ONTARIO TEACHERS PENSION PLAN BOARD recently filed their 13F report for the fourth quarter of 2022, which ended on 2022-12-31.
The 13F report details which stocks were in a guru’s equity portfolio at the end of the quarter, though investors should note that these filings are limited in scope, containing only a snapshot of long positions in U.S.-listed stocks and American depository receipts as of the quarter’s end. They are not required to include international holdings, short positions or other types of investments. Still, even this limited filing can provide valuable information.
The Ontario Teachers Pension Plan Board is a private pension fund that administers benefit pension for school teachers within Ontario and is currently Canada’s largest single profession pension plan. The Ontario Teachers Pension Plan Board, or OTPP for short, was established in 1990, and, prior to its establishment, teachers’ pensions in Ontario had been solely sponsored by the government with assets invested in government bonds only. The board, also known commonly as Teachers’, currently has over $154 billion in net assets with over 1000 employees located in its head office in Toronto and investment offices in London and Hong Kong. The OTPP also has an office in New York, which is owned by Cadillac Fairview, the board’s real estate subsidiary with approximately 1,400 employees. The company manages equity, fixed income, and alternative investment portfolios, investing its assets in value stocks of large companies, indexed stocks, and actively managed equities. The OTPP utilizes a bottom up stock picking approach and benchmarks its performance against the S&P/TSX Composite Index, S&P 500, Morgan Stanley Capital International (MSCI) EAFE Index, and the MSCI Emerging Markets Index. OTPP’s process looks reviews hundreds of companies, first seeking through direct contact or identifying a macro level theme to find undervalued companies, analyzing through fundamentals, quality of management, business strategy, performance, assets, and other indicators, and monitoring its current investments against possible threats using oversight, foresight, and market intelligence. The company has a current market value of $13.6 billion and invests mainly in the financial and services sectors, which together make up almost half of the company’s total asset allocations, and also invests in the technology, health care, energy, consumer noncyclical, basic materials, transportation, and consumer cyclical sectors, among others to a lesser degree, in order of decreasing amount allocated. The OTPP currently serves over 311,000 members, including 182,000 elementary and secondary school teachers, 129,000 pensioners, and 70,000 inactive members, paying out an annual $5.3 billion.
As of the latest 13F report, the guru’s equity portfolio contained 475 stocks valued at a total of $9.19Bil. The top holdings were GFL(13.87%), MSFT(7.66%), and CB(6.29%).
According to GuruFocus data, these were ONTARIO TEACHERS PENSION PLAN BOARD’s top five trades of the quarter.
Chubb Ltd
During the quarter, ONTARIO TEACHERS PENSION PLAN BOARD bought 2,610,025 shares of NYSE:CB for a total holding of 2,619,273. The trade had a 6.27% impact on the equity portfolio. During the quarter, the stock traded for an average price of $208.05.
On 02/12/2023, Chubb Ltd traded for a price of $214.69 per share and a market cap of $89.01Bil. The stock has returned 4.50% over the past year.
GuruFocus gives the company a financial strength rating of 7 out of 10 and a profitability rating of 7 out of 10.
In terms of valuation, Chubb Ltd has a price-earnings ratio of 17.15, a price-book ratio of 1.76, a price-earnings-to-growth (PEG) ratio of 2.14, a EV-to-Ebitda ratio of 14.34 and a price-sales ratio of 2.10.
The price-to-GF Value ratio is 0.99, earning the stock a GF Value rank of 6.
JPMorgan Chase & Co
The guru established a new position worth 4,152,060 shares in NYSE:JPM, giving the stock a 6.06% weight in the equity portfolio. Shares traded for an average price of $126.71 during the quarter.
On 02/12/2023, JPMorgan Chase & Co traded for a price of $141.04 per share and a market cap of $413.85Bil. The stock has returned -7.00% over the past year.
GuruFocus gives the company a financial strength rating of 3 out of 10 and a profitability rating of 6 out of 10.
In terms of valuation, JPMorgan Chase & Co has a price-earnings ratio of 11.68, a price-book ratio of 1.56, a price-earnings-to-growth (PEG) ratio of 1.74 and a price-sales ratio of 3.26.
The price-to-GF Value ratio is 0.97, earning the stock a GF Value rank of 6.
Wells Fargo & Co
The guru sold out of their 9,072,713-share investment in NYSE:WFC. Previously, the stock had a 5.29% weight in the equity portfolio. Shares traded for an average price of $44.26 during the quarter.
On 02/12/2023, Wells Fargo & Co traded for a price of $47.51 per share and a market cap of $182.14Bil. The stock has returned -17.60% over the past year.
GuruFocus gives the company a financial strength rating of 4 out of 10 and a profitability rating of 6 out of 10.
In terms of valuation, Wells Fargo & Co has a price-earnings ratio of 15.13, a price-book ratio of 1.14, a price-earnings-to-growth (PEG) ratio of 3.98 and a price-sales ratio of 2.47.
The price-to-GF Value ratio is 1.04, earning the stock a GF Value rank of 5.
Caterpillar Inc
The guru sold out of their 2,138,516-share investment in NYSE:CAT. Previously, the stock had a 5.09% weight in the equity portfolio. Shares traded for an average price of $217.7 during the quarter.
On 02/12/2023, Caterpillar Inc traded for a price of $247.67 per share and a market cap of $128.89Bil. The stock has returned 24.28% over the past year.
GuruFocus gives the company a financial strength rating of 6 out of 10 and a profitability rating of 8 out of 10.
In terms of valuation, Caterpillar Inc has a price-earnings ratio of 19.58, a price-book ratio of 8.12, a price-earnings-to-growth (PEG) ratio of 2.54, a EV-to-Ebitda ratio of 11.98 and a price-sales ratio of 2.21.
The price-to-GF Value ratio is 0.97, earning the stock a GF Value rank of 6.
Visa Inc
The guru established a new position worth 2,207,871 shares in NYSE:V, giving the stock a 4.99% weight in the equity portfolio. Shares traded for an average price of $201.66 during the quarter.
On 02/12/2023, Visa Inc traded for a price of $227.2 per share and a market cap of $477.53Bil. The stock has returned 1.45% over the past year.
GuruFocus gives the company a financial strength rating of 7 out of 10 and a profitability rating of 10 out of 10.
In terms of valuation, Visa Inc has a price-earnings ratio of 31.78, a price-book ratio of 12.94, a price-earnings-to-growth (PEG) ratio of 3.03, a EV-to-Ebitda ratio of 24.53 and a price-sales ratio of 15.97.
The price-to-GF Value ratio is 0.82, earning the stock a GF Value rank of 9.
Please note, the numbers and facts quoted are as of the writing of this article and may not factor in the latest trading data or company announcements.
When GuruFocus covers insider information, we only track open market or the private purchase and sale of common stock with the transaction code of P or S. Therefore, all the transactions mentioned in this article are only the ones with transaction code of P or S.
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