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Capital Growth Exits Philip Morris, Microsoft

GuruFocus.com
·5 min read

Ken Heebner (Trades, Portfolio)'s Capital Growth Management LP manages a $860 million equity portfolio composed of 41 stocks as of the quarter's end. The firm sold shares of the following stocks during the second quarter.


Philip Morris

The fund closed its position in Philip Morris International Inc. (PM). The trade had an impact of -4.30% on the portfolio.

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The tobacco company has a market cap of $122.71 billion and an enterprise value of $150.02 billion.

GuruFocus gives the company a profitability and growth rating of 8 out of 10. The return on assets of 18.13% is outperforming 71% of companies in the tobacco products industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.14 is below the industry median of 0.95.


The largest guru shareholder of the company is First Eagle Investment (Trades, Portfolio) with 0.83% of outstanding shares, followed by Tom Russo (Trades, Portfolio) with 0.53% and John Rogers (Trades, Portfolio) with 0.28%.


M.D.C. Holdings

The fund's M.D.C. Holdings Inc. (MDC) position was reduced by 76.4%. The portfolio was impacted by -4%.

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The American holding company has a market cap of $2.96 billion and an enterprise value of $3.64 billion.


The return on equity of 14.88% and return on assets of 8.03% are outperforming 68% of companies in the homebuilding and construction industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.45 is below the industry median of 0.46.

The largest guru shareholder of the company is Jeremy Grantham (Trades, Portfolio) with 0.64% of outstanding shares, followed by Ken Fisher (Trades, Portfolio) with 0.60% and Chuck Royce (Trades, Portfolio) with 0.26%.


The GEO Group

The fund exited its position in The GEO Group Inc. (GEO). The portfolio was impacted by -3.68%.

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The healthcare facility real estate investment trust has a market cap of $1.34 billion and an enterprise value of $4.09 billion.


GuruFocus gives the company a profitability and growth rating of 7 out of 10. The return on equity of 14.79% and return on assets of 3.42% are outperforming 62% of companies in the REITs industry. Its financial strength is rated 3 out of 10. The cash-debt ratio of 0.03 is below the industry median of 0.09.


The largest guru shareholder is Barrow, Hanley, Mewhinney & Strauss with 4.45% of outstanding shares, followed by Grantham with 0.52% and Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.24%.


CoreCivic

The fund closed its CoreCivic Inc. (CXW) holding, impacting the portfolio by -3.29%.

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The real estate investment trust has a market cap of $7.02 billion and an enterprise value of $6.09 billion.


GuruFocus gives the company a profitability and growth rating of 7 out of 10. The return on equity of 10.55% and return on assets of 3.74% are outperforming 65% of companies in the REITs industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.16 is above the industry median of 0.09.

The largest guru shareholder is Simons' firm with 2.23% of outstanding shares, followed by Grantham with 1.28% and Steven Cohen (Trades, Portfolio)'s Point72 Asset Management with 0.36%.


NetEase

The investment fund closed its holding of NetEase Inc. (NTES) by 74.71%. The portfolio was impacted by -2.97%.

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The Chinese online services provider has a market cap of $65.73 billion and an enterprise value of $56.90 billion.


GuruFocus gives the company a profitability and growth rating of 10 out of 10. The return on equity of 35.49% and return on assets of 20.7% are outperforming 91% of companies in the interactive media industry. Its financial strength is rated 7 out of 10. The cash-debt ratio of 4.39 is few above the industry median of 4.37.


The largest guru shareholder is Simons' firm with 0.91% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.32%.

Microsoft

The investment fund closed its Microsoft Corp. (MSFT) position. The trade had an impact of -2.90% on the portfolio.

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The hardware and software producer has a market cap of $1.59 trillion and an enterprise value of $1.53trillion.

GuruFocus gives the company a profitability and growth rating of 9 out of 10. The return on equity of 40.16% and return on assets of 15.43% are outperforming 92% of companies in the software industry. Its financial strength is rated 7 out of 10. The cash-debt ratio of 1.92 is below the industry median of 2.2.

The largest guru shareholder of the company is PRIMECAP Management (Trades, Portfolio) with 0.34% of outstanding shares, followed by Fisher's firm with 0.29% and Dodge & Cox with 0.26%.

Stryker

The investment fund exited its holding in Stryker Corp. (SKY). The portfolio was impacted by -2.66%.

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The company, which designs medical equipment, instruments, consumable supplies and implantable devices, has a market cap of $71.35 billion and enterprise value of $77.66 billion.


GuruFocus gives the company a profitability and growth rating of 9 out of 10. The return on equity of 12.72% and return on assets of 5.56% are outperforming 71% of companies in the medical devices and instruments industry. Its financial strength is rated 5 out of 10 with a cash-debt ratio of 0.51.


The largest guru shareholder of the company is Fisher with 0.63% of outstanding shares, followed by Vanguard Health Care Fund (Trades, Portfolio) with 0.29%.

Disclosure: I do not own any stocks mentioned.

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This article first appeared on GuruFocus.