RS Investment Management (Trades, Portfolio) is a privately held San Francisco-based investment firm that provides services for pension and profit sharing plans, pooled investment vehicles, corporations and banks. During the third quarter, the firm reduced or sold their positions in the following stocks.
The firm exited its position in LogMeIn Inc. (LOGM, Financial)Â with an impact of -1.64% on the portfolio.
The company provides cloud-based services making it possible for people and businesses to simply and securely connect to their workplace, colleagues and customers. Its products include LogMeIn Backup, LogMeIn Hamachi, AppGuru, BoldChat and Cubby. Second quarter revenue grew 28% year-over-year and adjusted EBITDA was $21.4 million and Adjusted EBITDA margin was 25.7%, versus $14.6 million and 22.6% in the second quarter of 2015.
GuruFocus gives the stock a profitability and growth rating of 7 out of 10. Its ROE of 6.70% and ROA of 3.11% are outperforming 52% of the companies in the Global Software - Application industry. Financial strength has a rating of 7 out of 10, with a cash to debt ratio of 5.01 that is far below the industry median of 11.22.
The largest shareholder among the gurus is Jim Simons (Trades, Portfolio) with 3.24% of outstanding shares, followed by Ken Fisher (Trades, Portfolio) with 0.21% and Paul Tudor Jones (Trades, Portfolio) with 0.04%.
The firm exited its position in HMS Holdings Corp. (HMSY, Financial)Â with an impact of -1.37% on the portfolio.
The company operates in the U.S. healthcare insurance benefit cost containment marketplace. It provides coordination of benefits services to government, private healthcare payers and sponsors to ensure that the responsible party pays healthcare claims. During the second quarter, revenue grew 5.7% year-over-year and payment integrity revenue, excluding Medicare RAC, increased 4.2% compared to the first quarter of 2016.
GuruFocus gives the stock a profitability and growth rating of 8 out of 10. Its ROE of 5.33% and ROA of 3.34% are underperforming 60% of the companies in the Global Business Services industry. Financial strength has a rating of 7 out of 10, with a cash to debt ratio of 0.95 that is below the industry median of 1.49.
Jim Simons (Trades, Portfolio) is the largest shareholder among the gurus with 1.08% of outstanding shares, followed by Joel Greenblatt (Trades, Portfolio) with 0.28% and Paul Tudor Jones (Trades, Portfolio) with 0.1%.
The firm closed its position in Tower Semiconductor Ltd. (TSEM, Financial)Â with an impact of -0.73% on the portfolio.
The company is a pure-play independent specialty foundry dedicated to the manufacture of semiconductors. It manufactures ICs on silicon wafers, using the customer's proprietary circuit designs. It recorded revenues for the second quarter with 29% year-over-year growth and EBITDA with 48% year-over-year.
GuruFocus gives the stock a profitability and growth rating of 4 out of 10. Its ROE of 33.69% and ROA of 13.51% are outperforming 92% of the companies in the Global Semiconductors industry. Financial strength has a rating of 6 out of 10, with a cash to debt ratio of 0.87 that is below the industry median of 1.62.
The largest shareholder among the gurus is Jim Simons (Trades, Portfolio) with 0.12% of outstanding shares, followed by Paul Tudor Jones (Trades, Portfolio) with 0.02%.
The firm exited its stake in RingCentral Inc Class A. (RNG, Financial)Â with an impact of -0.67% on the portfolio.
The company provides software-as-a-service, or SaaS, solutions for business communications. Its solutions can be used in multiple devices including smartphones, tablets, PC's and desk phones, allowing communication across multiple channels. During the second quarter, software subscriptions revenue grew 34% year-over-year, GAAP operating margin was 6.9% while Non-GAAP operating margin was 1.9%, both representing improvements of approximately 7 points year-over-year.
GuruFocus gives the stock a profitability and growth rating of 4 out of 10. Its ROE of -25.51% and ROA of -12.83% are underperforming 83% of the companies in the Global Software – Application industry. Financial strength has a rating of 7 out of 10, with a cash to debt ratio of 8.70 that is below the industry median of 11.22.
