Brandes Investments was founded in 1974 by Charles Brandes, who left the company in February 2018. The value-investing firm sold shares in the following stocks during the third quarter.
The firm trimmed 38.72% of its Microsoft Corp. (MSFT) position. The trade had an impact of -0.51% on the portfolio.
The technology company, which develops a wide range of software products and services, has a market cap of $820.89 billion.
GuruFocus gives the company a profitability and growth rating of 9 out of 10. The return on equity of 22.62% and return on assets of 7.43% 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 1.78 is below the industry median of 4.27.
The company's largest shareholder among the gurus is PRIMECAP Management (Trades, Portfolio) with 0.52% of outstanding shares, followed by Dodge & Cox with 0.49%, Bill Gates (Trades, Portfolio) with 0.42% and Pioneer Investments (Trades, Portfolio) with 0.35%.
Brandes exited 55.15% of its Telefonaktiebolaget L M Ericsson (ERIC) position. The trade had an impact of -0.49% on the portfolio.
The company, which provides wireless telecommunication solutions, has a market cap of $30 billion and an enterprise value of $29.11 billion.
GuruFocus gives the company a profitability and growth rating of 4 out of 10. The return on equity of -21.29% and return on assets of -7.99% are underperforming 89% of companies in the Global Communication Equipment industry. Its financial strength is rated of 5 out of 10. The cash-debt ratio of 1.27 is below the industry median of 2.0.
The largest shareholder of the company is PRIMECAP Management (Trades, Portfolio) with 3.98% of outstanding shares, followed by Hotchkis & Wiley with 2.27% and Jim Simons (Trades, Portfolio) with 0.13%.
The guru’s Companhia Brasileira De Distribuicao (CBD) holding was reduced by 68.73%. The trade had an impact of -0.36% on the portfolio.
The Brazilian company, retailer or food, clothing and other products, has a market cap of $5.78 billion and an enterprise value of $7.67 billion.
GuruFocus gives the company a profitability and growth rating of 5 out of 10. While the return on equity of 10.50% is outperforming the sector, the return on assets of 2.40% is underperforming 67% of companies in the Global Department Stores industry. Its financial strength is rated 6 out of 10. The cash-debt ratio of 0.39 is below the industry median of 0.99.
Bestinfond (Trades, Portfolio) is the largest guru shareholder of the company with 1.07% of outstanding shares, followed by Ken Fisher (Trades, Portfolio) with 0.44%, Simons’ firm with 0.21% and Brandes with 0.13%.
The guru sold 11.84% of its Express Scripts Holding Co. (ESRX) stake. The trade impacted the portfolio by -0.29%.
The company, which provides health care management and administration services, has a market cap of $55.37 billion and an enterprise value of $66.67 billion.
GuruFocus gives the company a profitability and growth rating of 8 out of 10. The return on equity of 26.51% and the return on assets of 9.11% are outperforming 75% of companies in the Global Health Care Plans industry. Its financial strength is rated 6 out of 10. The cash-debt ratio of 0.25 is below the industry median of 1.15.
The largest guru shareholder of the company is Dodge & Cox with 7.35% of outstanding shares, followed by the Barrow, Hanley, Mewhinney & Strauss with 2.4%, Larry Robbins (Trades, Portfolio) with 1.24%, David Abrams (Trades, Portfolio) with 0.57% and Richard Pzena (Trades, Portfolio) with 0.54%.
The Celestica Inc. (CLS)’s holding was cut by 17.15%, impacting the portfolio by -0.19%.
The electronic manufacturing service company has a market cap of $1.37 billion and an enterprise value of $1.33 billion.
GuruFocus gives the company a profitability and growth rating of 7 out of 10. The return on equity of 3.95% and return on assets of 1.71% are underperforming 57% of companies in the Global Contract Manufacturers industry. Its financial strength is rated 6 out of 10. The cash-debt ratio of 1.11 is below the industry median of 1.32.
Pzena is the company's largest shareholder among the gurus with 3.1% of outstanding shares, followed by Donald Smith (Trades, Portfolio) with 2.43%, Pzena with 2.42% and Chuck Royce (Trades, Portfolio) with 1.97%.
The firm curbed its M.D.C. Holdings Inc. (MDC, Financial) position by 39.22%. This trade impacted the portfolio by -0.15%.
The company, which operates in the residential construction industry, has a market cap of $1.64 billion and an enterprise value of $2.32 billion.
GuruFocus gives the company a profitability and growth rating of 6 out of 10. The return on equity of 12.38% and return on assets of 6.50% are outperforming 74% of companies in the Global Residential Construction industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.38 is above the industry median of 0.35.
The largest guru shareholder of the company is Royce with 0.94% of outstanding shares, followed by Brandes with 0.57% and John Buckingham (Trades, Portfolio) with 0.48%.
The Cemex SAB de CV ADR (CX) stake was reduced by 1.78%, impacting the portfolio by -0.14%.
The producer and seller of cement, ready-mix concrete, aggregates and other construction materials has a market cap of $7.51 billion and an enterprise value of $8.75 billion.
GuruFocus gives the company a profitability and growth rating of 7 out of 10. The return on equity of 6.35% and return on assets of 2.03% are underperforming 64% of companies in the Global Building Materials industry. Its financial strength is rated 6 out of 10 with no debt.
Dodge & Cox is the company's largest shareholder among the gurus with 8.29% of outstanding shares, followed by Brandes with 3.49%, Fisher with 0.5% and Jeremy Grantham (Trades, Portfolio) with 0.15%.
Disclosure: I do not own any stocks mentioned in this article.
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