Elfun Trusts (Trades, Portfolio), part of Boston-based State Street Global Advisors, disclosed this week that its top-five trades during the second quarter included new positions in Parker Hannifin Corp. (PH, Financial) and Splunk Inc. (SPLK, Financial), the closure of its position in Trane Technologies PLC (TT, Financial), and position reductions in Elanco Animal Health Inc. (ELAN, Financial) and Applied Materials Inc. (AMAT, Financial).
William Sandow and Christopher Sierakowski started managing the fund following David Carlson’s departure in 2019. The fund seeks long-term capital appreciation by investing in the common and preferred stock of companies that have the potential to pay dividends in the future.
As of June 30, the fund’s $3.84-billion equity portfolio contains 45 stocks, with two new positions and a turnover ratio of 4%. The top-four sectors in terms of weight are technology, financial services, communication services and health care, with weights of 25.86%, 17.16%, 15.25% and 11.35%.
The fund purchased 191,700 shares of Parker Hannifin (
PH, Financial), handing the position 1.53% weight in the equity portfolio. Shares averaged $309.74 during the second quarter; the stock is significantly overvalued based on Thursday’s price-to-GF-Value ratio of 1.64.
GuruFocus ranks the Cleveland-based industrial conglomerate’s profitability 8 out of 10 on several positive investing signs, which include a 4.5-star business predictability rank and an operating margin that has increased approximately 4.20% per year on average over the past five years and is outperforming more than 83% of global competitors.
Gurus with positions in Parker Hannifin include
The fund purchased 205,422 shares of Splunk (
SPLK, Financial), giving the position 0.77% weight in the equity portfolio. Shares averaged $127.52 during the second quarter; the stock is fairly valued based on Thursday’s price-to-GF-Value ratio of 0.95.
Gurus with holdings in Splunk include
The fund sold 244,500 shares of Trane Technologies (
GuruFocus ranks the Irish HVAC systems company’s profitability 7 out of 10 on several positive investing signs, which include a high Piotroski F-score of 7 and profit margins and returns outperforming more than 70% of global competitors.
Elanco Animal Health
The fund sold 881,900 shares of Elanco Animal Health (
GuruFocus ranks the Greenfield, Indiana-based animal health company’s financial strength 3 out of 10 on several warning signs, which include a low Piotroski F-score of 2, a weak Altman Z-score of 1.33, and debt ratios underperforming more than 80% of global competitors.
The fund sold 140,600 shares of Applied Materials (
AMAT, Financial), removing 16.84% of the position and 0.52% of the equity portfolio. Shares averaged $134.34 during the second quarter; the stock is significantly overvalued based on Thursday’s price-to-GF-Value ratio of 1.85.
GuruFocus ranks the Santa Clara, California-based semiconductor company’s profitability 9 out of 10 on several positive investing signs, which include a high Piotroski F-score of 8 and profit margins and returns outperforming more than 89% of global competitors.