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

Summary

  • Fisher’s US long portfolio value increased from $44.34B to $47.56B in Q2 2014.
  • American Express, Johnson & Johnson, Pfizer, United Technologies, and Wells Fargo continue to be the largest five individual stock positions.
  • Fisher substantially increased stakes in Lloyds Banking Group, Taiwan Semiconductor, & UBS AG while almost eliminating International Business Machines and McDonald’s Corporation.

This article is part of a series that provides an ongoing analysis of the changes made to Kenneth Fisher's US stock portfolio on a quarterly basis. It is based on Fisher Asset Management's regulatory 13F Form filed on 07/25/2014. Please visit our Tracking Kenneth Fisher's Fisher Asset Management Holdings article for an idea on his investment style and philosophy and the fund's moves during Q1 2014.

This quarter, Fisher's US long portfolio increased from $44.34B to $47.56B. The number of holdings increased from 586 to 599. Significantly large positions increased from 54 to 56: ~1% positions in a couple of FI Enhanced Large Cap Growth ETNs (NYFBGX) (NYFLGE) were added this quarter. The largest holding is FI Enhanced Global High Yield ETN (NYFIEG), an instrument tailor-made for them (Fisher Investments has nearly all the shares, although it is exchange traded). The five largest individual stock positions remained the same as last quarter: American Express, Johnson & Johnson, Pfizer, United Technologies, and Wells Fargo accounting for ~2% of the overall US long portfolio each.

To know more about Ken Fisher, check-out his Research Papers (most notably in Behavioral Finance), investment books (several of them were NY Times best sellers) and his father Philip Fisher's scuttlebutt investment philosophy explained in the book "Common Stocks and Uncommon Profits and Other Writings".

New Stakes:

None, excluding the two ETNs mentioned above.

Stake Disposals:

None.

Stake Increases:

Apple Inc. (NASDAQ:AAPL): AAPL is a 2.10% of the US long portfolio position that was built-up in 2012 at prices between $60 and $72. The position was increased by ~60% in Q2 2013 at prices between $59 and $65. Last two quarters saw minor stake increases. The stock currently trades at $97.67. The activity indicates a bullish bias.

Note: AAPL stock split 7-for-1 on June 9th and the numbers above reflect the split.

BASF SE ADR (OTCQX:BASFY): BASFY is a 0.76% of the US long portfolio position that was increased marginally this quarter. The bulk of the current position was purchased in Q2 2013 at prices between $88 and $96. The stock currently trades at around $108. BASFY was a fairly large long-term position in the portfolio that was established well before the financial crisis. In 2012, the position was reduced to an insignificantly small stake but has since been built back up. The activity indicates a bullish bias.

Bank of America (NYSE:BAC): BAC is a 1.36% of the US long portfolio position that was increased by ~6% this quarter at prices between $14.51 and $17.34. The stock currently trades at $15.59. The original position was established in Q2 2013 and Q3 2013 at prices between $11.50 and $15 and had since been kept relatively steady.

Berkshire Hathaway (NYSE:BRK.B): BRK.B is a 1.44% of the US long portfolio position that was increased by ~6% this quarter at prices between $121 and $129. The stock currently trades at $127.55. It is a very long-term position. The last time a substantial stake build-up happened was in Q3 2013 at prices between $112 and $119 when the position was increased by ~55%.

Chevron Corporation (NYSE:CVX): CVX has been in the portfolio since 2009. Most of the stake was purchased in 2012 at prices between $96 and $117. The stock currently trades well outside that range at $133. The position was reduced marginally over the last few quarters although this quarter saw a ~3% stake increase. The stake currently accounts for 0.96% of the US long portfolio. Fisher is bullish on CVX.

Cisco Systems (NASDAQ:CSCO): CSCO is another long-term holding that was first purchased in 2009. By 2012, the stake was at over 33M shares but was since reduced. This quarter saw an about-turn as the position was increased by 6.7% at prices between $22.41 and $25. The stock currently trades just outside that range at around $26. The stake now stands at just over 15M shares (0.79% of the US long portfolio).

