The MS Global Franchise Fund (Trades, Portfolio) routinely buys and sells shares in international companies, but it was more active in the fourth quarter than in any other quarter in recent years. The Fund, which was founded in November 2001, bought or sold stock in 15 international companies in the fourth quarter.
Four were new stakes in the portfolio – Reed Elsevier PLC (LSE:REL, Financial), Reed Elsevier NV (XAMS:REN, Financial), Hermès International (XPAR:RMS, Financial) and Indivior PLC (LSE:INDV, Financial).
The Fund acquired a 184,385-share stake in Reed Elsevier PLC, a publishing and information company with offices in London and Amsterdam, for an average price of £10.38 per share (approximately $15.65 in American money). The transaction had a 0.55% on the Fund’s portfolio.
Reed Elsevier PLC has a P/E ratio of 23.6 and a Price/Book ratio of 11.5.
The Invesco European Growth Fund (Trades, Portfolio) has shares of Reed Elsevier PLC in its portfolio.
The Reed Elsevier group functions in the science, medical, legal, risk, marketing, financial and business sectors and is a dual-listed company. In addition to the stake it bought in Reed Elsevier PLC, which is listed in London and New York, MS Global also bought a stake in Reed Elsevier NV, which is listed in Amsterdam and New York.
The Fund purchased a 130,711-share stake in Reed Elsevier NV for an average price of €18.55 per share ($19.98 in U.S. currency). That transaction had a 0.54% impact on the portfolio.
Reed Elsevier NV has a P/E of 25.4 and a Price/Book of 11.6.
Causeway International Value (Trades, Portfolio) also has shares of Reed Elsevier NV in its portfolio.
MS Global added to its existing holdings in half a dozen international companies – Nestle SA (XSWX:NESN, Financial), British American Tobacco PLC (LSE:BATS), Experian PLC (LSE:EXPN), Reckitt Benckiser Group PLC (LSE:RB), Japan Tobacco Inc (TSE:2914) and Diageo PLC (LSE:DGE).
The Fund bought 89,726 shares of Nestle, a Swiss food and beverage company, for an average price of CHF70.46 per share (roughly $71). That purchase had a 1.14% impact on the portfolio.
Nestle, the fourth-largest stake in MS Global’s portfolio, has a P/E of 24.3 and a Price/Book of 4.0.
Six other gurus have shares of Nestle in their portfolios – Charles de Vaulx (Trades, Portfolio), Tweedy Browne (Trades, Portfolio) Global Value, Wintergreen Fund (Trades, Portfolio), IVA International Fund (Trades, Portfolio), David Herro (Trades, Portfolio) and Signature Select Canadian Fund (Trades, Portfolio).
MS Global also added to its stake in London-based British American Tobacco, one of the five largest tobacco companies in the world and the largest stake in MS Global’s portfolio. MS Global acquired 72,525 shares for an average price of £35.48 per share (about $53.51). The transaction had a 0.69% impact on the portfolio.
British American Tobacco has a P/E of 18.7 and a Price/Book of 12.3.
Six gurus – Bestinfond (Trades, Portfolio), Causeway International Value (Trades, Portfolio), Tweedy Browne (Trades, Portfolio) Global Value, Wintergreen Fund (Trades, Portfolio), Invesco European Growth Fund (Trades, Portfolio), Signature Select Canadian Fund (Trades, Portfolio) – have shares of British American Tobacco in their portfolios.
Divestiture and reductions
The Fund sold its stake in one international company – Swedish Match AB (OSTO:SWMA). MS Global sold its 38,630-share stake in Swedish Match, a Stockholm-based company that specializes in smokeless tobacco products but also makes cigars, matches and lighters, for an average price of Kr237.88 (nearly $27.90 in U.S. currency) per share. The sale had a -0.23% impact on the portfolio.
Guru David Herro (Trades, Portfolio) has a 3,178,000-share stake in Swedish Match.
MS Global sold portions of its stakes in four international companies – Sanofi (XPAR:SAN), SAP SE (XTER:SAP), Unilever PLC (LSE:ULVR) and Imperial Tobacco Group PLC (LSE:IMT).
MS Global sold 56,671 shares of Sanofi, a Paris-based pharmaceutical company, for an average price of €77.29 (about $83.27 in American money) per share. The sale had a -1.15% impact on the portfolio.
Four gurus – Vanguard Health Care Fund (Trades, Portfolio), Causeway International Value (Trades, Portfolio), David Herro (Trades, Portfolio) and Signature Select Canadian Fund (Trades, Portfolio) – have shares of Sanofi in their portfolios. Sanofi has a P/E of 28.2 and a Price/Book of 2.1.
MS Global also sold 80,944 shares of its stake in SAP SE, a German company that makes software to manage business operations and customer relations, for an average price of €55.01 (about $59.26 in U.S. currency) per share. The transaction had a -1.06% impact on the portfolio.
David Herro (Trades, Portfolio), Causeway International Value (Trades, Portfolio) and Invesco European Growth Fund (Trades, Portfolio) all have shares of SAP SE in their portfolios. SAP SE has a 23.0 P/E and a 3.9 Price/Book.
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