GMO, a global investment management firm, manages $110 billion
in client assets it invests across a variety of asset classes
based using a combination of "traditional judgments with
innovative quantitative methods to find undervalued securities
and markets," per their website. The firm, led by Chairman of the
, bought 104 new U.S. stocks in the first quarter, for a total of
608 and quarter-over-quarter turnover of 8%.
Grantham is bullish on emerging markets. He predicts a 5.9%
annual return over seven years in stocks in the class, compared
to a negative 1.1% annual real return for U.S. large, and 3.7%
for U.S. high quality stocks, according to the GMO 7-Year Asset
Class Return Forecasts as of March 31, 2013.
Also, of the $75 billion GMO has put into equities, the U.S.
equity portfolio has a value of only $37.5 billion.
The Top 5 New Holdings
Copano Energy LLC (
In fifth place, GMO bought 556,549 shares of Copano Energy LLC (
), a 0.06% portfolio weighting, in the first quarter.
Copano Energy LLC was formed in August 2001 and incorporated in
the state of Delaware to acquire entities operating under the
Copano name since 1992, and to serve as a holding company for its
operating subsidiaries. Copano Energy LLC has a market cap of
$3.18 billion; its shares were traded around $40.21 with a P/E
ratio of 167.50 and P/S ratio of 2.08. The dividend yield of
Copano Energy LLC stocks is 5.72%.
CTC Media Inc. (
GMO bought 2,550,585 shares of CTC Media Inc. for $10 per share
on average in the first quarter as its fourth largest new
position. It has a 0.08% portfolio weighting and equals 1.6% of
the company's outstanding shares. Shares have since gained 14%
from his average purchase price.
CTC Media Inc. was incorporated in 1989 and commenced television
operations in May 1994, initially broadcasting from its first
owned-and-operated station. CTC Media Inc. has a market cap of
$1.8 billion; its shares were traded around $11.51 with a P/E
ratio of 20.60 and P/S ratio of 2.30. The dividend yield of CTC
Media Inc. stocks is 4.70%.
Virgin Media Inc. (
Virgin Media was GMO's third largest new addition, at 659,487
shares purchased for $42 per share on average. The price
increased 18% from the average purchase price.
Virgin Media Inc. is engaged in the entertainment and
communications business, being a quad-play provider of broadband
Internet, television, mobile telephony and fixed line telephony
services that offer a variety of entertainment and communications
services to residential and commercial customers throughout the
Virgin Media Inc. has a market cap of $13.82 billion; its shares
were traded around $51.09 with a P/E ratio of 3.60 and P/S ratio
of 2.60. The dividend yield of Virgin Media Inc. stocks is 0.30%.
Virgin Media Inc. had an annual average earnings growth of 31.8%
over the past 10 years.
GMO purchased 2,055,900 shares of its second largest new buy,
Russian search company Yandex, for $24 per share on average, a
13% portfolio weighting. Yandex shares have since gained 11% from
the average purchase price.
Yandex NV was incorporated in Netherlands. It is an Internet
company in Russia operating search engines. Yandex NV has a
market cap of $32.05 billion; its shares were traded around
$26.63 with a P/E ratio of 30.5 and P/S ratio of 9.
iShares MSCI Emerging Markets Indx ETF (
Consistent with his outlook for emerging markets, Grantham
purchased 4,636,445 shares of iShares MSCI Emerging Markets Indx
at $44 per share on average, making it his largest new holding.
The ETF price has since declined 1% from his average purchase
iShares MSCI Emerging Markets Indx (
) has a market cap of $41.04 billion; its shares were traded
around $43.38. The dividend yield of iShares MSCI Emerging
Markets Indx (
) stocks is 1.90%.
See further portfolio updates of Jeremy Gratham
. Also check out the
Top Growth Companies
and High Yield stocks of Jeremy Grantham.About GuruFocus:
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