Spiros Segalas (Trades, Portfolio)’ Harbor Capital Appreciation Fund disclosed its fourth-quarter portfolio this week, listing three new positions.
Managing a portfolio of 53 holdings, the fund invests in companies with strong balance sheets and earnings performance, a strong outlook for sales growth, a history of high profitability and good management. Securities in the technology and consumer cyclical sectors compose a majority of the portfolio with a combined weight of 62.1%. According to GuruFocus data, the fund returned -1.43% in 2016, underperforming the S&P 500’s return of 11.96%.
Segalas established positions in PayPal Holdings Inc. (PYPL, Financial), AbbVie Inc. (ABBV, Financial) and Kering SA (XPAR:KER, Financial).
PayPal
In his largest purchase of the quarter, Segalas invested in 5.5 million shares of PayPal for an average price of $63.53 per share, giving it 1.4% portfolio space.
The California-based mobile payments company has a market cap of $94 billion; its shares were trading around $78.21 on Friday with a price-earnings (P/E) ratio of 60.63, a price-book (P/B) ratio of 6.10 and a price-sales (P/S) ratio of 7.73.
The Peter Lynch chart below shows the stocks is trading above its fair value, suggesting it is currently overpriced.
GuruFocus ranked PayPal’s financial strength 8 of 10 and its profitability and growth 6 of 10. The company does not pay a dividend.
Of the gurus invested in PayPal, Carl Icahn (Trades, Portfolio) has the largest holding with 0.82% of outstanding shares. Other top guru shareholders include Steve Mandel (Trades, Portfolio), Pioneer Investments (Trades, Portfolio), PRIMECAP Management (Trades, Portfolio) and David Rolfe (Trades, Portfolio).
AbbVie
The guru purchased a 4.3 million-share stake in AbbVie for an average price of $82.48 per share, expanding the portfolio 1.35%.
The Illinois-based pharmaceutical company has a market cap of $159.71 billion; its shares were trading around $100.04 on Friday with a P/E ratio of 24.35, a P/B ratio of 23.85 and a P/S ratio of 5.89.
According to the Peter Lynch chart below, the stock is trading above its fair value.
GuruFocus ranked AbbVie’s financial strength 5 of 10 and its profitability and growth 8 of 10. The company’s trailing dividend yield is 2.58% and its forward dividend yield is 2.84%. The dividend payout ratio is 60%.
With 0.34% of outstanding shares, Larry Robbins (Trades, Portfolio) is the company’s largest guru shareholder. Jim Simons (Trades, Portfolio), Ken Fisher (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio), Robert Bruce (Trades, Portfolio), Murray Stahl (Trades, Portfolio) and several others also own the stock.
Kering
Segalas bought 554,108 shares of Kering for an average price of 331.93 euros ($399.19) per share. The trade had an impact of 0.88% on the portfolio.
The French luxury brands company, which owns high-end labels like Gucci, Bottega and Alexander McQueen, has a market cap of 50.03 billion euros; its shares were trading around 396.2 euros on Friday with a P/E ratio of 41.98, a P/B ratio of 4.42 and a P/S ratio of 4.06.
Based on the Peter Lynch chart below, the stock appears to be overpriced as it is trading above its fair value.
GuruFocus ranked Kering’s financial strength 5 of 10 and its profitability and growth 8 of 10. The company’s trailing dividend yield is 1.15% and its forward dividend yield is 1%. The payout ratio is 49%.
David Herro (Trades, Portfolio) has the largest position in Kering, holding 0.46% of outstanding shares.
During the quarter, Segalas also added to his positions in The Estee Lauder Companies Inc. (EL, Financial), Caterpillar Inc. (CAT, Financial), Alexion Pharmaceuticals Inc. (ALXN, Financial), UnitedHealth Group Inc. (UNH, Financial) and Texas Instruments Inc. (TXN, Financial), among others.
Disclosure: I do not own any stocks mentioned.
