By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
AmextaFinanceAmextaFinance
  • Home
  • News
  • Banking
  • Credit Cards
  • Loans
  • Mortgage
  • Investing
  • Markets
    • Stocks
    • Commodities
    • Crypto
    • Forex
  • Videos
  • More
    • Finance
    • Dept Management
    • Small Business
Notification Show More
Aa
AmextaFinanceAmextaFinance
Aa
  • Banking
  • Credit Cards
  • Loans
  • Dept Management
  • Mortgage
  • Markets
  • Investing
  • Small Business
  • Videos
  • Home
  • News
  • Banking
  • Credit Cards
  • Loans
  • Mortgage
  • Investing
  • Markets
    • Stocks
    • Commodities
    • Crypto
    • Forex
  • Videos
  • More
    • Finance
    • Dept Management
    • Small Business
Follow US
AmextaFinance > Investing > Li Lu Loads Up On Banks, Trims Micron Technology Stake
Investing

Li Lu Loads Up On Banks, Trims Micron Technology Stake

News Room
Last updated: 2023/05/18 at 7:15 PM
By News Room
Share
8 Min Read
SHARE

Summary

  • The guru entered a position in East West Bancorp
    EWBC
    .
  • He also increased the Bank of America
    BAC
    stake.
  • The Micron holding was reduced.

Li Lu (Trades, Portfolio), founder of Himalaya Capital Management, released his first-quarter portfolio earlier this week.

The guru’s Seattle-based firm seeks long-term capital appreciation by embracing key value investment principles taught by legends like Benjamin Graham, Warren Buffett (Trades, Portfolio) and Charlie Munger (Trades, Portfolio). With a concentration on Asia, especially China, it picks stocks of companies with high economic moats, great growth potential and trustworthy management. U.S. equities make up a small fraction of the portfolio.

Keeping these criteria in mind, the 13F filing for the three months ended March 31 shows he entered a new position in East West Bancorp Inc. (EWBC, Financial), added to the Bank of America Corp. (BAC, Financial) stake and curbed the Micron Technology Inc. (MU, Financial) investment.

Investors should be aware 13F filings do not give a complete picture of a firm’s holdings as the reports only include its positions in U.S. stocks and American depository receipts, but they can still provide valuable information. Further, the reports only reflect trades and holdings as of the most-recent portfolio filing date, which may or may not be held by the reporting firm today or even when this article was published.

East West Bancorp

Li invested in nearly 2.30 million shares of East West Bancorp (EWBC, Financial), allocating 6.25% of the equity portfolio to the stake. The stock traded for an average price of $69.02 per share during the quarter.

It is now his sixth-largest position.

The Pasadena, California-based bank holding company, which also has operations in China, has a $6.60 billion market cap; its shares were trading around $46.68 on Tuesday with a price-earnings ratio of 5.47, a price-book ratio of 1.05 and a price-sales ratio of 2.66.

The GF Value Line
VALU
suggests the stock is significantly undervalued currently based on its historical ratios, past financial performance and analysts’ future earnings projections.

At 78 out of 100, the GF Score indicates the company is likely to have average performance going forward. While it received high ratings for profitability and growth, the financial strength and value ranks were more moderate and momentum was low.

Of the gurus invested in East West Bancorp, Li has the largest stake with 1.62% of its outstanding shares. Barrow, Hanley, Mewhinney & Strauss, Ken Fisher (Trades, Portfolio), Steven Cohen (Trades, Portfolio), the CI Select Canadian Equity Fund (Trades, Portfolio) and Joel Greenblatt (Trades, Portfolio) also own the stock.

Bank of America

The investor increased his Bank of America (BAC, Financial) position by 23.95%, buying nearly 3.50 million shares. The transaction had an impact of 4.90% on the equity portfolio. Shares traded for an average price of $33.01 each during the quarter.

Li now holds a total of 18.08 million shares, which represent 25.36% of the equity portfolio and is now his largest holding. GuruFocus estimates he has lost 15.91% on the investment since establishing it in the first quarter of 2020.

The bank, which is headquartered in Charlotte, North Carolina, has a market cap of $218.20 billion; its shares were trading around $27.38 on Tuesday with a price-earnings ratio of 8.22, a price-book ratio of 0.87 and a price-sales ratio of 2.27.

According to the GF Value Line, the stock is significantly undervalued currently.

The GF Score of 74 implies the company is likely to have average performance in the future, driven by a high value rank and more moderate ratings for growth, financial strength, profitability and momentum.

