- While they have different strategies, the two women have many of the same holdings.
Katherine Wood ,trades, Department), Founder, Chief Investment Officer and CEO of ARK Investment Management, has made a name for himself through investing in “disruptive innovation” stocks. Applying an iterative process that combines top-down and bottom-up research, his New York-based firm seeks to invest in companies that benefit from cross-sector innovations such as artificial intelligence, robotics, energy storage, DNA sequencing and blockchain technology. May be.
By comparison, Causeway Capital’s Sarah Caterer ,trades, Department) seeks to achieve better risk-adjusted returns by investing in mispriced equities in both developed and emerging markets. Guru’s Los Angeles-based firm, which he co-founded with Harry Hartford in 2001, seeks potential opportunities among mid- and large-cap companies using quantitative and value-oriented methods. Each stock also receives a risk score based on the amount of volatility it adds to the portfolio. The investment team then enters positions in stocks with the highest expected risk-adjusted returns, which also have a lower price-to-earnings ratio than the market and a higher dividend yield.
While the two gurus take different approaches to stock picking, they still have many of the same holdings.
According to consolidated portfolio, a premium GuruFocus facility, value investors both held positions at Taiwan Semiconductor Manufacturing Co., Ltd. (TSM, financial), General Electric Co.
Taiwan Semiconductor Manufacturing
Caterer reduced its stake in Taiwan Semiconductor Manufacturing (TSM, financial) up 3.93% to 4.12 million shares during the quarter, while Wood left its position unchanged on 10 shares. Their combined equity portfolio weighting in the stock is 10.35%.
The Taiwanese company, which makes semiconductor chips, has a market cap of $742.98 billion; Its shares were trading at around $142.17 on Thursday with a price-earnings ratio of 32.59, a price-book ratio of 8.92 and a price-sales ratio of 12.28.
gf value line
Taiwan Semiconductor’s financial strength was rated 7 out of 10 by GuruFocus. Although the company has issued about 424.2 billion New Taiwan dollars ($15.4 billion) in new long-term debt over the past three years, it is manageable due to a comfortable level of interest coverage. A strong Altman Z-score of 10.3 indicates that the company is in good standing, even though assets are growing rapidly, with revenues rising. Return on invested capital also assumes the weighted average cost of capital, indicating that good value creation is occurring as the company grows.
The company’s profitability scored a 9 out of 10 rating, driven by an expanded operating margin as well as strong returns on equity, assets and capital that top most competitors. It also has a moderate Pietroski F-score of 5 out of 9, meaning conditions are typical for a stable company. Taiwan Semiconductor’s consistent revenue and earnings growth contributed to its estimated rank of 3.5 out of five stars. According to GuruFocus, companies in this rank give an average return of 9.3% annually over a 10-year period.
GuruFocus says Caterer has delivered an estimated 185.38% return on its long investments and Wood has seen a return of approximately 43.53% on its holdings since the first quarter of 2018.
Among the gurus who have invested in Taiwan Semiconductor Manufacturing, Ken Fisher ,trades, Department) holds the largest stake with 0.49% of the outstanding shares. frank sands ,trades, Department, first eagle investment ,trades, Department, Bailey Gifford ,trades, Department, ruan kaniff ,trades, Department) And spiros everything ,trades, Department), among others, also hold a significant position in stock.
Caterer enters a 1-million-share stake in General Electric (To give, financial) during the quarter, while Wood increased his stake by 22.54% to 55,649 shares. The combined equity portfolio weighting is 2.33%.
The Boston-headquartered industrial conglomerate, which recently announced it would be split into three separate companies, has a market capitalization of $113.17 billion; Its shares were trading on Thursday with a price-earnings ratio of about $103.06 without non-recurring items of 47.76, a price-book ratio of 3.03 and a price-sales ratio of 1.44.
According to the GF Value Line, the stock is currently priced fairly high.
GuruFocus gave General Electric a 3 out of 10 rating of financial strength based on a low debt-to-ratio and an Altman Z-score of 1.44, warning that it could be at risk of bankruptcy. The ROIC by WACC is also being overwhelmed, which means the company is struggling to create value.
