Seeking Alpha
Long only, value, special situations, fund holdings
Profile| Send Message|
( followers)  

This article is part of a series that provides an ongoing analysis of the changes made to Glenn Greenberg's US stock portfolio on a quarterly basis. It is based on Greenberg's regulatory 13F Form filed on 02/14/2014. Please visit our Tracking Glenn Greenberg's Brave Warrior Advisors Portfolio series to get an idea of his investment philosophy and our previous update highlighting the fund's moves during Q3 2013.

This quarter, Greenberg's US long portfolio increased around 10% from $2.23B to $2.44B. 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 (NYSE:VRX) which has been in the portfolio since Q1 2011 and now accounts for a whopping 29.38% of the portfolio.

Stake Disposals:

Motorola Solutions (NYSE:MSI): MSI was a small 1.78% of the US long portfolio position that was disposed of this quarter at prices between $59.38 and $67.50. The position was established last quarter at prices between $54 and $61. The stock currently trades at $65.67. The position size was relatively small but the quick turn-around indicates a mild bearish bias.

New Stakes:

Kinder Morgan Management LLC (NYSE:KMR): KMR is a 5.64% of the US long portfolio position purchased this quarter at prices between $71.05 and $75.64. The stock currently trades near the middle of that range at $75.78. The substantial stake establishment indicates a bullish bias. For investors attempting to follow Greenberg, KMR is a good option to consider.

Stake Decreases:

Comcast Corporation (NASDAQ:CMCSA) (NASDAQ:CMCSK): Comcast is a 3.77% of the US long portfolio stake. It 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 in Q2 2013 but was decreased slightly last quarter. This quarter saw a ~32% stake reduction at prices between $44.33 and $52. The stock currently trades at around $52.97. Greenberg is harvesting huge gains from this position after a holding period of over eight years.

Higher One Holdings Inc. (NYSE: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 in Q2 2013 at prices between $8.75 and $11.75. It was reduced by another 27% last quarter at prices between $7 and $11.64. This quarter saw another 50% cut at prices between $7.46 and $10.46. The stock currently trades at $8.78. The stake reduction indicates a bearish bias. The remaining stake stands at around 5% of the shares outstanding.

Charles Schwab Corporation (NYSE: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 8.47% stake by incremental purchases over the following quarters. Last quarter saw minor trimming at prices between $21 and $23. This quarter, the position was reduced by ~14% at prices between $20.57 and $26. The stock currently trades at $25.80. Greenberg is starting to harvest substantial gains from this position.

Valeant Pharmaceuticals : VRX is Greenberg's largest position at 29.38% of the US long portfolio. The stake was decreased marginally last quarter at prices between $86 and $106. This quarter saw a ~7% stake reduction at prices between $103 and $118. 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 ~6.1M shares. The stock currently trades at around $142.

VistaPrint N V (NASDAQ:VPRT): VPRT is a 7.42% of the US long portfolio stake. The position was increased marginally in Q2 2013 at prices between $33.50 and $48.50 but was reduced by one-third last quarter at prices between $48 and $57. This quarter saw an 18% stake reduction at prices between $51.92 and $57.66. The stock currently trades at $50. The original stake consisted of ~2M shares purchased in Q4 2011 at prices between $27 and $36. The position currently stands at 3.19M shares. Greenberg is continuing to harvest gains from the position.

Stake Increases:

Express Scripts Holding (NASDAQ:ESRX): ESRX is a 11.38% 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 in Q2 2013 as well. Last quarter saw an about-turn as the position was reduced by ~20% at prices between $61 and $68. This quarter the pattern reversed as there was a ~17% stake increase at prices between $60.88 and $70.60. The stock currently trades well above those ranges at $76.60.

Halliburton (NYSE:HAL): HAL is a 9.86% of the US long portfolio stake that was increased by roughly two times in Q2 2013 at prices between $37 and $45.50. The position was further increased by ~7% last 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. This quarter saw a marginal stake increase. The stock currently trades at $53.46. The stake build-up over several quarters indicates a bullish bias.

Oracle Corporation (NYSE: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 11.07% position. In Q2 2013, the position was increased by ~25% at prices between $30 and $35.10 and last quarter saw a further ~15% stake increase at prices between $30 and $34. This quarter saw a minor stake increase. The stock currently trades at $38.42. The aggressive stake build-up indicates a clear bullish bias.

Primerica Inc. (NYSE:PRI): PRI is a 5.95% 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. Last quarter, the pattern continued, as the position was increased marginally at prices between $36.90 and $42.30 and this quarter was more of the same - marginal stake increase at prices between $39.20 and $44. The stock currently trades at $44.36. The pattern indicates a bullish bias.

Microsoft Corporation (NASDAQ:MSFT): MSFT is a 6.07% of the US long portfolio position established last quarter at prices between $31 and $36.50. This quarter saw a minor stake increase at prices between $33 and $39. The stock currently trades at $37.61. The activity indicates a mild bullish bias.

The spreadsheet below highlights changes to Greenberg's US stock holdings in Q4 2013:

(click to enlarge)

Source: Tracking Glenn Greenberg's Brave Warrior Advisors Portfolio - Q4 2013 Update