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Tiziano Frateschi
Tiziano Frateschi
Articles (2110)  | Author's Website |

Wallace Weitz's 7 Largest Sales of the 2nd Quarter

Guru exits ILG, reduces several other positions

Managing a portfolio of 72 stocks, Wallace Weitz (Trades, Portfolio) sold the following stocks during the second quarter:

Weitz closed his holding of ILG Inc. (NASDAQ:ILG) with an impact of -1.97% on the portfolio.

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The vacation services company reported its consolidated revenue increased by $153 million in the second quarter while adjusted EBITDA of $82 million increased by $20 million.

GuruFocus gives the company a profitability and growth rating of 7 out of 10. The return on equity (ROE) of 8.21% and return on assets (ROA) of 3.94% are outperforming 86% of companies in the Global Leisure industry. Financial strength has a rating of 5 out of 10. The cash-debt ratio of 0.17 is below the industry median of 0.69.

The largest shareholder among the gurus is Steven Cohen (Trades, Portfolio) with 0.77% of outstanding shares, followed by Jim Simons (Trades, Portfolio) with 0.06% and Mario Gabelli (Trades, Portfolio) with 0.02%.

The guru’s Willis Towers Watson PLC (NASDAQ:WLTW) position was cut 95.86%. The reduction had an impact of -0.89% on the portfolio.

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The risk management, insurance brokerage and advisory company reported an increase of 2% for commissions. Fees also increased, but revenues were $1.95 billion for the quarter, flat compared to the year-ago quarter.

GuruFocus gives the company a profitability and growth rating of 7 out of 10. The ROE of 4.64% and ROA of 1.53% are underperforming 52% of companies in the Global Insurance Brokers industry. Financial strength has a rating of 5 out of 10. The cash-debt ratio of 0.20 is above the industry median of 1,845.

VA Partners I LLC is the company's largest shareholder among the gurus with 4.96% of outstanding shares, followed by Jeff Ubben (Trades, Portfolio) with 4.92%, David Herro (Trades, Portfolio) with 3.3%, First Eagle Investment (Trades, Portfolio) with 2.95% and Barrow, Hanley, Mewhinney & Strauss with 1.49%.

The Twenty-First Century Fox Inc. (NASDAQ:FOXA) stake was reduced 24.33%, impacting the portfolio by -0.83%.

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The media company's fourth-quarter income was $501 million, down from $567 million in the prior-year quarter. Earnings per share from continuing operations was 36 cents, a decline from 45 cents a year ago.

GuruFocus gives the stock a profitability and growth rating of 8 out of 10. The ROE of 20.30% and ROA of 5.97% are outperforming 73% of companies in the Global Media – Diversified industry. Financial strength has a rating of 5 out of 10. The cash-debt ratio of 0.31 is below the industry median of 1.31.

Dodge & Cox is the company's largest guru shareholder with 3.68% of outstanding shares, followed by Yacktman Asset Management (Trades, Portfolio) with 1.93%, Barrow, Hanley, Mewhinney & Strauss with 1.86%, Andreas Halvorsen (Trades, Portfolio) with 1.21% and the Yacktman Fund (Trades, Portfolio) with 1.15%.

Weitz reduced his Discovery Communications Inc. (NASDAQ:DISCK) holding by 33%. The trade had an impact of -0.73% on the portfolio.

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The media company's second-quarter revenues grew 2% and diluted earnings per share declined 3%. The company repurchased $301 million worth of stock.

GuruFocus gives the company a profitability and growth rating of 8 out of 10. The ROE of 15.88% and ROA of 7.01% are outperforming 77% of companies in the Global Media – Diversified industry. Financial strength has a rating of 5 out of 10. The cash-debt ratio of 0.03 is below the industry median of 1.31.

The company's largest guru shareholder is Hotchkis & Wiley with 1.55% of outstanding shares, followed by Gabelli with 0.35%, Arnold Van Den Berg (Trades, Portfolio) with 0.33%, Weitz with 0.33% and Tom Gayner (Trades, Portfolio) with 0.25%.

Weitz curbed his holding of QVC Group (QVCA) by 11.49%. The trade had an impact of -0.4% on the portfolio.

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The video and digital commerce retailer had a solid second quarter, in which revenue performance was similar to the first quarter. It announced in July it is acquiring the remaining 62% stake of HSN Inc. (NASDAQ:HSNI).

GuruFocus gives the company a profitability and growth rating of 7 out of 10. The ROE of 9.12% and ROA of 3.16% are outperforming 53% of companies in the Global Specialty Retail industry. Financial strength has a rating of 4 out of 10. The cash-debt ratio of 0.07 is below the industry median of 0.95.

Dodge & Cox is the company's largest shareholder among the gurus with 6.28% of outstanding shares, followed by Bill Nygren (Trades, Portfolio) with 2.41%, Weitz with 0.81%, Charles de Vaulx (Trades, Portfolio) with 0.56% and Chris Davis (Trades, Portfolio) with 0.48%.

The Redwood Trust Inc. (RWT) stake was reduced 10.65%. The transaction had an impact of -0.36% on the portfolio.

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The real estate investment trust's second-quarter net income was $36 million, or 43 cents per diluted share. Non-GAAP core earnings were $29 million, or 35 cents per share.

GuruFocus gives the company a profitability and growth rating of 6 out of 10. While the ROE of 13.22% is outperforming the sector, the ROA of 2.69% is underperforming 57% of companies in the Global REIT - Diversified industry. Financial strength has a rating of 5 out of 10. The cash-debt ratio of 0.06 is below the industry median of 0.07.

Even after the reduction, Weitz is still the company's largest guru shareholder with 5.55% of outstanding shares, followed by Simons with 1.84%, Jerome Dodson (Trades, Portfolio) with 1.43% and Dreman with 0.02%.

Weitz reduced his Allergan PLC (NYSE:AGN) position by 5.95%. The trade had an impact of -0.31% on the portfolio.

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During the second quarter, the pharmaceutical company's revenue grew 9% as a result of significant year-over-year gains from many of its top products.

GuruFocus gives the company a profitability and growth rating of 5 out of 10. The ROE of 14.82% and ROA of 9.08% are outperforming 74% of companies in the Global Drug Manufacturers - Specialty and Generic industry. Financial strength has a rating of 4 out of 10. The cash-debt ratio of 0.19 is below the industry median of 2.05.

With 3.42% of outstanding shares, the Vanguard Health Care Fund (Trades, Portfolio) is the company's largest guru shareholder, followed by John Paulson (Trades, Portfolio) with 0.81%, David Tepper (Trades, Portfolio) with 0.75% and Seth Klarman (Trades, Portfolio) with 0.73%.

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

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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