The company’s profitability is rated 5 out of 10 as its margins and returns are underperforming most of the industry peers. The GE, however, is supported by a moderate Pietroski F-score of 4. As a result of declining revenue per share in recent years, however, One-Star Predictable Rank is eyeing. GuruFocus says that companies in this rank give an average annual return of 1.1%.
GuruFocus data shows that Caterer has lost an estimated 8.04% on its investments so far, while Wood has generated a 3.23% return.
With 1.54% share, Andreas Halvorsen ,trades, Department) is the largest master shareholder of General Electric. Other top guru investors include Hotchkiss & Wiley, Richard Pazen ,trades, Department), Were T Rowe Price Equity Income Fund ,trades, Department) And Nelson Peltz ,trades, Department,
In the third quarter, Wood trimmed its meta platforms (American Plan, financial)’s position rose 27.4% to 210,084 shares, while Caterer increased its holding by 9.11% to 257,700 shares. The combined equity portfolio weighting of Gurus in the stock is 2.14%.
After recently changing its name from Facebook, the Menlo Park, California-based social media company has a market cap of $921.65 billion; Its shares were trading around $331.32 on Thursday with a price-earnings ratio of 23.64, a price-book ratio of 6.94 and a price-sales ratio of 8.48.
Based on the GF value line, the stock is currently undervalued.
The financial strength of Meta Platforms was rated 7 out of 10 by GuruFocus, driven by a comfortable level of interest coverage and a strong Altman Z-score of 18.01. ROIC is also higher than WACC, suggesting that the company is creating value as it grows.
The company’s profitability was even better with a rating of 9 out of 10. Despite reporting a decline in its operating margin, Meta is backed by strong returns that are well above most competitors as well as a moderate Pietroski F-score of 6 above. Steady earnings and revenue growth contributed to the five-star prediction rank. GuruFocus data shows companies with this rank return 12.1% annually on average.
GuruFocus estimates that Caterer has grown 2.45% on its investments since the second quarter of 2021, while Woods has returned about 18.86% since being founded in the second quarter of 2019.
Bailey Gifford ,trades, Department) is the largest Guru shareholder of Meta with 0.28% stake. fissure, sand, Chase Coleman ,trades, Department), Dodge & Cox, Segalas, First Eagle, steve mandel ,trades, Department) and many other gurus also own the shares of the meta platform.
While Wood reduced his stake in JD.com (USB) by 61.76% to 2.4 million shares during the third quarter, Caterer narrowed his position from 33.71% to 1.03 million shares. Together, the combined equity portfolio weighting of Gurus is 2.09%.
The Chinese e-commerce company has a market cap of $113.50 billion; Its shares were trading at about $72.98 on Thursday, with a price-earnings ratio of 29.62, a price-book ratio of 3.41 and a price-sales ratio of 0.84.
The GF value line shows that the stock is currently significantly valued.
GuruFocus gave JD.com’s financial strength a 7 out of 10 rating based on substantial interest coverage and a high Altman Z-score of 4.21. The WACC, however, trails the ROIC, suggesting value creation issues.
The company’s profitability was also not that good, getting a rating of 4 out of 10. Even though it has returns above more than half of its industry peers, operating margin is underperforming compared to other companies. JD.com also has a moderate Piotrovsky F-score of 6, which means business conditions are stable.
According to GuruFocus, Wood has lost an estimated 16.90% on his investment. Caterer has gained around 77.23% since the third quarter of 2019.
Of the gurus who have invested in JD.com, Coleman holds the largest stake with 3.29% of its outstanding shares. Chris Davis ,trades, Department), Dodge & Cox, Philip Lafonto ,trades, Department), Halvorsen and Fischer also have significant stakes.
During the quarter, Caterer sold his Walt Disney (district, financial) by 14.68% to 461,244 shares. Wood increased his position by 158.44% to 393,879 shares. The combined equity portfolio weighting of both the gurus in the stock is 1.92%.
The media and entertainment giant, headquartered in Burbank, Calif., has a market cap of $284.59 billion; Its shares were trading around $156.57 on Thursday with a price-earnings ratio of 143.64, a price-book ratio of 3.22 and a price-sales ratio of 4.24.