Lee Ainslie Packs Into Ackman’s Restaurant Brands in the 1st Quarter

Lee Ainslie (Trades, Portfolio), founder and CEO of Maverick Money, disclosed final 7 days that

Lee Ainslie (Trades, Portfolio), founder and CEO of Maverick Money, disclosed final 7 days that his prime trades for the to start with quarter involved a key offer in Monster Beverage Corp. (NASDAQ:MNST) and increased bets in Restaurant Brands International Inc. (NYSE:QSR), Humana Inc. (NYSE:HUM) and Fleetcor Technologies Inc. (NYSE:FLT).

Dallas-based mostly Maverick employs six authorities who each and every specialize in a certain marketplace: shopper, wellness care, cyclical, retail, financial and telecommunications, media and engineering. Ainslie, a former protégé of Julian Robertson (Trades, Portfolio)’s Tiger Administration, discusses with each and every marketplace head about the stocks in the portfolio and eventually will make the expenditure conclusions.

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The $4.seventy four billion fairness portfolio contains 466 stocks as of the quarter-close, with a turnover of 38%. The prime a few sectors in terms of weight are in shopper cyclical, engineering and wellness care, representing 23.64%, 22.85% and 19.57% of the fairness portfolio.

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Monster Beverage

Ainslie bought five,311,296 shares of Monster Beverage, slashing ninety eight.66% of the stake and 4.91% of the fairness portfolio. Shares averaged $64.39 all through the to start with quarter.

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The Corona, California-based mostly corporation makes energy beverages less than models like Monster Vitality, Monster Ultra and Java Monster. GuruFocus ranks the company’s financial toughness eight out of 10 and profitability 10 out of 10 on a number of positive investing indicators, which include a 4.five-star company predictability rank and an working margin that has increased about three.forty% per calendar year on ordinary over the past 5 many years and is outperforming at the very least 97% of world-wide opponents.

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Regardless of large company high-quality, Monster’s valuation ranks three out of 10 on the back again of price-ebook and price-gross sales ratios underperforming over 89% of world-wide opponents, suggesting possible overvaluation. The stock is trading closer to its 10-calendar year utmost price-gross sales valuation than its 10-calendar year minimal price-gross sales valuation.

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Restaurant Brands International

Ainslie procured 4,162,376 shares of Restaurant Brands International, raising the situation 925.seventy three% and the fairness portfolio three.52%. Shares averaged $fifty six.ninety nine all through the to start with quarter.

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The Toronto-based mostly corporation operates a few rapid-assistance restaurant chains: Burger King, Tim Horton’s and Popeyes Louisiana Kitchen. GuruFocus ranks Restaurant Brands’ profitability eight out of 10 on a number of positive investing indicators, which include a return on fairness that outperforms 95.78% of world-wide opponents and working margins that are outperforming over 97% of world-wide restaurant providers despite contracting over the past 5 many years.

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Pershing Sq. supervisor Monthly bill Ackman (Trades, Portfolio) reported in his April six shareholder letter that dining establishments that have “easy-to-use” electronic buying and supply choices have likely to “emerge stronger” from the coronavirus crisis as consumers come to be far more accustomed to buying dwelling supply. Ackman reported that whilst Restaurant Brands and Pershing’s other restaurant holdings Starbucks Corp. (NASDAQ:SBUX) and Chipotle Mexican Grill Inc. (NYSE:CMG) could possibly eliminate “a considerable total of sales” amid coronavirus lockdowns, the a few dining establishments are likely to acquire market share in electronic and supply.

Humana

Ainslie procured 475,055 shares of Humana, raising the situation one zero one.ninety nine% and the fairness portfolio three.fifteen%. Shares averaged $338.seventy seven all through the to start with quarter.

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The Louisville, Kentucky-based mostly corporation administers Medicare Benefit designs and other governing administration-sponsored plans. In accordance to GuruFocus, Humana’s profitability ranks eight out of 10 on the back again of a 4.five-star company predictability rank and a a few-calendar year earnings expansion amount that outperforms over eighty one% of world-wide opponents.

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Fleetcor

Ainslie procured 674,416 shares of Fleetcor, raising the keeping 119.21% and the fairness portfolio 2.sixty five%. Shares averaged $277.28 all through the to start with quarter.

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The Atlanta-based mostly corporation delivers a vary of specialized payment products. GuruFocus ranks the company’s profitability 10 out of 10 on a number of positive investing indicators, which include a large Piotroski F-score of 7, expanding working margins and a 4.five-star company predictability rank.

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Disclosure: No positions.

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James Li

I am an editorial researcher at GuruFocus. I have a Master’s in Finance from SMU, and I appreciate writing stories on financial developments and investor portfolios. Observe me on Twitter at @JamesLiGuru!

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