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Yahoo Finance 2020 election coverage

The Vanguard Health Care Fund Trims Medtronic, Chugai Pharmaceutical Positions

GuruFocus.com
·5 mins read

- By Tiziano Frateschi

The Vanguard Health Care Fund (Trades, Portfolio) sold shares of the following stocks during the third quarter of fiscal 2020, which ended on Sept. 30.


Medtronic

The fund reduced its stake in Medtronic PLC (NYSE:MDT) by 42.53%. The trade had an impact of -0.89% on the portfolio.

The Vanguard Health Care Fund Trims Medtronic, Chugai Pharmaceutical Positions
The Vanguard Health Care Fund Trims Medtronic, Chugai Pharmaceutical Positions

The medical device company has a market cap of $138 billion and an enterprise value of $154 billion.

GuruFocus gives the company a profitability and growth rating of 8 out of 10. The return on equity of 8.69% and return on assets of 4.8% are outperforming 66% of companies in the medical devices and instruments industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.45 is below the industry median of 1.85.

The company's largest guru shareholder is Pioneer Investments (Trades, Portfolio) with 0.57% of outstanding shares, followed by Barrow, Hanley, Mewhinney & Strauss with 0.49% and Dodge & Cox with 0.43%.

Chugai Pharmaceutical

The Chugai Pharmaceutical Co. Ltd. (TSE:4519) position was trimmed by 35.5%, impacting the portfolio by -0.83%.

The Vanguard Health Care Fund Trims Medtronic, Chugai Pharmaceutical Positions
The Vanguard Health Care Fund Trims Medtronic, Chugai Pharmaceutical Positions

Sysmex

The fund closed the Sysmex Corp. (TSE:6869) position, impacting the portfolio by -0.35%.

The Vanguard Health Care Fund Trims Medtronic, Chugai Pharmaceutical Positions
The Vanguard Health Care Fund Trims Medtronic, Chugai Pharmaceutical Positions

McKesson

The fund reduced its position in McKesson Corp. (NYSE:MCK) by 38.44%. The portfolio was impacted by -0.22%.

The Vanguard Health Care Fund Trims Medtronic, Chugai Pharmaceutical Positions
The Vanguard Health Care Fund Trims Medtronic, Chugai Pharmaceutical Positions

The company, which operates in wholesale pharmaceutical and medical products, has a market cap of $26.69 billion and an enterprise value of $32.72 billion.

GuruFocus gives the company a profitability and growth rating of 7 out of 10. While the return on equity of 14.82% is outperforming the sector, the return on assets of 1.53% is underperforming 55% of companies in the medical distribution industry. Its financial strength is rated 6 out of 10. The cash-debt ratio of 0.28 is below the industry median of 0.54.

The largest guru shareholder of the company is Richard Pzena (Trades, Portfolio) with 2.06% of outstanding shares, followed by Seth Klarman (Trades, Portfolio) with 1.03% and Larry Robbins (Trades, Portfolio) with 0.75%.

Zimmer

Vanguard exited its position in Zimmer Biomet Holdings Inc. (NYSE:ZBH). The portfolio was impacted by -0.22%.

The Vanguard Health Care Fund Trims Medtronic, Chugai Pharmaceutical Positions
The Vanguard Health Care Fund Trims Medtronic, Chugai Pharmaceutical Positions

The company, which manufactures orthopedic reconstructive implants, has a market cap of $28.24 billion and an enterprise value of $35.74 billion.

GuruFocus gives the company a profitability and growth rating of 8 out of 10. While the return on equity of 0.31% is underperforming the sector, the return on assets of 0.15% is outperforming 55% of companies in the medical devices and instruments industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.09 is far below the industry median of 1.85.

The largest guru shareholder is PRIMECAP Management (Trades, Portfolio) with 1.74% of outstanding shares, followed by Pioneer Investments with 1.3% and Hotchkis & Wiley with 1.02%.

AstraZeneca

The fund trimmed its AstraZeneca PLC (LSE:AZN) holding by 2.65%, impacting the portfolio by -0.15%.

The Vanguard Health Care Fund Trims Medtronic, Chugai Pharmaceutical Positions
The Vanguard Health Care Fund Trims Medtronic, Chugai Pharmaceutical Positions

Bristol-Myers

The fund reduced its Bristol-Myers Squibb Company (NYSE:BMY) holding by 3.33%, impacting the portfolio by -0.15%.

