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The Vanguard Health Care Fund Buys Pfizer, Humana

The Vanguard Health Care Fund (Trades, Portfolio) bought shares of the following stocks during the second quarter.

The fund established a new position in Pfizer Inc. (NYSE:PFE), buying 22.29 million shares. The trade had an impact of 2.22% on the portfolio.

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The pharmaceutical company has a market cap of $212.67 billion and an enterprise value of $246.56 billion.


GuruFocus gives the company a profitability and growth rating of 7 out of 10. The return on equity of 18.97% and return on assets of 7.79% are outperforming 51% of companies in the Drug Manufacturers industry. Its financial strength is rated 5 out of 10. The equity-asset ratio of 0.38 is below the industry median of 0.63.

Another notable guru shareholder is Barrow, Hanley, Mewhinney & Strauss with 0.37% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.22%.

Vanguard bought 3.74 million shares of Alcon Inc. (NYSE:ALC). The trade had an impact of 0.53% on the portfolio.

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The company has a market cap of $28.02 billion and an enterprise value of $31.73 billion.


GuruFocus gives the company a profitability and growth rating of 2 out of 10. The return on equity of -1.48% and return on assets of -1.15% are underperforming 100% of companies in the Medical Instruments and Equipment industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.14 is below the industry median of 1.45.

The company's largest guru shareholder is Vanguard with 0.77% of outstanding shares, followed by Ken Fisher (Trades, Portfolio) with 0.28%.

The fund boosted its Anthem Inc. (NYSE:ANTM) holding by 17.36%. The portfolio was impacted by 0.39%.

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The managed care company has a market cap of $74.94 billion and an enterprise value of $69.53 billion.

GuruFocus gives the company a profitability and growth rating of 4 out of 10. The return on equity of 13.85% and return on assets of 5.50% are underperforming 61% of companies in the Health Care Plans industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.21 is below the industry median of 0.51.

The company's largest guru shareholder is Andreas Halvorsen (Trades, Portfolio) with 2.41% of outstanding shares, followed by Barrow, Hanley, Mewhinney & Strauss with 0.74% and First Eagle Investment (Trades, Portfolio) with 0.71%.

Vanguard increased its Mylan NV (NASDAQ:MYL) position by 20.82%. This trade impacted the portfolio by 0.33%.

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The pharmaceutical company has a market cap of $10 billion and an enterprise value of $23.89 billion.


GuruFocus gives the company a profitability and growth rating of 8 out of 10. The return on equity of 0.29% and return on assets of 0.11% are underperforming 96% of companies in the Drug Manufacturers industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.02 is below the industry median of 1.43.

Another notable guru shareholder of the company is Richard Pzena (Trades, Portfolio) with 4.08% of outstanding shares, followed by John Paulson (Trades, Portfolio) with 2.14% and First Pacific Advisors (Trades, Portfolio) with 1.81%.

The health care-focused fund established a new position in Intuitive Surgical Inc. (NASDAQ:ISRG), buying 173,700 shares. The portfolio was impacted by 0.21%.

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The company, which makes robotic systems for minimally invasive surgery, has a market cap of $60.39 billion and an enterprise value of $57.68 billion.

GuruFocus gives the company a profitability and growth rating of 8 out of 10. The return on equity of 18.27% and return on assets of 15.60% are outperforming 71% of companies in the Medical Instruments and Equipment industry. Its financial strength is rated 9 out of 10 with no debt.

The largest guru shareholder of the company is Spiros Segalas (Trades, Portfolio) with 0.74% of outstanding shares, followed by Pioneer Investments with 0.14%, Stanley Druckenmiller (Trades, Portfolio) with 0.11% and Steven Cohen (Trades, Portfolio) with 0.07%.

Vanguard increased its Humana Inc. (NYSE:HUM) position by 52.48%, impacting the portfolio by 0.20%.

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The company, which provides Medicare Advantage plans in the U.S., has a market cap of $39.03 billion and an enterprise value of $30.19 billion.


GuruFocus gives the company a profitability and growth rating of 4 out of 10. The return on equity of 23.33% and return on assets of 8.67% are outperforming 60% of companies in the Health Care Plans industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.81 is above the industry median of 0.58.


The largest guru shareholder of the company is Jim Simons (Trades, Portfolio)' Renaissance Technologies with 2.30% of outstanding shares, followed by Larry Robbins (Trades, Portfolio) with 0.97% and Lee Ainslie (Trades, Portfolio) with 0.46%.

The fund bolstered its holding of Teva Pharmaceutical Industries Ltd. (NYSE:TEVA) by 15.79%. The portfolio was impacted by 0.13%.

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The generic pharmaceuticals manufacturer has a market cap of $8.87 billion and an enterprise value of $36.72 billion.

GuruFocus gives the holding company a profitability and growth rating of 5 out of 10. The return on equity of -21.25% and return on assets of -5.24% are underperforming 100% of companies in the Drug Manufacturers industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.07 is below the industry median of 1.43.

Another notable guru shareholder of the company is Warren Buffett (Trades, Portfolio) with 3.96% of outstanding shares, followed by David Abrams (Trades, Portfolio) with 1.65% and Barrow, Hanley, Mewhinney & Strauss with 0.27%.

Disclosure: I do not own any stocks mentioned.

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This article first appeared on GuruFocus.