Investor Spiros Segalas (Trades, Portfolio)’ Harbor Capital Appreciation Fund disclosed Monday that it purchased nine stocks during the quarter ended Oct. 31.
The fund’s largest positions established during the filing period were: Safran SA (XPAR:SAF, Financial), Merck & Co. Inc. (MRK, Financial), S&P Global Inc. (SPGI, Financial), Adyen NV (XAMS:ADYEN, Financial) and Union Pacific Corp. (UNP, Financial). Its 58 total positions in the portfolio were valued around $29.33 billion.
Segalas has managed the Harbor Capital Appreciation fund since 1990, overseeing most of its 11.33% annualized gain since its 1987 inception. The S&P 500 index returned 10.17% over the same period.
To select stocks, Segalas’ firm, Jennison Associates, focuses on the value prospects of companies and industries over the long term. In the third quarter, Harbor Capital Appreciation Fund management wrote in a letter to clients:
“We believe the Fund is well-positioned with companies whose growth prospects remain robust and well above-average, even with the heightened risk outlook. Although not immune to increasing trade tensions, the Fund, on balance, includes diversified growth opportunities across many different product and market segments with strong outlooks.”
Largest fourth-quarter new buys
Safran SA (XPAR:SAF, Financial)
Segalas purchased 2,370,437 shares of Safran SA in the period, giving it 1.04% space in the equity portfolio. The stock had a fourth-quarter trading price of €112.
Safran SA has a market cap of €45.71 billion; its shares were traded around €105.20 Monday with a price-earnings ratio of 21.08 and price-sales ratio of 2.59. The trailing 12-month dividend yield of Safran SA stocks is 1.52%. The forward dividend yield of Safran SA stocks is 1.52%.
Merck & Co. Inc. (MRK, Financial)
Segalas purchased 3,906,019 shares of Merck & Co. Inc., giving it 0.98% portfolio space. The company’s share price in the fourth quarter averaged $70.
Merck & Co. Inc. has a market cap of $196.15 billion; its shares were traded around $75.43 Monday with a price-earnings ratio of 60.35 and price-sales ratio of 4.89. The trailing 12-month dividend yield of Merck & Co. Inc. stocks is 2.65%. The forward dividend yield of Merck & Co. Inc. stocks is 2.88%.
S&P Global Inc. (SPGI, Financial)
Segalas purchased 1,354,927 shares of the company, giving it 0.83% portfolio space. The company’s share price in the fourth quarter averaged $198.
S&P Global Inc. has a market cap of $43.57 billion; its shares were traded around $173.64 Monday with a price-earnings ratio of 25.81 and price-sales ratio of 7.02. The trailing 12-month dividend yield of S&P Global Inc. stocks is 1.15%. The forward dividend yield of S&P Global Inc. stocks is 1.16%. S&P Global Inc. had an annual average earnings growth of 3.20% over the past 10 years.
Adyen NV (XAMS:ADYEN, Financial)
Segalas purchased 374,215 shares of Adyen NV, giving it 0.83% portfolio space. The company’s fourth-quarter share price averaged €602.
Adyen NV has a market cap of €14.72 billion; its shares were traded around €500.00 with and P/S ratio of 14.54.
Union Pacific Corp. (UNP, Financial)
Segalas purchased 1,274,594 shares of Union Pacific Corp., giving it 0.69% portfolio space. The company’s fourth-quarter share price averaged $153.
Union Pacific Corp. has a market cap of $102.16 billion; its shares were traded around $138.65 Monday with a price-earnings ratio of 9.30 and price-sales ratio of 4.71. The trailing 12-month dividend yield of Union Pacific Corp. stocks is 2.18%. The forward dividend yield of Union Pacific Corp. stocks is 2.32%. Union Pacific Corp. had an annual average earnings growth of 12% over the past 10 years. GuruFocus rated Union Pacific Corp. the business predictability rank of 3-star.
See Spiros Segalas (Trades, Portfolio)’ portfolio here.
