Of the thousands of funds in operation around the world, Citywire’s 2022 Alpha Female report, which was released in September, found only 12% are run solely by a woman or team of women. This is up slightly from the 11.8% reported in the prior year and a 1.7% gain from when the study first began in 2016. Meanwhile, mixed-gender teams run 12% of funds and the remaining 81.8% are managed by men only.
In this traditionally male-dominated profession, which is slowly but surely working its way toward gender parity, two well-known female investors that are tracked by GuruFocus are Sarah Ketterer (Trades, Portfolio) and Catherine Wood (Trades, Portfolio).
Causeway Capital’s Ketterer seeks to achieve superior risk-adjusted returns by investing in mispriced equities in both developed and emerging markets. The guru’s Los Angeles-based firm, which she founded with Harry Hartford in 2001, looks for potential opportunities among mid- and large-cap companies using quantitative and value-oriented methods. Each stock also receives a risk score based on the amount of volatility it adds to the portfolio. The investment team then enters positions in the stocks with the highest expected risk-adjusted returns that also have a lower price-earnings ratio and higher dividend yield than the market.
Comparatively, Wood, the founder, chief investment officer and CEO of ARK Investment Management, has made a name for herself through investing in “disruptive innovation” stocks. Implementing an iterative process that combines top-down and bottom-up research, her New York-based firm seeks to invest in companies that may benefit from cross-sector innovations like artificial intelligence, robotics, energy storage, DNA sequencing and blockchain technology.
While the two gurus take different approaches to stock picking, they still have a couple holdings in common.
According to the Aggregated Portfolio, a Premium GuruFocus feature based on 13F filings, the investors both had positions in JD.com Inc. (JD, Financial) and General Electric Co. (GE, Financial) as of the end of the third quarter of 2022.
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.
JD.com
Ketterer upped her position in JD.com (JD, Financial) by 17.14% to 559,200 shares during the quarter, while Wood curbed her holding by 563.07% to 165,976 shares. They have a combined equity portfolio weight of 0.85% in the stock.
The Chinese e-commerce company has a $93.86 billion market cap; its shares were trading around $59.96 on Tuesday with a price-earnings ratio of 651.68, a price-book ratio of 3.10 and a price-sales ratio of 0.64.
The GF Value Line suggests the stock is significantly undervalued currently based on its historical ratios, past financial performance and analysts’ future earnings projections.
Further, the GF Score of 78 out of 100 indicates the company is likely to have average performance going forward based on high ratings for growth, financial strength and GF value, a moderate profitability rank and a low marks for momentum.
From its six business segments, JD.com generated $34.7 billion in revenue during the third quarter of 2022.
GuruFocus found Wood has lost an estimated 17.20% on her investment so far. Ketterer has gained approximately 67% on the stock since the third quarter of 2019.
Of the gurus invested in JD.com, Chase Coleman (Trades, Portfolio) has the largest stake with 1.91% of its outstanding shares. Dodge & Cox, Chris Davis (Trades, Portfolio), Ken Fisher (Trades, Portfolio) and Philippe Laffont (Trades, Portfolio) also have significant holdings.
General Electric
Ketterer reduced her General Electric (GE, Financial) holding by 44.65% during the quarter to 626,353 shares, while Wood boosted her position by 7.71% to 35,923 shares. The combined equity portfolio weight is 1.11%.
The industrial conglomerate headquartered in Boston, which is in the process of spinning off its health care and energy businesses, has a market cap of $87.52 billion; its shares were trading around $80.10 on Tuesday with a forward price-earnings ratio of 18.93, a price-book ratio of 2.78 and a price-sales ratio of 1.16.
According to the GF Value Line, the stock is modestly overvalued currently.
The GF Score of 64 indicates the company has poor performance potential going forward. While it raked in a high momentum rating, its profitability and financial strength ranks were more moderate and marks for GF Value and growth were low.
Through its five business segments, the company generated $19.1 billion in revenue in the third quarter.
GuruFocus data shows Ketterer has lost an estimated 12.87% on her investment over its lifetime, while Wood has lost around 4.20% on the long-held position.
With a 3.39% stake, Dodge & Cox is General Electric’s largest guru shareholder. Other top guru investors include Hotchkis & Wiley, Richard Pzena (Trades, Portfolio), Andreas Halvorsen (Trades, Portfolio), Nelson Peltz (Trades, Portfolio), Mason Hawkins (Trades, Portfolio), Jim Simons (Trades, Portfolio)’ Renaissance Technologies and Bill Nygren (Trades, Portfolio).
Portfolio composition
Ketterer’s $3.57 billion equity portfolio, which was composed of 81 stocks as of Sept. 30, is heavily invested in the industrials, technology and consumer cyclical sectors.
Wood’s $14.35 billion equity portfolio, which is composed of 249 stocks, is largely invested in the health care and technology sectors.
