David Winters (Trades, Portfolio)’ Wintergreen Fund (Trades, Portfolio) established three new holdings during the first quarter. They are Roche Holding AG (XSWX:ROG, Financial), Liberty Formula One Group (FWONA, Financial) and Cheung Kong Property Holdings Ltd. (HKSE:01113, Financial).
Managing a concentrated portfolio of 28 stocks valued at $423 million, the fund invests in undervalued securities around the world. Consumer defensive stocks occupy a majority of the portfolio with a weight of 50.9%.
The largest purchase for the quarter was 2,930 shares of Roche Holding for an average price of 244.58 Swiss francs ($252.69) per share, giving it 0.2% portfolio space.
The Swiss pharmaceutical company has a market cap of 212.2 billion francs; its shares were trading around 248.5 francs on Thursday with a price-earnings (P/E) ratio of 22.5, a price-book (P/B) ratio of 8.9 and a price-sales (P/S) ratio of 4.3.
The Peter Lynch chart below suggests the stock is trading above its fair value.
GuruFocus ranked Roche’s financial strength 6 of 10 and its profitability and growth 8 of 10. The trailing dividend yield and forward dividend yield are both 3.3%. Over the past five years, the company has grown its dividend at a rate of 101.9% per year.
PRIMECAP Management (Trades, Portfolio) is the company’s largest guru shareholder with 1.2% of outstanding shares. In all, nine gurus hold the stock.
Wintergreen bought 16,672 Class A shares of Liberty Formula One, a tracking stock, for an average price of $31.32 per share, expanding the portfolio 0.13%. Liberty Media bought controlling interest of Formula One Group for $4.4 billion in 2016.
The holding company has a market cap of $7.73 billion; its shares were trading around $34.48 per share on Thursday with a P/B ratio of 1.5 and a P/S ratio of 64.3.
The chart below illustrates the stock’s price history.
GuruFocus ranked the company’s financial strength 4 of 10 and its profitability and growth 2 of 10. It does not currently pay a dividend.
Mason Hawkins (Trades, Portfolio) is the largest guru shareholder with 0.3% of Formula One’s outstanding shares. In all, 14 gurus own the stock.
The fund purchased 68,994 shares of Cheung Kong Property Holdings for an average price of 51.68 Hong Kong dollars ($6.63) per share. The trade had an impact of 0.11% on the portfolio.
The Hong Kong-based property development company has a market cap of 232.4 billion Hong Kong dollars; its shares were trading around 61.15 Hong Kong dollars per share on Thursday with a P/E ratio of 12.12, a P/B ratio of 0.87 and a P/S ratio of 3.4.
The Peter Lynch chart below shows the stock is trading below its fair value.
GuruFocus ranked Cheung Kong’s financial strength 6 of 10 and its profitability and growth 6 of 10. The trailing dividend yield and forward dividend yield are both 2.5%.
Wintergreen is the only guru invested in the company.
The fund also increased its LiLAC Group (LILA, Financial) stake by 108.66% during the quarter, buying 9,836 shares for an average price of $23.19 per share.
Wintergreen also curbed its positions in Altria Group Inc. (MO, Financial), Cie Financiere Richemont SA (XSWX:CFR, Financial), Nestle SA (XSWX:NESN) and Alphabet Inc. (GOOG) (GOOGL) during the quarter.
Disclosure: I do not own any stocks mentioned in the article.
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