Tracking Glenn Greenberg's Brave Warrior Advisors Portfolio - Q4 2020 Update

Summary

• Glenn Greenberg’s 13F portfolio value increased from $2.24B to $2.72B this quarter.
• Brave Warrior Advisors increased Aon plc while decreasing Antero Midstream.
• The largest three positions are Berkshire Hathaway, Aon plc, and JPMorgan Chase and they add up to one third 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 2/16/2021. 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 Q3 2020.

This quarter, Greenberg’s 13F portfolio value increased ~21% from $2.24B to $2.72B. The top three holdings represent around one-third of the portfolio while the top five are at 53%. The largest position is Berkshire Hathaway which is at ~12% of the portfolio.

New Stakes:

None.

Stake Disposals:

CDK Global (CDK): The minutely small 0.02% of the portfolio stake in CDK Global established last quarter was disposed of this quarter.

Stake Increases:

Aon plc (AON) and Credit Acceptance Corp. (CACC): AON is a large (top three) ~12% of the portfolio stake established last quarter at prices between ~$190 and ~$210 and the stock currently trades at ~$233. This quarter saw a ~13% stake increase. CACC is a 5.80% of the portfolio position purchased last quarter at prices between ~$298 and ~$524. The stake was increased by ~220% this quarter at prices between ~$288 and ~$356. The stock is now at $378.

Anthem Inc. (ANTM): ANTM is a large (top five) ~9% of the portfolio stake established in Q3 2019 at prices between $238 and $311 and the stock currently trades at ~$312. Q1 2020 saw a ~40% stake increase at prices between $175 and $306. Last three quarters have seen only minor activity.

UnitedHealth Group (UNH): The 2.10% UNH position was purchased in Q4 2019 at prices between $215 and $296 and increased by roughly two-thirds next quarter at prices between $195 and $305. It is now at ~$335. There was a ~40% reduction in Q2 2020 at prices between $230 and $312. This quarter saw a minor increase.

Moody’s Corp. (MCO): The minutely small 0.04% position in MCO saw a ~5% stake increase this quarter.

Stake Decreases:

Berkshire Hathaway (BRK.B): BRK.B is currently the largest position at ~12% of the portfolio. It was established in Q2 2019 at prices between $197 and $219. The four quarters through Q2 2020 had seen a ~60% increase at prices between ~$160 and ~$230. The stock currently trades at ~$249. Last quarter saw a ~30% selling at prices between $178 and $222. This quarter also saw a ~4% trimming.

JPMorgan Chase & Co. (JPM): JPM is a large (top three) ~10% 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 the next four quarters saw a ~40% increase at around the same price range. Since then, the activity has been minor. The stock currently trades at ~$150. This quarter saw marginal trimming.

HCA Healthcare (HCA) and Facebook, Inc. (FB): These two positions were established in Q1 2020. HCA is a large ~10% of the portfolio position established at prices between $68 and $151 and increased by ~20% next quarter at prices between $82 and $118. The stock currently trades at ~$178. Last two quarters have seen minor selling. The 2.55% FB stake was purchased at prices between $146 and $223 and it is now above that range at ~$259. Last quarter saw the position reduced by ~25% at prices between $227 and $304. There was minor trimming this quarter.

Primerica Inc. (PRI): PRI is a large 8.23% 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. Recent activity follows: Q3 2019 saw a ~16% stake increase at prices between $110 and $129. That was followed with a ~19% selling next quarter at prices between $118 and $137. Q1 2020 saw a stake doubling at prices between $62 and $137. The stock currently trades at ~$145. Last two quarters had also seen a ~15% stake increase. This quarter saw marginal trimming.

Raymond James Financial (RJF): RJF is a large ~7% portfolio stake established in Q3 2018 at prices between $88 and $97. It was increased by ~20% over the next two quarters at prices between $69 and $94. Last five quarters have seen minor trimming. The stock currently trades at $118.

Progressive Corp. (PGR): PGR is a large ~6% of the portfolio stake established in Q4 2019 at prices between $68.50 and $77 and the stock currently trades well above that range at $88.71. Last four quarters have seen only minor adjustments.

Charles Schwab Corporation (SCHW): The 4.52% 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 ~40% selling at prices between $23 and $58. The six quarters through Q2 2020 had seen another ~75% reduction at prices between $28 and $52. There was an about turn last quarter: ~80% stake increase at prices between ~$33 and ~$38. The stock is now at $63.80. This quarter saw a ~9% trimming.

Dollar Tree (DLTR): DLTR was a minutely small stake first purchased in Q4 2019. Last quarter saw the position built to a sizable ~4% of the portfolio stake at prices between ~$86 and ~$104. The stock currently trades at $98.95. This quarter saw a ~3% trimming.

Antero Midstream (AM): A small stake in AM was built in Q1 2019 at prices between $11 and $14.50. There was a ~30% selling in Q3 2019 at prices between $6.65 and $12.10. The position was increased substantially to a ~2% portfolio stake over the last four quarters at prices between $2 and $7.60. This quarter saw a one-third selling at prices between $5.20 and $8.45. The stock is now at $9.20.

Alphabet Inc. (GOOG): GOOG is a 4.32% of the portfolio position established in Q4 2017 at prices between $952 and $1077. Q4 2019 saw a ~20% selling at prices between $1177 and $1360. Next quarter saw another ~25% selling at prices between $1057 and $1527. That was followed with a ~60% reduction over the last two quarters at prices between $1414 and $1827. The stock currently trades at ~$2076.

Ryanair Holdings (RYAAY): RYAAY is a small 0.83% of the portfolio stake purchased in Q2 2020 at prices between $50 and $81 and the stock currently trades at ~$109. Last two quarters saw a ~20% reduction at prices between ~$64 and ~$118.

Kept Steady:

Amazon.com (AMZN), Bank of America (BAC), Comcast Corporation (CMCSA), and Marriott International (MAR): These minutely small (less than 0.1% of the portfolio each) stakes were kept steady during the quarter.

The spreadsheet below highlights changes to Greenberg’s 13F stock holdings in Q4 2020:

Source: Created by author with data from Brave Warrior Advisors

Analyst’s Disclosure: I am/we are long AMZN. 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.