Vanguard Health Care Fund (Trades, Portfolio) portfolio manager Jean Hynes invested in four international health care companies during the second quarter. Her new holdings are in Sysmex Corp. (TSE:6869, Financial), Terumo Corp. (TSE:4543, Financial), WuXi Biologics (Cayman) Inc. (HKSE:02269, Financial) and Idorsia Ltd. (XSWX:IDIA, Financial).
Hynes manages a portfolio of 74 stocks, which mostly consists of companies in the health care sector.
Sysmex
Hynes purchased 1.5 million shares of Sysmex for an average price of 6,704.15 yen per share ($60.95), giving it 0.2% portfolio space.
The Japanese clinical testing devices manufacturer has a market cap of 1.36 trillion yen; its shares were trading around 6,640 yen on Friday with a price-earnings (P/E) ratio of 33.42, a price-book (P/B) ratio of 6.47 and a price-sales (P/S) ratio of 5.44.
The Peter Lynch chart below shows the stock is trading above its fair value.
GuruFocus ranked the company’s financial strength 9 of 10 and its profitability and growth 8 of 10. The company’s trailing dividend yield is 0.89% and its forward dividend yield is 0.92%. The dividend payout ratio is 30%.
With its purchase, Vanguard became the company’s largest shareholder among the gurus with 0.75% of outstanding shares. The Matthews Japan Fund (Trades, Portfolio) also owns the stock.
Terumo
The fund bought 1.18 million shares of Terumo for an average price of 4,245.54 yen per share, expanding the portfolio 0.1%.
The Japanese manufacturer of pharmaceuticals, medical tools and equipment has a market cap of 1.47 trillion yen; its shares were trading around 4,325 yen on Friday with a P/E ratio of 29.77, a P/B ratio of 3 and a P/S ratio of 3.24.
According to the Peter Lynch chart below, the stock is trading above its fair value.
GuruFocus ranked Terumo’s financial strength 6 of 10 and its profitability and growth 7 of 10. The trailing dividend yield is 1.01% and the forward dividend yield is 1.06%. The dividend payout ratio is 30%.
With its purchase, the fund became the company’s largest guru shareholder with 0.34% of outstanding shares. The Hennessy Japan Fund (Trades, Portfolio) also owns the stock.
WuXi Biologics
The fund manager established a holding in Wuxi Biologics, buying 2.6 million shares for an average price of 27.71 Hong Kong dollars ($3.54) per share, giving it a portfolio weight of 0.02%.
The Chinese biologics company, which went public earlier this year, has a market cap of HK$37.14 billion; its shares were trading around HK$33.05 on Friday with a P/E ratio of 233.93, a P/B ratio of 122.66 and a P/S ratio of 33.49.
The graph below shows the trend in the stock’s price since its initial public offering in June.
GuruFocus ranked the company’s financial strength 4 of 10 and its profitability and growth 4 of 10. The company does not pay a dividend.
Vanguard is the only guru invested in the company, holding 0.23% of its outstanding shares.
Idorsia
Hynes smallest new position is a 478,519-share stake in Idorsia, occupying just 0.02% of the portfolio. She paid an average price of 15.64 Swiss francs ($16.08) per share.
The Swiss biopharmaceutical company, which was spun off of Actelion in June, has a market cap of 2.11 billion francs; its shares were trading around 17.75 francs on Friday with a P/B ratio of 5.22.
The graph below shows the trend in the stock’s price since its June IPO.
GuruFocus ranked the company’s financial strength 5 of 10 and its profitability and growth 2 of 10. The forward dividend yield and trailing dividend yield are both 67.6%.
Vanguard is the only guru shareholder with 0.4% of outstanding shares.
Other positions the fund added to during the quarter include Abbott Laboratories (ABT, Financial), Novartis AG (XSWX:NOVN), Teva Pharmaceutical Industries Ltd. (TEVA), Baxter International Inc. (BAX), Becton, Dickinson and Co. (BDX) and Cardinal Health Inc. (CAH).
Disclosure: I do not own any stocks mentioned.
