Robert Karr adds 5 stocks to his portfolio in Q1

– By Sydnee Gatewood

Robert karr (Trades, Wallet), founder of New York-based Joho Capital, unveiled five new positions in its Q1 portfolio, which was released earlier this month.

A former protégé of Tiger Management Julian Robertson (Trades, Wallet), the guru, who now runs a family office, focuses on a concentrated number of investments and specializes in online media stocks. It also has a very low portfolio turnover rate of 17% in the last quarter.

Based on these criteria, Karr’s new purchases for the quarter were Ceridian HCM Holding Inc. (NYSE: CDAY), Amphenol Corp. (NYSE: APH), Autodesk Inc. (NASDAQ: ADSK), Uber Technologies Inc. (NYSE: UBER) and Simon Property Group Inc. (NYSE: SPG).

Ceridian HCM

After previously exiting a position in Ceridian HCM (NYSE: CDAY) in the fourth quarter of 2020, the guru entered a new stake of 185,037 shares, dedicating it to 2.42% of the stock portfolio. This is now its seventh largest investment. The stock traded at an average price of $ 93.51 per share during the quarter.

The Minneapolis-based software company, which provides payroll processing and human capital management solutions, has a market cap of $ 13.19 billion; its shares were trading around $ 88.37 on Wednesday with a price-to-pound ratio of 6.09 and a price-to-sell ratio of 15.45.

The GF value line suggests that the stock is significantly overvalued based on its historical ratios, past performance, and future earnings expectations.

Robert Karr adds 5 stocks to his portfolio in Q1

GuruFocus rated Ceridian’s financial strength at 3 out of 10. In addition to weak debt ratios, the low Altman Z-Score of 1.53 warns that the company could be at risk of bankruptcy if it does not improve its performance. liquidity.

The company’s profitability improved slightly, scoring 4 out of 10. Ceridian is weighed down by negative margins and returns that underperform more than half of its competitors as well as a low Piotroski F-Score. of 3, indicating that its operations are in poor condition. It has also seen a slowdown in revenue per share growth over the past 12 months.

Among the gurus invested in Ceridian, Ron Baron (Trades, Portfolio) holds the largest stake with 2.01% of the outstanding shares. Pioneer Investments (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio), Jim Simons (Trades, Portfolio) ‘Renaissance Technologies and Ray Dalio (Trades, Portfolio) also own the share.

Amphenol

Karr picked up 52,940 shares of Amphenol (NYSE: APH), allocating 0.54% of the stock portfolio to the position. During the quarter, the shares traded at an average price of $ 65.01 each.

The manufacturer of electronic and fiber-optic connectors, cables and interconnect systems, headquartered in Wallingford, Connecticut, has a market capitalization of $ 40.02 billion; its shares were trading around $ 66.96 on Wednesday with a price-to-earnings ratio of 32.04, a price-to-pound ratio of 7.35 and a price-to-sell ratio of 4.54.

According to the GF Value Line, the stock is slightly overvalued.

Robert Karr adds 5 stocks to his portfolio in Q1

Robert Karr adds 5 stocks to his portfolio in Q1

The valuation rank of 2 out of 10 also indicates overvaluation as the stock price and price ratios approach 10-year highs.

Amphenol’s financial strength was 6 out of 10 by GuruFocus. Although it has issued about $ 1.3 billion in new long-term debt over the past three years, it is still at a manageable level with adequate interest coverage. The robust Altman Z-Score of 5.04 indicates that the company is in good standing even as assets accumulate faster than income grow.

The company’s profitability was rated 9 out of 10, thanks to strong margins and returns that outperform the majority of its industry peers, a moderate Piotroski F-Score of 4, indicating that operations are stable and growing. constant profits and income. Amphenol also has a predictability rank of five out of five stars. GuruFocus claims that companies with this rank achieve an average return of 12.1% per year over a 10-year period.

With a 1.31% stake, Pioneer is the company’s largest guru shareholder. Baron, Simons’ company, Jones, Joel Greenblatt (Trades, Portfolio) and Ken Fisher (Trades, Portfolio) also have positions in the stock.

Autodesk

The investor entered into a 6,470 stock stake in Autodesk (NASDAQ: ADSK), giving it a place of 0.28% in the stock portfolio. The stock traded at an average price per share of $ 288.65 during the quarter.

The San Rafael, California-based software company that provides design solutions to the architectural, engineering, construction, manufacturing, media, education and entertainment industries, has a market capitalization of $ 64.27 billion; its shares were trading around $ 291.58 on Wednesday with a price-to-earnings ratio of 53.79, a price-to-pound ratio of 66.42 and a price-to-sell ratio of 17.1.

Based on the GF value line, the stock currently looks slightly overvalued.

Robert Karr adds 5 stocks to his portfolio in Q1

Robert Karr adds 5 stocks to his portfolio in Q1

The GuruFocus review ranking of 1 out of 10 supports this review.

