Fisher Asset Management founder Ken Fisher (Trades, Portfolio) gained 95 new holdings in the second quarter. His top five new purchases were Sumitomo Mitsui Financial Group Inc. (SMFG, Financial), Vinci SA (VCISY, Financial), Schneider Electric SE (SBGSY, Financial), Bank Bradesco SA (BBD, Financial) and Mitsubishi Electric Corp. (MIELY, Financial).
Fisher’s firm uses a top-down approach to determine which countries and sectors are most likely to produce the highest returns. Financial services and technology are the two largest sectors represented in his portfolio, which is composed of 744 stocks and is valued at $62.9 billion, according to GuruFocus.
The largest new position is a 48.9 million-share stake of Sumitomo Mitsui Financial Group. Having previously sold out in second-quarter 2016, Fisher paid an average price of $7.43 per share, giving it 0.61% portfolio space.
The Japanese financial services company has a market cap of $53.3 billion; its shares were trading around $7.65 on Friday with a price-earnings (P/E) ratio of 9.4, a price-book (P/B) ratio of 0.6 and a price-sales (P/S) ratio of 1.6.
The Peter Lynch chart below shows the stock is trading evenly with its fair value.
GuruFocus ranked the company’s financial strength 6 of 10 and its profitability and growth 5 of 10. The trailing dividend yield and forward dividend yield are both 3.5%. Over the past five years, Sumitomo has grown its dividend at a rate of 9.3% per year.
With his purchase, Fisher became the company’s largest guru shareholder with 0.7% of outstanding shares. Sarah Ketterer (Trades, Portfolio) and Jim Simons (Trades, Portfolio) also own the stock.
Fisher purchased 7.5 million shares of Vinci for an average price of $21.21 per share, expanding the portfolio 0.25%.
The French construction company has a market cap of $49.4 billion; its shares were trading around $22.24 on Friday with a P/E ratio of 17.4, a P/B ratio of 2.6 and a P/S ratio of 1.13.
According to the Peter Lynch chart below, the stock is trading above its fair value.
GuruFocus ranked the company’s financial strength 5 of 10 and its profitability and growth 5 of 10. The trailing dividend yield is 0.77% and the forward dividend yield is 2.4%. Over a five-year period, Vinci has grown its dividend by 1.7% per annum.
With 0.34% of outstanding shares, Fisher is the only guru invested in the company.
He purchased 8.6 million shares of Schneider Electric for an average price of $15.30 per share, giving it a portfolio weight of 0.21%.
The France-based energy management company has a market cap of $44.3 billion; its shares were trading around $15.82 on Friday with a P/E ratio of 22.3, a P/B ratio of 1.8 and a P/S ratio of 1.6.
Based on the Peter Lynch chart below, the stock appears to be trading above its fair value.
GuruFocus ranked Schneider’s financial strength 6 of 10 and its profitability and growth 7 of 10. The trailing dividend yield and forward dividend yield are both 2.8%. The company has grown its dividend at a rate of 4.3% per year for the past five years.
With 0.31% of Schneider’s outstanding shares, Fisher is the only guru shareholder.
Having previously exited Bank Bradesco in fourth-quarter 2013, Fisher bought 13.4 million shares for an average price of $8.92 per share. The trade had an impact of 0.18% on the portfolio.
The Brazilian commercial bank has a market cap of $56.2 billion; its shares were trading around $9.23 on Friday with a P/E ratio of 10.6, a P/B ratio of 1.7 and a P/S ratio of 1.8.
The Peter Lynch chart below suggests the stock is trading below its fair value.
GuruFocus ranked the company’s financial strength 5 of 10 and its profitability and growth 5 of 10. The trailing dividend yield is 0.79% and the forward dividend yield is 0.8%. Over the past five years, Bank Bradesco has grown its dividend by 51.7% per year.
With his purchase of 0.22% of the bank’s outstanding shares, Fisher became the company’s largest shareholder among the gurus. Ken Heebner (Trades, Portfolio), Charles Brandes (Trades, Portfolio) and Jeremy Grantham (Trades, Portfolio) also hold the stock.
Fisher’s fifith-largest new purchase for the quarter was a 3.8 million-share stake of Mitsubishi Electric. He paid an average price of $28.47 per share, giving it 0.17% portfolio space.
The Japanese electronic components manufacturer has a market cap of $31.06 billion; its shares were trading around $29.05 on Friday with a P/E ratio of 16.8, a P/B ratio of 1.7 and a P/S ratio of 0.8.
According to the Peter Lynch chart below, the stock is trading slightly above its fair value.
GuruFocus ranked Mitsubishi’s financial strength 7 of 10 and its profitability and growth 7 of 10. The trailing dividend yield is 0.54% and the forward dividend yield is 1.68%. The company has grown its dividend at a rate of 22.9% per annum over a five-year period.
With 0.36% of the company’s outstanding shares, Fisher is the only guru invested in the stock.
Other new holdings Fisher established during the quarter include SMC Corp. (SMCAY, Financial), Erste Group Bank AG (EBKDY, Financial), Janus Henderson Group PLC (JHG, Financial), iShares MSCI Japan Index Fund (EWJ, Financial) and Texas Instruments Inc. (TXN, Financial).
Disclosure: I do not own any stocks mentioned in the article.