With 12.96% of Bank of America’s outstanding shares, Buffett is by far its largest guru shareholder. Other top guru investors include Dodge & Cox, Fisher, Diamond Hill Capital (Trades, Portfolio), PRIMECAP Management (Trades, Portfolio), Richard Pzena (Trades, Portfolio), Bill Nygren (Trades, Portfolio), the Smead Value Fund (Trades, Portfolio), the Parnassus Value Equity Fund (Trades, Portfolio), Charles Brandes (Trades, Portfolio), Prem Watsa (Trades, Portfolio), Chris Davis (Trades, Portfolio), the T Rowe Price Equity Income Fund (Trades, Portfolio), Munger and Jeremy Grantham (Trades, Portfolio).

Micron Technology

The largest transaction of the quarter was a 40.52% reduction of the Micron Technology (MU, Financial) stake, which had an impact of -12.06% on the equity portfolio. Li sold 4.65 million shares. During the quarter, the stock traded for an average per-share price of $58.60.

Li now holds 6.83 million shares, which occupy 20.20% of the equity portfolio. It is also now his second-largest holding. GuruFocus found he has gained an estimated 27.20% on the investment over its lifetime.

The semiconductor company based in Boise, Idaho has a $69.98 billion market cap; its shares were trading around $63.95 on Tuesday with a price-earnings ratio of 46, a price-book ratio of 1.48 and a price-sales ratio of 3.06.

Based on the GF Value Line, the stock appears to be modestly undervalued currently.

The GF Score of 77 means the company’s future performance is likely to be average. This is on the back of high ratings for financial strength, profitability, growth and momentum. The value rank, however, was low.

Primecap is the company’s largest guru shareholder with a 3.56% stake. Micron is also being held by Ruane Cunniff (Trades, Portfolio), Jim Simons (Trades, Portfolio)’ Renaissance Technologies, Watsa, Andreas Halvorsen (Trades, Portfolio), Hotchkis & Wiley, Parnassus, Mohnish Pabrai (Trades, Portfolio), Daniel Loeb (Trades, Portfolio), Grantham and Brandes, among others.

Portfolio composition

Li did not make any other changes to his holdings during the quarter.

Himalaya’s $2.04 billion equity portfolio, which is composed of seven stocks, is most heavily invested in the financial services and communication services sectors, followed by a smaller exposure to the tech space.

The guru’s other holdings as of March 31 are Alphabet
GOOGL
Inc. (GOOG, Financial)(GOOGL, Financial), Berkshire Hathaway Inc. (BRK.B, Financial) and Apple
AAPL
Inc. (AAPL, Financial).

Disclosures

I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.

Read the full article here

News Room May 18, 2023 May 18, 2023
Share this Article
Facebook Twitter Copy Link Print
Leave a comment Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Finance Weekly Newsletter

Join now for the latest news, tips, and analysis about personal finance, credit cards, dept management, and many more from our experts.
Join Now
Why this market pullback was different

Watch full video on YouTube

Why ‘Making It’ Feels Impossible In The U.S. Now

Watch full video on YouTube

NeuroOne Medical Technologies Corporation 2025 Q1 – Results – Earnings Call Presentation (NASDAQ:NMTC)

This article was written byFollowSeeking Alpha's transcripts team is responsible for the…

UnitedHealth chief Andrew Witty steps down after share plunge

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects…

US inflation falls to 2.3% in April

Unlock the White House Watch newsletter for freeYour guide to what Trump’s…

- Advertisement -
Ad imageAd image

You Might Also Like

Investing

Why Home Builders Are Bouncing Today—and Why Their Stocks Are Good Buys

By News Room
Investing

This Beaten-Down Industrial Stock Wants to Call America Home. Why It’s Time to Buy.

By News Room
Investing

These 8 Dividend Aristocrats Can Protect Your Portfolio in a Downturn

By News Room
Investing

Some Lenders Benefit From SBA’s Troubled Loan Program

By News Room
Investing

Social Security Is in Turmoil. Should You Lock In Benefits Now?

By News Room
Investing

Hims & Hers Stock Is Due for a Crash Diet. The GLP-1 Surge Is Fading Fast.

By News Room
Investing

Opinion: The stock-market selloff isn’t over yet. Here are 4 reasons why.

By News Room
Investing

With Trump’s tariffs paused, ‘Big Three’ automakers may race to build inventories

By News Room
Facebook Twitter Pinterest Youtube Instagram
Company
  • Privacy Policy
  • Terms & Conditions
  • Press Release
  • Contact
  • Advertisement
More Info
  • Newsletter
  • Market Data
  • Credit Cards
  • Videos

Sign Up For Free

Subscribe to our newsletter and don't miss out on our programs, webinars and trainings.

I have read and agree to the terms & conditions
Join Community

2023 © Indepta.com. All Rights Reserved.

YOUR EMAIL HAS BEEN CONFIRMED.
THANK YOU!

Welcome Back!

Sign in to your account

Lost your password?