Jeremy Grantham Sells Alphabet, Shire

- By Tiziano Frateschi

Jeremy Grantham (Trades, Portfolio), co-founder and chief investment strategist of GMO LLC (Grantham Mayo van Otterloo), sold shares of the following stocks during the first quarter.


The investor reduced his United Technologies Corp. (UTX) stake by 63.08%. The trade had an impact of -1.13% on the portfolio.

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The diversified industrial conglomerate has a market cap of $115.10 billion and an enterprise value of $156.25 billion.


GuruFocus gives the company a profitability and growth rating of 7 out of 10. The return on equity of 15.44% and return on assets of 4.53% are outperforming 64% of companies in the Aerospace and Defense industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.14 is below the industry median of 0.53.

The largest guru shareholder of the company is Dodge & Cox with 1.78% of outstanding shares, followed by Barrow, Hanley, Mewhinney & Strauss with 1.20% and Chris Davis (Trades, Portfolio) with 0.96%.

The guru closed his Shire PLC (SHPG) position. The portfolio was impacted by -1.06%.

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The Ireland-based specialty drug firm has a market cap of $55.04 billion and an enterprise value of $70.12 billion.


GuruFocus gives the company a profitability and growth rating of 9 out of 10. The return on equity of 13.33% and return on assets of 7.22% are outperforming 88% of companies in the Biotechnology industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.01 is below the industry median of 64.02.

The company's largest guru shareholder is John Buckingham (Trades, Portfolio) with 0.01% of outstanding shares.

Grantham trimmed 22.58% off his Alphabet Inc. (GOOG) position, impacting the portfolio by -0.83%.

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The Internet media giant has a market cap of $792.84 billion and an enterprise value of $683.41 billion.

GuruFocus gives the company a profitability and growth rating of 9 out of 10. The return on equity of 16.39% and return on assets of 12.52% are outperforming 56% of companies in the Internet Content and Information industry. Its financial strength is rated 9 out of 10. The cash-debt ratio of 27.91 is above the industry median of 7.46.

Dodge & Cox is the largest guru shareholder of the company with 0.44% of outstanding shares, followed by PRIMECAP Management (Trades, Portfolio) with 0.31%, Davis with 0.14% and Pioneer Investments (Trades, Portfolio) with 0.12%.

The iShares China Large-Cap (FXI) holding was closed. The portfolio was impacted by -0.71%.

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The Qualcomm Inc. (QCOM) holding was closed. The portfolio was impacted by -0.60%.

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The wireless chip vendor has a market cap of $93.15 billion and an enterprise value of $99.22 billion.


GuruFocus gives the company a profitability and growth rating of 7 out of 10. The return on equity of 22.22% and return on assets of 5.41% are underperforming 86% of companies in the Semiconductors industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.63 is below the industry median of 1.69.


The company's largest guru shareholder is PRIMECAP Management (Trades, Portfolio) with 2.03% of outstanding shares, followed by Barrow, Hanley, Mewhinney & Strauss with 1.64% and T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.52%.

Grantham curbed his Altaba Inc. (AABA) stake by 40.42%. The trade had an impact of -0.40% on the portfolio.

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The publicly traded investment holding company has a market cap of $33.47 billion and an enterprise value of $37.54 billion.

GuruFocus gives the company a profitability and growth rating of 4 out of 10. The return on equity of -16.89% and return on assets of -12.67% are outperforming 96% of companies in the Asset Management industry. Its financial strength was rated 5 out of 10. The cash-debt ratio of 0.74 was below the industry median of 0.76.

Paul Singer (Trades, Portfolio) is the largest guru shareholder of the company with 1.56% of outstanding shares, followed by First Pacific Advisors (Trades, Portfolio) with 1.35% and PRIMECAP Management (Trades, Portfolio) with 1.03%.

The Red Hat Inc. (RHT) position was curbed by 65.63%. The portfolio was impacted by -0.40%.

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The company has a market cap of $33 billion and an enterprise value of $31.13 billion.


GuruFocus gives the company a profitability and growth rating of 9 out of 10. The return on equity of 29.98% and return on assets of 8.29% are outperforming 61% of companies in the Software - Application industry. Its financial strength is rated 7 out of 10. The cash-debt ratio of 7.22 is above the industry median of 5.23.

The largest guru shareholder of the company is Warren Buffett (Trades, Portfolio)'s Berkshire Hathaway with 2.89% of outstanding shares, followed by Spiros Segalas (Trades, Portfolio) with 0.94% and John Paulson (Trades, Portfolio) with 0.24%.

Disclosure: I do not own any stocks mentioned.

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This article first appeared on GuruFocus.