The Vanguard Health Care Fund ( Trades , Portfolio ), which, as its name suggests, invests almost exclusively in health care companies, made five new buys in the fourth quarter, but its most significant transaction was the sale of its 4,716,539-share stake in Humana Inc. ( HUM ), a Louisville, Kentucky-based health insurance company.
Vanguard sold the stake for an average price of $175.36 per share. The divestiture had a -1.82% impact on Vanguard's portfolio.
Larry Robbins ( Trades , Portfolio ) is Humana's leading shareholder among the gurus with 7,486,029 shares in his portfolio. The stake is 5.05% of Humana's outstanding shares and 6.25% of Robbins' total assets.
Humana has a P/E of 19, a forward P/E of 16.6, a P/B of 2.4 and a P/S of 0.5. GuruFocus gives Humana a Financial Strength rating of 6/10 and a Profitability and Growth rating of 6/10.
Vanguard also sold its 1,589,200-share stake in Zimmer Biomet Holdings Inc. ( ZBH ), a Warsaw, Indiana-based medical device company, for an average price of $100.92 per share. The deal had a -0.32% impact on Vanguard's portfolio.
HOTCHKIS & WILEY is Zimmer Biomet's leading shareholder among the gurus with 2,444,917 shares in its portfolio. The stake is 1.2% of Zimmer Biomet's outstanding shares and 0.92% of HOTCHKIS & WILEY's total assets.
Zimmer Biomet has a P/E of 86.4, a forward P/E of 11.7, a P/B of 2 and a P/S of 3.3. GuruFocus gives Zimmer Biomet a Financial Strength rating of 4/10 and a Profitability and Growth rating of 7/10.
Vanguard raised its stake in Allergan PLC ( AGN ), a pharmaceutical company with offices in Dublin and New Jersey, by more than 19%. Vanguard acquired 1,771,420 shares for an average price of $298.52 per share. The transaction had a 1.1% impact on Vanguard's portfolio.
Vanguard's 10,962,347-share stake in Allergan is the largest stake among the gurus. It is 2.78% of Allergan's outstanding shares and 6.81% of Vanguard's total assets.
Allergan has a P/E of 35.3, a forward P/E of 14.4, a P/B of 1.5 and a P/S of 4.8. GuruFocus gives Allergan a Financial Strength rating of 6/10 and a Profitability and Growth rating of 7/10.
Vanguard boosted its stake in UnitedHealth Group Inc. ( UNH ), a Minnetonka, Minnesota-based managed health care company, by more than 9%. Vanguard purchased 1,995,000 shares for an average price of $116.87 per share. The deal had a 0.47% impact on Vanguard's portfolio.
The purchase hiked Vanguard's stake to 23,462,000 shares. Vanguard is UnitedHealth's largest shareholder among the gurus with a stake that is 2.46% of UnitedHealth's outstanding shares and 5.49% of Vanguard's total assets.
UnitedHealth has a P/E of 17.8, a forward P/E of 13.4, a P/B of 3.2 and a P/S of 0.8. GuruFocus gives UnitedHealth a Financial Strength rating of 7/10 and a Profitability and Growth rating of 8/10.
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This article first appeared on GuruFocus .