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Tiziano Frateschi
Tiziano Frateschi
Articles (2155)  | Author's Website |

Julian Robertson Sells Delta Air Lines, Alphabet

The hedge fund guru's largest 3rd-quarter sales

Julian Robertson (Trades, Portfolio) is considered the father of the hedge fund. He launched his firm Tiger Management in 1980 with $8 million and turned it into over $22 billion in the late 1990s. During the third quarter the guru’s largest sells were the following:

He reduced his stake in Delta Air Lines Inc. (DAL) by 82.11% with an impact of -5.58% on the portfolio.

The company provides scheduled air transportation for passengers and cargo throughout the U.S. and around the world. The company's business segments are airline and refinery. Third-quarter operating revenue decreased 5.6% with adjusted net income of $1.26 billion and adjusted earnings per diluted share of $1.70.

GuruFocus gives the stock a profitability and growth rating of 7 out of 10. The return on equity (ROE) of 41.67% and return on assets (ROA) of 9.00% are outperforming 68% of the companies in the Global Airlines industry. Financial strength has a rating of 6 out of 10 with cash to debt of 0.42 that is below the industry median of 0.49.

The largest shareholder among the gurus is PRIMECAP Management (Trades, Portfolio) with 2.7% of outstanding shares followed by Warren Buffett (Trades, Portfolio) with 0.86%, Jeremy Grantham (Trades, Portfolio) with 0.24%, Joel Greenblatt (Trades, Portfolio) with 0.23%, Leon Cooperman (Trades, Portfolio) with 0.13%, Steven Cohen (Trades, Portfolio) with 0.12%, David Tepper (Trades, Portfolio) with 0.07%, Robert Olstein (Trades, Portfolio) with 0.04% and First Eagle Investment (Trades, Portfolio) with 0.03%.

The guru closed his stake in Amerco Inc. (UHAL) with an impact of -4.83% on the portfolio.

The company is a moving and storage operator and also supplies products and services to help people move and store their household and commercial goods through its subsidiary. It also provides life insurance and property and casualty insurance. Third-quarter net earnings were $81.8 million, or $4.17 per share, compared with net earnings of $66.5 million, or $3.40 per share, for the same period last year.

GuruFocus gives the stock a profitability and growth rating of 7 out of 10. The ROE of 19.65% and ROA of 5.58% are outperforming 73% of the companies in the Global Rental & Leasing Services industry. Financial strength has a rating of 5 out of 10 with cash to debt of 0.98 that is above the industry median of 0.57.

Columbia Wanger (Trades, Portfolio) is the largest shareholder among the gurus with 1.32% of outstanding shares followed by David Einhorn (Trades, Portfolio) with 1.12%, Robert Bruce (Trades, Portfolio) with 0.98%, Jim Simons (Trades, Portfolio) with 0.14% and Chuck Royce (Trades, Portfolio) with 0.05%.

The guru reduced his stake in Shire PLC ADR (SHPG) by 35.71% with an impact of -2.52% on the portfolio.

It is a specialty biopharmaceutical company that focuses on developing and marketing specialty medicines that address unmet patient needs. Total revenues grew 109% and product sales increased 110% in the third quarter. The company reported a growth of 73% for non-GAAP operating income.

GuruFocus gives the stock a profitability and growth rating of 8 out of 10. The ROE of 0.57% and ROA 0.26% are outperforming 75% of the companies in the Global Biotechnology industry. Financial strength has a rating of 4 out of 10 with cash to debt of 0.03 that is below the industry median of 46.43.

The largest shareholder among the gurus is John Paulson (Trades, Portfolio) with 1.55% of outstanding shares followed by Spiros Segalas (Trades, Portfolio) with 0.9%, Steve Mandel (Trades, Portfolio) with 0.56%, Daniel Loeb (Trades, Portfolio) with 0.3%, Andreas Halvorsen (Trades, Portfolio) with 0.25% and Lee Ainslie (Trades, Portfolio) with 0.19%.

The guru reduced his stake in Alphabet Inc. Class C (GOOG) by 14.07% with an impact of -1.23% on the portfolio.

