The Vanguard Health Care Fund (Trades, Portfolio), which invests primarily in health care-related companies in order to achieve long-term capital appreciation, sold shares of the following stocks during the third quarter.
The fund reduced its Cigna Corp. (CI, Financial) position by 27.90%. The trade had an impact of -0.41% on the portfolio.
The company, which provides medical, dental and health insurance products, has a market cap of $52.48 billion and an enterprise value of $53.4 billion.
GuruFocus gives the company a profitability and growth rating of 4 out of 10. The return on equity of 19.06% and return on assets of 4.14% are underperforming 50% of companies in the Global Health Care Plans industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.96 is below the industry median of 1.15.
The company's largest shareholder among the gurus is Dodge & Cox with 4.28% of outstanding shares, followed by Barrow, Hanley, Mewhinney & Strauss with 0.81%, Larry Robbins (Trades, Portfolio) with 0.69% and Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.32%.
The firm trimmed its Eli Lilly and Co. (LLY, Financial) stake by 7.32%. The trade had an impact of -0.34% on the portfolio.
The company, which develops human and animal pharmaceutical products, has a market cap of $118.29 billion and an enterprise value of $123.66 billion.
GuruFocus gives the company a profitability and growth rating of 7 out of 10. The return on equity of -1.08% and return on assets of -0.33% are underperforming 66% of companies in the Global Drug Manufacturers - Major industry. Its financial strength is rated of 6 out of 10. The cash-debt ratio of 0.57 is below the industry median of 2.03.
The largest shareholder of the company is PRIMECAP Management (Trades, Portfolio) with 5.13% of outstanding shares, followed by Ken Fisher (Trades, Portfolio) with 0.35% and Sarah Ketterer (Trades, Portfolio) with 0.25%.
Vanguard exited its Envision Healthcare Corp. (EVHC, Financial) holding. The trade had an impact of -0.29% on the portfolio.
The company, which supplies health care services to its clients, has a market cap of $5.58 billion and an enterprise value of $10.27 billion.
GuruFocus gives the company a profitability and growth rating of 7 out of 10. The return on equity of -29.05% and return on assets of -11.24% are underperforming 79% of companies in the Global Medical Care industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.13 is below the industry median of 0.28.
Lee Ainslie (Trades, Portfolio) is the largest guru shareholder of the company with 5.56% of outstanding shares, followed by Joel Greenblatt (Trades, Portfolio) with 0.56%, Mario Gabelli (Trades, Portfolio) with 0.13% and George Soros (Trades, Portfolio) with 0.12%.
The health care fund curbed its Medtronic PLC (MDT, Financial) stake by 9.84%. The trade impacted the portfolio by -0.28%.
The medical technology company has a market cap of $123.96 billion and an enterprise value of $138.29 billion.
GuruFocus gives the company a profitability and growth rating of 9 out of 10. The return on equity of 6.24% and return on assets of 3.35% are outperforming 59% of companies in the Global Medical Devices industry. Its financial strength is rated 6 out of 10. The cash-debt ratio of 0.44 is below the industry median of 2.32.
The largest guru shareholder of the company is Dodge & Cox with 1.33% of outstanding shares, followed by the Barrow, Hanley, Mewhinney & Strauss with 1.08%, PRIMECAP Management with 0.6% and Pioneer Investments (Trades, Portfolio) with 0.4%.
The Boston Scientific Corp. (BSX, Financial) stake was trimmed by 10.42%, impacting the portfolio by -0.27%.
The company, which markets its devices to health care professionals and institutions, has a market cap of $50.31 billion and an enterprise value of $56.77 billion.
GuruFocus gives the company a profitability and growth rating of 8 out of 10. The return on equity of 8.89% and return on assets of 3.46% are outperforming 51% of companies in the Global Medical Devices industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.03 is below the industry median of 2.32.
Vanguard is the company's largest shareholder among the gurus with 2.27% of outstanding shares, followed by Jana Partners (Trades, Portfolio) with 0.23%, Diamond Hill Capital (Trades, Portfolio) with 0.21% and Pioneer with 0.19%.
The Illumina Inc. (ILMN, Financial) holding was reduced by 35.13%. The trade impacted the portfolio by -0.27%.
The company, which manufactures DNA sequencing technology, has a market cap of $47.65 billion and an enterprise value of $44.09 billion.
GuruFocus gives the company a profitability and growth rating of 9 out of 10. The return on equity of 22.25% and return on assets of 12.02% are outperforming 92% of companies in the Global Diagnostics and Research industry. Its financial strength is rated 7 out of 10. The cash-debt ratio of 1.72 is below the industry median of 3.52.
The largest guru shareholder of the company is Frank Sands (Trades, Portfolio) with 2.91% of outstanding shares, followed by Spiros Segalas (Trades, Portfolio) with 1.08%, PRIMECAP Management with 0.77% and Andreas Halvorsen (Trades, Portfolio) with 0.34%.
The Vertex Pharmaceuticals Inc. (VRTX, Financial) stake was reduced 8.94%, impacting the portfolio by -0.25%.
The pharmaceutical company has a market cap of $44.62 billion and an enterprise value of $42.67 billion.
GuruFocus gives the company a profitability and growth rating of 6 out of 10. The return on equity of 27.38% and return on assets of 16.46% are outperforming 93% of companies in the Global Biotechnology industry. Its financial strength is rated 7 out of 10. The cash-debt ratio of 5.20 is below the industry median of 64.02.
Vanguard is the company's largest shareholder among the gurus with 2.62% of outstanding shares, followed by Simons‘ firm with 1.58% and Segalas with 0.77%.
Disclosure: I do not own any stocks mentioned in this article.
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