David Herro's Strategic Moves: A Deep Dive into CNH Industrial NV's 3.71% Portfolio Impact
Unveiling the Investment Decisions of a Value Investing Maestro in Q4 2023
David Herro (Trades, Portfolio), a seasoned value investor and the Chief Investment Officer for International Equities at Harris Associates, has made notable changes to his portfolio in the fourth quarter of 2023. With a reputation for identifying undervalued companies with growth potential, Herro's investment philosophy has earned him accolades such as Morningstar's International Stock Fund Manager of the Year and Manager of the Decade. His recent N-PORT filing reveals strategic buys, sells, and adjustments reflective of his commitment to investing in companies with strong management teams and shareholder value growth.
Summary of New Buys
David Herro (Trades, Portfolio)'s portfolio welcomed two new stocks in the latest quarter:
CNH Industrial NV (LTS:0QGU) emerged as the most significant addition with 60,303,299 shares, representing 3.71% of the portfolio and a total value of 734.29 million.
Alibaba Group Holding Ltd (HKSE:09988) was the second major new entry, comprising 28,167,500 shares, which account for approximately 1.38% of the portfolio, valued at HK$272.71 million.
Key Position Increases
Herro also bolstered his stakes in 25 existing holdings, with the most noteworthy increases being:
Bayer AG (XTER:BAYN) saw an additional 3,712,500 shares, bringing the total to 14,204,682 shares. This represents a 35.38% increase in share count, impacting the portfolio by 0.7%, and a total value of 527.36 million.
Fresenius Medical Care AG (XTER:FME) with an additional 2,747,100 shares, resulting in a total of 12,191,573 shares. This adjustment marks a 29.09% increase in share count, with a total value of 510.90 million.
Summary of Sold Out Positions
During the fourth quarter of 2023, David Herro (Trades, Portfolio) completely exited three holdings:
CNH Industrial NV (MIL:1CNHI) was entirely sold off, with all 44,302,799 shares divested, impacting the portfolio by -2.89%.
Alibaba Group Holding Ltd (NYSE:BABA) was liquidated, with all 29,556,200 shares sold, causing a -1.73% impact on the portfolio.
Key Position Reductions
Herro also reduced his positions in 34 stocks. The most significant reductions include:
Ryanair Holdings PLC (NASDAQ:RYAAY) was cut by 1,077,130 shares, resulting in a -30.02% decrease in shares and a -0.56% impact on the portfolio. The stock traded at an average price of $109.81 during the quarter and has returned 21.09% over the past three months and 6.71% year-to-date.
Capgemini SE (XPAR:CAP) was reduced by 562,000 shares, leading to a -26.5% reduction in shares and a -0.53% impact on the portfolio. The stock's average trading price was 177.19 during the quarter, with returns of 20.91% over the past three months and 17.35% year-to-date.
Portfolio Overview
At the end of the fourth quarter of 2023, David Herro (Trades, Portfolio)'s portfolio comprised 63 stocks. The top holdings included 3.71% in CNH Industrial NV (LTS:0QGU), 3.65% in Lloyds Banking Group PLC (LSE:LLOY), 3.25% in BNP Paribas (XPAR:BNP), 2.85% in Mercedes-Benz Group AG (XTER:MBG), and 2.66% in Bayer AG (XTER:BAYN). The investments are primarily concentrated across eight industries: Industrials, Consumer Cyclical, Financial Services, Healthcare, Communication Services, Technology, Basic Materials, and Consumer Defensive.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
