Elfun Trusts Axes Alibaba Stake, Buys Advanced Micro Devices Position in 3rd Quarter


Elfun Trusts
(Trades, Portfolio), part of Boston-based State Street Global Advisors, disclosed this week that its top trades during the third quarter included the closure of its positions in Alibaba Group Holding Ltd. (BABA, Financial) and Martin Marietta Materials Inc. (MLM, Financial), reductions to its stakes in Visa Inc. (V, Financial) and United Rentals Inc. (URI, Financial), a new holding in Advanced Micro Devices Inc. (AMD, Financial) and a boost to its position in Mastercard Inc. (MA, Financial).

The fund seeks long-term capital appreciation by investing in common and preferred stocks of U.S.-based companies that have potential to pay dividends in the future. David Carlson stepped down as fund manager in 2019, after which William Sandow and Christopher Sierakowski took over as fund managers.

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As of Sept. 30, the fund’s $3.77 billion equity portfolio contains 44 stocks, with one new position and a turnover ratio of 6%. The top four sectors in terms of weight are technology, financial services, communication services and health care, representing 27.02%, 17.52%, 15.46% and 11.63% of the equity portfolio.

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Alibaba

The fund sold 114,200 shares of Alibaba (

BABA, Financial), trimming 0.67% of its equity portfolio.

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Shares averaged $182.30 during the third quarter; the stock is significantly undervalued based on Wednesday’s price-to-GF Value ratio of 0.43.

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GuruFocus ranks the Chinese e-commerce giant’s profitability 8 out of 10 on several positive investing signs, which include a three-star business predictability rank and profit margins and returns that outperform more than 78% of global competitors.

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Gurus with holdings in Alibaba include


Charlie Munger
(Trades, Portfolio)’s Daily Journal Corp. (DJCO, Financial),
PRIMECAP Management
(Trades, Portfolio),
Ken Fisher
(Trades, Portfolio)’s Fisher Investments and
Baillie Gifford
(Trades, Portfolio).

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Martin Marietta Materials

The fund sold 121,700 shares of Martin Marietta Materials (

MLM, Financial), slashing 1.11% of its equity portfolio.

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Shares of Martin Marietta averaged $363.69 during the third quarter; the stock is significantly overvalued based on Wednesday’s price-to-GF Value ratio of 1.49.

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GuruFocus ranks the Raleigh, North Carolina-based materials company’s profitability 8 out of 10 on several positive investing signs, which include a 4.5-star predictability rank, a high Piotroski F-score of 7 and an operating margin that has increased approximately 6.30% per year on average over the past five years and outperforms more than 76% of global competitors.

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Visa

The fund sold 153,100 shares of Visa (

V, Financial), trimming 22.63% of the position and 0.93% of its equity portfolio.

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Shares of Visa averaged $234.41 during the third quarter; the stock is fairly valued based on Wednesday’s price-to-GF Value ratio of approximately 1.

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GuruFocus ranks the San Francisco-based payment processing company’s profitability 9 out of 10 on several positive investing signs, which include a five-star business predictability rank, a high Piotroski F-score of 7 and profit margins and returns that are outperforming more than 86% of global competitors.

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United Rentals

The fund sold 105,100 shares of United Rentals (

URI, Financial), trimming the position 30.01% and its equity portfolio 0.87%.

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Shares of United Rentals averaged $335.67; the stock is significantly overvalued based on Wednesday’s price-to-GF Value ratio of 2.15.

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GuruFocus ranks the Stamford, Connecticut-based equipment rental company’s profitability 9 out of 10 on several positive investing signs, which include a 4.5-star business predictability rank, a high Piotroski F-score of 7 and profit margins that outperform more than 83% of global competitors.

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Advanced Micro Devices

The fund purchased 282,100 shares of Advanced Micro Devices (

AMD, Financial), giving the position 0.77% equity portfolio space. Shares averaged $102.22 during the third quarter; the stock is modestly overvalued based on Wednesday’s price-to-GF Value ratio of 1.20.

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GuruFocus ranks the Santa Clara, California-based microprocessor company’s financial strength 8 out of 10 on several positive investing signs, which include a double-digit Altman Z-score and interest coverage and debt ratios that outperform more than 70% of global competitors.

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Mastercard

The fund purchased 120,700 shares of Mastercard (

MA, Financial), increasing the position by 134.11% and its equity portfolio by 1.11%.

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Shares of Mastercard averaged $363.45 during the third quarter; the stock is fairly valued based on Wednesday’s price-to-GF Value ratio of 0.92.

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GuruFocus ranks the Purchase, New York-based credit card company’s profitability 9 out of 10 on several positive investing signs, which include a five-star business predictability rank and profit margins that outperform more than 80% of global competitors.

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