Tracking Glenn Greenberg's Brave Warrior Advisors Portfolio - Q4 2021 Update

Summary

• Glenn Greenberg’s 13F portfolio value increased from $2.86B to $3.14B this quarter.
• Brave Warrior Advisors increased Apollo Global while decreasing Aon plc and dropping Charles Schwab.
• The largest three positions are Anthem Inc., Fidelity National Financial, and Primerica and they add up to ~44% of the portfolio.

teekid/E+ via Getty Images

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 2/14/2022. 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 2021.

This quarter, Greenberg's 13F portfolio value increased ~10% from $2.86B to $3.14B. The top three holdings represent around 44% of the portfolio while the top five are at 61%. The largest position is Anthem Inc. which is at ~20% of the portfolio.

New Stakes:

Mastercard Inc. (MA): MA is a minutely small 0.01% of the portfolio stake established this quarter. It is back in the portfolio after a quarter's gap.

Stake Disposals:

Charles Schwab Corporation (SCHW): The 1.81% 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 six quarters through Q2 2020 had seen a ~75% reduction at prices between $28 and $52. There was an about turn next quarter: ~80% stake increase at prices between ~$33 and ~$38. Q1 2021 saw a two-thirds reduction at prices between ~$52 and ~$68. The disposal this quarter was at prices between ~$73 and ~$86. The stock is now at ~$78.

Meta Platforms (FB), previously Facebook: The minutely small 0.01% of the portfolio FB stake was sold during the quarter.

Stake Increases:

Primerica, Inc. (PRI): PRI is a large (top three) 9.42% 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: Q1 2020 saw a stake doubling at prices between $62 and $137. The four quarters through Q1 2021 had seen a combined ~30% stake increase at prices between ~$81 and ~$153. The stock currently trades at ~$124. Last three quarters have seen only minor adjustments.

Apollo Global (APO) and Athene Holding: These two positions established last quarter were increased this quarter. APO is a large 7.72% of the portfolio position purchased at prices between ~$56 and ~$80 and the stock currently trades at $62.40. The 1.45% of the portfolio stake in Athene was established at prices between ~$62 and ~$71. Apollo merged with Athene in an all-stock (1.149 shares of Apollo for each Athene) deal that closed in January.

Stake Decreases:

Anthem, Inc. (ANTM): ANTM is currently the largest 13F position ~20% of the portfolio. It was established in Q3 2019 at prices between $238 and $311. Q1 2020 saw a ~40% stake increase at prices between $175 and $306. That was followed with a ~50% increase in Q1 2021 at prices between ~$288 and ~$371. Last quarter saw another ~20% stake increase at prices between ~$358 and ~$398. The stock currently trades at ~$452. This quarter saw marginal trimming.

Fidelity National Financial (FNF): FNF is a large (top three) ~14% of the portfolio position established in Q2 2021 at prices between ~$40.50 and ~$47. There was a ~40% stake increase last quarter at prices between ~$42 and ~$49. The stock is now at $46.34. This quarter saw a minor ~2% trimming.

Valvoline Inc. (VVV): VVV is a large 8.91% of the portfolio stake established in Q1 2021 at prices between ~$22.75 and ~$26.75 and the stock currently trades at $31.58. Last three quarters have seen only minor adjustments.

JPMorgan Chase & Co. (JPM): JPM is a large 7.54% 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. There was a one-third selling over the last three quarters at prices between ~$147 and ~$172. The stock currently trades at ~$137.

Progressive Corp. (PGR): PGR is a large 7.34% 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 ~$103. Q1 2021 saw a ~45% stake increase at prices between ~$85 and ~$99. Last three quarters have seen minor trimming.

Raymond James Financial (RJF): RJF is a large 7.14% 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. Q2 2021 saw a ~20% reduction at prices between ~$123 and ~$137 while last quarter there was a ~40% stake increase at prices between ~$83 and ~$95. The stock currently trades at ~$103. This quarter saw minor trimming.

Berkshire Hathaway (BRK.B): BRK.B stake is now at 6.40% 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. Q3 2020 saw a ~30% selling at prices between $178 and $222. That was followed with a ~50% reduction in Q2 2021 at prices between ~$256 and ~$293. The stock currently trades at ~$317. Last two quarters also saw minor trimming.

HCA Healthcare (HCA): HCA is a ~5% of the portfolio position established in Q1 2020 at prices between $68 and $151 and increased by ~20% next quarter at prices between $82 and $118. The stock currently trades at ~$252. There was a ~60% reduction over the last three quarters at prices between ~$157 and ~$262. This quarter saw a further ~2% trimming.

UnitedHealth Group (UNH): The 3.55% 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. There was a ~40% reduction in Q2 2020 at prices between $230 and $312. Q1 2021 saw a ~50% stake increase at prices between ~$324 and ~$379. The stock is now at ~$476. Last three quarters have seen minor 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 four quarters through Q3 2020 at prices between $2 and $7.60. Last five quarters saw a ~70% selling at prices between ~$5.30 and ~$11.50. The stock is now at ~$10.

Aon plc (AON): AON is now a minutely small 0.03% stake. It was a large (top three) ~10% of the portfolio stake established in Q3 2020 at prices between ~$190 and ~$210. The position was sold down last quarter at prices between ~$227 and ~$299. The remainder ~1% stake was almost sold out this quarter at prices between ~$285 and ~$321. The stock currently trades at ~$290.

Kept Steady:

Alphabet Inc. (GOOG): The original fairly large 4.32% of the portfolio stake in GOOG was purchased 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 in H2 2020 at prices between $1414 and $1827. Q1 2021 saw the position reduced to a minutely small stake at prices between ~$1728 and ~$2138. The stock currently trades at ~$2683.

Amazon.com (AMZN), Bank of America (BAC), Comcast Corporation (CMCSA), First American Financial (FAF), Marriott International (MAR), and Moody's Corp. (MCO): These minutely small (less than 0.1% of the portfolio each) stakes were kept steady this quarter.

The spreadsheet below highlights changes to Greenberg's 13F stock holdings in Q4 2021:

Glenn Greenberg - Brave Warrior's Q4 2021 13F Report Q/Q Comparison (John Vincent (author))

Analyst’s Disclosure: I/we have a beneficial long position in the shares of AMZN, GOOGL, FB either through stock ownership, options, or other derivatives. 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.

Comments

[G. Blair Bauer]

Thank you, John.

[cdgingrich]

Thanks very much, John.