David Rolfe Trims Holdings in Alphabet, Visa in 3rd Quarter

A look at Wedgewood Partners' largest sales

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Nov 24, 2015
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Wedgewood Partners Inc. was founded in 1988 with the goal of providing investors with a superior approach to managing investment portfolios. David Rolfe (Trades, Portfolio) has been Wedgewood's CIO for 18 years.

He manages a portfolio composed of 24 stocks with total value of $6,869 million, and the following are his largest sales during the third quarter.

Rolfe reduced his stake in EMC Corp. (EMC) by 97.53% with an impact of 3.12% on the portfolio.

The company supports businesses and service providers to transform information technology operations to an as a service model (ITaaS). During the last quarter, revenue grew by 1% year over year, with a growth of 5% year over year on a constant currency basis.

The stock is trading with a P/E ratio of 21.20 and has been as high as $30.92 and as low as $22.66 in the past year. It is currently 18.27% below its 52-week high and 11.52% above its 52-week low. According to the DCF calculator, at the current price of $25.27, the company looks overpriced by 12%.

Dodge & Cox is the largest guru shareholder with 4.41% of outstanding shares, followed by PRIMECAP Management (Trades, Portfolio) with 1.75% and Paul Singer (Trades, Portfolio) with 1.75%.

The investor reduced his stake in Express Scripts Holding Co. (ESRX) by 12.14% with an impact of 0.95% on the portfolio.

The company operates as a pharmacy benefit manager in North America. It includes HMOs, health insurers, third-party administrators, employers, union-sponsored benefit plans, workers' compensation plans and government health programs. For the third quarter, the company reported a growth of 4% for adjusted EBITDA and a growth of 3% for adjusted net income compared to the same quarter of a year before.

The stock is trading with a P/E ratio of 26.34 and has been as high as $94.61 and as low as $68.06 in the past year. It is currently 9.69% below its 52-week high and 25.54% above its 52-week low. According to the DCF calculator, at current price of $85.44, the company looks overpriced by 4%.

The company largest shareholder among the gurus is Dodge & Cox with 4.2% of outstanding shares, followed by Chris Davis (Trades, Portfolio) with 1.36%, Rolfe with 0.85% and Jeremy Grantham (Trades, Portfolio) with 0.68% of outstanding shares.

Rolfe also reduced his stake in Cognizant Technology Solutions Corp. (CTSH) by 10.31%, with an impact of 0.65% on the portfolio.

The stock is trading with a P/E ratio of 25.24 and has been as high as $69.80 and as low as $50.17 in the past year. It is currently 7.97% below its 52-week high and 28.04% above its 52-week low. According to the DCF calculator, at current price of $64.24, the company looks undervalued by 11%.

Rolfe is the largest guru shareholder with 1.13% of outstanding shares, followed by Pioneer Investments with 0.36%, Jeremy Grantham (Trades, Portfolio) with 0.36% and Matthews Pacific Tiger Fund (Trades, Portfolio) with 0.23%.

Rolfe also reduced his stake in LKQ Corp. (LKQ) by 11.53%, with an impact of 0.5% on the portfolio.

The company provides replacement parts, components and systems needed to repair cars and trucks. ILKQ delivered solid results for the third quarter in which revenue grew by 6.4%, while net income grew by 10.7%.

The stock is trading with a P/E ratio of 22.36 and has been as high as $32.25 and as low as $22.90 in the past year. It is currently 7.63% below its 52-week high and 30.09% above its 52-week low. According to the DCF calculator, at a current price of $29.79, the company looks undervalued by 21%.

Rolfe is the largest guru shareholder with 3.08% of outstanding shares, followed by Columbia Wanger (Trades, Portfolio) with 2.51%, Alan Fournier (Trades, Portfolio) with 1.54% and Meridian Funds (Trades, Portfolio) with 0.9% of outstanding shares.

Rolfe reduced his stake in Visa Inc. (V) by 12.02% with an impact of 0.46% on the portfolio.

It is a payment technology company that connects consumers, businesses, banks and governments in more than 200 countries and territories to fast, secure and reliable electronic payments.

The stock is trading with a P/E ratio of 33.60 and has been as high as $81.01 and as low as $60.00 in the past year. It is currently 1.11% below its 52-week high and 33.52% above its 52-week low. According to the DCF calculator, at the current price of $80.11, the company looks highly overpriced by 215%.

