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Joho Capital Cuts Alibaba, Microsoft

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·4 min read
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- By Tiziano Frateschi

Robert Karr (Trades, Portfolio)'s Joho Capital sold shares of the following stocks during the first quarter of 2021, which ended on March 31.


Alibaba

The guru trimmed the position in Alibaba Group Holding Ltd. (BABA) by 24.34%, impacting the portfolio by -7.30%.

Joho Capital Cuts Alibaba, Microsoft
Joho Capital Cuts Alibaba, Microsoft

The online and mobile commerce company has a market cap of $577.72 billion and an enterprise value of $546.88 billion.

GuruFocus gives the company a profitability and growth rating of 8 out of 10. The return on equity of 17.52% and return on assets of 10.13% are outperforming 80% of companies in the retail, cyclical industry. Its financial strength is rated 8 out of 10. The cash-debt ratio of 3.24 is above the industry median of 0.54.

The largest guru shareholders of the company include Baillie Gifford (Trades, Portfolio) with 0.98% of outstanding shares, PRIMECAP Management (Trades, Portfolio) with 0.56% and Ken Fisher (Trades, Portfolio) with 0.51%.

Microsoft

The guru's Microsoft Corp. (MSFT) position was reduced by 2.54%, impacting the portfolio by -0.74%.

Joho Capital Cuts Alibaba, Microsoft
Joho Capital Cuts Alibaba, Microsoft

The company, which develops and licenses consumer and enterprise software, has a market cap of $1.88 trillion and an enterprise value of $1.82 trillion.

GuruFocus gives the company a profitability and growth rating of 8 out of 10. The return on equity of 45.11% and return on assets of 18.66% are outperforming 94% of companies in the software industry. Its financial strength is rated 6 out of 10 with a cash-debt ratio of 1.86.

The largest guru shareholder of the company is Fisher with 0.32% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.30% and PRIMECAP Management (Trades, Portfolio) with 0.27%.

Floor & Decor

The firm exited its position in Floor & Decor Holdings Inc. (FND). The trade had an impact of -0.55% on the portfolio.

Joho Capital Cuts Alibaba, Microsoft
Joho Capital Cuts Alibaba, Microsoft

The company, which is a retailer in the hard surface flooring market, has a market cap of $10.51 billion and an enterprise value of $11.41 billion.

GuruFocus gives the company a profitability and growth rating of 8 out of 10. The return on equity of 25.03% and return on assets of 8.52% are outperforming 84% of companies in the retail, cyclical industry. Its financial strength is rated 6 out of 10 with a cash-debt ratio of 0.28.

The largest guru shareholders of the company include Frank Sands (Trades, Portfolio) with 5.46% of outstanding shares, Ron Baron (Trades, Portfolio) with 1.68% and Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.42%.

Cognex

The guru exited the position in Cognex Corp. (CGNX), impacting the portfolio by -0.19%.

Joho Capital Cuts Alibaba, Microsoft
Joho Capital Cuts Alibaba, Microsoft

The company, which provides machine vision products, has a market cap of $13.81 billion and an enterprise value of $13.45 billion.

GuruFocus gives the company a profitability and growth rating of 9 out of 10. The return on equity of 16.51% and return on assets of 11.76% are outperforming 82% of companies in the hardware industry. Its financial strength is rated 7 out of 10. The cash-debt ratio of 16.06 is far above the industry median of 1.44.

The largest guru shareholders of the company include Baron with 0.68% of outstanding shares, Chuck Royce (Trades, Portfolio) with 0.39% and Simons' firm with 0.16%.

Ceridian

The firm exited its position in Ceridian HCM Holding Inc. (CDAY), impacting the portfolio by -3.18%.

Joho Capital Cuts Alibaba, Microsoft
Joho Capital Cuts Alibaba, Microsoft

The payroll processing and human capital management (HCM) company has a market cap of $13.37 billion and an enterprise value of $14.21 billion.

GuruFocus gives the company a profitability and growth rating of 4 out of 10. The return on equity of -1.56% and return on assets of -0.49% are underperforming 62% of companies in the software industry. Its financial strength is rated 3 out of 10. The cash-debt ratio of 0.29 is below the industry median of 2.93.

Other notable guru shareholders of the company include Karr with 0.12% of outstanding shares, Pioneer Investments (Trades, Portfolio) with 0.04% and Paul Tudor Jones (Trades, Portfolio) with 0.03%.

Disclosure: I do not own any stocks mentioned.

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This article first appeared on GuruFocus.