Steven Romick Trims Oracle Position, Exits Cisco

Guru's largest sales of 3rd quarter

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Oct 11, 2018
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Steven Romick (Trades, Portfolio), the portfolio manager of the FPA Crescent Fund, sold shares of the following stocks during the third quarter.

The guru reduced his Oracle Corp. (ORCL, Financial) holding by 48.85%. The trade had an impact of -2.61% on the portfolio.

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The company, which sells enterprise information technology solutions, has a market cap of $179.58 billion and an enterprise value of $178.11 billion.

GuruFocus gives the company a profitability and growth rating of 7 out of 10. While the return on equity of 7.97% is outperforming the sector, the return on assets of 2.87% is underperforming 52% of companies in the Global Software - Infrastructure industry. Its financial strength is rated 6 out of 10. The cash-debt ratio of 1.03 is below the industry median of 4.27.

The company's largest shareholder among the gurus is First Eagle Investment (Trades, Portfolio) with 1.09% of outstanding shares, followed by Barrow, Hanley, Mewhinney & Strauss with 0.81%, First Pacific Advisors (Trades, Portfolio) with 0.47% and Hotchkis & Wiley with 0.45%.

The investor trimmed his position in Thermo Fisher Scientific Inc. (TMO, Financial) by 84.40%. The trade had an impact of -1.62% on the portfolio.

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The health care company, which sells scientific iinstruments and laboratory equipment, has a market cap of $92.91 billion and an enterprise value of $111.39 billion.

GuruFocus gives the company a profitability and growth rating of 8 out of 10. The return on equity of 9.57% and return on assets of 4.41% are outperforming 69% of companies in the Global Diagnostics and Research industry. Its financial strength is rated of 5 out of 10. The cash-debt ratio of 0.05 is above the industry median of 3.52.

The largest shareholder of the company is PRIMECAP Management (Trades, Portfolio) with 1.26% of outstanding shares, followed by the Vanguard Health Care Fund (Trades, Portfolio) with 0.82%, Larry Robbins (Trades, Portfolio) with 0.62%, Andreas Halvorsen (Trades, Portfolio) with 0.62% and Pioneer Investments (Trades, Portfolio) with 0.52%.

Romick closed his Cisco Systems Inc. (CSCO, Financial) position.The trade had an impact of -1.57% on the portfolio.

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The company, which provides data networking equipment and software, has a market cap of $208.59 billion.

GuruFocus gives the company a profitability and growth rating of 7 out of 10. The return on equity of 0.20% and return on assets of 0.09% are underperforming 70% of companies in the Global Communication Equipment industry. Its financial strength is rated 6 out of 10. The cash-debt ratio of 1.82 is below the industry median of 2.

Dodge & Cox is the largest guru shareholder of the company with 0.87% of outstanding shares, followed by PRIMECAP Management with 0.57%, Ken Fisher (Trades, Portfolio) with 0.39%, Pioneer Investments with 0.22% and Tweedy Browne (Trades, Portfolio) with 0.2%.

The guru trimmed his Microsoft Corp. (MSFT, Financial) stake by 29.95%. The trade impacted the portfolio by -0.93%.

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The software company has a market cap of $814.06 billion and an enterprise value of $756.53 billion.

GuruFocus gives the company a profitability and growth rating of 9 out of 10. The return on equity of 19.84% and return on assets of 6.58% are outperforming 67% of companies in the Global Software - Infrastructure industry. Its financial strength is rated 6 out of 10. The cash-debt ratio of 1.76 is below the industry median of 4.27.

The largest guru shareholder of the company is PRIMECAP Management with 0.54% of outstanding shares, followed by the Dodge & Cox with 0.49% and Bill Gates (Trades, Portfolio) with 0.42%.

The guru sold out of Unilever NV (XAMS:UNA), impacting the portfolio by -0.92%.

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The Bank of America Corp. (BAC, Financial) stake was reduced by 22.21%, impacting the portfolio by -0.88%.

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The bank has a market cap of $291.99 billion and an enterprise value of $402.97 billion.

GuruFocus gives the company a profitability and growth rating of 4 out of 10. While the return on equity of 7.57% is underperforming the sector, the return on assets of 0.95% is outperforming 52% of companies in the Global Banks - Global industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.67 is below the industry median of 1.22.

Dodge & Cox is the company's largest shareholder among the gurus with 1.33% of outstanding shares, followed by Barrow, Hanley, Mewhinney & Strauss with 0.23% and Pioneer Investments with 0.22%.

The PJSC Lukoil (LSE:LKOD) position was closed. This trade impacted the portfolio by -0.81%.

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Romick trimmed 11.32% off his Naspers Ltd. (JSE:NPN) stake. The trade impacted the portfolio by -0.79%.

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The guru's Aon PLC (AON, Financial) position was reduced by 18.72%. This trade impacted the portfolio by -0.72%.

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The company, which provides insurance and reinsurance brokerage solutions, has a market cap of $36.67 billion and an enterprise value of $42.7 billion.

GuruFocus gives the company a profitability and growth rating of 7 out of 10. The return on equity of 16.10% and return on assets of 3.01% are outperforming 59% of companies in the Global Insurance Brokers industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.10 is below the industry median of 5.11.

The largest guru shareholder of the company is First Pacific Advisors with 1.57% of outstanding shares, followed by Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.2%, Pioneer Investments with 0.17%, Charles de Vaulx (Trades, Portfolio) with 0.14% and Wallace Weitz (Trades, Portfolio) with 0.13%.

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