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Charles Brandes Sells Microsoft, Buys McKesson

- By Tiziano Frateschi

Charles Brandes (Trades, Portfolio) is the chairman of Brandes Investment Partners. He started the company in 1974. He manages multiple portfolios including U.S. equity and Global Equity. During the fourth quarter the guru traded shares in the following stocks:


The investor raised his stake in McKesson Corp. (MCK) by 1,796.26% with an impact of 2.08% on the portfolio.

The company distributes pharmaceuticals, medical supplies and health care information technology that make health care safer while reducing costs.

GuruFocus gives the stock a profitability and growth rating of 8 out of 10. While the return on equity (ROE) of 21.65% is outperforming the sector, the return on assets (ROA) of 3.35% is underperforming 57% of the companies in the Global Medical Distribution industry. Financial strength has a rating of 6 out of 10. The cash-debt ratio of 0.27 is below the industry median of 0.65.

The largest shareholder among the gurus is Vanguard Health Care Fund (Trades, Portfolio) with 3.88% of outstanding shares followed by Seth Klarman (Trades, Portfolio) with 0.47%, Jana Partners (Trades, Portfolio) with 0.18%, Joel Greenblatt (Trades, Portfolio) with 0.13% and Richard Pzena (Trades, Portfolio) with 0.09%.

The guru closed his position in Xilinx Inc. (XLNX) with an impact of -1.13% on the portfolio.

The company designs, develops and markets programmable platforms including integrated circuits, software design tools and predefined system functions delivered as intellectual property cores.

GuruFocus gives the stock a profitability and growth rating of 6 out of 10. The ROE of 23.85% and ROA of 12.57% are outperforming 90% of the companies in the Global Semiconductors industry. Financial strength has a rating of 7 out of 10. The cash-debt ratio of 2.05 is above the industry median of 1.68.

First Eagle Investment (Trades, Portfolio) is the largest shareholder among the gurus with 5.24% of outstanding shares followed by Jim Simons (Trades, Portfolio) with 0.53%, Pioneer Investments (Trades, Portfolio) with 0.19%, Greenblatt with 0.17%, Steven Cohen (Trades, Portfolio) with 0.11% and John Hussman (Trades, Portfolio) with 0.03%.

The guru reduced his shares in Copa Holdings SA Class A (CPA) by 48.28%. The trade had an impact of -0.88% on the portfolio.

The company provides airline passenger and cargo service through our two principal operating subsidiaries, Copa Airlines and Copa Colombia.

GuruFocus gives the stock a profitability and growth rating of 8 out of 10. While the ROE of 19.75% is underperforming the sector, the ROA of 8.99% is outperforming 73% of the companies in the Global Airlines industry. Financial strength has a rating of 6 out of 10. The cash-debt ratio of 0.69 is above the industry median of 0.44

The largest shareholder among the gurus is Brandes with 1.63% of outstanding shares followed by Ron Baron with 1.25%, Barrow, Hanley, Mewhinney & Strauss with 0.02% and Paul Tudor Jones (Trades, Portfolio) with 0.01%.

The guru reduced his holding in Corning Inc. (GLW) by 28.14% with an impact of -0.64% on the portfolio.

The company is engaged in manufacturing of specialty glass and ceramics. Its segments are Display Technologies, Optical Communications, Environmental Technologies, Specialty Materials and Life Sciences.

GuruFocus gives the stock a profitability and growth rating of 8 out of 10. The ROE of 19.57% and ROA of 12.84% are outperforming 90% of the companies in the Global Electronic Components industry. Financial strength has a rating of 7 out of 10. The cash-debt ratio of 1.36 is below the industry median of 1.46.

Dodge & Cox is the largest shareholder among the gurus with 3.37% of outstanding shares followed by HOTCHKIS & WILEY with 3.03%, PRIMECAP Management (Trades, Portfolio) with 2.02%, Brandes with 0.5%, Donald Yacktman (Trades, Portfolio) with 0.33% and Yacktman Fund (Trades, Portfolio) with 0.28%.

The guru reduced his Microsoft Corp. (MSFT) holding by 17.39%. The transaction had an impact of -0.54% on the portfolio.

The company is engaged in designing, manufacturing, selling devices, and online advertising. Its products include operating systems for computing devices, servers, phones and other devices.

GuruFocus gives the stock a profitability and growth rating of 7 out of 10. The ROE of 23.11% and ROA of 8.44% are outperforming 76% of the companies in the Global Software - Infrastructure industry. Financial strength has a rating of 6 out of 10, with cash-debt ratio of 1.45 that is below the industry median of 10.14.

The largest shareholder among the gurus is PRIMECAP Management with 0.69% of outstanding shares followed by Dodge & Cox with 0.55%, Jeff Ubben (Trades, Portfolio) with 0.5%, First Eagle Investment with 0.31%, Andreas Halvorsen (Trades, Portfolio) with 0.28%, Barrow, Hanley, Mewhinney & Strauss with 0.24% and Ken Fisher (Trades, Portfolio) with 0.24%.

The investor reduced his position of Tim Participacoes SA ADR (TSU) by 14.88% with an impact of -0.46% on the portfolio.

The company through its subsidiaries offers telecommunication services. It operates as a mobile, fixed, long-distance and data transmission operator.

GuruFocus gives the stock a profitability and growth rating of 6 out of 10. While the ROE of 4.93% is underperforming the sector, the ROA of 2.47% is outperforming 53% of the companies in the Global Telecom Services industry. Financial strength has a rating of 5 out of 10. The cash-debt ratio of 0.54 is above the industry median of 0.38.

The largest shareholder among the gurus is Paul Singer (Trades, Portfolio) with 1.56% of outstanding shares followed by Cohen with 0.04% and Simons with 0.02%.

Brandes reduced his shares in Apache Corp. (APA) by 26.10% with an impact of -0.39% on the portfolio.

It is an independent energy company that explores, develops and produces natural gas, crude oil and natural gas liquids. It has interests in six countries: the U.S., Canada, Egypt, Australia, the U.K. North Sea (North Sea) and Argentina.

GuruFocus gives the stock a profitability and growth rating of 4 out of 10. While the ROE of -25.58% is underperforming the sector, the ROA of -6.72% is outperforming 58% of the companies in the Global Oil and Gas E&P industry. Financial strength has a rating of 4 out of 10, with cash to debt of 0.16 is below the industry median of 0.78.

The largest shareholder among the gurus is Dodge & Cox with 7.61% of outstanding shares followed by Chris Davis (Trades, Portfolio) with 5.16%, Bill Nygren (Trades, Portfolio) with 1.83%, T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.92%, Pioneer Investments with 0.38% and HOTCHKIS & WILEY with 0.22%.

The investor exited his stake in CRH PLC ADR (CRH) with an impact of -0.36% on the portfolio.

The company is a manufacturer and distributer of a range of building materials products from the fundamentals of heavy materials and elements to construct the frame.

GuruFocus gives the stock a profitability and growth rating of 6 out of 10. The ROE of 9.44% and ROA of 3.92% are outperforming 52% of the companies in the Global Building Materials industry in the Global Building Materials industry. Financial strength has a rating of 6 out of 10. The cash-debt ratio of 0.31 is below the industry median of 0.54.

The largest shareholder among the gurus is Barrow, Hanley, Mewhinney & Strauss with 0.81 of outstanding shares followed by Simons with 0.02% and Manning & Napier Advisors Inc. with 0.01%.

Disclosure: I do not own any shares of any stocks mentioned in this article.

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This article first appeared on GuruFocus.