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Ken Heebner Trims Citigroup, Vale Positions

- By Tiziano Frateschi

During the second quarter, Ken Heebner (Trades, Portfolio), co-founder of money management firm Capital Growth Management, sold shares of the following stocks.


The guru reduced his holding of Citigroup Inc. (NYSE:C) by a 56.19%. The trade had a -3.53% impact on the portfolio.

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The bank has a market cap of $177.5 billion and an enterprise value of $270.16 billion.

GuruFocus gives the company a profitability and growth rating of 3 out of 10. The return on equity of -3.24% and return on assets of -0.3% are underperforming 94% of companies in the Global Banks - Global industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.73 is below the industry median of 1.22.

Jeff Ubben (Trades, Portfolio) is the largest shareholder of the company among the gurus with 1% of outstanding shares, followed by Barrow, Hanley, Mewhinney & Strauss with 0.52% and Hotchkis & Wiley with 0.48%.

The Vale SA (VALE) stake was trimmed 27.16%. The trade had an impact of -2.96% on the portfolio.

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The metals and mining company has a market cap of $67.88 billion and an enterprise value of $81.34 billion.

GuruFocus gives the company a profitability and growth rating of 7 out of 10. The return on equity of 10.40% and return on assets of 4.66% are outperforming 82% of companies in the Global Industrial Metals and Minerals industry. Its financial strength is rated 6 out of 10. The cash-debt ratio of 0.33 is below the industry median of 69.61.

The largest guru shareholder of the company is Ken Fisher (Trades, Portfolio) with 0.31% of outstanding shares, followed by Heebner with 0.27% and Sarah Ketterer (Trades, Portfolio) with 0.17%.

The Charles Schwab Corp. (SCHW) position was closed. The transaction had an impact of -2.87% on the portfolio.

The company, which provides retail brokerage, banking and other corporate brokerage services, has a market cap of $69.03 billion and an enterprise value of $64.36 billion.

GuruFocus gives the company a profitability and growth rating of 4 out of 10. While the return on equity of 14.36% is outperforming the sector, the return on assets of 1.19% is underperforming 60% of companies in the Global Capital Markets industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 2.29 is below the industry median of 5.11.

Dodge & Cox is the company's largest shareholder among the gurus with 5.68% of outstanding shares, followed by PRIMECAP Management (Trades, Portfolio) with 2.38% and Frank Sands (Trades, Portfolio) with 1.7%.

Heebner exited his holding of United Rentals Inc. (URI), impacting the portfolio by -2.87%.

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The company, which rents equipment for industrial and construction uses, has a market cap of $12.59 billion and an enterprise value of $21.46 billion.

GuruFocus gives the company a profitability and growth rating of 8 out of 10. The return on equity of 57.43% and return on assets of 10.78% are outperforming 90% of companies in the Global Rental and Leasing Services industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.01 is below the industry median of 0.66.

The largest shareholder of the company among the gurus is Pioneer Investments (Trades, Portfolio) with 2.38% of outstanding shares, followed by David Carlson (Trades, Portfolio) with 0.7%, Steven Cohen (Trades, Portfolio) with 0.16% and Joel Greenblatt (Trades, Portfolio) with 0.1%.

The Prudential Financial Inc. (PRU) position was closed. The trade had an impact of -2.39% on the portfolio.

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The life insurance company has a market cap of $41.1 billion and an enterprise value of $40.2 billion.

GuruFocus gives the company a profitability and growth rating of 2 out of 10. The return on equity of 14.77% and return on assets of 0.92% are outperforming 61% of companies in the Global Insurance - Life industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.76 is below the industry median of 7.42.

With 0.35% of outstanding shares, Pioneer Investments (Trades, Portfolio) is the company's largest guru shareholder, followed by Jim Simons (Trades, Portfolio) with 0.2% and George Soros (Trades, Portfolio) with 0.03%.

The Diamondback Energy Inc. (FANG) holding was closed, impacting the portfolio by -2.27%.

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The independent oil and gas producer has a market cap of $11.84 billion and an enterprise value of $14.07 billion.

GuruFocus gives the company a profitability and growth rating of 7 out of 10. The return on equity of 10.94% and return on assets of 7.30% are outperforming 78% of companies in the Global Oil and Gas E&P industry. It financial strength is rated 6 out of 10. The cash-debt ratio of 0.06 is below the industry median of 0.51.

The largest guru shareholder of the company is Simons with 0.23% of outstanding shares, followed by Columbia Wanger (Trades, Portfolio) with 0.2% and Carlson with 0.15%.

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

This article first appeared on GuruFocus.