Robert Karr’s Joho Capital Portfolio – Q4 2021 Update

Stock Market


Tiger country

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This article is part of a series that provides an ongoing analysis of the changes made to Robert Karr’s 13F stock portfolio on a quarterly basis. It is based on Karr’s regulatory 13F Form filed on 2/14/2022. Please visit our Tracking Robert Karr’s Joho Capital Portfolio article for an idea on his investment philosophy and our last update for the fund’s moves during Q3 2021.

This quarter, Karr’s 13F stock portfolio value decreased ~ 3% from $ 744M to $ 723M. The number of holdings remained steady at 20. The top three positions represent ~ 59% of the 13F assets: Microsoft, Alibaba Group Holdings, and Global Payments.

Robert Karr was one of the most successful among the “tiger cubs” (protected by Julian Robertson & his legendary Tiger Fund). Although his main expertise is Asian equities, ~ 30% of the assets are typically in US listed 13F securities. The fund (1996 inception) closed to outside money and became a Family Office in 2014. To know more about Robert Karr and “tiger cubs”, check out the book Julian Robertson: A Tiger in the Land of Bulls and Bears.

New Stakes:

Simon Property Group (SPG) and Fidelity National Information Services (FIS): These two minutely small (less than 0.25% of the portfolio each) stakes were established during the quarter.

Stake Disposals:

Peloton Interactive (PTON) and Performance Food Group (PFGC): These two minutely small (less than 0.25% of the portfolio each) stakes were disposed of this quarter.

Stake Increases:

Alibaba Group ADR (BABA): BABA is Karr’s second-largest position at ~ 16% of the portfolio. It was established in Q2 2015 at prices between $ 79.50 and $ 94 and almost doubled the following quarter at prices between $ 57 and $ 84. Q1 2016 saw another ~ 50% increase at prices between $ 60.50 and $ 81.50. Since then, there had only been minor adjustments. Q1 2021 saw a ~ 25% selling at prices between ~ $ 223 and ~ $ 271. There was a two-thirds stake increase last quarter at prices between ~ $ 140 and ~ $ 222. The stock currently trades at ~ $ 97.50. There was a marginal increase this quarter.

Global Payments (GPN): GPN is now a top three ~ 15% of the portfolio stake. It was first purchased in Q2 2019 at prices between $ 136 and $ 163 and increased by ~ 200% next quarter at prices between $ 154 and $ 175. There was a ~ 70% selling in Q1 2020 at prices between $ 116 and $ 209. Next quarter saw another ~ 80% reduction at prices between $ 126 and $ 190. The position was rebuilt in Q3 2020 at prices between ~ $ 161 and ~ $ 185. Next quarter saw a ~ 30% increase at prices between ~ $ 156 and ~ $ 215. There was another ~ 70% stake increase in Q1 2021 at prices between ~ $ 177 and ~ $ 216. That was followed with a one-third increase last quarter at prices between ~ $ 157 and ~ $ 195. The stock currently trades at ~ $ 123. This quarter saw a marginal further increase.

Euronet Worldwide (EEFT): EEFT is a large ~ 11% of the portfolio stake purchased in Q3 2020 at prices between ~ $ 87 and ~ $ 106 and the stock currently trades at ~ $ 106. There was a ~ 60% stake increase in Q4 2020 at prices between ~ $ 88 and ~ $ 145. That was followed with a ~ 45% increase this quarter at prices between ~ $ 101 and ~ $ 135.

Note: Euronet Worldwide has had a previous roundtrip in the portfolio. A small 0.93% of the portfolio position was purchased in Q1 2020 at prices between $ 69 and $ 167. It was disposed of next quarter at prices between $ 73 and $ 121.

Dynatrace Inc. (DT): DT is a 9.30% of the portfolio position primarily built in Q1 2021 at prices between ~ $ 40 and ~ $ 56. There was a ~ 50% stake increase next quarter at prices between ~ $ 45 and ~ $ 61. The stock currently trades at $ 40.40. This quarter saw a marginal further increase.

Alphabet Inc. (GOOG), Amazon.com (AMZN), Autodesk Inc. (ADSK), and Uber Technologies (UBER): These small (less than ~ 1% of the portfolio each) stakes were increased this quarter.

Stake Decreases:

Microsoft Corp (MSFT): MSFT is currently the largest position at ~ 29% of the portfolio. It was first purchased in Q1 2019 at prices between $ 97 and $ 120 and increased by ~ 90% next quarter at prices between $ 119 and $ 138. Q3 2019 saw a ~ 14% stake increase while in Q1 2020 there was similar selling. This quarter saw a ~ 14% selling at prices between ~ $ 282 and ~ $ 343. The stock currently trades at ~ $ 276.

Adobe Systems (ADBE): The very small 0.21% of the portfolio stake in ADBE was reduced by ~ 50% this quarter.

Kept Steady:

Livent Corp (LTHM): LTHM is a ~ 14% of the portfolio stake established in Q3 2019 at prices between $ 5.50 and $ 7.75 and increased by ~ 60% next quarter at prices between $ 6.45 and $ 8.95. There was a ~ 40% selling in Q2 2020 at prices between $ 4.60 and $ 8.75. Q4 2020 saw a two-thirds increase at prices between ~ $ 9 and ~ $ 19. The stock currently trades at $ 22.30. Last quarter also saw a ~ 13% stake increase.

Note: Livent is a spinoff from FMC Corporation (FMC) that started trading in October 2018 at ~ $ 16.25 per share.

Amphenol Corp (APH), Constellation Brands (STZ), Ecolab (ECL), Estee Lauder (EL), Meta Platforms (FB) previously Facebook, Procter & Gamble (PG), and ServiceNow (NOW): These very small (less than ~ 0.65% of the portfolio each) stakes were kept steady this quarter.

The spreadsheet below highlights changes to Karr’s 13F stock holdings in Q4 2021:

Robert Karr - Joho Capital

Robert Karr – Joho Capital’s Q4 2021 13F Report Q / Q Comparison (John Vincent (author))

Source: John Vincent. Data constructed from Joho Capital’s 13F filings for Q3 2021 and Q4 2021.

Editor’s Note: This article discusses one or more securities that do not trade on a major US exchange. Please be aware of the risks associated with these stocks.



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