Comcast Corporation (NASDAQ:CMCSA): CMCSA is a 1.38% of the US long portfolio position. The original position was established in 2012 at prices between $24 and $37. It had since been marginally reduced. This quarter saw a 5.2% stake increase at prices between $48 and $54. The stock currently trades at around $54.39.

Walt Disney (NYSE:DIS): DIS was a very small position in the portfolio till 2012 when over 8M shares were purchased at prices between $39 and $53. The stock currently trades well over that range at $86.23. The last two quarters saw minor trimming at prices between $64 and $77 but this quarter saw a 5% stake increase at prices between $77 and $85.50. The position currently stands at just over 8.4M shares (1.52% of the US long portfolio).

Exxon Mobil (NYSE:XOM): XOM is a very long-term position. In 2008, just over 5M shares were purchased at prices between $62 and $95. Most of that position was eliminated in 2009 at prices between $66 and $82. The stake was built back up in 2011 at prices between $69 and $87. Last several quarters had seen some trimming but this quarter saw a 2.6% stake increase. The current position stands at ~4.4M shares (0.94% of the US long portfolio). The stock currently trades at around $103.

Google Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL): Google was a very small position that was built-up to a substantial 2% position in 2011 at prices between $242 and $301. The stock currently trades at around $590. Last few quarters had seen minor trimming at prices between $450 and $610 but this quarter saw a 5.8% stake increase. The position currently stands at 1.69% of the US long portfolio.

Note: Google had a 2-for-1 stock split in April 2014 and the prices above reflect that split.

Home Depot (NYSE:HD): HD is a 1.42% of the US long portfolio position first purchased in 2012 at prices between $42 and $65. The stock currently trades at $81. Last two quarters saw minor trimming at prices between $74 and $83 but this quarter saw a 6.2% stake increase at prices between $75.70 and $81.

Johnson & Johnson (NYSE:JNJ): JNJ is a top-five individual stock position at just over $1B (2.30% of the US long portfolio - 10.45M shares). Around two-thirds of the position was purchased in 2008 at prices between $55 and $72 and most of the rest in 2011 at prices between $58 and $68. This quarter saw a 4.7% stake increase at prices between $96 and $106. The stock currently trades at $102.11.

Lloyds Banking Group plc ADR (NYSE:LYG): LYG is a 1.45% of the US long portfolio position first purchased in Q4 2013 at prices between $4.67 and $5.36. The position was increased by ~10% last quarter at prices between $5 and $5.76 and another two-thirds this quarter at prices between $4.83 and $5.53. The stock currently trades at $5.17. The aggressive stake built-up indicates a clear bullish bias.

Oracle Corporation (NYSE:ORCL): ORCL is a 0.95% of the US long portfolio position that has been in the portfolio since before the financial crisis. The large ~2% stake was reduced by around 50% in Q4 2013 at prices between $32 and $38 and was marginally trimmed last quarter. This quarter saw a 6.7% stake increase at prices between $39 and $43. The stock currently trades at $40.33.

Procter & Gamble (NYSE:PG): PG is another long-term 1.25% of the US long portfolio position that has been in the portfolio since before the financial crisis. The original position was increased by just over 75% in 2012 at prices between $60 and $70 and has since been kept relatively steady. This quarter saw minor buying. The stock currently trades at $79.56.

Qualcomm Inc. (NASDAQ:QCOM): QCOM is a 1.58% of the US long portfolio position first purchased in 2011 at prices between $46 and $60. The stake was increased by ~62% in 2012 at prices between $55 and $68. The stock currently trades at $76.10. The last few quarters had seen minor trimming but this quarter saw a 4.8% stake increase at prices between $77.61 and $81.32.

SAP AG ADR (NYSE:SAP): SAP is a 0.97% of the US long portfolio position that was built-up over several quarters in 2012 at prices between $54 and $80. The position had since been reduced by ~8% at prices between $70 and $87 but this quarter saw minor buying. The stock currently trades at $80.68.

Siemens AG ADR (OTCPK:SIEGY): SIEGY is a 1.02% of the US long portfolio position first purchased in Q4 2013 at prices between $119 and $138. The position was increased by ~7% last quarter at prices between $123 and $136 and the stock currently trades at $125. This quarter saw minor additional buying. The stake built-up indicates a clear bullish bias.

