In 1977, Paul Singer (Trades, Portfolio) founded Elliott Management Corporation. The $34 billion assets investment firm returned 13% in 2016 and has an overall net compound annual return of 14.6% compared to 10.9% of the S&P 500 Index, generated since its inception. During the third quarter the guru sold shares in the following stocks.
The guru closed his Nord Anglia Education Inc. (NORD) holding, impacting the portfolio by -0.95%.
The operator of premium international schools has a market cap of $3.39 billion and an enterprise value of $4.31 billion.
GuruFocus gives the company a profitability and growth rating of 6 out of 10. While the return on equity (ROE) of 19.55% is outperforming the sector, return on assets (ROA) of 2.63% is underperforming 55% of the companies in the Global Education and Training Services industry. Financial strength has a rating of 4 out of 10. The cash-debt ratio of 0.23 is below the industry median of 2.42.
The investor sold out of PulteGroup Inc. (PHM). The trade had an impact of -0.77% on the portfolio.
The developer of residential lands has a market cap of $9.48 billion and an enterprise value of $12.76 billion.
GuruFocus gives the company a profitability and growth rating of 6 out of 10. The ROE of 14.00% and ROA of 6.46% are outperforming 72% of the companies in the Global Residential Construction industry. Financial strength has a rating of 6 out of 10. The cash-debt ratio of 0.05 is below the industry median of 2.09.
Ken Heebner (Trades, Portfolio) is the largest shareholder of the company among the gurus with 0.65% of outstanding shares followed by Richard Snow (Trades, Portfolio) with 0.64%, Pioneer Investments (Trades, Portfolio) with 0.35%, Joel Greenblatt (Trades, Portfolio) with 0.13% and Jeremy Grantham (Trades, Portfolio) with 0.06%.
The Alcoa Corp. (AA)’s position was trimmed by 29.07%, the transaction had an impact of -0.7% on the portfolio.
The aluminum producer has a market cap of $8.03 billion and an enterprise value of $10.57 billion.
GuruFocus gives the company a profitability and growth rating of 3 out of 10. The ROE of 4.75% and ROA of 1.69% are outperforming 71% of the companies in the Global Aluminum industry. Financial strength has a rating of 6 out of 10 with a cash-debt ratio of 0.80.
Singer is the largest shareholder of the company among the gurus, with 4.5% of outstanding shares followed by Steven Cohen (Trades, Portfolio) with 1.16%, First Pacific Advisors (Trades, Portfolio) with 1.13%, Jim Simons (Trades, Portfolio) with 1.05% and Steven Romick (Trades, Portfolio) with 0.88%.
The guru's holding of NRG Energy Inc NRG Energy Inc. (NRG) was cut by 28.57%, impacting the portfolio by -0.61%.
The company has a market cap of $9.34 billion and an enterprise value of $27.5 billion.
GuruFocus gives the company a profitability and growth rating of 6 out of 10. The ROE of -90.05% and ROA of -5.65% are underperforming 97% of the companies in the Global Utilities - Independent Power Producers industry. Financial strength has a rating of 3 out of 10. The cash-debt ratio of 0.07 is below the industry median of 0.17.
The largest shareholder of the company among the gurus is Singer with 4.42% of outstanding shares followed by David Tepper (Trades, Portfolio) with 2.67%, Simons with 1.17% and HOTCHKIS & WILEY with 1.05%.
Singer sold out of LogMeIn Inc. (LOGM). The trade had an impact of -0.44% on the portfolio.
The provider of connectivity solutions has a market cap of $6.13 billion and an enterprise value of $5.86 billion.
GuruFocus gives the company a profitability and growth rating of 7 out of 10. The ROE of 0.42% and ROA of 0.32% are underperforming 65% of the companies in the Global Software – Application industry. Financial strength has a rating of 8 out of 10 with no debts.
Simons is the largest shareholder of the company among the gurus with 1.27% of outstanding shares followed by Cohen with 1.04%, Columbia Wanger (Trades, Portfolio) with 0.19%, Ken Fisher (Trades, Portfolio) with 0.15% and Paul Tudor Jones (Trades, Portfolio) with 0.03%.
BHP Billiton PLC ADR (BBL)’s stake was closed, impacting the portfolio by -0.39%.
The company has a market cap of $95.81 billion and an enterprise value of $117.83 billion. It produces oil, gas, mining copper, iron ore and other major commodities.
GuruFocus gives the company a profitability and growth rating of 6 out of 10. The ROE of 10.91% and ROA of 5.71% are outperforming 85% of the companies in the Global Industrial Metals and Minerals industry. Financial strength has a rating of 6 out of 10 with a cash-debt ratio of 0.47.
The largest shareholder of the company among the gurus is Simons with 0.04% of outstanding shares followed by Leucadia National (Trades, Portfolio) with 0.01%, Sarah Ketterer (Trades, Portfolio) with 0.0.01% and Bernard Horn (Trades, Portfolio) with 0.01%.
The Adient PLC (ADNT)’s position was reduced by 32.29%. The trade had an impact of -0.27% on the portfolio.
The supplier of automotive seatings, has a market cap of $7.1 billion and an enterprise value of $10.33 billion.
GuruFocus gives the company a profitability and growth rating of 3 out of 10. The ROE of -8.96% and ROA of -3.05% are underperforming 90% of the companies in the Global Auto Parts industry. Financial strength has a rating of 5 out of 10. The cash-debt ratio of 0.20 is below the industry median of 0.74.
Chris Davis (Trades, Portfolio) is the largest shareholder of the company among the gurus with 7.68% of outstanding shares followed by Barrow, Hanley, Mewhinney & Strauss with 6.63%, HOTCHKIS & WILEY with 2.24% and John Griffin (Trades, Portfolio) with 2.1%.
Singer also exited his holding of C&J Energy Services Inc.(CJ) impacting the portfolio by -0.22%.
The company has a market cap of $1.88 billion and an enterprise value of $1.67billion. It provides services to the oil and gas industry.
GuruFocus gives the company a profitability and growth rating of 5 out of 10. The ROE of -28.72% and ROA of -11.41% are underperforming 94% of the companies in the Global Oil and Gas Equipment and Services industry. Financial strength has a rating of 8 out of 10 with no debts.
The largest shareholder of the company among the gurus is HOTCHKIS & WILEY with 5.27% of outstanding shares followed by Cohen with 0.37%, George Soros (Trades, Portfolio) with 0.29% and P.T. Jones with 0.04%.
Disclosure: I do not own any shares of any stocks mentioned in this article.
