Tracking Glenn Greenberg's Brave Warrior Advisors Portfolio - Q1 2019 Update

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Includes: ADS, AM, AR, BAC, C, CMCSA, DHI, FB, FTDR, GOOG, JPM, LBTYK, LEN, MCO, NLSN, PRI, RJF, RRC, SCHW
by: John Vincent
Summary

Glenn Greenberg’s 13F portfolio value increased from $1.97B to $1.99B this quarter.

Brave Warrior Advisors dropped Nielsen Holdings while decreasing Alliance Data Systems and Charles Schwab.

The largest three positions are Alphabet, JPMorgan Chase, and Raymond James Financial and they add up to ~39% of the portfolio.

This article is part of a series that provides an ongoing analysis of the changes made to Glenn Greenberg’s 13F portfolio on a quarterly basis. It is based on Greenberg’s regulatory 13F Form filed on 05/15/2019. Please visit our Tracking Glenn Greenberg’s Brave Warrior Advisors Portfolio series to get an idea of his investment philosophy and our previous update for the fund's moves during Q4 2018.

This quarter, Greenberg’s 13F portfolio value increased marginally from $1.97B to $1.99B. The top three holdings represent 39% of the portfolio while the top five is at 58%. The largest position is Alphabet which is at ~19% of the portfolio.

New Stakes:

None.

Stake Disposals:

Nielsen Holdings NV (NLSN): NLSN was a large 8.27% portfolio stake purchased in Q1 2018 at prices between $31 and $38.50. Q2 2018 saw a ~12% trimming and that was followed with a ~55% selling next quarter at prices between $22 and $32. Last quarter saw another ~11% trimming and the disposal this quarter was at prices between $23 and $27.50. The stock currently trades at $24.16.

Range Resources Corp. (RRC): The minutely small 0.08% stake in RRC was eliminated this quarter.

Stake Decreases:

Alliance Data Systems (ADS): ADS is a top five stake at 9.91% of the 13F portfolio. It was first purchased in Q2 2017 at prices between $235 and $263 and increased by ~50% the following quarter at prices between $210 and $265. There was another ~20% stake increase in Q4 2017 at prices between $220 and $254. The stock currently trades well below those ranges at ~$147. There was a one-third selling this quarter at prices between $150 and $182.

Primerica Inc. (PRI): PRI is a 7.73% of the 13F portfolio position established in Q3 2011 at a cost-basis in the low-20s. H2 2016 saw a two-thirds reduction at prices between $53 and $72.50. The position has wavered since. Recent activity follows: last three quarters saw a combined ~20% selling at prices between $91 and $128.

Charles Schwab Corporation (SCHW): SCHW stake was first purchased in Q3 2012 at prices between $12.50 and $14.50. Thru 2015, the position had seen incremental purchases at higher prices. The nine quarters thru Q1 2018 saw a combined ~38% selling at prices between $23 and $58. This quarter saw another ~42% reduction at prices between $40.50 and $48. The stock is now at $44.02.

Facebook Inc. (FB): FB is a ~7% portfolio stake established last quarter at prices between $124 and $162 and the stock currently trades well above that range at $185. This quarter saw marginal trimming.

Liberty Global plc (LBTYK): LBTYK is a fairly large 6.73% of the portfolio stake purchased in Q1 2016 at prices between $30 and $41 and increased by ~50% the following quarter at prices between $26.50 and $38.50. The stock is now at $25.28. Q2 2017 saw a ~11% trimming at prices between $27.50 and $35. There was a one-third increase in Q2 2018 at prices between $26.50 and $32. Last three quarters have seen a combined ~38% selling at prices between $19.50 and $29.

Stake Increases:

Alphabet Inc. (GOOG): GOOG is now the largest position at ~19% of the portfolio. It was established in Q4 2017 at prices between $952 and $1077 and increased by ~12% next quarter at prices between $1001 and $1176. Q2 2018 also saw a ~14% increase at prices between $1005 and $1175. The stock currently trades at ~$1150. Last three quarters have seen only minor adjustments. For investors attempting to follow Brave Warrior, GOOG is a good option to consider for further research.

JPMorgan Chase & Co. (JPM): JPM is a large (top three) 10.52% of the portfolio stake established in Q3 2014 and built over the next two quarters at prices between $54.50 and $63. The position has wavered. Recent activity follows: Q4 2017 & Q1 2018 had seen a combined ~25% selling at prices between $95 and $119 while last four quarters saw a ~40% increase at prices between $94 and $119. The stock currently trades at ~$112.

Raymond James Financial (RJF): RJF is a large (top three) 9.94% portfolio stake established in Q3 2018 at prices between $88 and $97 and increased by ~20% over the last two quarters at prices between $69 and $94. The stock currently trades at $85.78. For investors attempting to follow, RJF is a good option to consider for further research.

D.R. Horton (DHI) and Lennar Corp. (LEN): These two positions purchased in Q3 2018 were increased in the last two quarters. LEN is a large ~9% portfolio stake established at prices between $46.50 and $55.50 and increased by ~55% last quarter at prices between $38 and $47. It is now at $52.29. The medium-sized 2.67% DHI position was purchased at prices between $39.50 and $46.50 and increased by ~43% last quarter at prices between $33 and $43. The stock currently trades at $43.80. LEN & DHI stakes were increased this quarter by ~6% and ~12% respectively.

Note: For investors attempting to follow, LEN is a good option to consider for further research - the Class B shares of Lennar (LEN-B) trade at a ~20% discount to the Class A shares.

Antero Resources (AR): AR is a 5.30% of the portfolio position established in Q2 2015 at prices between $34 and $45.50 and increased by ~85% the following quarter at prices between $20 and $34.50. Q1 2016 saw another ~20% increase at prices between $19.50 and $28. The following quarter saw a whopping ~120% further increase at prices between $24.50 and $30. The stock currently trades well below those ranges at $7.39. The last two years have seen only minor adjustments.

Citigroup (C): The 4.43% C stake was established in Q3 2018 at prices between $66 and $75. Last quarter saw a ~14% trimming at prices between $49 and $73 while this quarter there was a ~20% stake increase at prices between $52.50 and $66. The stock currently trades at ~$66.

Antero Midstream (AM): The minutely small 0.43% portfolio position in AM saw a ~600% stake increase this quarter at prices between $11 and $14.50. The stock is now at $13.27.

Moody’s Corp (MCO): MCO is a minutely small 0.06% portfolio stake established in Q3 2018 and increased by roughly one-third last quarter. There was a marginal further increase this quarter.

Kept Steady:

Comcast Corporation (CMCSA), Bank of America (BAC), and Frontdoor Inc. (FTDR): These three minutely small (less than ~0.05% of the portfolio each) stakes were kept steady this quarter.

The spreadsheet below highlights changes to Greenberg’s 13F stock holdings in Q1 2019:

Glenn Greenberg - Brave Warrior Advisors - Q1 2019 13F Report Q/Q Comparison

Disclosure: I am/we are long AR, BAC, NLSN. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.