Jim Simons (Trades, Portfolio) is the largest shareholder among the gurus with 1.19% of outstanding shares, followed by Paul Singer (Trades, Portfolio) with 0.68%, Chuck Royce (Trades, Portfolio) with 0.37% and Paul Tudor Jones (Trades, Portfolio) with 0.07%.
The firm closed its stake in Headwaters Inc. (HW, Financial)Â with an impact of -0.47% on the portfolio.
Headwaters is a building materials company operating in the building products and construction materials sectors. The company sells building products such as manufactured architectural stone, siding accessory products, roof products and concrete blocks. During the second quarter, despite adverse weather impact, revenue increased 8%, adjusted EBITDA increased 11% and Adjusted EBITDA margin expanded by 50 basis points.
GuruFocus gives the stock a profitability and growth rating of 7 out of 10. Its ROE of 70.51% and ROA of 16.64% are outperforming 93% of the in the Global Building Materials industry. Financial strength has a rating of 4 out of 10, with a cash to debt ratio of 0.16 that is below the industry median of 0.57.
The largest shareholder among the gurus is Joel Greenblatt (Trades, Portfolio) with 0.2% of outstanding shares, followed by Steven Cohen (Trades, Portfolio) with 0.17%, Jim Simons (Trades, Portfolio) with 0.02% and Paul Tudor Jones (Trades, Portfolio) with 0.02%.
The firm closed its stake in Loxo Oncology Inc. (LOXO, Financial)Â with an impact of -0.36% on the portfolio.
Loxo is a development stage company. The company develops small molecule therapeutics for the treatment of cancer in genetically defined patient populations.
GuruFocus gives the stock a profitability and growth rating of 3 out of 10. Its ROA of -36.10% and ROC of -25,341.16% are underperforming 93% of the companies in the Global Biotechnology industry. Financial strength has a rating of 7 out of 10, with no debt.
John Paulson (Trades, Portfolio) is the largest shareholder of the company among the gurus with 1.16% of outstanding shares.
The firm exited its position in Ares Commercial Real Estate Corp. (ACRE, Financial)Â with an impact of -0.26% on the portfolio.
The company is a specialty finance company that is primarily focused on directly originating, managing and servicing a diversified portfolio of commercial real estate (CRE) debt-related investments for its own account.
GuruFocus gives the stock a profitability and growth rating of 8 out of 10. Its ROE of 7.88% is outperforming and ROA of 2.23% is underperforming 66% of the companies in the Global REIT - Diversified industry. Financial strength has a rating of 5 out of 10, with a cash to debt ratio of 1.48 that is above the industry median of 0.06.
The largest shareholder among the gurus is Jim Simons (Trades, Portfolio) with 1.07% of outstanding shares, followed by Jeremy Grantham (Trades, Portfolio) with 0.18% and Paul Tudor Jones (Trades, Portfolio) with 0.04%.
The firm exited its stake in Vital Therapies Inc. (VTL, Financial)Â with an impact of -0.14% on the portfolio.
Vital is a biotherapeutic company that is engaged in developing a cell-based therapy targeting treatment of all forms of acute liver failure. Its products include the ELAD System, an extracorporeal bio-artificial liver support system. Second quarter net loss was $9.5 million compared with a net loss of $15.1 million for the same prior year period.
GuruFocus gives the stock a profitability and growth rating of 3 out of 10. Its ROE of -56.78% and ROA of -51.85% are underperforming 69% of the companies in the Global Biotechnology industry. Financial strength has a rating of 6 out of 10, with no debt.
The fund closed its stake in Immune Design Corp. (IMDZ, Financial)Â with an impact of -0.1% on the portfolio.
It is a clinical stage immuno-therapy company with next-generation in vivo approaches designed to enable the body's immune system to fight disease.
GuruFocus gives the stock a profitability and growth rating of 3 out of 10. Its ROE of -42.79% and ROA of -40.06% are underperforming 61% of the companies in the Global Biotechnology industry. Financial strength has a rating of 10 out of 10, with no debt.
Steven Cohen (Trades, Portfolio) is the largest shareholder of the company among the gurus, with 0.35% of outstanding shares.
Disclosure: I do not own any shares of any stocks mentioned in this article.
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