Taiwan Semiconductor (NYSE:TSM): TSM is a very long-term 0.98% of the US long portfolio position. A large block was purchased in 2012 at prices between $12.50 and $16.50. The position was reduced by ~50% in Q2 2013 at prices between $17 and $20. This quarter saw a ~16% stake increase at prices between $19.50 and $21.69. The stock currently trades at $20.35. The activity indicates a bullish bias.

UBS AG GRS (UBS): UBS is a 1.51% of the US long portfolio position established in Q3 2013 at prices between $16.92 and $21.45. The stake was reduced by around one-third in Q4 2013 at prices between $19.30 and $21.60. Last quarter saw an about-turn as the position was increased by ~37% at prices between $18.62 and $21.50 and this quarter saw an additional 47% stake increase at prices between $18.32 and $21.15. The stock currently trades at $18.37. The activity indicates a clear bullish bias.

Coca Cola (NYSE:KO), Citigroup Inc. (NYSE:C), General Electric (NYSE:GE), Intel Corporation (NASDAQ:INTC), JP Morgan Chase (NYSE:JPM), Microsoft Corporation (NASDAQ:MSFT), Pfizer Inc. (NYSE:PFE), Schlumberger Ltd. (NYSE:SLB), Visa Inc. (NYSE:V) & Wells Fargo (NYSE:WFC): These are significant positions (more than 0.5% of the US long portfolio) that were increased less than ~5% this quarter. The activity indicates a mild bullish bias toward these businesses.

American Express (NYSE:AXP), Amazon.com (NASDAQ:AMZN), BHP Billiton (NYSE:BHP), Daimler AG ADR (OTCPK:DDAIF), Glaxosmithkline plc ADR (NYSE:GSK), HSBC plc (NYSE:HSBC), LVMH Moet Hennessy ADR (OTCPK:LVMUY), Novartis AG ADR (NYSE:NVS), Novo-Nordisk AS ADR (NYSE:NVO), Pepsico Inc. (NYSE:PEP), Royal Bank of Canada (NYSE:RY), Sanofi ADR (NYSE:SNY), Toyota Motor ADR (NYSE:TM), & United Technologies (NYSE:UTX): These are significant positions (more than 0.5% of the US long portfolio) that were increased marginally (less than ~2% change in position size) this quarter. As the activities were very minor, they do not indicate a change in bias.

Stake Decreases:

International Business Machines (NYSE:IBM): IBM has been in the portfolio since 2008 when a very small stake was established. In 2011 and 2012 the position was increased substantially to just over 3.2M shares (~1.7% of the portfolio position) at prices between $150 and $211. Since then, the stake had been kept relatively steady although there were minor adjustments every quarter. This quarter, the position was reduced to an insignificantly small position at prices between $180 and $198. The stock currently trades at $194.40. The large stake reduction of a fairly large position indicates a clear bearish bias.

L Oreal Co. ADR (OTCPK:LRLCY): LRLCY was a very small position first purchased in 2008. It was built up to a significant ~1% position in 2012 at prices between $20 and $28. Last few quarters saw a ~13% trimming at prices between $31 and $36 and the position currently stands at 0.74% of the US long portfolio.

McDonald's Corporation (NYSE:MCD): MCD was a small position that has been in the portfolio since before the financial crisis. During the crisis, the position was almost sold out. In 2012 and early 2013, the stake was built back up to over 5.2M shares at prices between $84 and $104. The position was almost completely eliminated this quarter at prices between $97 and $104. The stock currently trades at $95.72. The large stake reduction indicates a clear bearish bias.

Kept Steady:

None.

The portfolio also has several large positions in different ETNs and ETFs (NYSEARCA:FEEU) (NYSEARCA:FIGY) (NYSEARCA:FBG) (NYSEARCA:LQD) (NYSEARCA:MBB) (NYSEARCA:SCPB) - those together accounts for just over 13% of the US long portfolio.

The spreadsheet below highlights changes to Fisher's US stock holdings in Q2 2014:

(click to enlarge)

Editor's Note: This article discusses one or more securities that do not trade on a major exchange. Please be aware of the risks associated with these stocks.

Source: Tracking Ken Fisher's Fisher Asset Management Portfolio - Q2 2014 Update