Frank Sands (Trades, Portfolio) is the largest guru shareholder with 2.11% of outstanding shares, followed by Ken Fisher (Trades, Portfolio) with 0.67%, Warren Buffett (Trades, Portfolio) with 0.45% and Steve Mandel (Trades, Portfolio) with 0.44%.

Rolfe also reduced his stake in Alphabet Inc. (GOOG) by 37.34% with an impact of 0.46% on the portfolio.

Alphabet was created to become the new holding company for Google Inc. Third quarter results show the strength of Google's business, and particularly in mobile search, it reported 13% growth for revenue.

The stock is trading with a P/E ratio of 33.46 and has been as high as $762.71 and as low as $487.56 in the past year. It is currently 0.88% below its 52-week high and 55.05% above its 52-week low. According to the DCF calculator, at the current price of $755.98, the company looks overpriced by 22%.

The company's largest shareholder among the gurus is Dodge & Cox with 0.48% of outstanding shares, followed by PRIMECAP Management (Trades, Portfolio) with 0.37%, Chris Davis (Trades, Portfolio) with 0.22% and Mason Hawkins (Trades, Portfolio) with 0.19% of outstanding shares.

Rolfe reduced his shares of Qualcomm Inc. (QCOM) by 4.97% with an impact of 0.42% on the portfolio.

The stock is trading with a P/E ratio of 15.31 and has been as high as $75.72 and as low as $47.5 in the past year. It is currently 35.33% below its 52-week high and 3.05% above its 52-week low. According to the DCF calculator, at the current price of $48.97, the company looks undervalued by 14%.

Jana Partners (Trades, Portfolio) is the main guru shareholder of the company with 1.9% of outstanding shares, followed by James Barrow (Trades, Portfolio) with 1.23%, Pioneer Investments with 1.08% and Jeremy Grantham (Trades, Portfolio) with 0.65%.

The investor reduced his stake in Varian Medical Systems Inc. (VAR) by 15.70% with an impact of 0.41% on the portfolio.

The company manufactures medical devices and software for treating cancer and other medical conditions with radiotherapy, radiosurgery, proton therapy and brachytherapy. Varian's company-wide revenues grew 5% from the year-ago quarter and had an increase of 11% in constant currency.

The stock is trading with a P/E ratio of 19.56 and has been as high as $96.67 and as low as $71.07 in the past year. It is currently 16.41% below its 52-week high and 13.70% above its 52-week low. According to the DCF calculator, at a current price of $80.81, the company looks overpriced by 9%.

Rolfe, with 1.97% of outstanding shares, is the main guru shareholder of Varian Medical, followed by Joel Greenblatt (Trades, Portfolio) with 0.51%, Jim Simons (Trades, Portfolio) with 0.29% and Westport Asset Management (Trades, Portfolio) with 0.28% of outstanding shares.

Rolfe reduced his stake in M&T Bank Corp. (MTB) by 5.85% with an impact of 0.37% on the portfolio.

The company provides individuals, corporations and other businesses, and institutions with commercial and retail banking services, including loans and deposits, trust, mortgage banking, asset management, insurance and other financial services.

The stock is trading with a P/E ratio of 16.59 and has been as high as $134.00 and as low as $111.50 in the past year. It is currently 6.66% below its 52-week high and 12.18% above its 52-week low. According to the DCF calculator, at the current price of $125.08, the company looks overpriced by 84%.

Warren Buffett is the largest guru shareholder with 4.04% of outstanding shares, followed by Rolfe with 2.66% and Mario Gabelli (Trades, Portfolio) with 0.13%.

Rolfe also reduced his shares of Core Laboratories N.V. (CLB) by 7.43% with an impact of 0.27% on the portfolio.

The company engaged in providing proprietary and patented reservoir description, production enhancement and reservoir management services to the oil and gas industry.

The stock is trading with a P/E ratio of 30.12 and has been as high as $142.87 and as low as $87.27 in the past year. It is currently 19.49% below its 52-week high and 31.81% above its 52-week low. According to the DCF calculator, at the current price of $115.03, the company looks overpriced by 6%.

Rolfe is still the largest shareholder of the company with a stake of 5.13% of outstanding shares, followed by Columbia Wanger (Trades, Portfolio) with 2.22%, Ron Baron (Trades, Portfolio) with 0.9% and John Rogers (Trades, Portfolio) with 0.62% of outstanding shares.