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Robert Karr Adds to 3 Holdings, Reduces 3 Others

- By Tiziano Frateschi

Robert Karr (Trades, Portfolio) is the founder of Joho Capital. He is one of the Tiger Cubs, a group of hedge fund managers who learned from the legendary Julian Robertson (Trades, Portfolio). The following are his largest trades of the third quarter :


He increased his holding of Etsy Inc. (ETSY) by 571.80%. The trade had an impact of 5.03% on the portfolio.

Etsy operates a marketplace where people around the world connect, both online and offline, to make, sell and buy goods. During the third quarter, revenue increased 33.3% year over year and net loss decreased 65.2%. The company reported an increase of 109.8% for adjusted EBITDA.

GuruFocus gives the stock a profitability and growth rating of 3 out of 10. The return on equity (ROE) of -3.84% and return on assets (ROA) of -2.31% are underperforming 80% of the companies in the Global Specialty Retail industry. Financial strength has a rating of 8 out of 10. The cash to debt ratio of 22.47 is above the industry median of 0.84.

The largest shareholder of the company among the gurus is Chase Coleman (Trades, Portfolio) with 8.93% of outstanding shares, followed by Jim Simons (Trades, Portfolio) with 3.28%, Robert Karr (Trades, Portfolio) with 1.82%, John Paulson (Trades, Portfolio) with 1.09% and Joel Greenblatt (Trades, Portfolio) with 0.02%.

Karr increased his position in Alibaba Group Holding Ltd. ADR (BABA) by 6.69%. The trade has an impact of 1.58% on the portfolio.

Alibaba is an online and mobile commerce company that provides retail and wholesale marketplaces through personal computer and mobile interfaces. During the third quarter, revenue increased 55% year over year, the operating margin was 27%, adjusted EBITDA margin was 46% and adjusted EBITA margin for core commerce was 62%.

GuruFocus gives the stock a profitability and growth rating of 8 out of 10. The ROA of 15.05% and ROC of 8.57% are outperforming 77% of the companies in the Global Specialty Retail industry. Financial strength has a rating of 6 out of 10. The cash-debt ratio of 1.26 is above the industry median of 0.84.

Frank Sands (Trades, Portfolio) is the largest shareholder of the company among the gurus with 0.75% of outstanding shares, followed by PRIMECAP Management (Trades, Portfolio) with 0.62%, Spiros Segalas (Trades, Portfolio) with 0.26%, Chase Coleman (Trades, Portfolio) with 0.21% Steve Mandel (Trades, Portfolio) with 0.21% and Ken Fisher (Trades, Portfolio) with 0.13%.

The guru increased his position in Cognex Corp. (CGNX) by 9.71%. The transaction had an impact of 1.56% on the portfolio.

Cognex provides machine vision products that capture and analyze visual information in order to automate tasks, mainly in manufacturing processes, where vision is required. Third quarter revenue increased 38% year over year. The gross margin was 78%, an increase from 76% in the same quarter of a year before.

GuruFocus gives the stock a profitability and growth rating of 8 out of 10. The ROE of 15.05% and ROA of 13.92% are outperforming 83% of the companies in the Global Scientific & Technical Instruments industry. Financial strength has a rating of 9 out of 10. The company has no debt.

The largest shareholder of the company among the gurus is Chuck Royce (Trades, Portfolio) with 3.1% of outstanding shares, followed by Ron Baron (Trades, Portfolio) with 1.52%, Caxton Associates (Trades, Portfolio) with 0.08% and Jim Simons (Trades, Portfolio) with 0.04%.

The investor added to his position in Caesarstone Ltd. (CSTE) by 13.17%. The transaction had an impact of 1.19% on the portfolio.

The company manufactures engineered quartz surfaces. Its products are used in both residential and commercial buildings as countertops, vanities, wall cladding, floors and other interior surfaces. During the third quarter, the company reported a 5.5% increase for revenue. The gross margin of 40.5% was up from 39.5% reported in the third quarter of a year before.

GuruFocus gives the stock a profitability and growth rating of 8 out of 10. The ROE of 19.38% and ROA of 14.51% are outperforming 85% of the companies in the Global Building Materials industry. Financial strength has a rating of 8 out of 10. The cash-debt ratio of 3.65 is above the industry median of 0.53.

Ron Baron (Trades, Portfolio) is the largest shareholder of the company among the gurus with 8.94% of outstanding shares, followed by Steven Cohen (Trades, Portfolio) with 0.81%.

The investor reduced his stake in Multi-Color Corp. (LABL) by 6.23%. The trade had an impact of -0.53% on the portfolio.

Multi-Color provides label solutions for home and personal care, liquor, food and beverage, health care and consumer products. It also provides print methods and services. Second quarter net revenues grew 6% from the prior year quarter and gross profit had an increase of 6%.

GuruFocus gives the stock a profitability and growth rating of 8 out of 10. The ROE of 14.99% and ROA of 4.76% are outperforming 58% of the companies in the Global Business Services industry. Financial strength has a rating of 5 out of 10. The cash-debt ratio of 0.06 is below the industry median of 1.45.

Another notable shareholder among the gurus is Third Avenue Management (Trades, Portfolio) with 2.71% of outstanding shares, followed by Ken Fisher (Trades, Portfolio) with 0.22% and Joel Greenblatt (Trades, Portfolio) with 0.04%.

Karr acquired a new holding of 60,000 shares of American Eagle Outfitters Inc. (AEO). The purchased had an impact of 0.21% on the portfolio.

The company is an apparel and accessories retailer. It offers clothing, accessories and personal care products. The company operates stores in the U.S., Canada, Mexico, Hong Kong, China and the U.K.

GuruFocus gives the stock a profitability and growth rating of 7 out of 10. The ROE of 21.22% and ROA of 13.91% are outperforming 85% of the companies in the Global Apparel Stores industry. Financial strength has a rating of 9 out of 10. The company has no debt.

Chuck Royce (Trades, Portfolio) is the largest shareholder of the company among the gurus with 2.06% of outstanding shares, followed by Jim Simons (Trades, Portfolio) with 0.46%, John Buckingham (Trades, Portfolio) with 0.22%, Keeley Asset Management Corp (Trades, Portfolio) with 0.03%, Murray Stahl (Trades, Portfolio) with 0.01%, Paul Tudor Jones (Trades, Portfolio) with 0.01% and Joel Greenblatt (Trades, Portfolio) with 0.01%.

The investor reduced his position in Amazon.com Inc. (AMZN) by 0.05%.

Amazon is an online retailer. The company sells its products through its website and provides services such as advertising and co-branded credit card agreements. It also offers electronic devices like Kindle e-readers and Fire tablets.

GuruFocus gives the stock a profitability and growth rating of 7 out of 10. The ROE of 14.05% and ROA of 3.31% are outperforming 56% of the companies in the Global Specialty Retail industry. Financial strength has a rating of 6 out of 10. The cash-debt ratio of 2.24 is above the industry median of 0.84%.

The largest shareholder of the company among the gurus is Andreas Halvorsen (Trades, Portfolio) with 0.62% of outstanding shares, followed by Frank Sands (Trades, Portfolio) with 0.53%, Spiros Segalas (Trades, Portfolio) with 0.44%, Chris Davis (Trades, Portfolio) with 0.43%, Ken Fisher (Trades, Portfolio) with 0.42% and Chase Coleman (Trades, Portfolio) with 0.28%.

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

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This article first appeared on GuruFocus.