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Diamond Hill Buys AIG, CVS

- By Tiziano Frateschi

The independent investment management firm Diamond Hill Capital Management bought shares of the following stocks during the fourth quarter:

The guru established a new position in American International Group Inc. (AIG), buying 7,397,530 shares, impacting the portfolio by 1.71%.


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The insurance company has a market cap of $38.77 billion and an enterprise value of $62.36 billion.

GuruFocus gives the company a profitability and growth rating of 4 out of 10. The return on equity of -9.44% and return on assets of -1.21% are underperforming 96% of companies in the Global Insurance - Diversified industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.08 is below the industry median of 10,000.

The company's largest guru shareholder is Hotchkis & Wiley with 2.27% of outstanding shares, followed by Barrow, Hanley, Mewhinney & Strauss with 1.7%, First Pacific Advisors (Trades, Portfolio) with 1.48% and Richard Pzena (Trades, Portfolio) with 1.36%.

The CVS Health Corp. (CVS) position was expanded 100.47%, impacting the portfolio by 1%.

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The company which operates retail pharmacies has a market cap of $86.66 billion and an enterprise value of $107.86 billion.

GuruFocus gives the company a profitability and growth rating of 8 out of 10. The return on equity of 8.48% and return on assets of 2.65% are outperforming 61% of the companies in the Global Health Care Plans industry. Its financial strength is rated 6 out of 10. The cash-debt ratio of 0.66 is below the industry median of 1.15.

Barrow, Hanley, Mewhinney & Strauss is the largest guru shareholder of the company with 1.53% of outstanding shares, followed by Dodge & Cox with 1.17% and Vanguard Health Care Fund (Trades, Portfolio) with 0.91%.

The guru acquired a new position in General Motors Co. (GM), buying 4,308,267 shares. The portfolio was impacted by 0.85%.

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The company, which designs and manufactures cars, trucks and automobile parts, has a market cap of $55.01 billion and an enterprise value of $137.07 billion.

GuruFocus gives the company a profitability and growth rating of 7 out of 10. The return on equity of 21.70% and return on assets of 3.63% are underperforming 92% of companies in the Global Auto Manufacturers industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.26 is below the industry median of 0.52.

Warren Buffett (Trades, Portfolio) is the largest guru shareholder of the company with 3.72% of outstanding shares, followed by Hotchkis & Wiley with 1.1%, David Einhorn (Trades, Portfolio)'s Greenlight Capital with 1.05% and Bill Nygren (Trades, Portfolio)'s Oakmark with 0.49%.

The guru added 18.85% to its Citigroup Inc. (C) stake, impacting the portfolio by 0.53%.

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The financial-services company has a market cap of $148.43 billion.

GuruFocus gives the company a profitability and growth rating of 4 out of 10. The return on equity of 8.55% and return on assets of 0.95% are underperforming 94% of the companies in the Global Banks - Global industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.71 is below the industry median of 1.22.

The company's largest guru shareholder is Jeff Ubben (Trades, Portfolio)'s ValueAct Holdings with 1.07% of outstanding shares, followed by Hotchkis & Wiley with 0.44% and the Nygren's firm with 0.39%.

The guru boosted the Allergan PLC (AGN) position by 2,115.56%. The trade had an impact of 0.51% on the portfolio.

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The pharmaceutical company has a market cap of $46.82 billion and an enterprise value of $68.71 billion.

GuruFocus gives the company a profitability and growth rating of 4 out of 10. The return on equity of -7.28% and return on assets of -4.65% are underperforming 67% of companies in the Global Drug Manufacturers - Specialty and Generic industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.08 is below the industry median of 2.03.

Vanguard Health Care Fund (Trades, Portfolio) is guru largest shareholder with 4.67% of outstanding shares, followed by Seth Klarman (Trades, Portfolio)'s Baupost Group with 1.47%, Mason Hawkins (Trades, Portfolio) with 0.68% and David Tepper (Trades, Portfolio) with 0.59%.

The guru added 122.54% to its Bank OZK (OZK) position. The trade had an impact of 0.48% on the portfolio.

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The bank holding company has a market cap of $4.16 billion and an enterprise value of $4.11 billion.

GuruFocus gives the company a profitability and growth rating of 5 out of 10. The return on equity of 12.74% and the return on assets of 2.07% are outperforming 80% of companies in the Global Banks - Regional - US industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 1.13 is below the industry median of 1.22.

With 0.07% of outstanding shares, Chuck Royce (Trades, Portfolio) is another notable guru shareholder, followed by Pioneer Investments (Trades, Portfolio) with 0.06%,

Disclosure: I do not own any stocks mentioned.

This article first appeared on GuruFocus.