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Richard Pzena Trims State Street, Exits Micro Focus

- By Tiziano Frateschi

Richard Pzena ( Trades , Portfolio ) , leader of Pzena Investment Management, sold shares of the following stocks during the third quarter.


The guru reduced his State Street Corp. (STT) position by 94.01%. The trade had an impact of -0.45% on the portfolio.

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The financial holding company, which provides services to mutual funds and foundations, has a market cap of $27.42 billion.

GuruFocus gives the company a profitability and growth rating of 4 out of 10. While the return on equity of 10.26% is outperforming the sector, the return on assets of 1.05% is underperforming 65% of companies in the Global Asset Management industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 6.10 is below the industry median of 85.28.

The company's largest shareholder among the gurus is Bill Nygren (Trades, Portfolio) with 1.24% of outstanding shares, followed by Barrow, Hanley, Mewhinney & Strauss with 1.22%, the T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.93% and Hotchkis & Wiley with 0.58%.

Pzena exited his Micro Focus International PLC (MFGP) stake. The trade had an impact of -0.37% on the portfolio.

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The U.K.-based software company has a market cap of $7.21 billion and an enterprise value of $11.26 billion.

GuruFocus gives the company a profitability and growth rating of 9 out of 10. The return on equity of 12.17% and return on assets of 5.34% are outperforming 61% of companies in the Global Software - Application industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.12 is below the industry median of 4.27.

The largest shareholder of the company is Dodge & Cox with 11.04% of outstanding shares, followed by PRIMECAP Management (Trades, Portfolio) with 3.39% and Paul Singer (Trades, Portfolio) with 1.46%.

The investor reduced his Walmart Inc. (WMT) position by 21.25%. The trade had an impact of -0.31% on the portfolio.

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The retailer has a market cap of $307.17 billion and an enterprise value of $347.75 billion.

GuruFocus gives the company a profitability and growth rating of 7 out of 10. The return on equity of 6.89% and return on assets of 2.53% are outperforming 60% of companies in the Global Discount Stores industry. Its financial strength is rated 6 out of 10. The cash-debt ratio of 0.29 is below the industry median of 0.55.

Bill Gates (Trades, Portfolio) is the largest guru shareholder of the company with 0.4% of outstanding shares, followed by Ken Fisher (Trades, Portfolio) with 0.34%, Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.11% and Pioneer Investments (Trades, Portfolio) with 0.11%.

The guru trimmed 20.92% off his Murphy Oil Corp. (MUR) stake. The trade impacted the portfolio by -0.28%.

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The company, which produces oil and gas, has a market cap of $5.36 billion and an enterprise value of $7.33 billion.

GuruFocus gives the company a profitability and growth rating of 5 out of 10. While the return on equity of 0.44% is underperforming the sector, the return on assets of 0.21% is outperforming 50% of companies in the Global Oil and Gas E&P industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.33 is below the industry median of 0.51.

The largest guru shareholder of the company is Hotchkis & Wiley with 7.31% of outstanding shares, followed by the Pzena with 3.58%, Simons 's firm with 0.42% and Steven Cohen (Trades, Portfolio) with 0.12%.

Pzena curbed his Franklin Resources Inc. (BEN) stake by 14.90%, impacting the portfolio by -0.25%.

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The investment management company has a market cap of $16 billion and an enterprise value of $10.43 billion.

GuruFocus gives the company a profitability and growth rating of 5 out of 10. While the return on equity of 6.87% is underperforming the sector, the return on assets of 4.59% is outperforming 55% of companies in the Global Asset Management industry. Its financial strength is rated 7 out of 10. The cash-debt ratio of 9.49 is below the industry median of 85.28.

David Abrams (Trades, Portfolio) is the company's largest shareholder among the gurus with 1.92% of outstanding shares, followed by Pzena with 1.73%, the T Rowe Price Equity Income Fund with 1.05% and Diamond Hill Capital (Trades, Portfolio) with 0.74%.

The VeriFone Systems Inc. (PAY) position was closed. This trade impacted the portfolio by -0.24%.

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The company, which sells hardware and complementary software and services, has a market cap of $2.55 billion and an enterprise value of $3.27 billion.

GuruFocus gives the company a profitability and growth rating of 6 out of 10. The return on equity of -10.22% and return on assets of -3.28% are underperforming 90% of companies in the Global Business Equipment industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.19 is below the industry median of 0.89.

The largest guru shareholder of the company is Richard Snow (Trades, Portfolio) with 0.05% of outstanding shares, followed by Joel Greenblatt (Trades, Portfolio) with 0.02%.

The UBS Group AG (UBS) stake was reduced 26.49%, impacting the portfolio by -0.22%.

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The financial services company has a market cap of $53 billion and an enterprise value of $156 billion.

GuruFocus gives the company a profitability and growth rating of 3 out of 10. The return on equity of 3.31% and return on assets of 0.18% are underperforming 88% of companies in the Global Banks - Global industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.48 is below the industry median of 1.22.

Dodge & Cox is the company's largest shareholder among the gurus with 2.67% of outstanding shares, followed by Fisher with 1.25%, Pioneer Investments with 0.35%, David Tepper (Trades, Portfolio) with 0.18 and Charles Brandes (Trades, Portfolio) with 0.1%.

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

Read more here:

  • Ask This Guru: GE Is Not Dead
  • Richard Pzena Buys Newell Brands, Adds to General Electric


This article first appeared on GuruFocus.