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Ruane Cunniff's Top 1st-Quarter Trades

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- By James Li

Ruane Cunniff (Trades, Portfolio), the firm founded by the late William Ruane, disclosed in May that its top trades during the first quarter included new positions in Micron Technology Inc. (NASDAQ:MU) and Anthem Inc. (NYSE:ANTM). The firm also reduced its positions in Berkshire Hathaway Inc. (NYSE:BRK.A)(NYSE:BRK.B), Mastercard Inc. (NYSE:MA) and Arista Networks Inc. (NYSE:ANET).


The New York-based firm, which received recognition from Warren Buffett (Trades, Portfolio), applies a long-term, value-oriented approach to investing. Ruane Cunniff (Trades, Portfolio) looks at common stocks as units of ownership in a business and thus, buys shares when the stock trades at a discount to intrinsic value. The firm emphasizes fundamental, balance-sheet analysis over technical analysis.

Ruane Cunniff's Top 1st-Quarter Trades
Ruane Cunniff's Top 1st-Quarter Trades

The firm manages the Sequoia Fund and other separate managed accounts. As of March 31, the firm's $10.64 billion equity portfolio contains 37 stocks, with five new positions and a turnover ratio of 11%. The top three sectors in terms of weight are communication services, financial services and technology, with weights of 33.01%, 21.52% and 17.61%, respectively.

Ruane Cunniff's Top 1st-Quarter Trades
Ruane Cunniff's Top 1st-Quarter Trades

Micron Technology

The firm purchased 5,325,143 shares of Micron Technology (NASDAQ:MU), giving the position a 4.42% weight in the equity portfolio. Shares averaged $84.89 during the first quarter; the stock is significantly overvalued based on Thursday's price-to-GF-Value ratio of 1.61.

Ruane Cunniff's Top 1st-Quarter Trades
Ruane Cunniff's Top 1st-Quarter Trades

GuruFocus ranks the Boise, Idaho-based semiconductor company's profitability 8 out of 10 on several positive investing signs, which include a high Piotroski F-score of 7 and and an operating margin that outperforms more than 70% of global competitors.

Ruane Cunniff's Top 1st-Quarter Trades
Ruane Cunniff's Top 1st-Quarter Trades

Gurus with large holdings in Micron Technology include PRIMECAP Management (Trades, Portfolio) and Li Lu (Trades, Portfolio)'s Himalaya Capital.

Ruane Cunniff's Top 1st-Quarter Trades
Ruane Cunniff's Top 1st-Quarter Trades

Anthem

The firm purchased 1,171,845 shares of Anthem (NYSE:ANTM), handing the position 3.96% equity portfolio space. Shares averaged $321.08 during the first quarter; the stock is fairly valued based on Thursday's price-to-GF-Value ratio of 1.10.

Ruane Cunniff's Top 1st-Quarter Trades
Ruane Cunniff's Top 1st-Quarter Trades

GuruFocus ranks the Indianapolis-based health care organization's financial strength 5 out of 10: Although the company has a solid Piotroski F-score of 5, interest coverage and debt ratios underperform more than 60% of global competitors.

Ruane Cunniff's Top 1st-Quarter Trades
Ruane Cunniff's Top 1st-Quarter Trades

Berkshire Hathaway

The firm sold 427,223 Class B shares of Berkshire Hathaway (NYSE:BRK.B), slimming the position 40.75% and the equity portfolio 1.06%. Shares averaged $242.84 during the first quarter; the stock is fairly valued based on Thursday's price-to-GF-Value ratio of 0.91.

Ruane Cunniff's Top 1st-Quarter Trades
Ruane Cunniff's Top 1st-Quarter Trades

GuruFocus ranks the Omaha, Nebraska-based insurance conglomerate's profitability 7 out of 10 on several positive investing signs, which include a four-star business predictability rank, a Piotroski F-score of 7, and profit margins and returns outperforming over 90% of global competitors.

Ruane Cunniff's Top 1st-Quarter Trades
Ruane Cunniff's Top 1st-Quarter Trades

Mastercard

The firm sold 456,069 shares of Mastercard (NYSE:MA), trimming 47.52% of the position and 1.73% of the equity portfolio. Shares averaged $348.78 during the first quarter; the stock is modestly overvalued based on Thursday's price-to-GF-Value ratio of 1.26.

Ruane Cunniff's Top 1st-Quarter Trades
Ruane Cunniff's Top 1st-Quarter Trades
Ruane Cunniff's Top 1st-Quarter Trades
Ruane Cunniff's Top 1st-Quarter Trades

GuruFocus ranks the Purchase, New York-based credit service company's profitability 10 out of 10 on several positive investing signs, which include a five-star business predictability rank and returns outperforming over 98% of global competitors.

Ruane Cunniff's Top 1st-Quarter Trades
Ruane Cunniff's Top 1st-Quarter Trades

Arista Networks

The firm sold 500,945 shares of Arista Networks (NYSE:ANET), chopping 25.87% of the stake and 1.55% of the equity portfolio. Shares averaged $299.53 during the first quarter; the stock is modestly overvalued based on Thursday's price-to-GF-Value ratio of 1.20.

Ruane Cunniff's Top 1st-Quarter Trades
Ruane Cunniff's Top 1st-Quarter Trades
Ruane Cunniff's Top 1st-Quarter Trades
Ruane Cunniff's Top 1st-Quarter Trades

GuruFocus ranks the Santa Clara, California-based network solutions company's profitability 9 out of 10 on several positive investing signs, which include profit margins and returns outperforming more than 90% of global competitors.

Ruane Cunniff's Top 1st-Quarter Trades
Ruane Cunniff's Top 1st-Quarter Trades

Disclosure: No positions.

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This article first appeared on GuruFocus.