GuruFocus rated Autodesk’s financial strength at 5 out of 10, thanks to adequate interest coverage and a high Altman Z-Score of 6.47. Return on invested capital also exceeds return on invested capital, indicating good value creation as the business grows.

The company’s profitability was rated 6 out of 10 thanks to strong margins and returns that outperform the majority of its competitors, a high Piotroski F-Score of 8, and a predictability rank of one star. According to GuruFocus, companies with this rank are reporting an average of 1.1% per year.

Pioneer is Autodesk’s largest guru shareholder with a 0.37% stake. PRIMECAP Management (Trades, Portfolio), Fisher, Firme de Simons, Steven Cohen (Trades, Portfolio), Catherine Wood (Trades, Portfolio), Jerome Dodson (Trades, Portfolio), Jones, Greenblatt, First Pacific Advisors (Trades, Portfolio) and Mairs and Power (Trades, Portfolio) are also invested in the stock.

Uber

Karr bought 20,950 shares of Uber Technologies (NYSE: UBER), giving the position 0.18% space in the equity portfolio. During the quarter, the stock traded at an average price of $ 55.88 per share.

The San Francisco-based rideshare company, which also offers food and parcel delivery services, has a market cap of $ 95.35 billion; its shares were trading around $ 50.87 on Wednesday with a price-to-pound ratio of 6.98 and a price-to-sell ratio of 8.68.

The median price-to-sell ratio chart suggests that the stock is currently overvalued.

Robert Karr adds 5 stocks to his portfolio in Q1

Robert Karr adds 5 stocks to his portfolio in Q1

GuruFocus rated Uber’s financial strength at 4 out of 10. Due to the issuance of approximately $ 4.7 billion in new long-term debt over the past three years, the company has low interest coverage. . The low Altman Z-Score of 1.76 also warns that it could be at risk of going bankrupt if it does not improve its liquidity.

The company’s profitability has not been as good, scoring a 1 out of 10 due to negative margins and lower returns than the majority of industry peers. Uber has a low Piotroski F-Score of 2. The company has also experienced losses in operating profit as well as declines in earnings per share in recent years.

Frank Sands (Trades, Portfolio) is Uber’s largest guru shareholder with a 1.79% stake. Chase Coleman (Trades, Portfolio), Spiros Segalas (Trades, Portfolio), Philippe Laffont (Trades, Portfolio), Cohen, Daniel Loeb (Trades, Portfolio) and Lee Ainslie (Trades, Portfolio) also have significant investments in the title.

Simon Property Group

The investor bought 8,100 shares of Simon Property Group (NYSE: SPG), dedicating 0.14% of the share portfolio to the holding company. The shares traded at an average price of $ 104.39 each during the quarter.

The Indianapolis-based real estate investment fund, which focuses on shopping malls, has a market cap of $ 41.57 billion; its shares were trading around $ 126.54 on Wednesday with a price-to-earnings ratio of 35.84, a price-to-pound ratio of 13.76 and a price-to-sell ratio of 8.86.

According to the GF value line, the stock is currently valued correctly.

Robert Karr adds 5 stocks to his portfolio in Q1

Robert Karr adds 5 stocks to his portfolio in Q1

The valuation rank of 7 out of 10, however, leans more towards undervaluation, even as the stock price and price-to-sell ratio approach multi-year highs.

Simon Property Group’s financial strength has been rated 3 out of 10 by GuruFocus. Due to the increase in long-term debt of $ 2.6 billion over the past three years, the company has low interest coverage. The low Altman Z-Score of 0.84 warns that it could be at risk of bankruptcy if it does not improve its liquidity. The WACC also eclipses the ROIC, indicating difficulties in creating value.

The REIT’s profitability was rated 7 out of 10. Despite a declining operating margin, the company is supported by strong returns that outperform the majority of its competitors as well as a moderate Piotroski F-Score of 4. Due to the decline in revenue per share over the past five years, Simon Property Group -The predictability rank of the stars is under scrutiny.

The Smead Value Fund (Trades, Portfolio) is the REIT’s largest guru shareholder with a 0.15% stake. Other major investor gurus are Pioneer, Baron, Ken Heebner (trades, portfolio), Chris Davis (trades, portfolio), Jeremy Grantham (trades, portfolio), Mark Hillman (trades, portfolio), Dalio, Greenblatt, Jones and Mario Gabelli (Trades, portfolio).

Additional transactions and portfolio composition

During the quarter, Karr also increased numerous positions including Global Payments Inc. (NYSE: GPN), Dynatrace Inc. (NYSE: DT), Euronet Worldwide Inc. (NASDAQ: EEFT), Performance Food Group Co. (NYSE) : PFGC) and Constellation Brands Inc. (NYSE: STZ).

The guru’s $ 644 million stock portfolio, made up of 21 stocks, is the most heavily invested in the tech sector.

Robert Karr adds 5 stocks to his portfolio in Q1

Robert Karr adds 5 stocks to his portfolio in Q1

Disclosure: No position.

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This article first appeared on GuruFocus.

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