Tracking Glenn Greenberg's Brave Warrior Advisors Portfolio - Q2 2019 Update

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Includes: ADS, AM, AR, BAC, BRK.A, BRK.B, C, CMCSA, DHI, FB, FTDR, GOOG, GOOGL, JPM, LBTYK, LEN, MCO, PRI, RJF, SCHW
by: John Vincent
Summary

Glenn Greenberg’s 13F portfolio value decreased from $1.99B to $1.88B this quarter.

Brave Warrior Advisors added Berkshire Hathaway, while dropping Alliance Data Systems.

The largest three positions are Alphabet, Berkshire Hathaway, and JPMorgan Chase, and they add up to ~44% 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 08/14/2019. 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 Q1 2019.

This quarter, Greenberg’s 13F portfolio value decreased ~6%, from $1.99B to $1.88B. The top three holdings represent ~44% of the portfolio, while the top five are at 63%. The largest position is Alphabet (GOOG), which is at ~17% of the portfolio.

New Stakes

Berkshire Hathaway (BRK.B): BRK.B is a large (top-three) 14.28% of the portfolio stake established this quarter at prices between $197 and $219, and the stock currently trades near the low end of that range at ~$198. For investors attempting to follow, BRK.B is a good option to consider for further research.

Stake Disposals

Alliance Data Systems (ADS): ADS was a top-five stake at 9.91% of the 13F portfolio as of last quarter. 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. There was a one-third selling last quarter at prices between $150 and $182. The disposal this quarter was at prices between $134 and $181. The stock currently trades at ~$131. Brave Warrior realized losses.

Stake Decreases

Alphabet Inc.: GOOG is the largest position at ~17% 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 ~$1183. The last three quarters had seen only minor adjustments. This quarter saw a ~6% trimming.

JPMorgan Chase & Co. (JPM): JPM is a large (top-three) ~12% 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. In recent activity, Q4 2017 and Q1 2018 had seen a combined ~25% selling at prices between $95 and $119, while the last four quarters had seen a ~40% increase at prices between $94 and $119. The stock currently trades at ~$107. This quarter saw marginal trimming.

Raymond James Financial (RJF): RJF is a large (top-five) ~11% portfolio stake established in Q3 2018 at prices between $88 and $97 and increased by ~20% over the next two quarters at prices between $69 and $94. The stock currently trades at $76.63. For investors attempting to follow, RJF is a good option to consider for further research. There was marginal trimming this quarter.

D.R. Horton (DHI) and Lennar Corp. (LEN): These two positions purchased in Q3 2018 were increased next quarter. LEN is a large ~9% portfolio stake established at prices between $46.50 and $55.50, and increased by ~55% in Q4 2018 at prices between $38 and $47. It is now at $50.95. The medium-sized 2.91% DHI position was purchased at prices between $39.50 and $46.50, and increased by ~43% in Q4 2018 at prices between $33 and $43. The stock currently trades at $48.91. Both positions saw minor increases last quarter and trimming this quarter.

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.

Charles Schwab Corporation (SCHW): SCHW stake was first purchased in Q3 2012 at prices between $12.50 and $14.50. Through 2015, the position had seen incremental purchases at higher prices. The nine quarters through Q1 2018 saw a combined ~38% selling at prices between $23 and $58. Last quarter saw another ~42% reduction at prices between $40.50 and $48. The stock is now at $37.32. There was marginal trimming this quarter. It is still a large stake at 7.28% of the portfolio.

Liberty Global plc (LBTYK): LBTYK is a fairly large 6.58% 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 $25.86. Q2 2017 saw an ~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. The last three quarters had seen a combined ~38% selling at prices between $19.50 and $29. That was followed with a ~15% selling this quarter at prices between $24 and $27.50.

Facebook Inc. (FB): FB is a ~6% portfolio stake established last quarter at prices between $124 and $162. This quarter saw a roughly one-third selling at prices between $164 and $196. The stock is now at $184.

Citigroup (C): The ~5% C stake was established in Q3 2018 at prices between $66 and $75. Q4 2018 saw a ~14% trimming at prices between $49 and $73, while last quarter, there was a ~20% stake increase at prices between $52.50 and $66. The stock currently trades at $63.42. There was a ~2% trimming this quarter.

Primerica Inc. (PRI): PRI is a 4.84% 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. In recent activity, the last three quarters saw a combined ~20% selling at prices between $91 and $128. That was followed with a ~40% selling this quarter at prices between $115 and $132. The stock currently trades at $118.

Antero Resources (AR): AR is a 3.46% 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 $3.60. The last three years have seen only minor adjustments.

Stake Increases

Antero Midstream (AM): The minutely small 0.41% portfolio position in AM saw a ~600% stake increase last quarter at prices between $11 and $14.50. The stock is now well below that range at $7.75. This quarter saw a minor ~7% further increase.

Kept Steady

Moody’s Corp. (MCO): MCO is a minutely small 0.07% portfolio stake established in Q3 2018 and increased by roughly one-third next quarter. There was a marginal further increase last quarter.

Comcast Corporation (CMCSA), Bank of America (BAC), and Frontdoor Inc. (FTDR): These three minutely small (less than ~0.10% of the portfolio each) stakes were kept steady this quarter.

The spreadsheet below highlights changes to Greenberg’s 13F stock holdings in Q2 2019:

Glenn Greenberg - Brave Warrior Advisors Q2 2019 13F Report Q/Q Comparison

Disclosure: I am/we are long AR, BAC, BRK.B. 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.