Wasatch International Growth Fund’s Top 5 Trades of the 2nd Quarter

The


Wasatch International Growth
(Trades, Portfolio) Fund, part of Utah-based Wasatch Global Investors, disclosed last week that its top five trades during the second quarter included new buys in Domino’s Pizza Group PLC (LSE:DOM, Financial) and Real Matters Inc. (TSX:REAL, Financial), a boost to its holding in WealthNavi Inc. (TSE:7342, Financial) and the closure of its stakes in PT Bank PTPN Syariah Tbk (ISX:BTPS, Financial) and Kusuri No Aoki Holdings (TSE:3549, Financial).

Managed by Ken Applegate, Linda Lasater and Derrick Tzau, the fund seeks long-term capital appreciation by investing in non-U.S., small-cap companies that have the potential for sustained revenue growth, proven management teams and sustainable competitive advantages. The fund applies an active, collaborative, bottom-up process to stock selection.

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As of June 30, the fund’s $1.22 billion equity portfolio contains 82 stocks, with three new positions and a quarterly turnover ratio of 6%. The top four sectors in terms of weight are technology, industrials, health care and financial services, representing 27.40%, 17.44%, 16.18% and 13.82% of the equity portfolio.

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Domino’s Pizza Group

The fund purchased 2,364,416 shares of Domino’s Pizza Group (

LSE:DOM, Financial), giving the position 1.04% equity portfolio space. Shares averaged 3.73 pounds ($5.14) during the second quarter; the stock is modestly overvalued based on Wednesday’s price-to-GF Value ratio of 1.24.

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The U.K.-based franchisee of Domino’s Pizza Inc. (

DPZ, Financial) operates a chain of pizza restaurants in the U.K. and several European countries. GuruFocus ranks the 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 an operating margin that has increased approximately 1.5% per year on average over the past five years and outperforms more than 94% of global competitors.

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Real Matters

The fund purchased 687,958 shares of Real Matters (

TSX:REAL, Financial), giving the position 0.81% equity portfolio weight. Shares averaged 16.67 Canadian dollars ($13.21) during the second quarter; the stock is signficantly undervalued based on Wednesday’s price-to-GF Value ratio of 0.65.

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GuruFocus ranks the Canadian network management service company’s financial strength 9 out of 10 on several positive investing signs, which include a strong Altman Z-score of 14.92 and interest coverage and debt ratios that outperform more than 72% of global competitors.

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WealthNavi

The fund purchased 375,057 shares of WealthNavi (

TSE:7342, Financial), giving the shares 1.12% weight in its equity portfolio. Shares averaged 4,059.92 yen ($36.90) during the second quarter.

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According to GuruFocus, the Japanese asset management service company’s cash-to-debt and debt-to-equity ratios are close to industry-median levels, suggesting average financial strength.

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PT Bank PTPN Syariah

The fund sold 56,102,280 shares of PT Bank PTPN Syariah (

ISX:BTPS, Financial), trimming 1.16% of its equity portfolio. Shares averaged 3,061.09 Indonesian rupiah (23 cents) during the second quarter; the stock is modestly undervalued based on Wednesday’s price-to-GF Value ratio of 0.82.

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According to GuruFocus, the Indonesian bank’s cash-to-debt and equity-to-asset ratios outperform more than 88% of global competitors, suggesting good financial strength.

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Kusuri No Aoki Holdings

The fund sold 137,800 shares of Kusuri No Aoki Holdings (

TSE:3549, Financial), curbing 0.91% of its equity portfolio. Shares averaged 8,062.12 yen ($73.27) during the second quarter; the stock is modestly undervalued based on Wednesday’s price-to-GF Value ratio of 0.83.

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GuruFocus ranks the Japanese health care company’s profitability 8 out of 10 on several positive investing signs, which include a four-star business predictability rank and a return on equity that outperforms more than 79% of global competitors.

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