The Vanguard Health Care Fund Trims Medtronic, Chugai Pharmaceutical Positions
The Vanguard Health Care Fund Trims Medtronic, Chugai Pharmaceutical Positions

The drug developer has a market cap of $138 billion and an enterprise value of $163.81 billion.

GuruFocus gives the company a profitability and growth rating of 8 out of 10. The return on equity of -1.53% and return on assets of -0.56% are underperforming 58% of companies in the drug manufacturers industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.46 is below the industry median of 0.86.

The largest guru shareholder of the company is Jim Simons (Trades, Portfolio)' Renaissance Technologies with 1.93% of outstanding shares, followed by Dodge & Cox with 1.27% and PRIMECAP Management with 0.92%.

Alnylam Pharmaceuticals

The investment fund reduced its Alnylam Pharmaceuticals Inc. (NASDAQ:ALNY) position by 5.31%. The trade had an impact of -0.15% on the portfolio.

The Vanguard Health Care Fund Trims Medtronic, Chugai Pharmaceutical Positions
The Vanguard Health Care Fund Trims Medtronic, Chugai Pharmaceutical Positions

The company has a market cap of $14.97 billion and an enterprise value of $13.36 billion.

GuruFocus gives the company a profitability and growth rating of 3 out of 10. While the return on equity of -56.02% is underperforming the sector, the return on assets of -31.79% is outperforming 54% of companies in the biotechnology industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 6.11 is below the industry median of 8.68.

The largest guru shareholder of the company is Vanguard with 7% of outstanding shares, followed by Dodge & Cox with 4.06% and Lee Ainslie (Trades, Portfolio)'s Maverick Capital with 0.96%.

Abbott Laboratories

Vanguard reduced its Abbott Laboratories (NYSE:ABT) position by 4.83%. The trade had an impact of -0.14% on the portfolio.

The Vanguard Health Care Fund Trims Medtronic, Chugai Pharmaceutical Positions
The Vanguard Health Care Fund Trims Medtronic, Chugai Pharmaceutical Positions

The medical device manufacturer has a market cap of $193 billion and an enterprise value of $208 billion.

GuruFocus gives the company a profitability and growth rating of 7 out of 10. The return on equity of 10.88% and return on assets of 4.97% are outperforming 69% of companies in the medical devices and instruments industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.26 is below the industry median of 1.85.

Another notable guru shareholder of the company is Ken Fisher (Trades, Portfolio) with 0.39% of outstanding shares, followed by PRIMECAP Management with 0.38%.

Disclosure: I do not own any stocks mentioned.

Read more here:

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This article first appeared on GuruFocus.

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He’s created two multi-hundred-billion dollar companies and has labeled himself a champion for the little guy and small businesses.On Wednesday, however, posts on Chinese social-media platforms were largely unsympathetic toward Ma. One anonymous Weibo poster wrote “if you don’t go out looking for trouble, trouble won’t find you.” Another quipped that “it’s time for Jack Ma to wake up, listen often and speak less.”Despite Ma’s public dressing down and the reputational blow to China’s markets, many investors are still optimistic about Ant’s IPO. Higher liquidity requirements would hit sentiment, but that’s not necessarily a bad thing for a listing that saw shares selling for a 50% premium in gray-market trading ahead of the IPO.Ram Parameswaran, founder of San Francisco-based Octahedron Capital Management, a hedge fund that holds shares in Alibaba Group Holding Ltd. and is planning to invest in the Ant IPO, saw the suspension as positive to stamp the speculation in the stock. Shares of Alibaba, which owns a third of Ant, fell 7.5% in Hong Kong, the most since its debut in the city last year.“What’s clear to me is that the lending business will grow slower over the next few years,” Parameswaran said. “That in the larger scheme of things is net positive for the sector and Ant. Steady growth is good.”‘Strings Pulled’For global investors, however, the episode is likely to reinforce the notion that the party calls all the shots when it comes to major business decisions -- and any opening measures will be carefully calibrated for the impact on the Communist Party. That could be all the more important in the years ahead as China seeks to develop its own core technologies in the face of growing pressure from the U.S., which is likely to continue no matter who ends up the winner of Tuesday’s election.“This sends a signal to the major tech players not to get too big for their britches and that the party is still in charge,” said Kendra Schaefer, head of digital research at the Trivium China consultancy in Beijing. “Internationally, however, moves like this do very little to alleviate concerns that tech companies going out are not having their strings pulled by Beijing.”(Updates with CSRC statement in 10th paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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