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This article is part of a series that provides an ongoing analysis of the changes made to Glenn Greenberg's U.S. stock portfolio on a quarterly basis. It is based on Greenberg's regulatory 13F Form filed on 11/14/2013. Please visit our Tracking Glenn Greenberg's Brave Warrior Advisors Portfolio series to get an idea of his investment philosophy and the fund's moves in Q2 2013.

This quarter, Greenberg's US long portfolio increased around 3.2% from $2.16B to $2.23B. The number of holdings remained steady at 11. The top three holdings represent over 50% of the portfolio while the top-five exceeds two-thirds of the value of the entire portfolio. The largest holding is Valeant Pharmaceuticals (VRX) which has been in the portfolio since Q1 2011 and now accounts for a whopping 30.77% of the portfolio.

Stake Disposals:

Google Inc. (GOOG): GOOG was a ~8% position purchased in Q1 2010 at prices between $525 and $602. The stake was increased substantially in 2011 and 2012. By Q2 2012, GOOG was the largest stake at 15.85% of the portfolio and the share count stood at around 386K. Since then, the stake has been trimmed. Last quarter, the position was reduced substantially to a 5.33% position at prices between $765 and $915 and the stake was eliminated this quarter at prices between $847 and $925. The stock currently trades at $1038. Greenberg harvested large gains from this position.

Fiserv Inc. (FISV): FISV has been in the portfolio since Q2 2010. The original position was purchased at prices between $50 and $54.40. The position size peaked at over 2.2M shares in Q2 2012 and since then has been trimmed. Last quarter, the stake was reduced by 22% to a 4.54% of the US long portfolio position at prices between $81 and $91. The position was eliminated this quarter at prices between $87 and $103. The stock currently trades at $108. Here again, Greenberg harvested large gains from the position.

New Stakes:

Microsoft Corporation (MSFT): MSFT is a 5.88% of the US long portfolio position established this quarter at prices between $31 and $36.50. The stock currently trades at $37.90. The stake establishment indicates a mild bullish bias.

Motorola Solutions (MSI): MSI is a small 1.78% of the US long portfolio position established this quarter at prices between $54 and $61. The stock currently trades at $65. As the position size is relatively small, the activity does not indicate a clear bias.

Stake Decreases:

Comcast Corporation (CMCSA): CMCSA is a 5.27% of the US long portfolio stake that is a remnant of a huge $1.4B activist stake built in the 2005-2006 timeframe (under Chieftain Capital Management). The activism revolved around calls to replace Comcast CEO Brian Roberts over management missteps and failure to increase shareholder value. That plan did not succeed but they were instrumental in the company initiating a 25c annual dividend in early 2008. The position was marginally increased last quarter but was decreased slightly this quarter. The stock currently trades at around $47.67, more than double his average cost-basis.

Express Scripts Holding (ESRX): ESRX is a 9.37% of the US long portfolio stake that was first purchased in Q4 2012 at prices between $50 and $65. The position was more than doubled in Q1 2013 at prices between $53.30 and $59. The stake was marginally increased last quarter as well. This quarter saw a turnaround as the position was reduced by ~20% at prices between $61 and $68. The stock currently trades at $66.41. The significant stake reduction this quarter indicates a bearish bias.

Higher One Holdings Inc. (ONE): ONE has been in the portfolio since Q1 2012. The original position was a 6.5M share stake established at prices between $15 and $18. The stake was trimmed marginally last quarter at prices between $8.75 and $11.75. It was reduced by another 27% this quarter at prices between $7 and $11.64. The stock currently trades at $10.20. The stake reduction indicates a bearish bias.

Charles Schwab Corporation (SCHW): SCHW was a 4.67% of the US long portfolio stake established in Q3 2012 at prices between $12.50 and $14.50. It has since been built up to an 8.74% stake by incremental purchases over the following quarters. This quarter saw minor trimming at prices between $21 and $23. The stock currently trades at $24.21.

Valeant Pharmaceuticals : VRX is Greenberg's largest position at 30.77% of the US long portfolio. The stake was decreased marginally this quarter at prices between $86 and $106. The original position consisted of ~2.4M shares purchased in Q1 2011 at prices between $28.50 and $53.25 and the current position stands at ~6.6M shares. The stock currently trades at around $106. Greenberg is very bullish on VRX and his average cost-basis is very low.

VistaPrint N V (VPRT): VPRT is Greenberg's fourth largest position at 9.83% of the US long portfolio. The position was increased marginally last quarter at prices between $33.50 and $48.50 but was reduced by one-third this quarter at prices between $48 and $57. The stock currently trades at $55.24. The original stake consisted of ~2M shares purchased in Q4 2011 at prices between $27 and $36. The position currently stands at 3.87M shares. Greenberg is harvesting gains from the position.

Stake Increases:

Halliburton (HAL): HAL is a 10.21% of the US long portfolio stake that was increased by roughly two times last quarter at prices between $37 and $45.50. The position was further increased by ~7% this quarter at prices between $41.72 and $50.50. The original stake was established in Q1 2013 at prices between $34.50 and $43.50. The stock currently trades at $56.14. The aggressive stake build-up indicates a clear bullish bias.

Oracle Corporation (ORCL): ORCL was a small 2.14% position established in Q4 2011 at prices between $22.50 and $33.75. The stake has since been built-up over the following quarters to a large 10.46% position. Last quarter, the position was increased by ~25% at prices between $30 and $35.10 and this quarter saw a further ~15% stake increase at prices between $30 and $34. The stock currently trades at $34.50. The aggressive stake build-up indicates a clear bullish bias.

Primerica Inc. (PRI): PRI is a 6.11% of the US long portfolio position first established in Q3 2011. The original stake consisted of ~1.3M shares and has since been built-up over the ensuing quarters to a ~3.4M share position. This quarter, the pattern continued, as the position was increased marginally at prices between $36.90 and $42.30. The stock currently trades at $42.41.

The spreadsheet below highlights changes to Greenberg's US stock holdings in Q3 2013:


(Click to enlarge)

Source: Tracking Glenn Greenberg's Brave Warrior Advisors Portfolio - Q3 2013 Update