Trades, Portfolio) with 0.12%.

The guru raised its stake in Union Pacific Corp. (UNP) by 23.96% with an impact of 0.25% on the portfolio.

The company is a rail transporting company. Its operating company is Union Pacific Railroad Company. It links 23 states in the Western two-thirds of the country by rail, providing a critical link in the global supply chain. Diluted earnings per share of $1.17 declined 15% in the second quarter and operating income decreased 15%. Operating ratio of 65.2% is up 1.1 points.

GuruFocus gives the stock a profitability and growth rating of 8 out of 10 with ROE of 21.20% and ROA of 7.98% which are outperforming 84% of the companies in the Global Railroads industry. Financial strength has a rating of 5 out of 10 with cash to debt of 0.14 that is below the industry median of 0.37.

The second-leading shareholder among the gurus is First Eagle Investment (Trades, Portfolio) with 1.82% of outstanding shares followed by PRIMECAP Management (Trades, Portfolio) with 0.56%, T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.23%, Loeb with 0.16%, Pioneer Investments (Trades, Portfolio) with 0.14% and NWQ Managers (Trades, Portfolio) with 0.07%.

The firm increased its stake in Cigna Corp. (CI) by 12.75% with an impact of 0.22% on the portfolio.

It is a health services organization with insurance subsidiaries that are providers of medical, dental, disability, life and accident insurance and related products and services. Second-quarter total revenue increased 5%, driven by continued growth in Cigna's targeted customer segments. Shareholders’ net income was $510 million, or $1.97 per share, compared with $588 million, or $2.26 per share, for the second quarter of 2015.

GuruFocus gives the stock a profitability and growth rating of 8 out of 10 with ROE of 16.37% that is outperforming and ROA of 3.46% that is underperforming 53% of the companies in the Global Health Care Plans industry. Financial strength has a rating of 6 out of 10 with cash to debt of 0.48 that is below the industry median of 0.70.

Diamond Hill Capital (Trades, Portfolio) is the second-largest shareholder among the gurus with 3.56% of outstanding shares followed by T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.67%, Pzena with 0.56%, NWQ Managers (Trades, Portfolio) with 0.13% and Snow with 0.12%.

Disclosure: I do not own any shares of any stocks mentioned in this article.

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