The company through its subsidiary Google Inc. is engaged in improving the ways people connect with information and products including Search, Android, YouTube, Apps, Maps and Ads. It also produces Internet-connected home devices and provides Internet services. Third-quarter revenue grew 20% year over year, and GAAP operating margin was 26% compared to 25% in the same quarter of a year before.

GuruFocus gives the stock a profitability and growth rating of 8 out of 10. The ROE of 15.32% and ROA of 12.62% are outperforming 72% of the companies in the Global Internet Content & Information industry. Financial strength has a rating of 9 out of 10 with cash to debt of 21.09 that is below the industry median of 7.12.

Dodge & Cox is the largest shareholder among the gurus with 0.45% of outstanding shares followed by PRIMECAP Management with 0.35%, Chris Davis (Trades, Portfolio) with 0.19%, Halvorsen with 0.16%, Mason Hawkins (Trades, Portfolio) with 0.16% and Frank Sands (Trades, Portfolio) with 0.13%.

The investor reduced his stake in Horizon Pharma PLC (HZNP) by 24.66% with an impact of -1.77% on the portfolio.

It is a specialty pharmaceutical company. Its product portfolio consists of Actimmune, Duexis, Pennsaid 2% and Rayos/Lodotra, which addresses unmet therapeutic needs in arthritis, pain, inflammatory and/or orphan diseases. Net sales decreased 8% year over year, but adjusted EBITDA grew 8% from the same quarter of a year before.

GuruFocus gives the stock a profitability and growth rating of 6 out of 10. The ROE of -0.94% and ROA of -0.39% are underperforming 70% of the companies in the Global Drug Manufacturers - Specialty & Generic industry. Financial strength has a rating of 4 out of 10 with cash to debt of 0.48 that is below the industry median of 1.49.

The largest shareholder among the gurus is Ken Heebner (Trades, Portfolio) with 0.62% of outstanding shares followed by Robertson with 0.42%, Cohen with 0.32% and Paul Tudor Jones (Trades, Portfolio) with 0.03%.

The guru reduced his stake in Macrogenics Inc. (MGNX) by 15.03% with an impact of -0.41% on the portfolio.

It is a clinical-stage biopharmaceutical company focused on discovering and developing innovative monoclonal antibody-based therapeutics for the treatment of cancer as well as various autoimmune disorders and infectious diseases.

GuruFocus gives the stock a profitability and growth rating of 3 out of 10. The ROE of -16.63% and ROA of -14.68% are outperforming 63% of the companies in the Global Biotechnology industry. Financial strength has a rating of 10 out of 10 with no debt.

Cohen is the largest shareholder among the gurus with 5.22% of outstanding shares followed by John Griffin (Trades, Portfolio) with 3.92%, First Eagle Investment with 0.64%, Jones with 0.04% and Ronald Muhlenkamp (Trades, Portfolio) with 0.04%.

The guru exited W R Grace & Co. (GRA) with an impact of -0.34% on the portfolio.

The company is engaged in the production and sale of specialty chemicals and specialty materials. It operates through three segments, namely Catalysts Technologies, Materials Technologies and Construction Products. Third-quarter income from continuing operations attributable to Grace grew 22%, and adjusted EBIT increased 22%. The company reported a growth for 26% for diluted earnings per share.

GuruFocus gives the stock a profitability and growth rating of 7 out of 10. The ROE of 26.21% and ROA of 2.95% are underperforming 58% of the companies in the Global Specialty Chemicals industry. Financial strength has a rating of 5 out of 10 with cash to debt of 0.13 that is above the industry median of 0.60.

The largest shareholder among the gurus is Griffin with 4.51% of outstanding shares followed by First Eagle Investment with 2.45%, Simons with 0.79%, Caxton Associates (Trades, Portfolio) with 0.09%, Greenblatt with 0.09% and Pioneer Investments (Trades, Portfolio) with 0.08%.

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

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About the author:

Tiziano Frateschi
You can read about me on www.theextraincome.info, which gives suggestions on position trading.

Visit Tiziano Frateschi's Website


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