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Al Gore's Generation Investment Buys Nutanix in May and 2 Stocks in 1st Quarter

- By James Li

Generation Investment Management, the London-based firm founded in 2004 by Al Gore (Trades, Portfolio) and David Blood, disclosed last week it established two new holdings during the first quarter. The firm also established a position in Nutanix Inc. (NTNX) on May 3 according to GuruFocus Real-Time Picks.


Gore, former U.S. vice president under Bill Clinton, established Generation Investment as an asset management company dedicated to long-term investing, integrated sustainability research and client alignment. The firm focuses on sustainability within markets with companies that strategically manage their economic, social and environmental performances.

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Generation Investment's $13.68 billion equity portfolio contains 37.49% weight in the technology sector and 23.73% weight in the health care sector, its top two sectors in terms of portfolio weight. As of quarter-end, the equity portfolio contains 33 holdings, of which two are new positions: Equifax Inc. (EFX) and Stericycle Inc. (SRCL).

Nutanix

Generation Investment purchased 8,587,786 shares of Nutanix on May 3, giving the stake 2.76% equity portfolio space. Shares closed at $39.35 that day.

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The San Jose, California-based company provides native hybrid cloud capabilities for businesses. GuruFocus ranks the company's financial strength 6 out of 10 on several moderately strong indicators, which include a cash-to-debt ratio of 2.18, a Piotroski F-score of 5 out of 9 and an Altman Z-score of 2.51.

Equifax

The firm purchased 2,559,488 shares of Equifax, giving the position 2.22% equity portfolio space. Shares averaged $106.54 during the quarter.

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The Atlanta-based company provides various consumer information that forms the basis of granting credit. GuruFocus ranks the credit bureau's profitability 7 out of 10: Even though the company has negative profit margins, margins are still outperforming over 80% of global competitors.

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Stericycle

The firm purchased 2,555,704 shares of Stericycle, giving the holding 1.02% equity portfolio space. Shares averaged $45.08 during the quarter.

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The Lake Forest, Illinois-based company provides regulated medical waste management services to both large-quantity generators and small-quantity generators. GuruFocus ranks Stericycle's financial strength 4 out of 10 on several weak indicators, which include a poor Piotroski F-score of 3, interest coverage below Benjamin Graham's required threshold of 5 and cash-debt ratio that underperforms 92.78% of global competitors.

Disclosure: No positions.

Read more here:

  • Larry Robbins' Top 6 Buys of the 1st Quarter
  • John Paulson's Top 5 Buys in the 1st Quarter
  • George Soros' Top 6 New Buys of the 1st Quarter



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This article first appeared on GuruFocus.